)

THE

ADJUSTMENT OF WAGES

BY TEE SAME AUTHOR.

ENGLISH ECONOMIC HISTORY AND
THEORY.

Crown 8vo. Part I. 5s. Part II. 10s. 6d.

SURVEYS, HISTORIC AND ECONOMIC.
Crown 8vo. 9s. net.

LONGMANS, GREEN, & CO., 39 Paternoster Row, London,
New York and Bombay.

THE

ADJUSTMENT OF WAGES

A STUDY IN

THE COAL MD IRON INDUSTRIES OF
GREAT BRITAIN AND AMERICA

W. J. ASHLEY

PROFESSOR OF COMMERCE IN THE UNIVERSITY OF BIRMINGHAM

LATE PROFESSOR IN HARVARD UNIVERSITY

SOMETIME FELLOW OF LINCOLN COLLEGE, OXFORD

WITH FOUR MAPS

LONGMANS, GEEEN, AND CO.

39 PATERNOSTER ROW, LONDON
NEW YORK AND BOMBAY

1903

tu >

l^F.-^'-

ri j^

M. A.

OF WHOM, HAPPILY, IN TWO CONTINENTS,

THE SAYING HAS BEEN TRUE:

COELUM NON ANIMUM MUTAT DUM TRANS MARE CURRIT

[' Caelum non animum tnuto,' &c., an adaptation from Horace, was written by
John Milton, at Geneva, in an album which is now among the chief treasures of the
Harvard Library.]

PEEFACE

The eight lectures which form the text of the present
volume were delivered on the Dunkin foundation at
Manchester College, Oxford, during the first three
months of the present year. I have thought it best in
printing them to make no change in their form, but to
content myself with amplifying the narrative or argu-
ment here and there by the addition of occasional
notes. I have, however, appended a great number
of illustrative documents. The rules of the English
Conciliation Boards may perhaps contain some useful
suggestions for the captains of American industry ;
while England has possibly something to learn from
the American ' scales,' as for instance in the determina-
tion of machine-minim? rates.

It will be understood that these lectures make no
pretence to completeness : certainly they do not pro-
fess to ' solve ' the problem of industrial organisation.
They aim only at giving a general preliminary survey
of existing conditions, which will make it possible for
others to go farther and to come to closer quarters
with concrete difficulties ; and, although I cannot help
believing myself that the trend of things is in a certain
direction, I hope this has not led me to distort or
colour the facts. I can hardly expect to have escaped

THE ADJUSTMENT OF WAGES

altogether the dangers of the professorial manner.
But I would ask my readers to remember that it is
necessary to simplify one's statement for the purposes
of exposition. I do not really forget that industrial
affairs are exceedingly complicated, and that, with all
our mechanism of boards and conventions, it is always
human nature we have to reckon with — a nature so
selfish and yet so generous, so suspicious and yet so
sympathetic !

I regret that I have been able to give so small a
proportionate amount of my space to the iron and steel
trades. It was the limitation of my time and the
absorbing and immediate interest of the coal situation,
both in Great Britain and in the United States, which
made me pass so hastily over the iron industry. But
that industry presents features of its own which need
thorough and systematic examination. Meanwhile the
appended documents will supplement to some extent
the one brief lecture on the subject.

The coal situation in Great Britain and in the
United States has, for some time past, deserved the
most careful and anxious attention. It is almost a
commonplace to say, but in this instance it looks as if
it were true, that Great Britain has reached a later
stage in industrial development. Great Britain has
reached the stage in whicli wages are determined by
negotiation between organised bodies of employers and
employed. The problem ])efore us here is to work out
some principles for the guidance of the negotiators.
America, on the other hand, seems to be just struggling
on to the stage of corporate negotiation. Of course
tliis opinion may ])e an old-world prepossession ; it

PREFACE ix

may be that America will come to present a new type,
corporate in its control of capital, individualist in its
treatment of labour ; and the Steel Corporation will
have many well-wishers in its experiment in this
direction. But it is doubtful whether there is room
enough in the industrial world for two principles quite
so opposite ; and an evolution of labour conditions
in the United States substantially similar to that of
England still appears the more likely.

There have been two events in the United States
since these lectures were delivered which have the most
direct bearing on the subject. The one is the Eeport
of the Anthracite Strike Commission, the other is the
Merger decision of the U.S. Circuit Court. It is
probable that the former will be regarded in the future
as a distinct step towards the corporate negotiation of
wages. With regard to the immediate and specific
causes of contention, wages and the hours of labour,
the Commission, as will be seen from the text of its
awards printed in the Appendix, has simply granted to
the miners one-half of their formal demands, exactly
what they professed themselves ready to accept months
before the President's intervention. It is noteworthy,
indeed, that neither in the miners' statement of claim
nor in the answers of the operators do we meet any of
the arguments based on the price of coal which are so
famihar to us in England. The questions raised in the
claims and replies, and to which accordingly the Com-
mission felt called upon to address itself, were only
those of the relation of anthracite miners' wages to
(1) ' the American standard of Hving,' (2) an alleged
recent increase in the cost of living, (3) wages in the

X THE ADJUSTMENT OF WAGES

bituminous fields, and -(4) wages in comparable occu-
pations. This omission of prices is the more remark-
able because the Commission proceeds to create a
sliding scale, following the price of coal, for the
future regulation of wages. It is parallel with recent
English practice that the scale starts with a recognised
minunum (the wages of the present award), and that
the Commission speaks of the absence of a minimum
from previous scales as ' a confessed defect.'

But far more important are the Commission's
utterances on the subject of ' recognition,' for it is in
this that the interest of the American situation centres.
The Commission felt ' constrained to decline making an
award which would compel an Agreement by the opera-
tors with the United Mine Workers of America,' on the
ground that that body was ' not a party to this sub-
mission ' (or reference). Yet it felt that it was ' incum-
bent upon it to give some expression to its views on the
general question.' Accordingly, it proceeds to express
its belief that ' a working Agreement between employers
and employees, embodying the doctrine of collective
bargaining, contains many hopeful elements ; ' and it
sets forth reasons for this opinion which will be found
to harmonise with the general line of argument in this
(course of lectures. The reasons, in brief, are these :
that unionism is the natural result of a ' community of
thought,' and that to recognise the union when it actu-
ally represents the men is now coming to be simply ' a
matter of business.' The Commission itself establishes
a Board of Conciliation representing the operators and
miners of the anthracite district only, and beyond this
its award does not go. But it expresses the hope that,

PREFACE xi

when the parties brought together on the Board have
learnt to deal with each other, * a trade Agreement
between operators and an anthracite mine workers'
organisation may commend itself to both sides.' It
is evident that the Commission does not regard this
anthracite organisation as necessarily quite separate
from the United Mine Workers. There are two grave
defects in the rules of that body which the Commission
explicitly points out ; neither of them, however, is
inherent in a miners' union, and both could easily be
remedied. Its recently revised constitution has given
the districts of the anthracite region ' quite independent
powers relative to the initiation of a strike, and has
removed the chief objection of the operators.' Hence
the Commission concludes, and its language is signifi-
cant, that ' an independent and autonomous organisation
of the anthracite mine workers in Pennsylvania, however
affiliated^ in which the objectionable features above
alluded to should be absent, would deserve the recom-
mendation of this Commission ; and, were it within the
scope of its jurisdiction, the fourth demand of the . state-
ment of claim for collective bargaining and a trade
Agreement might then be reasonably granted.'

The English reader who has followed the recent
course of the negotiations in South Wales must be
struck by the similarity of the problem presented to
the trade union leaders in the two countries. The
problem before the Miners' Federation of Great Britain
and the United Mine Workers of America is to concede
an ' autonomy ' to a district — in the one case to South
Wales, in the other to Eastern Pennsylvania — which
shall sufficiently correspond to local conditions, and at

THE ADJUSTMENT OF WAGES

the same time to retain an ' affiliation ' which shall be a
source of mutual support. That no solution can in the
nature of the case be theoretically satisfactory need not
hinder the adoption of a working compromise ; and if
such a compromise puts obstacles for the time in the
way of an all-embracing national policy, its postpone-
ment will at any rate allow of the acquisition of some
useful experience.

The other event to which I have referred is the
recent decision of the U.S. Circuit Court of Appeals
at St. Paul, declaring illegal and an actionable offence
the Merger of the Northern Pacific and Great Nor-
thern Eailroads in the Northern Securities Company.
This decision has yet to be confirmed by the Supreme
Court ; but, assuming that it will be confirmed,
I am bound to say that the rejoicing and alarm
with which the judgment has been received are both,
in my opinion, uncalled for. If it is greatly to the
economic; advantage of two businesses that they should
combine, the combination will ultimately be effected
whatever the law may be. Should one method be
judged illegal, another will be adopted ; and if the
owners of the businesses want to act together, or — in
the last resort — if the owners of the one want to sell to
the owners of the other, nothing can prevent them short
of the abolition of their rights of property. The result
of previous attempts to legislate against capitalist com-
bination has simply been to bring about a closer form
of union instead of a looser one ; and though the recent
Merger case has aroused an unusual amount of excite-
ment, from the magnitude of the interests involved and
the fact of the President's interposition, it cannot in the

PREFACE

long run alter the economic situation. But ' the long-
run ' will involve some waiting on the part of the
financial statesmen of America before they can effect
the combinations which they regard as urgently desir-
able, and they will have to do their work in the teeth
of public obloquy — a situation which cannot but be
painful to upright and public-spirited men.

Under these circumstances it may occur to them to
reflect that combination among workpeople is only
another form of that effort to lessen the disadvantages
of competition in which they are themselves engaged ;
and that, at a time when they certainly want all the
friends they can get, it may be politic to show a little
more patience with the movement of ' organised labour.'
And, on the other hand, it may occur to some of the
unionists who now join in the outcry against ' trusts,'
that there is no more reason for one railway to bid
against another for freight than for one workman to
bid against another for employment.

I have to express my gratitude to the many
gentlemen who have furnished me with information.
Among those who have been especially helpful I give
myself the pleasure of mentioning Mr. Thomas Ashton,
Secretary of the Miners' Federation of Great Britain ;
Mr. James C. Bishop, Employers' Secretary of the
Scottish Manufactured Iron Board ; Mr. W. H.
Bowater, coal merchant, Birmingham ; Mr. John
Graham Brooks, of Cambridge, Mass. ; Mr. James
Cox, Secretary of the Associated Iron and Steel
Workers ; Dr. Henry Dyer, Vice-President of the
Scottish Manufactured Steel Board ; Mr. H. Eccles, of

xiv THE ADJUSTMENT OF WAGES

the Briton Ferry Steel Company ; Mr. Ralph M. Easley,
Secretary of the Civic Federation, New York ; Mr.
John Hodge, Secretary of the Steel Smelters' Associa-
tion ; Mr. Daniel Jones, Employers' Secretary of the
]\[idland Wages Board ; Professor Lapworth, of Bir-
mingham ; Mr. A. K. McCosh, Chairman of the
Scottish Coal Conciliation Board ; Mr. John Mitchell,
President of the United Mine Workers of America ;
Mr. Hngh Munro, Acting-Secretary of the Amalga-
mated Society of Steel and Iron Workers ; Mr. W. W.
Pearson, Employers' Secretary of the Scottish Steel
Board ; Professor Redmayne, of Birmingham ; Mr.
Albert Stanley, Miners' Agent for the Cannock Chase ;
Mr. D. ]\I. Stevenson, coal merchant, Glasgow ; Mr.
D. A. Thomas, M.P. for Merthyr Tydvil ; Mr. John
Wilson, M.P. for Mid Durham ; Col. Carroll D. Wright,
U.S. Commissioner of Labor ; Mr. Ealph Young,
Secretary of the Northumberland Miners' Association ;
and the officers of the U.S. Geological Survey.

As to the maps, it is necessary to make this
observation. The map which commonly bears the
name ' The Coal Fields of the United States ' is a
geological map only, showing the coal deposits of the
country. But, as these deposits have only begun to be
worked, such a map, though exceedingly unportant for
other ])urposes, is most misleading to the student of
actual contem])orary industrial conditions. Map II. in
this book has thci-efore been constructed by the rough-
and-ready process of taking the geological maps in the
Twenty-second Annual Report of the U.S. Geological
Survey, and marking all the counties in the several

PREFACE XV

States in which practically no coal was raised in 1901,
according to the statistics in Mineral Resources of the
U.S., 1901 (U.S. Geological Survey), as needing to
be left out. The residue indicates, of course only in
a very rude and general way, the areas in which coal
is being actually raised, and may serve until the U.S.
Geological Survey gives us, as I hope, something
better. Maps III. and IV. are taken, with some
adaptation, from the Report of the U.S. Industrial
Commission.

Edgbaston : May 1, 1903.

CONTENTS

LECTURE I.
Introduction.

PAGE

Great Britain and the British Empire 1

The duty of the economist 7

The coal and iron industries . 9

Trade Unionism from the psychological and administrative points of

Unionism and Political Economy 17

LECTURE II.
British Coal Fields and Boards op Conciliation.

Description of the British Coal Fields 22

Completion of the miners' organisation ...... 30

Recognition of the miners' organisation . . . . . . 32

History of Unionism : the Newcastle Period ..... 36

The Midland Period : Boards of Conciliation 40

LECTURE III.
Prices and Wages.

The Minimum Wage .45

The Sliding Scale policy 54

Past, present, or future prices ? ....... 56

Prices and Sales 58

Prices and Cost of Production 58

Effect of the Sliding Scale on Wages 61

Present situation : ' Other Factors * 65

Wages and ' the Regulation of the Trade ' 68

THE ADJUSTMENT OF WAGES

LECTUKE IV.

General Rates and theik Interpretation.
The Hours of Labour.

PAGE

The Constitution of the Boards 72

The Chairman as Umpire ......... 75

The Joint Committees of Northumberland and Durham ... 77

The Miners' Agents 79

The Eight-Hours question .80

LECTURE V.

American Coal Fields and Joint Agreements.

Description of the American Coal Fields . . . . . . 87

General situation of the American coal industry .... 90

The Joint Agreement system in the Bituminous Fields . . . 95

The Interstate Agreement 97

State Joint Agreements : the Illinois Agreement . . . . . 98

Competition and Unionism ........ 103

' The Central Competitive Field ' and the admission of other States 105

Combination in the soft coal business ....... 108

LECTURE VL

The Anthracite Problem.

The recent strike .......... 112

The position of the Railroads ........ 114

The results of competition ........ 118

The attempt of 1892-3 and its failure 120

The recent unification ......... 123

Labour before and after 1875 ........ 127

• Freedom ' and industrial administration ..... 129

The strike of 1900 130

The strike of 1902 133

• Recognition ' 137

LECTURE VII.
The Iron Industry in Great Britain and America.

British Bo.ards of Conciliation ........ 142

Prevalence of the Sliding Scale policy . 146

Some reasons therefor ......... 149

America : the Amalgamated Association and annual scales . . 152

The Steel Corporation ......... 155

The strike of 1901 157

Preeent situation : the alternative policy 158

CONTENTS

LECTURE VIII.
The Legal Position of Trade Unions.

PAGE

England and America : resemblances and differences . . . . 160
The Incorporation of trade unions : the proposal and its reception

in America 164

The proposal and its reception in England . . . . . . 169

Its accomplishment in New Zealand and New South Wales . . 172

The legal revolution in England : The Taff Vale Case . . . 175

Present obscurity of the law : the problem of Malice . . . 178

The law of Agency 179

Effect of recent decisions in strengthening the unions . . . 181

APPENDICES.

I. Coal Mining in Great Britain : Sources of Information . . 185
TI. Coal Mining in Great Britain : Eules of Conciliation Boards, &c.

1. The Federated Districts : Rules of the Conciliation Board 194

2. Northumberland: Rules of the Conciliation Board . . 197
2a. „ Wages and Prices, 1879-1902 . . 200

3. Durham : Rules of Conciliation Board . . . . 202
3a. „ „ Joint Committee .... 206
8b. „ Wages, 1897-1902 212

4. Scotland : Rules of Conciliation Board .... 213

5. South Wales : Agreement and Rules of Conciliation

Board 218

III. Coal Mining in the United States : Sources of Information . 230

IV. Coal Mining in the United States : Joint Agreements, &c.

1. The Interstate Agreement 232

2. Illinois State Agreement ....... 234

3. Indiana State Agreement ...... 247

4. Ohio : Scale for the Hocking ValW 252

5. Pennsylvania : Scale for the Pittsburg district . . 257

6. Passages from the Report of the Commissioner of Labor

on the Anthracite Strike 262

V. Iron and Steel in Great Britain : Rules of Conciliation Boards,
Sliding Scales, &c.

1. Midlands : Rules of the Iron and Steel Wages Board . 268
1a. „ Sliding Scale for Ironworkers' Wages . . 274
1b. „ A bi-monthly Report and Declaration of

Wages .......••• 277

2. North of England : Annual Report of the Board for the

Manufactured Iron and Steel Trade . . . ■ 280

3. Scotland : Rules of the Manufactured Iron Trade Board 285

4. „ Rules of the Manufactured Steel Trade Board 291

THE ADJUSTMENT OF WAGES

PAGE

V. 4.\. Scotland : Steel Board : Form of Statement of Case . 296

5. „ Rules of the Blast Furnaces Board . . . 297

6. Cleveland : Agreement and Scale for Blast Furnaces . 302

7. South Wales: Eules of the Tinplate and Sheet Mill

Board 305

8. North-East Coast : Rules of the Board for Ironfoundries 307
VI. Iron and Steel in the United States : Joint Agreements, &c.

1. Statement as to the Sliding Scale and Wages, 1837-97 312

2. Agreements between Manufacturers and the Amalga-

mated Association 323

3. Account of the functions of the ' Adjuster ' . . . 326

4. Tinplate Agreement 329

VII. Report and Awards of the Anthracite Coal Strike Commission 333

MAPS

I. The Coal Fields of Grkat Britain .... after p, 44

II. Sketch Map showing Coal Areas actually worked

(1901) IN CERTAIN States of the American Union „ 110

III. Railroads entering the Anthracite Fields of

Pennsylvania „ 124

IV. OwNERsnip (1896) of the Anthracite Coal-lands

of Pennsylvania „ 126

THE

ADJUSTMENT OF WAGES

LECTUEE I

INTEODUCTION

It is with extreme pleasure that I find myself once more
face to face with an Oxford audience. Four years ago
I had the honour to lecture before the University on
an important topic in the economic history of England
and her American colonies ; ^ and before another audi-
ence I endeavoured to explain some of the leading social
characteristics of the great country which was then my
home.^ But it is fifteen years since I was last charged
with a systematic course of instruction in this place.
And, in those fifteen years, what vast changes have
come about ! The industrial supremacy — as that term
is commonly employed — of Great Britain has passed
away, never to return. Of course. Great Britain still
exports a considerably larger quantity of commodities
than any of its rivals, in proportion to the size of its
population. But the extent and physical resources of

^ 'The Commercial Legislation of England and the American
Colonies, 1660-1760 ; ' printed in Surveys Historic and Economic
(1900).

"^ ' The Economic Atmosphere of America,' printed ibid.

THE ADJUSTMENT OF WAGES

the United States are such that it only needed a corre-
sponding growth of its population (with the given state
of enterprise and knowledge of the industrial arts) to
bring about a production of commodities far in excess
of that of this little island. The decade from 1890
to 1900 may be regarded as the period when the United
States began to forge ahead. This is very clear in the
fundamental group of industries with which we are
going to be concerned in this course of lectures. The
American production of pig iron (the raw material for
all the iron and steel manufactures) exceeded ours for
the first time in 1889. It fell below in 1894 ; but since
then, with the opening up of the enormous and cheaply
worked iron-ore deposits of the Lake Superior region,
it has been rapidly going ahead; and in 1902 it stood
to ours in the proportion of 17f to 8. In the production
of steel, after a neck-and-neck rivalry for many years
(since, in fact, the introduction of the new Bessemer
and Siemens methods in the earl)^ seventies), the United
States finally left us behind in 1889 ; and since then
its figures of production have been soaring upwards,
and in 1900 they were already twice as large
as ours. As to coal, the foundation of our earlier
superiority, we have been outstripped in quantity
of output since 1889, and (except when mining in
America is suspended by strikes) we are likely to stay
farther and farther behind ; simply because America
possesses wide coal tracts, in the South and West,
which have hardly yet been touched. And — to take
but a single instance from another group of occupations
— while the cotton manufacture of this country, our
premier industry, has been almost stationary for thirty-
five years, the United States passed us in 1900 in the
amount of cotton consumed by its mills, although the

INTRODUCTION

manufacturing development of the Southern States is
only just beginning on a large scale.

If, then, we look forward to Great Britain as stand-
ing alone in the international comparisons of the future,
we are compelled to think of it as occupying, in relation
to the United States, and ultimately to Eussia also (with
its vast continuous empire in Asia and Europe and its
evidently enormous physical resources), something like
the position which Holland has occupied during the
nineteenth century in relation to the Great Powers of
Europe. But we may now reasonably anticipate that
Great Britain will not stand alone ; that it will consti-
tute only the senior, and, for a long time, the wealthier
member of a great British Federation. The time is
passing when we could profitably compare the pro-
ductive capacity of the insular Great Britain with that
of the United States ; the time has not yet come when
we can compare with the United States the British
Empire as a whole. For at present the British Empire
does not form an economic unit. It has been within
this same decade that the tide of sentiment in the
several parts of the Empire, which just before was at
slack water, or possibly even drifting toward dissolution,
has begun to set in the direction of closer association.
The result of my observation of the young men of
Canada in the years 1888 to 1892 was a conviction
that Canada was then slowly moving either towards
union with the American Eepublic or towards indepen-
dence. But what the missionary efforts of Imperial
Federationists could not achieve, was brought about by
the action of other governments. The Venezuela mes-
sage of President Cleveland in December 1895 revealed
a strength of British sentiment in Canada which cer-
tainly could not have been previously counted upon ;

B 2

THE ADJUSTMENT OF WAGES

and the refusal of the American Government, after the
victory of Mr. McKinley in 1896, to grant Reciprocity
to Canada, threw the new Canadian administration of
Sir Wilfrid Laurier back on a policy of preferential
tariffs with the mother country. Whatever may be
thought of the merit of preferential arrangements within
the Empire, or of the success of this particular experi-
ment, it is now evident that the Canadian tariff of 1897
opened a new period in the history of the relations
between England and her colonies. Meanwhile it has
been the appearance of the Great Powers in the Pacific
— of Germany in New Guinea in 1884, at Kiao-chau
in 1897, and in the Caroline and Samoan Islands in
1899, of Russia constructing her railway at Vladi-
vostok in 1891 and occupying Port Arthur in 1898, of
the United States at Hawaii in 1894 and the Philippine
Islands in 1898 — which has destroyed the isolation of
Australia and indicated to its people the practical value
of the British connection. Of the effects upon the
Empire of the South African war it is too early to
speak ; but one thing is certain. The real obstacle
to greater British unity was the weakness, or absence, of
common daily interests. But now, all over Canada
and Australia, there are thousands of men who will
look back, as to the most interesting period in their
lives, to the time when they served side by side with
men from England and all other parts of the English-
speaking Empire, The prospect of closer union is
encouraging ; and, if the union is to be a permanent
one, it will involve economic as well as political co-
operation. The possibility of utilising for English
manufactures the iron ore of Newfoundland or the
cotton of West Africa will become something more
than a commercial question if the imperial sense con-

INTRODUCTION

tinues to grow more acute. And yet while this is so —
and the changed situation is one of the most remarkable
phenomena of the last fifteen years — I should like, as
one who has made it his business to keep in touch with
the sentiment of one great British colony, to drop a
word or two of caution. That the British Empire will
hold together, and, holding together, that the union
will grow closer — for relations cannot remain stationary
— is still (we ought to realise it) rather a matter of
hope, of not-too- confident anticipation, than of comfort-
able assurance. And the future political structure must
be constantly conceived of as a free federation of self-
determining peoples, each of whom chooses to associate
itself with the parent country because it does itself
spontaneously desire to do so. We in England must
cease to talk, we must try to cease to think, as if we
had made the colonies, and the colonies owed us a debt
of gratitude. The colonies feel, and with some justice,
that they have made themselves. And if we remember
how large a part of the people of Canada and Austraha
are descended from working folk who left England
and Scotland and Ireland simply because they could not
make a living here, we cannot be surprised at an absence
of grateful emotion, an occasional acerbity of utterance,
which would shock many Englishmen if they really knew.

To descend from these high matters of the fate of
nations and come to lowlier topics, the fifteen years
have witnessed a new start in economic discussion and
investigation, and a noticeable widening of the horizon
of thought among those persons — far too few — who give
any serious attention to economic problems. We have
become aware in England that there really are eminent
economists in Germany, and their treatises are respect-

THE ADJUSTMENT OF WAGES

fully received by our writers. "WTien I was a young
tutor ill Oxford and began to talk about Gustav
SchmoUer, I suspect some of my friends almost supposed
that I had invented him. Since 1891 the reproach has
been removed from England of not possessing a single
scientific journal dealing with economic topics ; and
the successive volumes of the ' Economic Journal,'
edited by Professor Edgeworth, have set before us a
great deal of valuable material, in certain directions
at any rate of social inquiry. Since 1893 the in-
dustrial statistics at the disposal of the public have
been notably enriched by the establishment of the
Labour Department of the Board of Trade. In Mr.
Charles Booth's 'Labour and Life of the People,'
which began to appear in 1889, we have obtained a
store of fresh information, and, what is of more signifi-
cance, an example of statistical method such as would
do honour to any country, and such as no private
person in any other country has ever produced. In the
field of general theory, the only outstanding event since
the appearance of Mill's ' Principles ' in 1847 had been
the publication of Jevons' book in 1871 ; and Jevons^
influence was very limited. In Oxford the ordinary
man lived on Fawcett ; though his reign was being
threatened by the interesting American text-books of
General Walker. Not till 1890 did we obtain in Pro-
fessor Marshall's first volume a work of amplitude,
dignity, and thoroughness worthy of the subject and
of its best traditions. However opinions may differ as
to the formal adequacy of its method, there can be no
doubt that it represents a new departure in economic
speculation, a new centre round which the younger
theorists may work with satisfaction. And, finally, hi
]\[r. Palgrave's 'Dictionary' (1894-1899) we have a

INTRODUCTION

convenient work of reference, fit to be compared with its
German and French rivals, and, if inferior to them in
some respects, incontestably superior to them in others.

Such, then, have been some of the changes since I
last gave a course of lectures in Oxford. And yet I
cannot but feel that the opinion which I then held with
regard to the duty of the economist is equally valid
to-day. My subsequent experience has confirmed my
old feeling that, for all save those exceptional individuals
who have a gift for abstract speculation — I recognise
that it is a real gift, but I am sure that it is very excep-
tional — the chief duty of the professional economist,
and of the serious student capable of doing work for
himself, is the ascertainment of the facts of actual life.
These facts need to be classified, and brought under
generalisations : they must not be thrown before the
reader in a shapeless heap, but grouped so as to bring
out their inter-connection ; and, in order that the results
should produce an impression on the reader, they must
be presented in a certain artistic form. I grant that a
mere grouping of observed facts in the light of careful
common sense will not of itself carry one all the way
one would like to go. Sooner or later it will become
necessary to resort to more or less abstract and deduc-
tive lines of reasoning in order to bring out the full
meaning of the facts. But I am convinced that much,
very much, can be done before this necessity arises ;
and that one reason why the very considerable specu-
lative ability of English economists has so often the
appearance of beating the air, bombinans in vacuo, is
that it has not had furnished to it sufficiently concrete
statements of actual groups of circumstances. Perhaps
I may illustrate what I mean by calling your attention

THE ADJUSTMENT OF WAGES

to the state of our economic literature. There does not
exist a sincrle treatise describins^ the orsfanisation and
recent development of any one of the great English
industries — iron, cotton, woollens, engineering, or ship-
building. No adequate work has j^et been written on
the competition of foreign with English wheat. On
hardly any of those larger questions of policy which con-
front business men who take time to think — questions
which they approach from the side of immediate self-
interest, but which are nevertheless of vast social im-
portance — is there anything more to be pointed to than
fugitive magazine articles. I trust that the creation, now
beginning, of courses of higher commercial education in
the younger English universities, and the necessity laid
upon their teachers to come into closer contact with
business life, may fill up these deplorable and almost
scandalous gaps ; and by giving the abstract thinkers
something, if I may say so, to put their teeth into, turn
out, even for them, blessings in disguise. But I do not
limit my advocacy of such work to this possible use of
it. I beheve that, without any very subtle reasoning,
a mere exposition of existing conditions will, in many
a case, be of great assistance in the business of life.

It used to be discussed warmly whether Political
Economy should be regarded as a science or an art, or
as both ; whether it should be conceived of as a purely
objective presentation of the economic forces actually
at work ; or whether it should, in exchange or in
addition, be conceived of as indicating the course which
society ought to follow to reach a certain end. The
discussion was not a very profitable one ; and yet the
distinction is one which it is essential to keep in mind.
The economist, whether he wills it or no, cannot stop at
the objective presentation of facts : human nature is

INTRODUCTION

too Strong for him. But there will necessarily be as
many economic arts as there are social ideals. Science,
however, in the narrower sense, as the statement of
what is, can only be one. And it is surely not too
much to hope that a time is approaching when good
observation and sound generalisation will be recognised
as such from whomsoever they may proceed. All that
is necessary is that we should keep the two things, fact
and ideal, sufficiently apart in our minds ; and that it
should be reasonably clear at any moment whether we
are expositors or advocates.

I have chosen the allied group of industries which
have to do with the production of coal, and of iron and
steel, as materials and not as finished commodities, for
a number of simple reasons. In the first place, on
account of their magnitude. The persons engaged in
them number somewhere between an eighth and a ninth
of the income-earning population of Great Britain.
They are considerably more numerous than all those
engaged in agriculture ; and if we allow for the persons
dependent upon them, we are probably not far wrong
in attaching to the industries in question more than
one-seventh of the entire population. Coal, iron, and
steel, moreover (not including therein machinery and
ships), furnish between them one-fifth of our total
exports ; and though each of them comes far below the
seventy-three millions' worth of cotton goods in the
list of our exports, coal and iron and steel are next in
order, and with their thirty-one and twenty-five millions
respectively are far in advance of the woollen exports,
which follow behind with nineteen. These are the figures
of 1901.

Not only are the industries great in themselves :

lo THE ADJUSTMENT OF WAGES

they include an even greater proportion than their
numbers would imply of the workmen organised in
trade associations. The subscribing members of the
miners' unions alone are one-fourth of the total number
of trade unionists in the country — almost half a million
in 1900 out of less than two millions; they are more
than twice as many as all the members of the textile
unions put together.

This suggests the second reason for giving these
trades our special attention. As the largest of indus-
tries, they exhibit in its completest form that condition
of things which has been characteristic for some time
now of all the large industries of the country : the
complete substitution of collective or corporate bar-
<Tainino' about wa^'es for individual asfreement. While
London journalists have been discussing recently the
question whether collective bargaining is a good thing
or no, as if it were still a matter of choice, the people
engaged in these great staple trades have gone on fol-
lowing the deep-rooted habit of many years as a matter
of course. To discuss the desirability of collective
arrangement in the coal industry of England is some-
thing like discussing the desirability of the atmosphere :
it is the environment to which it is accustomed, and
which all parties take for granted. Wlien a distin-
guished Oxford tutor long ago became a disciple of
Auguste Comte, and began to preach the doctrines of
Positivism and talk about the ' proletariate,' it was
remarked that his knowledge of the ' proletariate ' was
derived exclusively from the observation of his college
scout. I have sometimes thought of late that the
notions of the labouring classes entertained by the
barristers who write for the papers are derived from
their contemplation of the laundresses in their chambers.

INTRODUCTION

And, speaking seriously, London is a very bad place for
the observation of Trade Unionism. London is, in the
main, a place of small trades ; and it is in the small
trades that unionism presents the greatest difficulties to
the economist and the moralist. As I shall hope to
indicate, the difference between large and small indus-
tries is something more than quantitative : in a sense it
is qualitative ; a difference of kind as well as of degree.
And before going further I wish to make it clear that
by my statement that collective wage arrangement is
the long-established method in the greatest industries of
the country, I by no means wish to imply that therefore
the method of collective arrangement is desirable in, or
even applicable to, all the industries of the land. The
question which confronts many an employer in a small
trade who seeks to do his social duty, whether or not
he shall encourage the growth of unionism in that
trade, is — putting on one side altogether pecuniary con-
siderations — by no means an easy one, and must be
dealt with differently in different cases. The circum-
stances of the trade and the character of the union
may be such that it is the employer's duty to treat the
union with cool indifference : it may even be his duty
to fight it with all his mio-ht.

But we are not now concerned with cases of this
kind. We are dealing with industries in which tens of
thousands of men are employed ; in which — in England
at any rate — the unions obviously represent the great
body of the employed ; in which for many years past they
have been formally recognised by the employers ; and
in which the officers of the trade societies are regularly
negotiated with by the representatives of the employers,
not as a matter of condescension, or charity, or
courtesy, but as a simple matter of business. I shall

THE ADJUSTMENT OF WAGES

show by-and-by to how large an extent this is already
coming to be the case in the United States, in spite of a
widespread opinion to the contrary. And this method
of collective arrangement has led universally in Eng-
land — is beo-innin<2; to lead in America — to the in-
stitution of a certain mechanism for adjusting the
remuneration of labour. It is this mechanism in its
several forms, and the profoundly important questions
of principle which are being brought to the front in

the course of its workino-, which will form the main

^O'

subject of the following lectures.

But, before approaching our proper subject-matter,
some general observations may not be out of place. In
what I shaU say, it will be remembered that I have in
my mind chiefly the large staple industries of the
country. Trade Unionism has been too exclusively
looked at hitherto from the points of view of abstract
ethics or of abstract economics. It ouo-ht also to be
looked at from the points of view of psychology and of
business administration. And first as to the psychology
of the matter. Unionism is only an example on a large
scale of the natural gregariousness of similars. This is
a very deep-seated human tendency, as deep as, or
deeper than, the pursuit of self-interest : a tendency,
indeed, wider than humanity, for do not ' birds of a
feather flocik together ' ? The best known of American
sociologists has based a whole system on what he calls
' the consciousness of kind.' I doubt whether this is
quite suflScient for a whole system ; but it is certainly
an illuminatinii' thought. The more or less distinct
consciousness that we are like some people and unlike
others is the ultimate cause of all the attractions and
repulsions of social life. And in no country is the

INTRODUCTION 13

operation of this force more universal than it is in
England to-day. Scarcely does a profession, however
specialised, come into existence than there springs up
an association of its members, with offices, subscriptions,
and meetings. It was only the other day that the
County Councils were given the Whisky Money to
spend on Technical Instruction : there is already an
Association of Directors and Organising Secretaries for
Technical Education. In the cases we are now con-
sidering, there are tens of thousands of people working
under the same conditions, with the same standard of
living, influenced in their income and expenditure by
the same decisions of their employers. Of course they
come together ; they talk over their affairs ; an es^prit
de corps, a class feeling, inevitably arises. And in the
case of the miners — and only in a less degree in the case
of some of the groups of iron- workers — the employment
is of such a nature that unless men enter it young they
will not enter it at all ; and therefore the occupation is
largely hereditary. Moreover, in the case of the miners
— and again in less degree with some of the others —
the occupation is generally the sole or main industry of
the neighbourhood : the bulk of the population is directly
or indirectly engaged in it. And thus, as the Majority
Eeport of the Labour Commission pointed out, the
miners of the several districts (and the situation is not
entirely peculiar to the miners) form what that report
calls a ' natural craft.' They would constitute an in-
choate or potential trade union, even if no formal
union existed. This explains the circumstance that a
common policy is sometimes pursued, the hardships of
a strike willingly endured, by a considerable fringe of
persons in a district who are unconnected with the union.
Of course there may be a certain amount of terrorism,

14 THE ADJUSTMENT OF WAGES

but it is often quite unnecessary. The union may contain
only the more provident, or altruistic, or ambitious, or
turbulent (which you will) of the people employed ;
but, for all that, it may fairly express the sentiment of
the whole population. And that is why it has been
sometimes found of late in America that the best means
to get people into the union is to organise a strike :
simply because the union is felt to be representing a
cause which thousands outside have at heart. From
the psychological point of view, then, trade unions
are not a matter of wonder : it would be a matter for
wonder if they did not exist.

Look now at the thing from the administrative
point of view. Manufacturing on a large scale — what
the Gennans call Grosshetrieh (it is a pity we have no
neat term for it) — necessarily involves common rules.
In the old domestic industry work could be carried on
when the workpeople liked — each cottage weaver, each
villa<Te blacksmith, could be^in work and leave off as
he chose. But in the modern factory, works, yard,
mine, where many men are employed, whether with
much or little machinery, it is administratively impos-
sible to treat every man as an individual. lie must be
subjected to common hours and other general regu-
lations. This is almost as true of the payment of
wages. Introduce piecework as much as you please ;
pay, if you like, a few peculiarly skilled or trustworthy
men a higher time wage ; for the mass of the men,
when many are employed, there must be general ' rates '
of wages : a separate bargain with every man and a
separate scale of reckoning for each are administratively
impossible. But what is necessary in a single business
is natural in a whole industry. Besides the psycho-
logical influences disposing employers towards what

IN TROD UCTION 1 5

Adam Smith long ago called their ' tacit combination,'
influences which are strong in proportion as the em-
ployers are necessarily brought together at market day,
in social intercourse or otherwise, there is the weighty
consideration that a common policy on the part of all
the employers, the observance of the same standards or
rates of wage, greatly lightens the toil of conducting
business operations. The employer has the task of
marketing his product on the one side, and of pro-
viding capital, and therewith the technical requirements
of the process, as well as of superintending the labour,
on the other ; it is usually a great nuisance if he has,
at the same time, to worry himself as to whether a
rival coalowner or manufacturer is paying the same
wages or getting his labour more cheaply. Looked at
from the employers' point of view, a common rate of
wages is mainly a labour-saving device. Of course
there are employers, here and there, who break away
and pursue a wage policy of their own : this is more
often done in America than in England. But, speaking
broadly, a common rate of wages commends itself to
the employers of a district for administrative reasons,
and would do so if there were no unions. Such a
method as the sliding scale, making wages vary auto-
matically with the price of the product, was introduced,
it would seem, in the iron industry by the masters some
time before there was any joint agreement with the
men. But it is evident that the subjection of the men
to common rules of work and common rates of wages
vastly strengthens the sense of identity of interest on
their part to which I have already referred. And the
step is a short one, though often difficult to take, from
common rates to common agreements.

But it follows from this that the greater uniformity

i6 THE ADJUSTMENT OF WAGES

there is in the labour required, the easier it is to agree
upon common rates ; and the greater the number of
varieties of service performed in the same estabhsh-
ment, the more difficult it is to make a general rule.
An old rate may be clung to by the men after the old
uniformity has disappeared ; and the resistance to a
necessary modification of the scale may induce the
employers to declare that collective agreement must be
replaced by individual bargaining when the new variety
was, after all, not incapable of reduction to a rule,
though a rule of more intricate application than the old
one. Something like this was apparently the position
of affairs at the time of the recent great engineering
strike. The industries we are now going to consider
are marked by certain broad similarities in the kind of
labour — so that the work of the hewer or the puddler
is much the same wherever he is employed — together
with innumerable divergencies in detail. Yet it has
been found possible, as we shall see, to regard all these
divergencies as variations of measurable degree from
certain recognised types, and to devise means for
applying the same scale to the several particular cases
with a very considerable measure of success.

Unions exist for many other purposes than to obtain
good wages. They have been among the most powerful
forces working in the direction of the limitation of the
hours of labour. They have used their influence to
secure proper provision for safety ; to diminish the
employment of children ; to secure compensation for
accidents. And most of them perform to some extent
the provident functions of friendly societies. But their
main purpose has been to secure as high wages as pos-
sible ; and, after all, the amount of the weekly income
is the most important single question in the workman's

INTRODUCTION ,7

industrial life. Now I do not intend to discuss at any
length the theoretical question of the possible influence
of unions on wages. I would refer you to the excellent,
though not very easy, chapter on the subject of Trade
Unions in the recent editions of Professor Alfred
Marshall's ' Economics of Industry.' You will there
see how impossible it is to arrive at one sweeping judg-
ment applicable to all unions or to unionism as such.
There are unions and unions ; and while some unions
may be harmful to the community, of others, such as
those we are about to consider, the ' confident ' judg-
ment of a man Uke Professor Marshall is that ' on the
whole they facilitate trade.' But there are three obser-
vations I might briefly make :

1. The prevalent middle-class and journalistic
opinion that in some way unions are necessarily
opposed to the ' laws of Political Economy,' is a
survival from the economics of seventy years ago.
Every English and American economist of eminence
takes care to point out that in the wages bargain
the isolated workman is usually at a disadvantage
in comparison with the employer. Professor Mar-
shall's way of phrasing it is that ' the normal force
of supply and demand ' will not act freely if the con-
tracting parties have no ' reserve price.' The primary
significance of a union, according to him, is that it
enables the working-man to have a reserve price.
Professor Clark, who is perhaps the acutest economic
theorist that the United States have yet produced, puts
it in this fashion : ' a slight excess in the number
of labourers ' puts a ' lever ' into the hands of em-
ployers which may enable thera to pay a wage inferior
to ' the productive power ' of the men they engage.
Such, he says, is ' the original and generally sound

l8 THE ADJUSTMENT OF WAGES

reason advanced in justification of the organisation of
labour.' ^ I do not refer to these opinions as positively
authoritative ; but simply to remove an obstacle in the
way of the unbiassed consideration of the subject. It
is surprising, but it is true, that one is still constantly
told, or finding it implied, that unionism is ' against
Political Economy.' Usually this is supposed to reflect
discredit on unionism ; occasionally it is asserted that
this is ' so much the worse for Political Economy.'
But if Political Economy is taken to mean what the
chief economists of the last two generations have
actually been teaching, the opinion indicates simple
ignorance.

2. My second observation is that in any particular
contention the economist is no more able than any
other shrewd observer to determine offhand the
exact point at which wages should be fixed. What
economic reasoninof has done has been to indicate in
a very general way the limits within which the rate
of wages can move without being detrimental to the
particular industry or to the community at large. But
the application of this general reasoning to a particular
case is extremely difiicult even in relation to the for-
tunes of a single industry. It involves the possession
of certain data which are far from easy to obtain.
Wages, let us say, are fixed unduly high when they
cause profits to fall below those obtainable in other
equall}' attractive fields of investment. They are fixed
unduly low when they fall beneath the average wages
in other industries, due regard being paid to the other
advantages or disadvantages of the occupation. But
whether this point has or has not been reached in
profits or wages is not readily determined ; certainly it

' Political Science Quarterly, xvii. (1902), 561.

INTRODUCTION 19

would be unsafe to accept the assurances of either
party, however honest they may be, without exami-
nation ; and in most instances it would be impossible,
even with the utmost care in forming an opinion, to arrive
at more than a strong presumption, simply because the
necessary information is not accessible. And when we
come to the wider question of the effect of a certain
rise or fall on the community in general, the problem
becomes even more haid to determine. We cannot
always be confident what will be the ultimate real inci-
dence of a new burden on an industry — whether it be a
tax or a higher cost of labour. If we decide that it falls
on the consumer, we cannot be sure in all cases whether
this will be hurtful to the community or not, and if
hurtful, to what extent. If we decide that it trenches on
profits, we cannot confidently predict the effect of a decline
in the rate of interest on the accumulation of capital or
of a decline in the reward of management on the supply
of business ability. I do not say this to depreciate the
value of economic reasoning : even the general and
preliminary considerations which will be found in the
standard text-books may have a useful effect in sug-
Cfestino" caution and discouraofinsf extreme views. But
they do not provide, nor do they profess to give, definite
and immediate solutions. And it must be remarked
that, so far as I know, no attempt has yet been made,
by any competent investigator, to get to close quarters
with the economic issues involved in any notable wages
dispute ichile the dispute was still going on : the nearest
approach to it has been in the adjudications of arbitra-
tors in the northern coal trade. But these gentlemen
have commonly introduced general economic considera-
tions only incidentally, if at all ; for they are usually
prudent enough to give their judgments without their

c 2

20 THE ADJUSTMENT OF WAGES

reasons. There are, indeed, a few interesting and
probably more or less true estimates of the merits of a
strike, after the strike is over ; but that is hardly so
useful.

3. My third point is that all the unions in the coal
industry, and all but one of any importance in the iron
industry, are exem2)t at any rate from one criticism
often brought against trade unions, whether with justice
or not. If the insistence upon a standard time wage
pulls all the men down to a dead level and checks
production — how far this may be true I cannot now
consider — nothing of the kind can be said of the piece
wage of the miners, and of the iron and steel workers.
The one considerable exception is the Society of Iron-
founders, which clings to a method of time-work which
is probably quite out of date.^ But this is quite a small
society compared with the great miners' unions. And
there, as we shall see later, the chief ordinary work of
the officials is to apply piece-work rates.

4. One final remark. We cannot find absolute
logicality in economic organisation any more than in
political. Fortunately we English people do not expect
it in political organisation. If it were conceivable that
workmen should all be content to submit to the paternal
rule of tlieir employers, or even yield under protest to
the terms they imposed, it might be practical politics
to raise the cry, ' Down with trade unions ! ' But a
century's experience has shown that that is not feasible
— I am speaking of the staple trades of the country ;
and almost everyone who has given the matter serious
attention, including the majority of the last Royal Com-
mission of Labour and all the economists, has pointed
to the obvious fact that the only practical alternative to

' Webb, Industrial Democracy, 302.

INTRODUCTION 21

Strikes — peaceful collective bargaining — depends for its
efficacy on the existence of strongly organised unions.
But strongly organised unions, though they are in-
dispensable instruments for enforcing treaties, are
powerful weapons of attack. We need not cover up
the fact that employers are often compelled to yield
more than they honestly think to be just, because of
the fighting power of the unions engaged. This puts the
employer in an awkward moral situation : it is almost
more than can be asked of average human nature to
demand that he shall rejoice at the growing power of a
union ; and yet, unless it is strong, it cannot effectively
maintain the peace. I cannot help thinking that in-
dustrial organisation is something hke the present
British political system. The ministry of the day
always maintains the wisdom of its policy : if we listen
only to its members, it is hard to understand how, on
any particular measure, anyone who is not either a
knave or a fool can possibly differ from them. And
yet all the time each ministry knows very well that the
existence of two parties is necessary for the working of
our political system. It even grumbles at the weakness
of the Opposition as harmful to the country, and indeed
to some extent awkward for itself, while at the same
time it argues that there is nothing the Opposition
ought to oppose. This is the inner illogicality of the
two-party system which prevents its adoption by our
more consecutively thinking Gallic neighbours. But
we manage to get along, nevertheless, with our parlia-
mentary government ; and similarly the strong men,
like Sir David Dale, who have to represent the em-
ployers' cause in the North, accept the situation as they
find it and make the best of it.

22 THE ADJUSTMENT OF WAGES

LECTURE II

BRITISH COAL FIELDS AND BOARDS OF CONCILIATIOX

Lv order to realise the present situation in England, it is
necessary to begin with the actual geographical position
and the physical characteristics of the several coal fields.
The map at the end of this lecture represents the
districts where coal is now actually being worked. It
represents, therefore, also the districts inhabited by a
mining population ; it being understood that the mining
population is much thinner in some parts than in
others, and that here and there their dwellings extend
for two or three miles beyond the actual boundaries of
the coal field.

1. Though it is not the largest of the fields, in area,
output, or number employed, we may take the Great
Northern or Newcastle Field first, because it has been
worked much longer and has historically been by far
the most important until a comparatively recent period.
Its output in 1901 was over 45,000,000 tons, and it
gave employment to 155,000 persons. The coal is
easily worked, and most of that contained in a seam
can be taken out. Owing to its proximity to the sea
it is easily shipped ; and the greater cheapness of water
carriage long gave it an advantage in the London
market. Of the 45,000,000 tons of total output in
1901, more than 8^- millions were shipped coastwise
to English ports ; while 13^ millions were exported.
Half the whole output, that is, was sent away by water

BRITISH COAL FIELDS 23

to distant and competitive markets — markets in which
any prolonged faihire of supply would lose the trade
(at any rate for the time) ; its place being taken, in the
case of London, by the Midland coal ; in the more
important case of the foreign market — practically the
Baltic — by the coal of Westphalia. This is a fact to
be constantly borne in mind in examining the trade
policy of the northern miners. The other half of the
northern output is used in the domestic consumption
and still more in the manufactures of the district —
especially the engineering works of Newcastle, the
blast furnaces of Middlesborough, and the puddling
furnaces of Darlington.

But though this field is the oldest in working, and
it still stands second both in output and number em-
ployed, it is gradually becoming of less relative im-
portance in comparison with other fields. Its output
is increasing, but only slowly ; and its miners form a
slowly decreasing percentage of the total number em-
ployed. Thus five years ago it was 20"3 per cent. ;
now it is 19 "6. Moreover, although there is a great
deal of coal in the two counties, and mining can be
profitably engaged in on the present, and even on a
greater, scale for a good many years, the days of
the field are numbered. According to the most trust-
worthy estimates, those of Dr. HuU,^ its available
resources down to a depth of 4,000 feet are not one-
third of those of South Wales ; and at the present rate
of consumption they will be exhausted in about a
century.

2. Next may be taken the great continuous area
which stretches from the West Eiding of Yorkshire
into Derbyshire, with a fringe of Nottinghamshire, and

1 0«r Coal Resources (1897), 90.

24 THE ADJUSTMENT OF WAGES

which is most conveniently spoken of as the Yorkshire
Field. This has at present the largest output, 50,000,000
tons in 1901 ; and much the largest number of people
employed, about 183,000 — 23*1 per cent, of the whole:
' nearly one quarter of the total coal-mining population
of the United Kingdom.' ^ It is able to ship a certain
quantity of coal for the Baltic from Hull ; but the
railway freight to the coast is a great disadvantage as
compared with the Newcastle coal ; and the demand is
mainly furnished by the manufacturing needs of the
great cities in its midst or on its borders — especially
Leeds, Bradford, and the woollen and worsted towns of
its northern end ; Sheffield and the steel manufacture
of its interior ; and Nottingham and its hosiery on its
southern edge, Barnsley is the chief mining business
centre, and the seat of some of the largest colliery
companies and of the miners' union. The available
resources are very large, more than three times as great
as those of the northern field ; and the output is
rapidly increasing ; doubling itself between 1860 and
1880, and increasing 66 per cent, in the last twenty
years. As the western edge is being worked out or
becoming more expensive, mining operations are gradu-
ally being thrust further to the eastward into Notting-
hamshire.

3. Next we come to what is in several respects the
most interesting of all the fields, that of South Wales.
Its output is, indeed, somewhat less than that of the
northern field, and much less than that of the
Yorkshire field— some 39,000,000 tons in 1901 ; and
the number of people employed was in proportion,
viz. 150,000. But its production is increasing even
more rapidly than that of Yorkshire : in the last

^ Home Office, Mines and Quarries : Statistics (1901), pt. ii. 53.

BRITISH COAL FIELDS 25

twenty years it has almost doubled. Moreover, the
coal is on the whole considerably more valuable — its
average price per ton in 1901 being about 11 5. %d. as
compared with 9s. 4^. for Great Britain as a whole. ^
To bring out the meaning of these figures something
must be said of the quality of the coal. Coals are
divided roughly into two great classes — bituminous
and anthracite : terms which are seldom heard outside
mining circles in England because our coal is, almost
entirely, more or less bituminous, but household words
in America, where over a great part of the country
hard or anthracite coal is the only coal used in stoves
and furnaces for domestic purposes. Coal is generally
called anthracite when it contains some 90 per cent, or
more of carbon ; bituminous when it contains from
TO to 80 per cent. As a rule the coal of a district
belongs clearly to one or other variety. But in South
Wales there exist unusually large quantities of a coal
of an intermediate sort, containing from 80 to 90 per
cent, of carbon. This is the celebrated steam coal of
South Wales. ^ And there is a beautiful symmetry
about the place of these different sorts of coal in the
South Wales basin. The isolated portion to the ex-
treme west contains hardly anything but pure anthra-
cite. There is not very much of it anywhere in South
Wales — about 2J million tons a year, and half of this is
exported.^ The extreme east is chiefly bituminous ;

' Home Office Statistics, pt. iii. 173.

^ Hull, Coal Resources, 9, note.

* ' Anthracite coal is to a considerable extent shipped from South
Wales to continental countries for use in the stoves which take the place
of the open fire in our own country, this form of fuel being found much
more convenient for burning in inclosed stoves. The actiial tonnage so
disposed of is not easily ascertained, but it is probably one half of the
whole. About twenty-five years ago anthracite coal was largely consumed
in the making of pig-iron, several important works, including those of

26 THE ADJUSTMENT OF WAGES

between these two extremes, mixed with softer coal but
preponderating more and more as one moves westward,
is the intermediate or steam coal. Now this steam coal
produces a greater heat at less expense for fuel and
labour than any other, and it is especially desirable
for the generating of steam. The better qualities of
it are also practically smokeless, and accordingly it is
the most desirable for the navy. South Wales, like the
northern field, exports a very large proportion of its out-
put; in 1901 almost half, 18,000,^000 out of 39,000,000.
But a large part of this is of a kind such as other coun-
tries will not readily do without. There is, indeed, some
steam coal in the north of England, but usually it is so
mingled with other qualities that it does not pay to
separate it unless price goes very high. The United States
also possesses excellent steam coal in West Virginia,
e.g. that of the Pocahontas mine ; but hitherto the cost
of freight to the coast and across the Atlantic has been
a more than sufficient protection ; and South Wales has
enjoyed to some extent the advantages of a monopoly.
But besides the south-continental and naval demand,
the coal is largely employed in the iron and steel works
of the district, which have established themselves there
(to some extent moved there from the Midlands) be-
cause of the ease and cheapness with which the desir-
able sort of iron ore could be brought by water from
Northern Spain. The question whether, when iron ore
and coal lie apart, the coal shall go to the ore or the

Ystalyfera and Aiinam, having used anthracite fiTel exdusively. Never-
theless, anthracite continues to be used in increasing quantities for
industrial purposes. It is also applied to hop and malt drying, distillerj'
purposes, and in the numerous cases where the absence of smoke is
important. In the metropolis it is being much more largely used for
raising steam than it was.' — The Iron and Coal Trades Bevieiv,
January 23, 1903.

BRITISH COAL FIELDS 27

ore to the coal, is being more and more decided, in
Europe and America alike, by the ore being carried to
the coal.

It may be interesting to notice that the develop-
ment of Cardiff and of its coal trade has been vastly
facilitated by the construction of the great docks on the
Bute property ; and this explains the significance, in
the industrial life of South Wales, of the chief agent
for the Bute property. Sir William Thomas Lewis — the
most strenuous upholder of the sliding scale.

Another point to observe is that the field is inter-
sected by deep river valleys, which have facilitated
the getting of the coal and also the construction of
a row of roughly parallel railways to carry the coal to
the coast. But the more useful a railway is for this
purpose, the more disturbance to mining does its
stoppage produce. Of these lines the most important
is that which brings down to Cardiff the steam coal of
the Merthyr Tydvil district ; and it is therefore no
mere accident, but highly significant, that the most
epoch-making legal decision of modern times bearing
upon the organisation of labour should have been
arrived at in the case of the Taff Vale Eailway.

4. Not far behind the three fields already described
come the ScotcJi Coal Fields, if we make one single
group of them. They lie so closely together that they
form in some respects an economic whole ; and the
coalowners and the miners are each united in a single
association. The output in 1901 was some 32|-
million tons, and the number employed about 101,000.
But the several coal basins are separated from one
another by other strata ; and each field has its distinct
peculiarities. Much the largest and most considerable
is that of the Clyde Basin ; which accounts for

28 THE ADJUSTMENT OF WAGES

some 20f out of the 32f million tons, and for about
63,000 of the employed. This extends over several
counties ; but the greater part of it (some five-sixths)
lies in Lanarkshire, which it almost entirely occupies.
The other chief basins are those of Fife (output
5-| million tons; employed 16,000); Ayrshire (output
4 millions; employed 12,000); and the smaller field
of Midlothian or Edinbui^gh (output 1|- million ; em-
ployed 5,000). In their relation to the market the
Scotch fields occupy a position intermediate between
that of the Newcastle field and that of the Yorkshire
field. They send away by water to competitive
markets perhaps a fourth of their product : a much
smaller proportion than the northern field, but far
greater than the southern. But the different Scotch
basins are not all exactly in the same position.
Olasgow and Grangemouth export over a million tons
each out of the twenty millions produced in the Clyde
basin ; but the chief demand for Clyde coal is fur-
nished by the manufactures, and especially by the
iron and shipbuilding industries, of the district. It is
the presence of the clay-band and black-band seams in
the coal measures of the neighbourhood of Glasgow —
furnishing the ironmasters with the ore and flux as
well as the coal they require — that has made Glasgow
one of the great centres of the iron and steel interests.
But from Kirkcaldy about 2J millions are exported,
i.e. half the output of the Fife basin : so that the Fife
shipping trade is relatively of much more importance.
Fife, indeed, competes with Northumberland very
closely in the Baltic market. Owing to the quality
of the coal, Fifeshire prices have to follow those of
Northumberland at the distance of about a shilling;
and Northumbrian conditions, including the remunera-

BRITISH COAL FIELDS 29

tion of labour there, are watched very keenly by both
masters and men.

Let us add that the output of the Scotch coal fields
is steadily growing, as well as the number of men
employed, though neither so rapidly as in the York-
shire or South Wales fields ; and that their estimated
resources for the future are about half those of
each of the fields just mentioned, and not very far
from twice as large as those of the Newcastle field.

5. Only one other field remains which can be put in
the same class as the four already described — that of
Lancashire and Cheshire. Its output in 1901 was
24J million tons, and the number employed was
about 92,800. The production, with occasional set-
backs, is slowly increasing; but the relative import-
ance of the field is apparently diminishing. Under
two million tons are exported or shipped coastwise ;
and the chief demand is for household and manufac-
turing purposes in the neighbourhood itself. In this
res^^ect the field is like that of Yorkshire.

The smaller fields call only for passing mention.
Taking them from north to south, there is the
Cumberland or Whitehaven Field, which supplies the
blast furnaces of Workington ; the North Wales Fields
in Denbighshire and Flint ; the North Staffordshire Field,
which supplies the Potteries ; the South Staffordshire
Field, which supplies the Black Country ; the Coalbrook-
dale Field, which witnessed the introduction of the
modern method of smelting iron ore by coal instead
of charcoal, and has paid the penalty by its early
exhaustion ; the coal tracts in Leicestershire, and in
Warwickshire about Nuneaton; that of the Forest of
Dean ; and that just outside Bristol. Most of these are
not only small but stationary, or even retrogressive, in

30 THE ADJUSTMENT OF WAGES

their productivity. The two largest and most interest-
ing are those of North and South Staffordshire. In the
latter it was the proximity of iron ore and of (-oal to
one another which furnished the foundation for the
prosperity of the English iron industry during what
may be called the Wolverhampton period of our
commercial history — the sixties and early seventies of
last century, before the rise of Middlesborough and
Cardiff. The output of the two fields together
amounts to some 14 million tons; and they give
employment to 52,500 persons. I am comj^elled to
pass over the other fields without further characterisa-
tion. But the fields of Newcastle, Yorkshire, South
Wales, Scotland, Lancashire, and Staffordshire between
them produce 94-hundredths of the total output, and
occupy a similarly large proportion of the total number
of British miners ; so that we may safely leave the rest
out of our general survey.

Proceedino- next to consider the oro-anisation of
labour in these several districts, we have first to
observe that it is now practically all-embracing.
An overwhelmingly large majority of all the miners
of Great Britain now belong to a trade union. This
has long been the case in Northumberland and
Durham ; but it has been by no means universally
so until a quite recent period. As late as 1895 a
careful foreign observer could speak of South Wales as
a district ' absolutely unorganised : ' this in his opinion
was the only reason why the sliding scale survived
there, after it had passed away in all districts where
unionism was strong.^ But since 1898 the South Wales

' M. Wilhelni, in de Roiisiers' Le Tracle-Unionisme en Angleterre,
209.

BRITISH BOARDS OF CONCILIATION 31

Miners Federation has gathered all the local societies
under its wing ; and the number of subscribing
members in the district has almost doubled — "oinof
from about 72,000 to 124,000, And, as this example
indicates, the movement of the last few years has not
only been towards the intensification of unionism
among the mining population, but to its consolidation,
by the grouping of more and more local societies into
great district federations, like the Lancashire and
Cheshire Miriers' Federation, formed in 1897, or the
Scottish Miyiers' Federation, formed in 1894.^

The last-mentioned instance furnishes an excellent
illustration of the extent to which considerations of
business and administrative convenience are favouring

the association of men into large bodies under the more
or less effective control of small representative councils
with which the masters may readily negotiate. In the
report of the conferences between the Coalowners of
Scotland and the Scottish Miners' Federation, which
led to the formation of the Scotch Conciliation Board,
in 1899, it is interesting to observe the anxiety of the
coalowners that ' the whole country shall be got into
line.' ''^ At the next meeting the chief representative

^ This consolidation is due in part to the poUcy of the Miners'
Federation of Great Britain, which refused to admit the Lanarkshire
miners by themselves, and urged the federation of all Scottish miners.
The Federation of Great Britain still includes a certain number of separate
county associations, received at an earlier date ; but, whenever it has had
an opportunity of late, it has insisted on federation mto great provincial
groups as a prerequisite of admission to the British Federation.

- ' The Chairman . . . One thing that this committee ' (of coalowners)
' would like in the formation of such a board is, if possible, that we should
try" to 'have all the districts of the country represented. Some of our
members feel that, unless their districts are to be represented, then there
is greafjdifdculty in their joining a board to act for the whole country, so
that we would throw7out the suggestion that between this time and our
meeting, a month hencQ, you should try to get the whole country into

32 THE ADJUSTMENT OF WAGES

of the men announced, to the satisfaction of the
employers, that 'the StirUngshire miners have now
formed themselves into an organisation and have
made application to the Federation ' — dissolving the
previous independent union; and he took credit to
himself for having thus carried out his ' pledge ' to
'extend the influence' of the Federation. On the
other side, the employers also in each district are now
sufficiently well organised to allow of negotiation in a
representative capacity.^ In some cases the associa-
tion came into existence at first for other purposes, e.(j.
in Northumberland for the regulation of prices ; " but
the common pressure of labour difficulties has made
combination necessary everywhere : and thus organisa-
tion on each side, at various dates and in varying degree,
has stimulated, by opposition, or actually by encourage-
ment, completer organisation on the other.

We may observe also that, with the completion of

line, if possible.' — Proceedings at Conference, March, June, July, 1899,
102. Cf. the subsequent discussion, 106 seq.

' It is more difficult to obtain information about employers' unions
than about workmen's unions, since the former do not make any returns
of membership, funds, expenditure, &c., to the Board of Trade. But a
list of coalowners' associations, with their secretaries, will be found in the
Directory of Industrial Associations, published by the Board of Trade in
1902 ; and the rules of the associations of coalowners (Northumberland,
Durham, South Wales and Monmouthshire, Lanarkshire, Cannock Chase,
North Wales, West Cumberland, and some others), which were com-
municated to the Royal Laboiir Commission, are abstracted in its volume
Rules of Associations of Employers and Emiiloyed (1892), 103-109.
It is said that some of the associations (probably the smaller ones)
attempt in some degree to regulate the price of coal, by issuing winter
and summer price lists ; that some of the coalowners of the several
districts refuse to join in this action and consequently abstain from
joining the local associations. But, however incomplete the membership
of the associations may be, it is evident that the arrangements they make
in the matter of wages are accepted by the great body of coalowners.

- Interview with Mr. R. O. Lamb, in Conciliation in Trade Disputes
{Newcastle Leader Extra) 1894.

BRITISH BOARDS OF CONCILIATION 33

the miners' organisation, the old refusal to grant what
is known as ' recognition ' has altogether passed away.
This has been already implied, but it is worth dwelling
upon for a moment. The difficulty about recognition
was one of the sorest points in the early history of
unionism ; it is still a source of trouble in some of the
small trades in England ; while in America it bulks
very largely in almost all industrial disputes. But in
the older coal fields of England the unions have been
recognised {i.e. formally treated with as representing
the men) for more than a generation — in Northumber-
land for instance since 1871 ; and, even in those districts
in which unionism has been slow in developing, the
stage of recognition has been reached for some years
past. What was meant by refusal to recognise may
be illustrated b}' the correspondence which passed
between the secretary of the County Board of Lanark-
shire Miners and the secretary of the Lanarkshire Coal-
masters' Association as late as 1887. The men's
secretary had written on behalf of his Board to
request an advance in miners' wages ; to which he
received the following reply, which I quote in extenso,
as a ' select document ' in industrial history : ' Dear
Sir, — I have now had an opportunity of laying your
letters before the Executive Committee of this Associa-
tion, and, out of courtesy to you, I am instructed to
reply that all questions of wages will be settled
between the coalmasters and their workmen direct,
in accordance with the rules of this Association.

Yours truly, , Secretary.' ^ And in 1893, while

the English coalowners of the Midlands, during the
great strike, were gravely and politely negotiating with

^ Boyal Commission on Labour. Evidence, Group A, ii. 74.

34 THE ADJUSTMENT OF WAGES

the representatives of the Enghsh Federation, the
Scotch coalowners refused to meet the representatives
of the similar Scotch body.^ But now, as I have
before said, the two parties in Scotland are regularly
represented on the Board of Conciliation, and all the
office work which it requires is amicably managed by
the very writer of the letter just quoted in conjunction
with the men's secretary.

What I want to emphasise is that for the earlier
reluctance to recognise the union there was usually a
sound commercial reason. Of course there was a good
deal of crude human nature in it ; such as personal
dislike of the labour ' agitator.' There was, and is in
America, the weighty consideration that to recognise a
union is to strengthen it : to be treated as representing
the men enables the union to tighten its hold upon them
and to draw in the hesitating. But, besides this, we
must allow for the fact that until a union is so strong
that it really represents the great mass of the men
engaged, and so well disciplined that the men will
follow their leaders, it may be waste of time to nego-
tiate with the union's officials. To the employers it is
a matter of indifference how the representatives of the
men manage to carry out their agreements — whether
they are given ' plenary power ' to negotiate on behalf
of the miners, or whether they have to obtain the sub-
sequent acquiescence of their constituents by argument
and the weight of their influence. The employers at a
Conciliation Board are not primarily philanthropists or
statesmen : they are primarily the purchasers of a
commodity, labour ; and what they want to be assured
of is that the other party can ' make delivery of the
goods.' And thus a complete and well-disciplined

' P de Rousiers, The Labour Question in Britain (1896), 228.

BRITISH BOARDS OF CONCILIATION 35

union does not need to beg for ' recognition ; ' it will
be recognised like any other business fact.

This is the primary consideration. But it is evident
that the representatives of the men will secure more
respect from the employers' representatives if they have
a thorough acquaintance with the details of the work
to be discussed. And here a contrast at once presents
itself between unskilled and skilled labour. Unskilled
labour is commonly easy enough for anyone to under-
stand ; while the workers in unskilled crafts can
seldom produce from among their midst men of suffi-
cient education to do the secretarial work of the
societies, let alone present their case clearly to the
employers. Naturally enough the labour leader in this
case seems to the employer a mischievous outsider.
But in the great skilled industries, like the textile trades
or the coal trade, there is so much technical detail
involved in the negotiations, that only men thoroughly
trained in the occupation itself can undertake the
advocacy of the workman's cause. It has been often
pointed out that legislation itself has helped to produce
this class of technically competent labour representa-
tives in the mining industry. The hewers of coal are
paid by weight. Hitherto it has been impossible to
devise automatic weiohin^ machines which will meet all
the requirements of the situation. And everywhere, in
America as in England, trouble has arisen from the
suspicion of the men — whether well or ill founded
matters not — that the employers' weighmen might act
unfairly. The demand of the men that they should be
allowed at their own cost to provide a check iDeighman
was granted by the Mines Regulation Act of 18G0. By
the amended Act of 1887 it has actually been provided
that a bare majority, ascertained by ballot, of the

D 2

36 THE ADJUSTMENT OF WAGES

miners in any particular pit can decide to appoint a
checkweiglier, and that then his wages shall be paid by
a compulsory deduction from the wages of all the men
employed at that pit. As a result a whole class of
checkweighers has come into existence. But such men
must have had experience in work at the face of the
coal, or they would not know their business. They
must be trusted by the men, or the check would be
valueless ; they must possess some intelligence and
readiness with figures, or they could not keep the
account. Men like these are naturally marked out to
be the officials of unions ; and, as a matter of fact, a
large number of the officials, from the secretaries of
single pit branches to the secretaries and presidents of
the great federations, are or have been checkweighers.
Such men may not possess any knowledge of the com-
mercial side or of the engineering side of the mining
business ; but they have a thorough knowledge of the
processes and conditions of labour ; and this constitutes,
so far as it goes, a solid ground for the coalmasters'
respect.^

Having said so much with regard to the organisation
of mining labour in general, I propose to call your
attention in particular to the mechanism for the deter-
mination of wages. This is now universally effected,
with the exception of only one district, by means of
Boards of Conciliation, equally representing the two
parties. The one exception is South Wales, where, up

' It is one of the merits of Mr. and Mrs. Webb's books to have called
attention to the growth of the class of technical expert official in unionism.
On the checkweigher in particular, see ihexvlHisiory of Trade Unionism,
289 seq., and Industrial Democracy, IG, 44. For the biography of
the President of the Cannock Chase Miners' Association, de Eousicrs^
Trade- Unionisme, 201.

BRITISH BOARDS OF CONCILIATION n

to the present, wages have for many years been deter-
mined by a sliding scale. Whatever may be the result
of the negotiations now going on, we may be quite sure
that a Board of Conciliation will soon be established in
South Wales ; ^ and then that method — though with im-
portant differences, to which I shall recur, between the
several districts — will be absolutely universal in Great
Britain. A brief outline of unionist history will bring
out more clearly the significance of the statement.

Let us begin with the miners' unions of Northumber-
land and Durham. There was first a period of com-
plete want of organisation down to about 1842. Then
came thirty years in which the unions gradually grew
stronger, and a long series of strikes, especially pre-
valent in the sixties. Then, with the prosperous trade
of the early seventies, came the recognition of the
unions for the sake of convenience, and the fixing of
wages by joint agreement. Then, as depression set in,
wages became more difficult to adjust, and the men
agreed to arbitration. This was the period when arbi-
tration won its first great successes, and Sir Eupert
Kettle gained his high and well-deserved reputation.
But, as both parties accepted the principle that wages
should be determined by prices, the practical result of
these arbitration proceedings in both counties was to
work out the relation which, it was held, ought to
exist between wages and prices — starting with a certain
year as basis, when the relation was assumed to have
been acceptable to both parties. These relations needed
only to be written down to form a sliding scale ; and so
it was that the series of arbitrations led to the adoption
of a sliding scale in Durham in 1877 and in Northumber-

^ This has since been the case. For the rules of the new South Wales
Board of Conciliation, see Appendix II. 5.

3S THE ADJUSTMENT OF WAGES

land in 1878. In South Wales it had been introduced in
1875. It might appear that the evolution had reached
its highest point and no further progress was possible.
The words of Professor Munro in 1885 are well known :
' It seems to me that the principle of the sliding scale
is the greatest discovery in the distribution of wealth
since Ricardo's enunciation of the law of rent. That
it has a great future before it, not only in the iron and
coal trades but in other industries, I have no doubt.' ^
Professor Munro was doubtless paying, as he thought,
the highest possible com})liment to the sliding scale ;
even though a critic might observe that the two dis-
coveries of the law of rent and of the sliding scale are
discoveries in altogether different senses. A youngs
Oxford economist was more cautious — Irregular Nego-
tiation, the Board of Arbitration, and the Sliding Scale
were, according to him, only ' stages in the theoretical
order of development.' ^ But most people would pro-
bably form the impression that the theoretical was also
the desirable and the final. As is well known, the
sliding scale has, until very recently, been tenaciously
adhered to by the coalowners of South Wales ; and it
was forced back upon their men in 1898 after a des-
perate strike on their part against it. Yet as a formal
institution it was being abandoned in the North of
England at the very time when economists were awaken-
ing to its merits.

In Northumberland a scale was agreed upon in
1879. It governed wages until 1882, when the men
gave notice to determine it, in order to have it revised
in their favour. This amendment was amicably agreed

^ Sliding Scales in the Iron Industry (Manchester Statistica
Society, 1886), 26.

* Price, Industrial Peace 1887', 7-8.

BRITISH BOARDS OF CONCILIATION 39

to in 1883 ; and the revised scale continued in force
till 1886. But the devisers of the scale had not con-
templated a period of steadily falling prices ; and prices
dropped so low that the sliding scale no longer — in the
language of Mr. Ealph Young, the well-known miners'
secretary — ' gave the employers the relief that was
required.' ^ The employers now in their turn gave
notice, and asked for a reduction in the basis. The
men struck, in spite of the remonstrances of their
leaders, and were badly beaten. The employers secured
the reduction they asked for ; but by this time both
parties were heartily sick of the words ' sliding scale,'
and no new one was drawn up. For the next few
years general changes were mutually agreed upon from
time to time at conferences between committees of the
two parties.

In Durham a scale had been adopted in 1877. In
1879 the coalowners demanded a revision of the scale,
and carried it through after a six weeks' strike. In
1882 and 1884 it was readjusted — the last time so
effectually that it stood the hard times that followed
for three years after the neighbouring county scale had
succumbed. But, suitable as it was for bad times, it
was not equally well adapted to the good times that
now began. In 1889 the men gave notice to determine
it ; and, from that time on, wages, as in Northumber-
land, were settled by conferences without recourse to
an accepted scale.

With the abandonment of the sliding scale ended
what may be conveniently spoken of as ' the Newcastle
Period ' in the mining labour movement. During this

' Interview in Conciliation and Trade Disputes, 2. The four
interviews, in this ' Newcastle Leader ' Extra, with Messrs. Young, Lamb,
Patterson and Simpson, give, from the two sides, the best brief narra-
tives with which I am acquainted of events down to 1894.

40 THE ADJUSTMENT OF WAGES

period the example of the northern miners, and especially
their acceptance of the sliding scale, was very influ-
ential ; and of the several transitory attempts to bind
together all the miners of the country in one national
association, that of the Miners' National Union, which
was dominated by the two northern counties, under
the leadership of Mr. Thomas Burt, was the most suc-
cessful. During the sliding scale period it included
Northumberland, Durham, and Yorkshire. But in the
late eighties opposition began to show itself among the
Yorkshire miners, led by Mr. Benjamin Pickard. The
Yorkshiremen advocated a more bellicose policy than
the northern leaders favoured, and in particular they
put forward the principle of a tninmimn (or, as it was
called in more picturesque, if less precise, popular
language, a living) wage. They thundered against the
principle that wages should follow prices : let prices,
they demanded, follow wages ; at any rate, let prices
be so fixed as to include a living or minimum wage ; let
such a wage be a first charge on coal mining. The
northern men were not disposed to adopt the new
policy ; and there were other causes of dissension
between them. Accordingly, in 1888-9 the Yorkshire
miners seceded, and founded the Miners' Federation of
Great Britain, in avowed rivalry to the National Union,
which, being now i-educed to Northumberland and
Durham only, soon went out of existence. And so
began what we may call 'the Yorkshire or Midland
Period,' the period in wliicli the example and pohcy of
the Yorkshire Federation and of the Federation of
Great Britain, of which it is the leading member, have
been the most powerful influences in determining the
direction of unionist activity.^

' The accounts most free from bias of these transactions will be found

BRITISH BOARDS OF CONCILIATION 41

In 1893, the year of the great Midland strike, the
Federation included all the men of the Midlands, of
Yorkshire, and of Lancashire — a third of all the miners
of the country. Into the merits of that strike, one of
the most important episodes in recent industrial history
of this country, I cannot now enter. Many members of
my audience remember it very well ; and I need only
remind you that the Federation struck against a large
reduction demanded by the coalowners, and that after
a suspension of work for sixteen weeks the Government
intervened to bring the parties together and arrange an
armistice until a Conciliation Board should be esta-
bhslied. But it may be asked why the Yorkshire and
Midland miners were ready to strike at a time when
the coal market was certainly not buoyant, while the
northern miners refused. The explanation has already
been given in our comparison of the markets of the
northern and of the midland fields. The midland
market is mainly an inland and home market, and the
demand, to a considerable extent, has to wait and go
on piling itself up until it can be satisfied ; while half
the northern coal goes to foreign markets, which could
readily be supplied from other sources. And as a
matter of fact the midland coalowners were able to
clear off their stocks during the strike, and, when it
ended, to go on paying, first the old wages, and then,
under the decision of the new board, the former wages
only slightly reduced.

But it is the establishment of the Board itself in
1894 — which was spoken of at the time as almost a
counsel of despair — which has been the most fruitful in
consequences. In the first place, it has lasted, with

in M. "Wilhelm's chapter in de Kousiers' Trade-Unionisme, 219, and
in the Circ^daires of the Paris Musee Social, A. 3, 6 (1896), 16 (1897).

42 THE ADJUSTMENT OF WAGES

renewals from time to time, up to the present, and it
has been agreed to by both parties till January 1904.
Ten years is not a despicable term of life, and during
that time it has prevented all (jeneral strikes in what
are called ' the Federated Districts.' In the second
place, the example has been followed by the establish-
ment of similar boards everywhere else. In North-
umberland a Conciliation Board was established in
1894, terminated in 1896, and re-established in 1900,
and is still in existence ; in' Durham a board was
created in 1895, terminated in 1896, and re-established
at the end of 1899 ; in Scotland a Conciliation Board
was similarly established in 1899 ; in South Wales, as
I have said, one is now in process of formation. In
the third place, the rules for the Board of the Fede-
rated Districts, while stating that its function is ' to
determine the rate of wages ' for a given period, say
nothing whatever of the principle to be followed in
determining the rate. It leaves it open to the board
to make wages foUow prices, or to take any other con-
siderations or ' factors ' (as they are called) into account.
And the same is true, with limitations in two cases
more apparent than real, of all the other Conciliation
Boards so far established. But, finally, the Federated
Districts Board is limited in its work by both a mini-
mum and a maximum. The text of the aoreement runs :
' to determine the rate of wages within the following-
limits — namely, that during such period the rate of
wages shall not be below 30 per cent, above the rate of
wages of 1888, nor more than 60 per cent, above the
rate of wages of 1888.' This is a very awkward way
of stating the thing. It would be much simpler to
take a fresh starting-point ; but the old phraseology is

BRITISH BOARDS OF CONCILIATION 43

long-lived, and the minimum is likely to be described
for indefinite years to come as so much per cent, above
the rate or standard of 1888. Now such a compact
may be fairly described by the coalowners as a matter
of temporary expediency, and they may be so confident
that during the short term of the agreement prices will
not fall very low that they may think the promised
minimum of no practical importance. But the miners
have naturally regarded the compact as an acceptance
of their principle of a minimum or living wage. And
so it has been generally interpreted by the miners else-
where. True to their old convictions, the Northumber-
land and Durham men have attached no such minimum
proviso to their Board. But the Scotch miners, on the
constitution of their Board in 1899, secured a minimum
of 31J per cent, over the 1888 basis, though in the first
instance only for a year. One of the chief coalowners
present at the conference justly remarked that the leader
of the men had ' done a good deal when he had got a
large body of men, both at this end of the table and at
his own, to come to one mind on this principle ' of ' a
minimum wage.' ^ And, finally, in the draft agreement
which the South Wales coalowners themselves pre-
sented to the men for acceptance last December, a
minimum has appeared : ' during the continuance of
this agreement the rate of wages shall not be less than
16^ per cent, above, nor more than 57-J per cent, above,
the December 1879 standard of wages paid at the
respective collieries.' The men, in order to put them-

* Proceedings at Conference, 158. The speaker added, as to the
principle, that the coalowners held it to be ' quite within the region of
experiment only.' But it has reappeared on the renewed agreement of
1902, and is now 37| per cent, above basis.

44 THE ADJUSTMENT OF WAGES

selves in line with the Federated Districts, now that
the South Wales Federation has joined the Miners'
Federation of Great Britain, are sticking out for a
minimum of 30 per cent., which they will probably get ;
but over the question of principle there is no longer
any dispute in the Welsh coal field.

LECTUEE III

PRICES AND WAGES

The principle of a minimum wage, recognised, in the
sense explained, in the agreement in the Federated
Districts in 1894, has not yet been subjected to any-
severe practical test. For some years after that date
the price of coal did not vary very much ; from 1898
to the middle of 1900 it went up to a great height and
wages went up with it. For the last two years prices
have been declining from the point then reached ; and
considerable reductions have everywhere been effected
in wages by the mechanism of the Conciliation Boards.
In the Federated Districts last June Lord James, acting
as chairman of the board with a casting vote, gave a
reduction of 10 per cent, from the previous 60 per cent,
above standard ; and he is at present engaged once
more in considering the rate. But wages still stand at
50 per cent, above standard; and there is a pretty
wide margin between that and the 30 per cent, of the
accepted minimum. There has not yet been sufficient
depression to bring the actual wages dangerously near
the minimum ; and it will be then that the strain will
come.

When, however, the strain does come, it is by no
means improbable that it will still be found possible to
maintain the minimum in the Federated Districts of
England and Wales. Let us be clear what the mini-
mum involves. It does not involve any right to

46 THE ADJUSTMENT OF WAGES

employment. It does not compel any coalowner to
keep his mine open ; it only compels him, if he wants
to work his coal, to pay so much a day for working it.
The minimum is the wage which an average miner is
able to earn with an ordinary day's labour at the piece
rates established for that particular mine or seam. The
rule, therefore, does not even compel a coalowner to
Sfive the usual maximum of five days' work a week.
The individual coalowner — and coalowners generally —
may think it wiser, when prices go down and wages are
irreducible, to work only two or three days a week,
and by diminishing the output, check the further fall
in price. And, so far as the miners are concerned,
their leaders are ready to avow the opinion that if the
maintenance of the minimum means weekly earnings
too small for subsistence, or indeed no earnings at all,
even such a consummation were better endured than
the sacrifice of the daily minimum. Better, they would
say, that savings in the Friendly Societies should all be
swallowed up ; better even that people should starve
and a whole population slowly abandon an occupa-
tion, than that the occupation should be carried on on
terms dangerous, in their judgment, to the permanent
well-being of the workers, A minimum tonnage rate,
working out into a minimum day wage, would not,
therefore, necessarily mean ' a living wage ' for the year
or even for the week, in spite of the general confusion
of thought on this subject during the great strike of
1893. On the other hand, experience has abundantly
proved, though apparently the contrary is often
assumed, that the acceptance of extremely low piece
wao'es is also no guarantee that a total wage can be
secured on which the workmen can wliolesomely live.
And miners have the same reasons, whether bad or

PRICES AND WAGES 47

good, as the lawyers for believing that the policy of
* minimum or no service at all ' is, on the whole, the
more advantageous one.

Certainly it is not clear that in the Federated Dis-
tricts, including therein South Wales and Scotland, the
minimum wage will meet with insuperable obstacles.
Although the demand for coal fluctuates somewhat
with the price, and fluctuates also, so far as manufac-
tures are concerned, with the state of trade, and, so
far as household uses are concerned, with the severity
of the winters, it is to a considerable extent a necessity
of modern life, a necessity the price of which may rise
very considerably without proportionately checking
demand. So long as the minimum is anything like what
has actually been proposed, and the price does not rise
very high, I see no reason why the additional cost of
labour involved in the minim.um should not be thrown
on the consumer. The effect this might have on
English trade generally is a complicated question, and
I know of no very convincing attempt to answer it ;
but miners are no more likely to pause t6 consider such
problems than the coalowners themselves. And it is
notorious that the coalowners have not refrained from
demanding the highest price that circumstances could
give them, even when the high cost of fuel was evi-
dently endangering the iron and steel manufactures of
the country.^

' The only attempt, so far as I know, on the part of any economist of
reputation to deal systematically with the problem of the possible effect of
a mmimiim wage upon English trade in general is to be found in Pro-
fessor Smart's Studies in Economics (1895), 42-46. Mr. Smart concludes
thus : ' This is the argument most often used against any organisation
which aims at keeping up mining wages. England must have cheap
coal if she is to remain what she is. Wage is the largest element in the
cost of production of coal ; consequently there must be no artificial
barrier in the way of making miners' wages as low as necessary to

48 THE ADJUSTMENT OF WAGES

I am dealing now only with the Midland districts
and Lanarkshire, which supply in the main a home

compete with the world which buys our coal and our manufactures.' He
iustly comments : ' It is not a pleasant argument. It sounds to me as if
we proposed doing with the miners what a general is sometimes forced to
do with a regiment — when it is absolutely necessary to gain time, and he
orders it oiit to hold a position where he knows it will be cut to pieces.
But if we admit the premiss, " England must have cheap coal," we must
, face the conclusion fairly and squarely, and not shut our eyes to it.' One
would think that if the conclusion is so unpleasant, it might be worth
while to examine more closely the premiss.

With current forecasts of the effect of a minimum wage on English
industry may be profitably compared the following comments of the
Economist in its Revieiv of 1900 (Supplement to its issue for February 16,
1901) on the high prices secured by the coalowners in that year : ' There
is not an industry m the comitry that has not suffered from the enhance-
ment of the cost of production consequent upon this dearness of coal.
And while coalowners and miners, being human, have taken the fullest
advantage of their opportunity, it is not surprising that their imdisguised
determination to screw the utmost farthing out of consumers without
regard to ulterior consequences, should have caused the question to be
raised and discussed, perhaps more eagerly than ever before, whether it is
right or expedient that this limited class should be permitted such a
perfectly free hand in exploiting, for their own benefit and to the detri-
inent of all the rest of the commimity, the coal resources of the country,
which constitute a great national asset. To our iron and steel industries
the hi"h price of coal has been specially hurtful. In the cognate indus-
tries of the United States there was, towards the end of March last, a
great breakdown. Prices, which during the previous boom period had
been pushed up . . . rapidly collapsed, and it became apparent that produc-
tion . . . had outrun demand. As a measure of relief, the American
manufacturers sought strenuously to enlarge the existing, and to open up
new, foreign markets for their products, and to achieve that end were
prepared to make heavy cuts in prices. To our manufacturers this com-
petition would have been serious in any case, but it certainly would not
have prevailed against them to anything like the extent it did had it not
been that, in contending against it, they were handicapped by the high
price of coal, which constitutes so large an item in the cost of production.
As it was, the Americans were able not only to cut us out to some extent
in foreign markets, but also to wrest from our manufacturers some of our
own home trade.'

It is not likely, in our existing industrial system, that either coalowners
or coalminers will be influenced by considerations outside their own
immediate interest. They inevitably pursue the same policy as all others
engaged in business ; and the moral condemnation sometimes expressed
by men of other trades is unconsciously hypocritical.

PRICES AND WAGES 49

market, and with South Wales, which supplies foreign
markets which would be compelled to pay quite high
prices for steam coal because they cannot get it so good
and so cheap elsewhere.^ The limits to this endurance
are such prices as would induce a supply from other
directions. I suppose a very high price maintained for
some months might even attract to England coal from
Germany and France. More pressing is the danger
that the Mediterranean trade of South Wales would be
captured by American collieries. Some American coal
was actually shipped to France during the high prices
of 1901. American coal is more cheaply mined than
English ; and American enterprise may substantially
reduce freights. Nevertheless, between the cost of
delivering South Wales coal and American coal in
French and Mediterranean ports there is still, and
is long likely to be, a margin sufficiently large to
permit of the maintenance of wages at a reasonable
minimum.^

And, as already remarked, the premiss that ' England must have cheap
coal ' is by no means free from doubt. The argument that England
needed cheap labour to maintain its foreign trade was invoked with equal
sinceritj- against oux Factory legislation. Evidently it is a question both
of degree : ' How cheap must be the coal or the labour ? ' and of other
and possibly counterbalancing considerations.

^ The position of the Midlands as doing ' a land sale busmess ' and
being therefore better able to keep up prices, is a commonplace with the
coalowners of other districts. For an example from Scotland, see Proceed -
i/ngs at Conference, March — July, 1899, 37. And in the discussions on
the coal tax the representatives of other districts commonly spoke of
Wales as having a quasi-monopoly ; e.g. Sir Edward Grejs as reported in
The Times for June 12, 1902. Half the Scotch export, as we have
seen, is from Fife ; see above, p. 28. For an outside opinion, see de
Bousiers, Labour Question, 208 : ' It would, therefore, be bad policy for
the Durham and Northumberland miners to create a coal famine in their
(foreign) markets, although such a course might be advantageous to the
interests of the Midlands.'

- Freights vary every month. In October 1900 when the high prices
of English coal turned American attention to the subject, the American

50 THE ADJUSTMENT OF WAGES

Whatever may be the effect, moreover, of fluctua-
tions in demand, I suppose there can be no doubt that
coal prices fall more rapidty in times of depression and
far lower than they otherwise would, owing to under-
bidding — the anxiety of coalowners and their selling-
agents to clear off their stocks at almost any price,
Wlien they offer to sell at reduced prices — especially
when they make long contracts — they hope to reduce
their labour cost. There is some force in the argument
that the mere knowledge that labour cost cannot be
reduced beyond a certain point would itself have a
certain steadying effect upon price, and so enable a
better wage to be paid.^

Competition among coalowners may, however, be
limited by combination among themselves as well as
by irreducible costs. It is true that combination
has not hitherto been particularly successful, espe-
cially in times of depression. In South Wales, for
instance, attempts at combination have repeatedly
failed : but (not to speak of the Newcastle Limitation
of the Vend, which survived tiU 1844 -), there was a
local Sales Association in Durham in 1895 which
had a consideraljle effect upon prices for a time ; ^

Consul-General at Barcelona reported to his Government {U.S. Consular
Reports, No. 891) that tlie freight on coal cargoes to that port was
11.S. 6d. per ton from Cardiff, and 12s. 6d. from Newcastle and Glasgow,
while from America it ranged from 20s. to 22s., though in May one
cargo had been imported at a cost of 18s. a ton.

^ This is the usual contention of the miners. Thus Mr. Weir argued
at the Scotch Conference in 1899 {Proceedings, 123) : ' If you ' — the coal-
owners — ' would compete less among yourselves you would have less to do
with competing with others outside, and if we had the minimum wage
fixed at 6s. it would help to stop the competition among yourselves,
because you would have tliat charge to face.'

- Its history is given in an article by Professor Cohn of Gottingen, in
the Economic Journal, v. rj;";0.

' It was estimated that there were twenty-six million tons in the

PRICES AND WAGES 51

there is to-day, and has for some time been, a similar
association which regulates prices in Fifeshire ; and
•even the agreed price of the Coal Exchange does some-
thino- to check excessive undersellino- amono- the mer-
chants in the London market. But the air is now more
fully charged with the spirit of combination than at
any time during the last fifty years ; and we may
anticipate renewed attempts at combination or amal-
gamation in colliery business on a large scale. And it
is significant that one of the main purposes of the
proposed Coal Trust of the late Sir George Elliott was
to provide the miner with a suitable minimum wage :
it is noticeable also that one of the heartiest advocates
of the cause of the miners in South Wales, Mr.
D. A. Thomas, M.P. for Merthyr, and himself a great
coal merchant, is also the author of a plan much
discussed some few years ago for a combination of
all the steam-coalowners of England to prevent under-
selling. Now that the men are everywhere well
organised, and that the coalowners are accustomed to
work with them on Conciliation Boards, we may ex-
pect that any such combination will be supported
by an alliance with the unions — probably taking the
form, on the part of the unions, of an agreement to
withdraw labour from a coalowner selling beneath
the price agreed upon. The men would be quite
ready for such an alliance. It was the representative
of the men in the Scotch neootiations of 1899 who
called the attention of the coalmasters to the success
of the Westphalian Coal ' Kartell.' I will quote his
words : ' I dare say most of j^ou have read the last
report of the coal trade in Westphalia in Germany.

. association, and seven millions outside it in that county. — Proceedings
of the Durham Board, April and May, 1895, 97.

E 2

52 THE ADJUSTMENT OF WAGES

That is very interesting indeed, because it repeats the
history of our coal trade here. For many years . . .
local competition had brought down the price to a
point at which the employers could not make profits
and pay fair wages. The employers, under joint co-
operation, agreed to prevent competition in future, and
the consequence has been that wages have gradually
risen there — risen by almost one-third — and profits
have kept steady. . . . The men can get steady em-
ployment all the year round. It is better for the
general trade and better for the workmen.' ^ In 1901
the same speaker declared to the coalowners, ' If it
comes about that prices fall beyond a certain point,
then we will gladly join in any well- devised scheme to
keep the prices at a point which will enable you to pay
us 85. per day and get a fair return on your invested
capital.' ^

But in what I have been saying hitherto of the
practicability of a mimimum wage, I have expressly
limited myself to those districts which are either free
from foreign competition or enjoy a limited monopoly
in foreign markets. The difficulties would be more
considerable in the case of Durham ; and still more
serious in the case of Northumberland. The same is
true, however, of Fife, where the minimum principle
has been recognised for some years ; though it has not
yet been severely tried. Fife and Northumberland
compete against one another in the Baltic market ; and
an agreement between them to divide the market,
without competing in price, is certainly not impossible.
But both Northumberland and Fife are exposed to
Westphalian competition. The efforts of the Westphalian
urdons may be expected to bring German wages nearer

^ ScoMi Proceedings, 1899, 14. » Ibid. 1901, xii. 15.

PRICES AND WAGES 53

to English ; and the ' solidarity ' of mining labour —
which the English leaders do all in their power to pro-
mote by means of International Congresses — may go so
far that no nation will spoil the miner's cause in another
country by invading his home market. But it is the
German home market which we are already supplying ;
and we cannot suppose that Westphalian miners would
back up a Northumbrian demand for a minimum by
refusing to supply the furnaces of their own country.
To the outside observer it certainly looks as if the
Northumbrian miners had good reasons for hesitating
to admit the minimum into their working programme.

With the exception of Northumberland and Dur-
ham, the operations of all the Conciliation Boards are
at present limited to the range of rates between a mini-
mum and a maximum. It wiU be observed that the
men make no difficulties about the acceptance of a
maximum. To them it is far more important that
wages should never faU below a certain point than that
they should sometimes rise extremely high. They are
ready to barter the one advantage for the other ; and
they argue, with some reason, that if the employers are
sometimes given by the maximum limit cheaper labour
than they might otherwise secure, they ought to be
able to sometimes pay more than the immediately exist-
ing state of trade would warrant.^ The force of this
contention will depend on the comparative likelihood of
the two situations. It must be noted that the maximum

^ Thus Mr, Smillie, the chief luinerB' representative, at the Scotch
Conferences of 1899 frankly confessed : ' My own opinion is that the
minimvim wage may be rather against the employers when things are
very dull, but the probability is that if trade keeps good for eighteen
months or two years the maximum will work out very much in favour
of the employer,' His anticipation would seem to have been to some
extent fulfilled.

54 THE ADJUSTMENT OF WAGES

of 60 above standard in one case, and 100 above in
the other, was actually reached in the Federated Dis-
tricts and in Scotland in 1900-1, when a mere sliding
scale would have given higher wages ; ^ so that hitherta
the pliability of the men has. been more severely tried
at one end of the scale than that of the masters at the
other or minimum end.

Given a minimum, one of the strongest of the miners'
current arguments against the sliding scale passes
away. The chief popular objection to it — to quote a
South Wales miner's phrase in conversation with me
recently — was that ' the confounded thing had no
bottom.' If, however, a minimum and a maximum are
first agreed upon, cannot wages between these two
limits be determined by the movement of prices, i.e,
whether avowed or not, by a sliding scale of some
sort ?

This is now the usual contention of the masters.
Lord Davey, acting as chairman of the Durham Board
in 1895, was compelled to remark to Sir David Dale :
' You see what your argument really comes to is this,
that I ou<?ht to <>o back to the old slidino- scale.' ^ The

1 For the Federated Districts, see Minutes of Board of Conciliation,
May 1, 1902, 14. Tlie representative of the miners there gives the follow-
ing reason for a moderate iriaximum : ' The moment the market comes
do^vn, the visages must come down — we knew that. That is why wc did
not want to press, to follow up to 80 per cent, and 90 per cent., because
we knew that tvhen it reached the top there would, he nothing hut
bother.'' In Scotland {Proceedings at Conferences, May and June 1901,
81) the cliief coalowners' representative, Mr. IMcCosh, was very explicit.
• Prices went up, and wages rose to the maximum, and I should admit
that, if an arrangement had not been made, probably we would have paid
more wages for a time.' On this Lord James of Hei'eford, as neutral
chairman, remarked, 'That would have been a truer sliding scale.'

■^ He went on to say : ' Now the old sliding scale was abolished in
1889, because the workmen, rightly or wrongly, did not consider it fair

PRICES AND WAGES 55

convenience and simplicity of such an arrangement are
certainly strong arguments in its favour. But it is
worth observing that this has not always been the view
of the masters. Thus in 1872 the Northumberland
employers refused an advance on the ground — among
others — that ' they did not admit that wages are regu-
lated or ought to be regulated, except indirectly, by the
price of the produce.' ^ The method of allowing wages
to follow prices did break away from any immediate
attention to the supply and demand of labour." Now
that the sliding scale has been abolished in the North,
there is an inclination on the part of the men to
appeal to the state of the labour market. Thus Mr.
Burt argued before the Northumberland Conciliation
Board in 1900 that 'the demand for labour is a factor
as well as the price of coal in determining wages.' ^
Yet in a trade in which there is usually little com-
plete unemployment ; where slack time means fewer
days for all rather than complete loss of work for
many ; and where the men are so completely united that
none would think of offering to work at less than the
county or general rate, wages cannot well be regulated

and equitable to them. So you must not ask me to go back to the old
shding scale.' — Durham Proceedings, September and October, 1895, 111.

^ Northumberland Miners : Be port of Special Council Meeting,
March 1900, 111.

- In this sense Professor Munro spoke of the sliding scale as ' a strUdug
departure by both masters and men from competition as a regulator of
wages.' — Sliding Scales in the Coal Industry, 19 ; cf. Sliding Scales in
the Iron Industry, 22.

■■' Northumberland : Rep. Spec. Council Meeting, March 1900, 64 :
' Sliding scales — we are not here to depreciate them — took no cogni-
sance of anything but the arithmetical side of the question, but a board
like this can, and that is one of its many advantages ; it can take into
account other important considerations, and one of the other important
considerations that often runs concurrently with good trade and prices,
but does not always run concurrently with the condition of trade, is the
state of the labour market.'

56 THE ADJUSTMENT OF WAGES

mainly by the immediate supply of labour. And hence
it seems natural to fall back on prices as at any rate
something definite to go upon.

Prices, let us grant, are some sort of index of the
profitableness of an industry, and therefore of the
ability of the employers to pay wages — some sort of
index of what economists call (though the general
public does not) the National Dividend, or amount
divisible between the parties engaged in the manu-
facture.

But we must first ask, what prices ? Many grave
practical difficulties still arise on this subject. There is
first of all the difference between price t]^uotations or
newspaper prices, and actually ' realised ' or ' ascer-
tained prices,' due to the greater or less prevalence of
the practice of making contracts some time ahead.
Then there is the difference between the prices of a
recent past — e.g. of the last three months, and ' current '
or ' existing ' prices. Thus, on the Northumberland
Board in 1900, one of the leaders of the men went so
far as to make the power of the board to pay regard
to current prices the feature differentiating it from a
sliding scale. ' I have always held,' he said, ' that the
principle of this Board was very much higher than the
principle of an arithmetical sliding scale, and that one
of the principal factors of such a board as this was to
take in the prevailing prices and the condition of trade
when the board was sitting, and not what had taken
place four months previously.' ^ In the first two years of
the Scotch Board it seems to have been its usual prac-
tice to pay regard to current prices ; and the leader of
the miners put this very clearly : ' If wages must
follow prices, we hold that it is on present prices

' B,e]^. Spec. Cotuncil Meeting, 87.

PRICES AND WAGES 57

that wages should be based.' ^ But if present prices,
why not the expected or anticipated prices of the near
future ? There can be no objection to that on principle
— granting that prices should regulate wages — if the
anticipations are reasonably safe. Accordingly Lord
Davey, in 1895, told the Durham people : 'If you are
prepared with evidence of a buoyancy in trade at the
present time, I am prepared to receive it as relevant
fact.' - And in Northumberland the representative of
the coalowners in 1900, at the end of a long discussion,
declared that ' they did not so much object to the prin-
ciple, to a certain extent, of taking into consideration
the prices of the ensuing three months, provided it cut
both ways.' ^ The chief, and in my opinion conclusive,
argument against such a policy is that future prices
are not reasonably certain. The award of Lord Davey
on that occasion had to be revised a very short time
afterwards, because he had assumed a ' buoyancy ' which,
as it turned out, did not exist. It is naturally annoying
for the men to continue for three months to receive
low wages when prices have risen — but they will get
the rise in time if regard is paid to realised prices ; just
as it is annoying to the masters to be compelled for
three months to pay high wages when prices have fallen
— but they also will get their relief by-and-by.

But still, whether past, present, or future prices are
considered, they are prices after all ; and in spite of
what was said in the discussions, so long as any prices
are followed, the principle of the sliding scale is still
recognised.

It is a more fundamental question whether prices

^ Proceedings, xii. 36, 81. For the present rules see Appendix II. 4.
^ Durham Proceedings, September and October 1895, 14.
' Northumberland Bep. Spec. Council Meeting, 90.

S8 THE ADJUSTMENT OF WAGES

(past, present, or future) are a sufficient index of the
profitableness of an industry.

In the first place, it is conceivable that there might
be a large sale at a low price, and that this might be
more profitable than a small sale at a high price. This
is apparently one of the ideas at the bottom of the
general demand on the part of the miners that ' volume
of trade ' shall be taken into consideration.^

Another idea leading to this demand is that at the
same price the sale might conceivably be larger or
smaller, and that the larger it was — with less pro-
portionate ' dead charges ' or fixed expenses — the
greater would be the profit.^ The accountants, it is
understood, who are acting for the Board for the
Federated Districts, have recently been instructed to
prepare statistics of ' output ' as well as of ' price ; '
and it remains to be seen what arguments will be based
upon them.

In the second place, a low price of coal may be
rendered possible by a diminution in the cost of pro-
duction and so not necessarily mean low profits, and an
increase in cost of production may render desirable an
increase in price without bringing higher profits. Oddly
enough this argument has been urged by both parties in
different districts as against the contentions of the other
side. In Scotland in 1899 it was the masters who
uroedit:^ in Durham in 1895 it was the men.* In
Durham the men have refused to co-operate in the

' In America this has been lu'ged by the operators ; see below, p. 110,
n. 2. Cf. Lord Davey's remarks, Dm-ham Proceedings, April and May
1895, p. 83.

-^ This is pointed out by Lord James of Hereford in the Proceedings
(before the Board for the Federated Districts) on December 9, 1902,
36, 37.

^ Scotch Proceedings, 27, 71.

* Durham Proceedings, April and May 1895, 36, 74, 76, 85.

PRICES AND WAGES 59

accountants' ascertainments for this very reason that
they are limited to seUing price. ' Let the employers,'
said their argument, ' broaden the work of the ac-
countants. Let their ascertainments be as complete as
possible. Let them show all that affects the cost of
production. Let the accountants be something more
than mechanical reckoners up of a set of figures placed
before them, and let them be balancers of the losses
and gains of the transaction.' Wliether this is possible
as a piece of accounting I cannot say ; but Lord Davey
the Chairman, acting as Umpire, agreed that ' a rise or
fall in prices may not indicate a rise or fall in the sale-
able value as a profitable merchantable article,' owing
to changes in the cost of production. If a "prima facie
case could be made out that this was actually so, he
thought it ' quite within the power of the Umpire to
require information from the books of the owners as to
the relative cost of production per ton of coal at one
period and at another.'

If a change in cost of production took place only in
big jumps and at rare intervals, it might be met by a
readjustment of the scale. But the readjustment of the
scale is always a most delicate and troublesome busi-
ness ; and it must be allowed that we have here a valid
reason for leaving the rate to the deliberations of a
board or the decision of its chairman, unfettered by any
formal scale.

Grant, however, that, as a rule, prices indicate
profits, in what proportion are the joint gains to be
shared ? In ordinary times this is a purely academic
question which interests economists,^ but not the
parties concerned. Some employers have themselves
suggested that a division into equal parts is the

1 E.g. Smart, Studies, 80, 81.

6o THE ADJUSTMENT OF WAGES

proper arrangement, and have justified a particular
rate on the ground that it secured this end.^ Both
parties are usually quite content with rough and
ready increments or decrements in wages without any
exact apportionment of the joint product. But it
is when prices are ruling abnormally low or high that
the difficulty arises. It is obviously desirable at the
lower end of the scale that wages should not fall quite
as fast as prices, and this may be balanced by a similar
retardation of their rise at the upper end of the scale.
Yet scales drawn up on those principles have again and
again been terminated by the employers when prices
fell very low on the ground that they did not give them
sufficient relief, and by the men when wages were high
on the ground that they did not give them sufficient
benefit.^ The fact is that coalmasters and union
leaders, able men as they are, have always legislated
for the moment ; and no scale has been voluntarily
adhered to by both sides for many years. This, it will
be said, is a defect of mechanism, not of principle ; but,
when a lasting mechanism is almost beyond practical
possibility, the attempt to construct it may well be
abandoned, even if the principle continues to be recog-
nised as theoretically sound.

Now, however, we come to the last and most funda-
mentally important point of all. Grant that, as things
are, with the almost unrestrained competition that
commonly prevails among coalowners in most districts,
prices do indicate profits. Ought profits to be deter-
mined by prices so obtained ? Ought the condition of
the mining population to depend on the coalowners'

» Scotch Proceedings of 1899, 25, 26, 68, 74. Cf. Durham Proceed-
ings, Septcmher, October, 1895, 111.

* Cf. Munro, Sliding Scales in the Coal and Iron Industries, 145.

PRICES AND WAGES 6i

unregulated struggle for the market ? Ultimately and
at bottom, the quarrel of the miners with the depen-
dence of wages on prices is a quarrel with the practice
of unrestrained competition.

Two observations have to be made on this point.
The first is that any system which makes wages ' auto-
matically' follow prices — whether there is a formal
sliding scale or not — facilitates the competition of
sellers by the reduction of ' friction.' It is a common-
place among economists and statisticians that, as a
rule, wages both fall and rise more slowly than prices.
The resistance which he will meet with in his effort
to reduce wages acts more or less consciously as a
restraint upon an employer in deliberating upon a
policy of low prices. But an arrangement by which
wages pretty speedily follow prices without much
opposition, diminishes fro tanto the restraining pres-
sure, and leaves the employer free to follow the state of
the market for the time being. This was recognised
even by the earliest and most enthusiastic advocate of
slidino' scales amono' economists — Professor Munro.
' An employer,' he says, ' has not the same motive to
hold back his stock of coal under a sliding scale ' — and
the same is true of any plan tantamount to a sliding
scale — ' as if wages were regulated by competition.' It
is true that he goes on to say that ' trade will be in a
sounder condition the more quickly profits and wages
adjust themselves to new economic conditions.' ^ And
it may be argued that to the workman the thing is as
broad as it is long ; if the employer has to wait a
shorter time for wages to fall when prices fall, the
workman has to wait a shorter time for wages to rise

^ Sliding Scales in the Coal and Iron Industries from 1885 to 1889,
146.

62 THE ADJUSTMENT OF WAGES

when prices rise. This is true enough. But the work-
man naturally cares more to keep wages from sinking
than to insure their rising. And in any case the
lessening of wage-friction must tend to promote the
more frequent oscillation of price. Whether one
thinks, as Professor Munro thought, that that is ' a
sounder condition of trade,' will depend on one's
general social philosophy.

The other observation is that, under the conditions
which prevail in the coal trade, the existence of a
formal or informal sliding scale actually tends to depress
wages. It seems that it is a common practice among
coalowners and middlemen to ' sell forward ' over long
periods. The extent to which this takes place is much
disputed ; it seems to be more general in some districts
than in others, and in periods of depression rather
than in periods of prosperity.^ It ought not to be
impossible to secure trustworthy estimates of the extent
of the practice ; but I do not know where to find them.
Meanwhile, it is safe to say that the practice does
extensively prevail, and that, so far as it prevails, it is
likely to have a prejudicial effect upon wages. It is
only human nature that the sellers of coal should
reflect that, if they contract forward at lower prices,
they will be to some extent reimbursed by a reduction
of wages consequent upon the lowered price. If this is
so, instead of prices l^eing quite independently deter-
mined by other circumstances apart from wages, and
then wages following suit, prices may be in some
measure affected by an anticipated fall in wages, and

' For instance, a Scotch coal owner spoke as follows in January 1901 :
' The contracts do not affect prices as in former years. Our prices last
year were kept down by low-priced contracts, but our prices this year are
not being kept up to anything like the same extent by higher-priced
contracts.' — Scotch Conferences, xii. 30.

PRICES AND WAGES 63

then wages have to be lowered to correspond witli the
prices so determined. The point was well put by the
leaders of the men in the Durham hearings in 1895,
' We have formed a wrong conception of a Conciliation
Board if the result is only to assist competition and
rush down wages.' ^ And again, ' It is well known that
there is a fierce undersellinor oroino* on amono- our

COO O

owners. The evil effects of this course will be seen
when it is considered that the average selling price by
which it is sought to reduce our wages is the joint
result of those who desire to secure a fair price,
securing profit to the capitalist and a . . . proper
wage for the workman, and those who have no such
regard. Surely something better is to be expected
from our attempts at conciliation. This board must
not be looked upon as a safe, ready, expeditious and
certain means of recoupment by those who are guilty
of such actions.' ^

Among the Scotch miners, the objection has been
recently stated by Mr. Smillie, their leader, in the
following terms : ' We don't think the colliery owners
are entitled to enter into forward contracts with any
large corporation at a price under which they can pay
the then current rate of wages, and then turn round
and ask us to have a reduction of wages merely
because they have entered into contracts below the
price which will entitle them to go on paying the wages
which we are entitled to have.' ^ ' Entitled ' is a matter
of opinion ; but the argument itself is sufficiently clear.
To these excerpts we may add the following oratorical
utterances of Mr. Brace, the Vice-President of the

' Durham Proceedings, April and May 1895, 46.
- Ibid. September and October 1895, 26.
' Scotch Conferences (1901), xiii. 118.

64 THE ADJUSTMENT OF WAGES

South Wales Federation, and the leader of the recent
successful assault on the sliding scale :

' The great weakness of the sliding scale was that it
recognised prices as the sole factor in the regulation of
wages. Was it not a fact, year in and year out, that
the shding-scale principle for regulating wages allowed,
nay encouraged, men who had not invested a penny in
the industry to sell hundreds of thousands of tons
of Welsh coal before they had bought an ounce ?
This was not romance, but a great fact that condemned
the sliding scale as a system of regulating wages.
When these merchants had entered into contracts to
supply coal at \s. less than market prices, they did
their utmost to force down the market to the position
which they had created, and in spite of the fact that
the lower it went the greater hardships would be
imposed on the men.' ^

The opinion expressed by these quotations from the
miners' leaders in Scotland, the North of England, and
South Wales is not confined to the miners. It has been
shared by a good many outside observers ; " among
others by a great coal merchant like Mr. D. A. Thomas.
Even the ' Times ' correspondent at Cardiff, a strenuous
defender of the sliding scale, and quite convinced that
' the great collieries in South Wales, which deal
directly with the Admiralty and the principal shipping
lines, may safely be trusted always to get the best
prices available,' still confesses that 'bargains have
been made by middlemen from time to time, for reasons
of their own, which have seemed to give colour to the

' The Colliery Guardian, August 29, 1902.

'^ Thus Mr. H. Read uTites in the Economic Journal for 1894
(iv. 333) : ' Coalowners make contracts at very low rates because they
know that, under the operation of the sliding scale, part of their loss will
be recovered from the men's wages.'

PRICES AND WAGES 65

suggestion of cut-throat competition and unnecessary
cutting-down of prices.' ^

The controversy, then, limits itself to the extent to
which a formal or informal sliding scale has this effect ;
that it has it to some effect would seem to be beyond
dispute. It may be maintained, with much show of
reason, that the disadvantage, so far as it exists, is
more than counterbalanced by the regularity of in-
dustry which long contracts make possible. On the
other hand, in a trade like that of South Wales, where
a small excess in supply always leads to a more than
proportionate fall in price, and the constant tempta-
tion to colliery managers is to reduce average cost
by increasing output, and so still further flood the
market,'^ it may be argued that what is needed is
to restrain rather than facilitate competition, even to
the extent to which a formal or informal sliding scale
may do it. The problem, as you see, does not surrender
itself to simple and confident solutions.

The result, however, so far as the miners are con-
cerned is that, for the present at any rate, their leaders
on the several Conciliation Boards have everywhere
declined to accept the principle that wages should be
detei mined by prices alone. Even the highly conser-
vative Mr. Burt, reasoning with some ardent spirits
in Northumberland, in 1900, and asking: 'To what
should we look except price as the main factor in
determining the rate of wages ? ' is careful to add, ' not
the only one.' '^ And in Scotland the men's leaders,
after every attempt in 1899 to pin them down to the

* The Times, January 1, 1903.

- This is well shown by Mr. D. A. Thomas in his Notes on the Coal
Trade 1895.

^ Northumberland SjJecial Council Meeting, March 1900, 111.

66 THE ADJUSTMENT OF WAGES

proposition that, between the minimum and maximum,
wages should be determined by price alone, avoided
the admission by always coupling ' the selling price
of coal' with 'the state of trade.' In 1902 the
Scotch Conciliation Board was reconstituted and a
compromise was arrived at and formulated in the
following language : ' The average net realised value
of coal at the pit bank for the time being, taken
in conjunction with the state of trade and the prospects
thereof, is to be considered in fixing miners' wages
between the minimum and maximum for the time
being ; and in current ordinary circumstances a rise or
fall of 6J per cent, in wages on the 1888 basis for every
4:\d. per ton of rise or fall in the value of coal is reason-
able.' The words italicised will give, it may be con-
jectured, abundant scope for the introduction of other
considerations than prices.^

^ The present Scotch formula has been described, from the side of the
coalowners, as ' an arrangement which, if it might not guide us altogether,
will at least give us a very strong lead in the determination of what
wages may be paid ' (Proceedings, xv. 10) ; and from the side of the miners
as ' not an automatic system, but some method under which we could
agree that reasonable grounds came in for demanding an increase or a
reduction in wages ' {Proceedings, xvi. 4). There has, as is natural, been
some divergence of opinion between the two parties subsequently as to
the weight to be attached to price considerations. Whenever the coal-
owners laid great stress on price, the miners protested that they had
never agreed to ' an automatic sUding scale,' and the owners disclaimed
any such intention on their part {ibid. 72). The Sheriff of Perthshire,
adjudicating as neutral chairman on July 11, 1902, thus pronounced upon
the terms of the agreement : ' Article 2 has not, in my opinion, the effect
of fixing an inflexible sHding scale. It contemplates that the net average
realised value of coal at the pit bank for the time being shall not be the
sole consideration in fixing the rate of wages, but that the state and
prospects of trade are to be taken into consideration also. ... If it be
assumed that it was intended to establish a regular sHding scale, then
the coalowners' view of the agreement would be the logical one. But,
in my opinion, whatever was the intention of the parties or a section of
them, the terms of the agreement as it now stands do not support ' that
' argument in its entirety. . . . The provision as to the ratio of the rise

PRICES AND WAGES 67

That this is natural and proper is now generally-
recognised by the employers. Thus the leader of the
Durham coalowners, Sir David Dale (though, as we
have seen, according to Lord Davey, he afterwards fell
from grace), opened his case thus in 1895: 'The
interests at stake are far too large and too important
to be based merely upon an arithmetical calculation.
We have dealt with them b}^ a more careful survey of
the lohole condition and tendency of the trade.' ^ And
even the Welsh coalowners, in the draft just put before
the men, go no further than to say : ' In considering any
proposal for an alteration in the general rate of wages,
the price of coal shall be a factor.' -

The situation is not easily summed up. On all the
Conciliation Boards the representatives of the miners
now insist on discussing all the circumstances of the
trade, and not prices only ; and their claim is practi-
cally allowed. The consciousness on the part of coal-
owners and sellino- ao-ents and middlemen that lowered
prices are no longer quite so certain to be followed by
lower wages can hardly be without some effect in
checking the tendency to cut prices in periods of
depression. It is true, however, that in the recent

and fall of wages to the rise and fall of 4^(^. per ton in the prices of the
coal is not so expressed as to make that a hard and fast rule, but rather
to indicate a rule for guidance, other things being equal ' {Ibid, 129,
130). See the text of the Agreement in Appendix II. 4.

^ Durham Proceedings, April and Mag 1895, 15.

- In the final agreement this phrase was replaced by the following :
' In considering any proposal for an alteration in the general rate of
wages the said minimum of 30 per cent, shall ... be considered as
equivalent to such an average net selling price per ton of large coal
(not being less than lis. 3*^. nor more than 12s. Sd.) as shall be forth-
with determmed by an independent person.' But a new clause was
added : ' Nothing in the clauses of this agreement is to preclude either side
bringing any matters before the board or independent chairman which they
consider factors bearing upon the wage question.' See Appendix II. 5.

!■ 2

68 THE ADJUSTMENT OF WAGES

prosperous times the miners' representatives were
content to base their demands for higher wages upon
the rising prices of coal ; and in Scotland ^ they have
consented to what has been happily called ' a tentative
scale ' for ordinary times. ^

Just now in the Federated Districts the discussion
turns on the means of ascertaining the state of the
trade. The demand made here, and indeed elsewhere,
for an inquiry into profits is simply due to the doubt
whether prices are a sufficient indication of the total
earnings of the industry. If it should turn out that
coalowners' profits are on the average higher than
those in other comparable forms of investment, a claim
might be put forward for a larger share of the joint
product in the form of wages. But if — what is much
more probable — it should appear, in the less flourishing
period on which the coal trade is apparently now enter-
ing, that depression affects profits as well as prices,
then the miners may be driven back once more on their
fundamental contention. 'We object,' said Mr. S.
Woods, on behalf of the Miners' Federation before
Lord James of Hereford in December last, ' and have
always objected, to wages being governed by prices on
this one ground, that we have no voice whatever in
fixing the prices — they are fixed absolutely without
consulting the workmen.' ^ And in the same sense Mr.
Brown, the Secretary of the Scottish Miners' Federa-
tion, a year or so ago : ' In dealing with wages in
relation to prices, I think it ought to be borne in mind
that there are 70,000 miners in Scotland, and they have
no say as to what the price of coal is to be.' ^ Of

' And now in South Wales ? ^ Scotch Proceedings, xvi. 188.

^ Minutes of Meeting of tJie Board of Conciliation, Deconher 9,
1902, 34.

■* Scotch Proceedings, xiv. 245.

PRICES AND WAGES 69

course the miners' leaders will be just as loth, when
profits are low or non-existent, to have wages governed
by a trade pohcy in which they have had no ' say,' or
'• voice.' What they are driving towards is nothing so
foolish as interference with the conduct of particular
businesses. What is vaguely' floating before them is a
' regulation of the trade ' as a whole, in which they
shall take a formal part. Certainly the only means of
mitigating the severity of recurrent crises in the coal
trade is by slackening output when the decline of prices
begins. Evidently the coal trade could not by itself
rise altogether superior to a general depression, affect-
ing, let us say, some of the chief coal-using industries.
But it might be so regulated as to bear the stress more
easily ; and if its example spread, seasons of severe
general depression might become things of the past. I
have already quoted some expressions of willingness on
the part of the miners to join in the regulation of the
trade ; in Durham some years ago they even demanded
that their wages should be regulated only by the prices
of the short-lived Sales Association.^ Probably the
form of ' regulation ' which will first be resorted to will
be a checking of output by means of ' stop-days ; ' and
if the coalowners are reluctant to adopt this measure,
the men will doubtless attempt to carry it out by their
own organised strength. If the recent decision of
Mr. Justice Bigham in the South Wales ' Stop-day ' case
remains law, the Miners' Federations will have no penal-

1 ' We recognise the worth of the Coal Sales Association, and repeat
our assertion that had not some of the employers remained outside, and
forced down the prices, this reduction would not have been required. If
this be disputed, let the employers base their claim upon the prices
realised by the Coal Sales Association alone. Otherwise we are at the
mercy of a system of competition which cannot be stopped by the present
reduction.' — ' Workmen's Eejoinder ' in Durham Proceedings, April and
May 1895, 69.

70 THE ADJUSTMENT OF WAGES

ties to fear in advising their members to the amount of
breach of contract involved in an occasional general
holiday.^

But it is only six years ago that the great majority
of the South Wales coalowners were ready to join with
the men in a scheme for restricting the output ; ^ and
similar co-operation between coalmasters and coalminers^
is not at all unlikely in the future. Or there will be
some more formal alliance there and in other British
coal fields. For it will evidently be towards some

1 The decision of Mr. Justice Bigham was full of the unexpected. In
consequence of recent legal rulings (see below, Lecture VIII.) the South
Wales Miners' Federation had anxiously sought to make it appear that the
advice in question did not proceed from itself but from the miners' members
of the South Wales Sliding Scale Committee. Mr. Justice Bigham pushed
aU such pretences on one side and fixed the responsibility where it
evidently belonged. But then he went on to lay down that for giving
such advice — although it led the men to break their contracts in the sense
of staying away from work one or two days — the Federation was not
liable in tort. ' I find that the Federation and aU the other defendants
acted honestly, and without any malice, and in ordering the stop-days did
no more than that which they conceived to be in the best interest of the
men whom they represented, and for whom they were acting ; and I find,
moreover, they had lawful justification or excuse for what they did in this,
that having been solicited by the men to advise and guide them on the
question of stop-days it was their duty and their right to give the advice,
and to do what might be necessary to secure that the advice should be
followed.' I quote from the verbatim report in the Colliery Guardian
for August 15, 1902. The whole argument of the judge should be read.

^ Compare the comments on Mr. Justice Bigham's decision of a writer
in the Colliery Guardian for August 15, 1902 : ' It is necessary, fully to
appreciate this conclusion, to go beyond what appears in the judgment
itself and to lay emphasis upon the fact that the coalowners have, in
previous years, joined with the men in an endeavour to regulate the out-
put. Both in 1896 and 1897 a committee (first of the associated sUding-
scale owners and afterwards a committee which included non-associated
owners) considered and approved, and in 1897 actually drafted and recom-
mended a scheme for keeping up prices in South Wales by limiting the
output. Obviously these are facts which must have weighed heavily in
the judge's mind. The men have done what the masters were willing to
do in 1897, but for the fact that the required percentage of adherents to-
the scheme was not secured.'

PRICES AND WAGES 71

arrangement for restraining competition that the logic
of the situation will point.

^ Meanwhile it is not, I should think, even from the
miners' point of view, altogether to be regretted that
the recent attempt of the Miners' Federation of Great
Britain to induce the Welsh miners to make an agree-
ment with the coalowners for one year only, should have
met with ill success. The intention was that the three
agreements for the Federated Districts, for Scotland and
for South Wales, should be made to terminate at the
same time, and thus an opportunity be given for the
creation of a single board, which even Northumberland
and Durham might conceivably be induced to join.
Whatever may be said for such a grandiose conception
from the miners' point of view, I cannot but think that
the experiment will have a better chance of success
when the several boards already in existence have had
a longer experience, and especially when they have
led to the more distinct formulation of a wage policy
suitable for times of depression.

^ Added since deliveiy as a lecture.

72 THE ADJUSTMENT OF WAGES

LECTUEE IV

GENERAL RATES AND THEIR INTERPRETATION.
THE HOURS OF LABOUR

Let us now look more closely at the constitution of
the boards. That for the Federated Districts consists
of an equal number, fourteen on each side, of repre-
sentatives of ' the Federated Coalowners ' and of the
Miners' Federation of Great Britain- — ' with a chairman
from outside who shall have a casting vote.' 'All
questions,' run the rules, ' shall, in the first instance,
be submitted to and considered by the board,' i.e. in
the absence of the chairman, ' it being the desire and
intention of the parties to settle any difficulties or
differences that may arise by friendly conference if
possible.' ' If the parties on the board cannot agree,'
then the meeting is adjourned and the chairman sum-
moned, the matter again discussed, and, in default of
an agreement, ' the chairman shall give his casting
vote, which shall be final and binding.' It is provided
in the joint agreement that, when the office of
chairman becomes vacant, ' the board shall endeavour
to elect another chairman, and, should they fail, wiU
ask the Speaker for the time being of the House of
Commons to nominate one.'

The rate fixed by the board at its initiation in 1894,
viz. 30 per cent, above the standard of 1888, remained
unchanged until the autumn of 1898. From that time
onward wages were successively raised 1\ per cent, above

GENERAL RATES AND THEIR INTERPRETATION 73

Standard in October 1898 ; 5 per cent, in April 1899 ;
1\ per cent, in October 1899 ; 5 per cent, in January
1900 ; 5 per cent, in October 1900 ; 5 per cent, in
January 1901; and 5 per cent, in January 1902^ —
reaching therewith the maximum, 60 per cent, above
standard. All these advances the board was able to
agree upon by itself, without calling in the assistance
of its neutral chairman. But things have not gone so
smoothly since the inevitable reduction in coal prices
beo-an.

In May 1902 the board unanimously agreed to re-
commend a reduction in wages of 10 per cent, (to take
effect per cent, in June and 5 per cent, in August).
But, although it does not appear in the Eules of Pro-
cedure,'^ neither party on the board apparently regards
itself as possessing unlimited ' plenipotentiary ' powers.
Exactly how far they suppose they can go without
referring to the bodies they represent is not clear.
During the rise in coal prices the coalowner representa-
tives had frequently to go back and consult their con-
stituency before granting the increased wage demanded
by the miners. And now in 1902 the recommended
reduction had to be laid before the men. The men by
a large majority refused to accept the recommendation
of their leaders.*^ Accordingly it became necessary to

^ These were not all separate agreements. The board agreed more
than once to spread the advances over a period of some months.

- For which see Appendix II. 1.

^ Yorkshire voted against accepting the recommendation by a majority
of almost nine to one ; Lancashire and Cheshire almost imanimously ;
Derbyshire by a small majority. On the other hand, all the districts in
the Midland Federation proper ' decided to leave the whole case in the
hands of the Federation Board, as they had full confidence in the Board,'
and the same was the opinion of Nottingham. The voting seems to have
been, as a rule, by the ' Councils,' at the rate of one vote for fifty members.

Four years before, when the I'ise began, the officers of the Miners'
Federation had found considerable difficulty in carrying the men with

74 THE ADJUSTMENT OF WAGES

invoke the services of the neutral chairman — Lord
James of Hereford, who decided upon a reduction of
10 per cent., to take effect in July. It is evident that
the party which has been unable to carry its constituents
with it is in a very embarrassing position in the sub-
sequent arguments before the neutral chairman. Even
if in the earlier discussions they thought they had a
just claim for better terms, and only yielded for the
sake of peace, the fact that they did yield inevitably
diminishes the effect of their subsequent arguments
against the arrangement. And yet their duty to the
societies, whose paid executive officers they are, com-
pels them to do their best as advocates.

In November the board was again called, this time
in consequence of a simultaneous application of the
miners for a 10 per cent, increase and of the coal-
owners for a 5 per cent, reduction. Agreement was
impossible, and the neutral chairman was at once
called in and heard arguments on December 9 last.
His decision has hitherto ^ been deferred, awaiting
certain returns from the accountants which both parties
have agreed to call for.

In Northumberland the constitution of the board is
much the same : here it is fifteen on each side. Here

them. ' When the agreement for a 21 per cent, advance was reached in
1898 the men did not like it, and some who were on the Conciliation
Board were not satisfied. Others who were not on the board liked it still
less and criticised the action severely and bitterly, especially in Lanca-
shire. The men took a ballot to decide whether or not they would accept
and approve the decision of the board. Some of the delegates opposed
it actively, declaring that their representatives on the board had been
outwitted. At that juncture Mr. Pickard and others issued a manifesto
requiring courage, in which they declared that the decision was a boon to
their interests and should not be declined. It was accepted.' — McPherson
in Bulletin 28 (May 1900) of the U.S. Department of Labor, reporting a
statement by Mr. Piatcliffe Ellis, the Coalowners' Secretary.
^ Until, indeed, the end of April 1903.

GENERAL RATES AND THEIR INTERPRETATION 75

also there is ' an independent chairman ; ' and the
County Court Judge for Northumberland, Judge Green-
well, has been chosen by the two parties. ' In default
of agreement b}^ the two parties ' the chairman ' shall
have power to decide such question as he may see
fit, and his decision shall be final and binding on
all parties.' But in Northumberland, apparently, the
chairman is expected to preside at ordinary meetings.
At most of the quarterly meetings which have taken
place since the re-establishment of the board in 1900,
some change has been made in the county rate. At
first there were advances; but since February 1901
there have been reductions ; and in two cases out of
three the board has been compelled to leave the matter
to the decision of the chairman.

It is obvious that under such circumstances, both
in the Midlands and in Northumberland, the chairman
tends to become an arbitrator. The proceedings seem to
differ from the arbitrations of an earlier period in that,
(1) an attempt is always made first to settle the matter
by regular negotiation between the parties in a formally
constituted board, (2) when they fail to agree, there is
a permanent chairman to fall back upon, and no time
need be lost or difiiculty created by preliminary con-
tentions as to who shall be called in, (3) the chairman
is limited to a range of wages between a maximum and
minimum, (4) by the decisive rejection of the sliding
scale the chairman is warned beforehand against a
merely ' mathematical ' determination of wages by refer-
ence to the realised prices of the last quarter. In spite
of these differences, however, there is a real danger
that the habit of appealing to the neutral chairman's
decision may seriously weaken the Conciliation Boards.
Men are not likely to put their contentions into a con-

76 THE ADJUSTMENT OF WAGES

ciliatory shape or to give patient attention to the argu-
ments of the other side, if they start with anticipating
that the whole matter will have to be gone over again
before the neutral chairman. This contingency would
be less likely if the miners' representatives had au-
thority to come to an agreement without referring
to their constituents ; and it is on the growth of a
more distinctly representative organisation on each side
that we must rely for the more adequate fulfilment in the
future of the functions of the boards.

In Durham, for reasons which are not apparent,
and which can only be conjectured as personal, the
two parties on the board since its reconstitution in
1899 have managed to agree on each of the long series
of quarterly changes (all of which, in this county also,
have been reductions since February 1901), without
calling in an outsider. Each side is represented by
eighteen ; one of the owners' representatives acts as
chairman, and one of the miners' representatives as
vice-chairman — each with a representative and not a
casting vote. The language of the rule ' as to the
desire and intention of the parties ' is the same as that
of the Midland Board ; but the Durham men have
frankly recognised the logic of the situation and call
the outside arbitrator not ' neutral chairman ' but
' umpire ' — which he really is.^ They appoint their
umpire annually, and by unanimous consent have each
time elected Lord Davey ; but so far they have had no
need for his services on the present board.

My time will not allow me to deal with the Scotch
Board, except to say that a reduction of so large an
amount as 25 per cent., recommended to the men by

' It is significant that in some of the circulars of the Miners' Federa-
tion Lord Jaraes of Hereford is spoken of as ' Umpire.'

GENERAL RATES AND THEIR INTERPRETATION 77

their representatives on the board, was accepted after
a ballot of all the 70,000 miners employed, in March
1901. But since then the board has three times failed
to come to an agreement, and has called in as neutral
chairman Lord James of Hereford on one occasion, and
on two occasions the Sherift of Perthshire.

The rates fixed by the boards or their chairmen
are all general, or (in Northumberland and Durham)
county, rates. They determine primarily the wages of
the hewers (or cutters of coal), and these are followed
in certain proportions by the other classes employed.
But they do not settle the exact rate per ton to be
paid to the individual miner : they only determine
what he shall be able to earn, by normal exertion, in a
normal day, at the rates actually current in the par-
ticular mine and seam. The changes in the general
rate are sometimes so marked and the character of the
men's labour so evident that a readjustment can readily
be effected. But often it is very difficult ; and the
manager of a mine may believe himself to be paying
above the proper rate, or the men believe themselves
to be paid below. Some machinery, therefore, is
necessary for the interpretation of the general agree-
ment and its application to unusual or exceptional
circumstances. It is here that the Northern Counties
distinguish themselves for the excellence of their
arrangements. All such questions in each county are
settled by a small Joint Committee of six from each
side with a legal chairman. These are not the
magnates of the coal trade or Miners' Association :
they are the ordinary officials of the two parties, men
of technical coal-mining knowledge, not necessarily of
commercial knowledge. The disputes are often so

78 THE ADJUSTMENT OF WAGES

technical and remote from general considerations,
turning upon the relative hardness of different kinds
of coal and the like, that an employers' official is some-
times delegated to look into a matter and his report
accepted by the men's representatives, and sometimes
similarly the employers' representatives entrust the
matter to a miners' representative. These joint com-
mittees have gone on doing their work for more than a
quarter of a century, interpreting the -rates whatever
they may be at the time and however settled. This is
one of the greatest triumphs of common sense the
industrial world has yet seen. The joint committees,
indeed, are not uniformly successful ; local stoppages
do occasionally still take place when the men refuse to
listen to their of^cials ; and serious strikes may still
occur in those few collieries not in the Coalowners'
Association and susceptible to its pressure.^ Never-
theless the joint committees succeed in maintaining
the peace on the whole. It is the only part of the
mechanism for adjusting wages that the ordinary
manager comes in contact with. The high questions
of policy involved in the county rate are settled above
his head ; and when he cannot come to terms with the
local pit branch, he falls back with a sigh of relief on
the joint committee. Being human, managers still
sometimes speak as if they were hampered by this
arrangement. But let there come some trouble in the
Midlands, and they at once pride themselves on the
existence of the joint committees as evidence of the
superior wisdom of their own northern counties."

''■ An instance in which 127 men were engaged is commented on in the
Durham Miners' Montlily Circular for December 1899.

^ For the Durham Joint Committee Rules, see Appendix II, 3a.
An interesting and quite eulogistic account of the working of the
committee will be fomid in Professor G. von Schulze-Gaevernitz's Social

GENERAL RATES AND THEIR INTERPRETATION 79

Outside the two northern counties no such me-
chanism exists for interpreting general agreements and
applying them to particular cases. So far as the work
is done at all, it takes the form of negotiation between
the mine manager and a union functionary known as
the ' Miners' Agent.' Thus the Cannock Chase Miners'
Association, with its thirty pit branches and its 4,000

Peace (1893), 173-186. Another account is given in Webb, Industrial
Democracy, 192-5, where the tribunal is described as ' impartial,' but
' cumbrous, expensive, and dilatory for deciding mere issues of fact.'
That the system involves some delay is apparently true. Giving evidence
in 1891 Mr. Patterson, the Secretary of the Durham Miners, said that of
late the number of cases had been increasing so rapidly that they some-
times could not be disposed of by the committee for sis months ; and
Mr. Wilson spoke of six weeks as a quite likely delay if a case was
not reached on the agenda. — E. Com. on Labour, Group A, i. 5, 30. I am
informed by Mr. Wilson that ' in these later 3'ears ' the business of the
Durham Joint Committee has not been so congested as in 1891, The
argument of the Webbs that the work could be done more effectively
by conference between a single professional expert on each side, as in
the cotton industry, is hardly convincing ; for one can hardly suppose
that the circmnstances are so readily reducible to arithmetic as the
counts of yarn and other technical ' particulars ' in the textile trades.
For the manager's point of view see Bulman and Kedmayne, Colliery
Working and Management, 80-81. From the latter work I extract the
following table showing how the 761 cases brought (578 by workmen,
183 by owners) before the Joint Committee in Durham in 1894 were
dealt with :

Referred to local arbitration ....
Settled by agreement between two parties in

dispute

Decided by committee

Withdrawn

Ruled as being oiit of jurisdiction of committee

761 100

A most elaborate abstract of Joint Committee Decisions, Agreements,
Aivards, Reports, Practices, Rules <tc. has been prepared in a number
of volumes by the officials of the Durham Miners' Association ; and the
' lodges ' are urged to consult the precedents thus provided before
sending in any case to the Joint Committee. Similar Minutes of Joint
Committee proceedings are furnished to its members by the Coalowners'
Association, and are filed by colliery managers.

Per cent.

225

205

242

So THE ADJUSTMENT OF WAGES

members, has for its one permanent paid official an
' Agent ' whose business it is to discuss grievances with
the employers, and to appear for the union at the
annual congresses of the Midland Federation and of the
^■eneral Federation of Great Britain. The same is true of
most of the unions which compose the Midland, Scotch,
and Welsh Federations In several cases in recent years
coalmasters and unions in these districts have taken
advantage of the Conciliation Act of 1896, and have
applied to the Board of Trade to appoint a Conciliator.
In some of the cases both parties have concurred in
asking that the appointed person should act as Arbi-
trator and give a binding award. The representative
of the Board of Trade has usually been able to settle,
or facilitate the settlement of, the dispute ; and this is
so far satisfactory, especially when the appeal was
made without stoppage of work. But as recourse to
the Board of Trade has probably meant as a rule the
failure of the means nearer at hand, the circumstances
would seem to indicate that the Agent system does not
work so well as the Joint Committee system of the
North— from which no appeals came.^

So much then for the mechanism for the deter-
mination of wages. But you will remember my re-
mark that the divergence between Yorkshire and the
northern counties was not entirely a matter of wage
policy. And there is one subject of contention too
momentous to be passed over, and that is the period of
labour. The Federation of Great Britain pursues with
ardour the policy of legislative limitation of the hours
of labour, and demands a statutory eight-hour day :

1 See \8t, 2nd, andi SrdBeports of the Board of Trade of Proceedings
imder the Conciliation Act, 1896 (1897, 1899, 1901).

THE HOURS OF LABOUR

the miners of Durham and Northumberland steadily
oppose the demand, and their representatives not only
argue and vote against the Eight-Hours Bill in Parlia-
ment, but display the even greater courage required to
resist the proposal in the International Miners' Con-
gresses. But for the opposition of the northern miners
and their determination, if the bill must pass, to
exempt themselves by local option, a statutory eight-
hours day in mines, ' from bank to bank,' would already
have been established in England. And the situation
becomes the more perplexing when we learn that the
northern miners themselves work a good deal less than
eight hours.

The explanation is not really to be found in any
theoretical objection to State interference, or in any
belief that trade-union pressure is less injurious to
individual libert}^ than State compulsion. Principles of
this kind, though they may be sincerely expressed by
the leaders, are too abstract to sway the mining popu-
lation of a couple of counties. The northern miners,
indeed, have never been backward in demanding State
interference when they thought it for their interest.
The explanation lies in the conditions of northern
labour. There the double-shift system prevails as the
usual arrangement, and each shift is short. Every-
where else, though night shifts are worked at busy
times, there is usually only one day shift, and it is
long — nine or ten hours. But the labour of the men
involves the labour of boys in loading the cars, &c.
The first shift going down in the North at, say, 4 a.m.,
the hewers will not have cut enough coal for the boys
to have much to do until about 6 ; so the boys go
down and begin work then. But the first shift coming
up at about 10, the boys can hardly leave then, after

82 THE ADJUSTMENT OF WAGES

only four hours' work, and so they are kept on until
the second shift comes up at 4 p.m. ; and they are thus
ten hours underground. The long hours of the boys
are, therefore, conditioned by the short hours of the
men : if the men worked a single long shift the boys
could have a short day's work. How far, then, is it
true to say that the boys are sacrificed to the men ?
Tliis is a question to which one ought to be slow to
give a positive answer without personal investigation.
The work of the boys is certainly much lighter than
that of the men : and as the boys are the sons and
brothers of the men themselves, who have many of them
been through the same experience, one can hardly
suppose that the ten hours' work involves grave
physical strain. But an eight-hour day for the boys
would necessitate a complete reorganisation of mining
labour : some of the miners believe it would lengthen
their own working day : nobody in the North sees his
wav through the impasse : they think well enough
should be left alone ; and they are irritated that mere
Yorkshiremen should set up to teach them their
duty ! It is unfortunate for the Eight Hours cause
that the generally superior conditions of the North
should thus block the way. It is possible, however,
that the more general applic^ation of recent improve-
ments in the methods of hauling coal, and especially
the introduction of electrical traction, may diminish
the need for boy labour, and that the problem will thus
become more manageable.^

But this opposition of the northern miners does not

^ Even at present it does not seem a huge one. According to the
Home Office Mineral Statistics for 1901, ii. 54, boys between the ages of
thirteen and sixteen formed only 5-7 per cent, of the persons employed in
the northern coal field.

THE HOURS OF LABOUR

account for the opposition of the coalowners, especially
in the other, the Federated, districts. They oppose it
on the ground that a limitation to eight hours would
cause a diminution of the output. The statement
presented by the Eepresentative Coalowners at the
recent Conference (December 1902) with the Miners'
Federation was as follows :

' We are satisfied that we are considerably within
the mark when we say that the decreased output which
would result from an eight-hours bank-to-bank day
would not be less than from 11 to 18 per cent, at the
most favoured collieries to as high as 30 per cent, at
those less favourably situated. We should be within
the mark in assuming' a oeneral averag^e reduction of
output of 25 per cent.' They proceed to argue that
' the standing expenses of a colliery distributed over a
smaller output means increasing the cost of every ton
raised.' They point out that unless the tonnage rates
of wage were increased, which the Federation does not
ask for, a diminished output means reduced earnings.
If, on the other hand, tonnage rates were raised, this
would still further increase the cost of getting the
coal.

This is the main contention of the coalowners ; and,
on the other side, though there are some who assume
a smaller output per man per day, and advocate the
restriction as a way of securing steadier employment,
the Miners' Federation as a body denies that a smaller
output will result, and bases its case on the desirability
in itself of a shorter day's work.

The coalowners' aro-ument is the same as has been
urged by the employers against every reduction of the
hours of labour. It ought not, therefore, at once to
carry us off our feet. On the other hand it is not,

G 2

84 THE ADJUSTMENT OF WAGES

therefore, to be disregarded. Reductions of time in
the past, in this as in other industries, have not, as a
matter of fact, caused a reduction of output. But, un-
less the arts of production so improve that uUimately
no human labour at all is required beyond the press-
ing of a button, it is obvious that somewhere a point
must be reached when labour cannot be curtailed with-
out affecting product. The question in any particular
case is whether or not that point has been reached.
The matter is an exceedingly complicated one, and
involves many other considerations besides the speed
of labour at the face of the coal. It involves, for
instance, the question of meal-times ; and the more
important questions still of the efficiency of the haul-
ing and winding machinery. If everything remained
unchanged but the hours of labour, it may be readily
granted that output would diminish. But will every-
thing remain unchanged ? It would be foolish to
dogmatise ; but it may be observed that what is, so
far as I know, the most thorough discussion of the
subject, that by the late Professor Munro,^ reaches
the conclusion that other things would not remain the
same. Economies of time, improvements of machinery,
and other like consequences of the proposed legislation
would, in his opinion, result in the maintenance of
the present output. Professor Munro's conjectural
summation of probabilities is borne out by the results
of recent American experience. An eight-hour day
was obtained in 1898. by the miners in the chief
bituminous coal fields of the United States. The day
is one of eight hours ' at the face ' of the coal, which
is not the same as from ' bank to bank ; ' neverthe-
less the change was a reduction of labour-time, and

^ Economic Journal, i. (1891), 281.

THE HOURS OF LABOUR 85

might have been expected to affect production. And
the coalowners (or ' operators ' as they are called) in
the older fields around Pittsburg did maintain next
year before the Industrial Commission that the men
did only four-fifths as much in eight hours as in ten.
Yet it seemed to be the general opinion in newer coal
fields, with newer plant and more fresh enterprise
among the coalowners, that the output had been little
if at all diminished. Thus a large mineowner from
Ohio reported as follows : ' When the mine is prepared
to take care of the coal, I believe, in our Massillon
district, the miner can mine as much as he could be-
fore in the ei<?ht and a half or nine hours, because a
large part of that time he was waiting for cars, or
something of that kind. It depends largely upon the
equipment of the mine for taking out coal. If the coal
can be handled promptly, the miners can produce as
much in eight hours as they did before in nine or ten.'

Q. — Has the shorter workday had the effect of
improving the mine equipment as a general thing ?
A. — I think it has.' ^ A coalowner from Illinois gave
an example from one of his own mines where ' we had
increased our ability to handle coal by the addition
of a double-decked cage in place of the single-decked,
which enabled us to hoist two cars at a time instead of
one, and gave us an opportunity to get out more coal
in a given time than we could before.' '^ In Scotland,

^ Report of the U.S. Industrial Commission, xii. 171.

- Ibid. 110. Cf. the account of the way the eight-hour day was carried
(on the motion of a leading operator of Pennsylvania, Mr. Bobbins) in the
Chicago Convention of 1898, in Mr. J. E. George's article in the Quarterly
Journal of Economics for July 1898. See also the letter there given
(457 note), from a prominent operator in Northern Illinois: ' The men
are adjusting themselves to the eight-hour day, and, though not getting
out as much coal as in ten hours ' — this was only sis weeks after the

86 THE ADJUSTMENT OF WAGES

also, it may be observed the eight-hour day has been
universal since January 1900 ; though there it is eight
hours at the face, i.e. allowing half an hour for break-
fast, about seven and a half hours' actual work.

Nobody, however, not even the English War Office,
likes to be compelled to become more efficient against
his will ; and the necessary initial expenditure, though
it may be more than repaid in a short time, may be
hard to compass in the less profitable among the midland
mines. The coalowners lay stress upon the great
differences that exist between collieries, and the hard-
ship that the reduction of hours would cause to some
of them, especially those who work the thinner seams.
Legislation in this direction, like le"islation or trade-
union pressure in other directions, would probably
tend to crowd out not only the incompetent managers
but also the smaller capitalists, and help forward that
absorption of the smaller by the bigger concerns to
which many look for a better organisation of the coal-
mining business from top to bottom.

change had been made — 'have increased theu' output considerably, owing
to the fact that they have learned how to get their coal ready in shorter
time.'

LECTUEE Y

AMERICAN COAL FIELDS AND JOIN¥ AGREEMENTS

From Great Britain let us now pass over to the United
States.

In considering the production of coal in that coun-
try we have, to begin with, to draw a sharp distinction
between the bituminous or soft and the anthracite or
hard variety. This distinction, which we may forget
in Great Britain — since our supply of pure anthracite is
so small as to be almost neoiioible — is of the utmost
importance in the United States, where anthracite still
forms almost one-fourth of the total output.^ Let us
clear the geography out of the way by saying that the
anthracite of the United States is practically a monopoly
of Eastern Pennsylvania, which produces 99'9 per cent.
of the total quantity mined. Anthracite is still of vast
consequence to the country, but its relative importance
is markedly diminishing. Its output has hardly
doubled in the last twenty years, while that of bitu-
minous has been multiplied almost five-fold. Hereon
hangs the story of one of those vast transformations of
industrial activity which have characterised the past
century, and most notably in Aaiierica. Down to about
1840 the small quantity of iron produced in the United
States was smelted with charcoal; this process sur-

1 About 47 1 million ' long ' or ' gross ' tons (of 2,240 lbs.) in 1898, out
of not quite 196^ million tons ; in 1899, not quite 54 million tons out of
under 231 millions ; in 1901, 60 millions out of under 261 millions.

THE ADJUSTMENT OF WAGES

viving, after it had disappeared in England, owing to
the abundance of wood. About 1840 anthracite coal
began to be used for that purpose ; this being rendered
possible by the introduction at that time of the hot
blast. ^ From 1840 to 1870, roughly, was the period of
' anthracite iron ; ' and during this time Eastern Penn-
sylvania, which produced both iron ore and coal, was the
main coal and iron producing district. But about 1860
bituminous or soft coal began to be used for smelting
purposes ; by 1875 its use caught up with that of
anthracite ; and since then ' the huge advance in the
iron product of the United States has been dependent
on the use of coke ' (made from bituminous coal)."
Thus in 1898 more than 10,000,000 tons of pig-iron
were smelted with bituminous, 1,000,000 with anthra-
cite and coke, a quarter of a million with charcoal, and
not one-tenth of a quarter with anthracite alone. The
explanation is to be found in the greater cheapness of
the manufacturing qualities of soft coal. Anthracite is
limited in supply, and the landowners are able to
secure a larger royalty ; it is placed deeper in the earth
and requires more expensive shafting and tunnelling;
and it needs expensive machinery for breaking, while
soft coal can be sold ' run of mine ' or ' screened.'
The cleanliness and freedom from smoke which are
characteristic of anthracite have made it the favourite
domestic fuel with the whole population of the eastern
half of the United States ; and as houses are all supplied
with stoves and furnaces suited for the consumption
of hard coal and not for soft, even a temporary stop-
page of supply causes widespread discomfort. But the
manufacturing kinds of soft coal are much cheaper ;

1 Taussig, Tariff Histonj of the U.S., 128 seq.

■^ Taussig, Quarterly Journal of Economics, xiv. 147.

AMERICAN COAL FIELDS 89

and, for that and for other reasons, hard coal is being
rapidly displaced by bituminous both for smelting, for
use under boilers, and for other industrial purposes.
As a consequence, Pittsburg, which is in the heart of
the soft coal district and within fifty miles of the most
important coke-making region, that of Connellsville,
has become the greatest iron and stfeel centre of the
United States.

Pittsburg is in western, not eastern Pennsylvania ;
separated from the eastern or anthracite field by a
couple of hundred miles or thereabouts. And while
Eastern Pennsylvania has a monopoly of anthracite,
Western Pennsylvania still produces some 40 per cent,
of the total bituminous output. Thus Pennsylvania is
even to-day much the most important of the mining
states. But the coal region extends beyond the borders
of the state, and stretches southwardly and westwardly
into Maryland, West Virginia, and Ohio — West Vir-
ginia being third in the order of coal-producing States,
with 9^ per cent, of the total bituminous output, and
possessing the celebrated Pocahontas steam coal. Con-
tinuing along the Appalachian highlands, roughly parallel
with the coast, coal is found in Kentucky, Tennessee,
and Alabama ; and the production of the latter state
is growing rapidly, especially around the new city of
Birmingham. But, for the present, operations in these
states are comparatively limited.

The two other most considerable fields outside
Pennsylvania and the adjoining states we may speak of
as the Central and Western. The Central occupies
about half of Ilhnois, a considerable region in Indiana,
and a portion of Kentucky. Blinois produces almost
12 per cent, of the total bituminous yield, of which a
good deal goes northward to Chicago and westward to

90 THE ADJUSTMENT OF WAGES

St. Louis. The Western deposits are being increasingly
worked in Iowa, Missouri, and Kansas, and these states
furnish rather more than 7 per cent, of the whole. ^

Before describing the organisation of labour, the map
suggests some preliminary observations on the general
situation of the coal industry in the United States. It
is an industry which has, until recently, stimulated to
the very utmost all the tendencies towards individualism
which are already so strong in that country. I use
' individualism,' let me remark, in neither a good nor
a bad sense ; I use it for that readiness, that de-
termination, to go one's own individual way, which
one characterises as enterprise or money-making, self-
reliance or self-conceit, rugged strength or angularity,
according to the circumstances and one's point of view.
Elsewhere I have tried to show how this spirit of
individualism was created in America by the circum-
stances of its early history.^ And certainly the coal
industry for the last thirty years has provided it with
a congenial enviromnent. Keen competition is almost
inevitably called forth when the demand for a commodity
is increasing, in its amount and widening in its geo-
graphical area and when the field of possible production
is opening out with equal rapidity ; and this has for some
time been the general tendency in the coal trade of the
United States, even if the development has not been
absolutely continuous. As to the demand, the growth
of the railway system and the filling up of the West,
the increiise of the population, the growth of the cities,
the rise of manufactures, and, especially during the last

' These percentages refer to 1898, and are taken from the Coal Trade
of the U.S., issued by the Bureau of Statistics, U.S. Treasury, 1900.
^ Surveys, Historic and Economic, 405-421.

AMERICAN COAL FIELDS 91

few years, of the iron and steel trades — all these inter-
connected phenomena have meant the appearance of a
vast demand which promises fortunes for those who can
supply it. If, indeed, the coal deposits had beenhmited
or difficult to work, the supply might have soon fallen
into a few hands, and been early subject to some sort
of regulation. But the deposits are enormous. Even
the anthracite production has easily outstripped the
anthracite demand ; and there is plenty of coal-land
yet to be ' developed.' Bituminous coal has been
found more and more widely distributed ; it is now
mined in half the States of the eastern side of the
country ; it lies near the surface, and is cheaply ex-
tracted ; and the older districts have been subjected
to the keen competition of quite new rivals in younger
states. Think what these facts must have stood for —
that West Virginia mined in 1880 about If million
tons, in 1900 over 22-| millions ; or Alabama not much
more than \ milhon in 1880, and more than 8J- millions
in 1900. Of course there is competition in Great
Britain, and the output of some fields, as we have
seen, has gi'own more rapidly than that of others.
But all these conditions appear in the United States
in a form far more acute. And what does keen
competition mean? It means that, — given the alter-
nation of periods of prosperity and depression, an
alternation which, though now retarded and now
hastened, seems well-nigh as regular as the movement
of the tides, — there are bound to be recurring seasons
of over-production. To meet demand at times of great
prosperity fresh mines are opened, new machinery
introduced, more men engaged; and then, when de-
pression follows, there is a ' capacity ' far in excess of
the demand. Moreover — and this applies especially to

92 THE ADJUSTMENT OF WAGES

the anthracite mines — the accumulation of fixed capital
itself leads to excessive production at stagnant seasons,
since it is usually more economical to work a mine so
long as anything at all can be earned over running
expenses, or even for some years to run it at a loss,
rather than close it entirely. Add to this, that the
seasonal variations in demand, which everywhere joerplex
the coalowner, are even more troublesome in a country
with a continental ("limate — a climate, that is, marked
by great extremes of heat and cold : and we have no
difficulty in explaining the ujjs and downs, the great
successes and the great losses, the recklessness, the
jealousy and irritation, that have attended the develop-
ment of America's coal resources.

All this strengthens the natural tendency of em-
ployers everywhere to feel personally aggrieved by
demands for higher wages. Many coal operators un-
doubtedly get their labour as cheaply as they can, and
give no thought to the lives of the people they employ.
But there are scores of high-minded, public-spirited,
God-fearing, philanthropic men, feeling keenly the
stress of competition and spending anxious days in
scheming against their rivals, who think that they are
benefactors to their race simply by ' giving employ-
ment,' and who resent a strike as positively ungrate-
ful and, as it were, a mutiny in the face of the enemy.
They feel this the more because the greater mobility of
American society, the more numerous business open-
ings, the temptations toward political service and
political office, are constantly depriving the manual
labouring classes of their natural leaders. Here is a
passage from a recent book by Mr. John Graham
Brooks, who has made it his business, for some years
past, to get into close touch with all labour move-

AMERICAN COAL FIELDS 93

merits in America of any real significance : ' I can
count from memory thirteen men in Massachusetts, who
were in their time and place leaders, who now occupy
positions in politics or business. A friend tells me
that in Chicago he knows of more than thirty men,
formerly at the front in their respective unions, who
now hold political office in that city. ... At Pitts-
burg, during the steel strike, I tried to find some of
the ex-presidents of the strong trade-union there. The
most important of the former officials had gone into
other occupations.' ^

The establishment of satisfactory relations between
employers and employed would thus have been a slow
and arduous business in any case ; but all the difficul-
ties we have already noticed have been enormously
increased by the fact that mining labour is very largely
foreign and non-English speaking. In 1890, 58*1 per
cent, of the miners in Pennsylvania were foreign-born,
57'4 per cent, in Illinois, 59 per cent, in Ohio.^ Ori-
ginally the immigrants into the mining districts were
English, Scotch, or Welsh ; but about 1875 ^ the
stream began to flow from Hungary, Bohemia, Poland,
and Italy, until these countries now furnish the bulk of
the mining population. Thus the chief coal company
in the anthracite district employed in 1890 17 per cent.
of Polish ' nationality and parentage,' 21 per cent, in
1895, 24 per cent, in 1896 ; 5*9 per cent. Hungarian
in 1890, 10 per cent, in 1895, 11-2 per cent, in 1896.4
The advent of the ' Hun,' as the Hungarian is com-
monly called, has been very welcome to the employers.

> Social Unrest (1903), 4.

^ Re2:)ort of the U.S. Ind^isti'ial Commission, xv. Intro, xxxiii.
^ Virtue in Bulletin 13 of the Department of Labour (November
1897), 749.

" Rej). Ind. Co7n. xv. 392.

94 THE ADJUSTMENT OF WAGES

It gives them for a time cheap and docile labour ; it
has enabled them again and again to defeat the unions ;
in the soft coal fields it has facilitated the introduction
of coal-cutting machinery. It is probable that at first
the operators directly or indirectly assisted immigra-
tion. The importation of ' contract labour ' was, how-
ever, made illegal in 1885;^ and, indeed, it has not
been necessary for some years past for the operators to
trouble themselves about the matter. Once the stream
was set flowing, it continued to flow ; and this would
seem to indicate that, however bad the conditions might
be under which the new comers worked, they were
better than those in their own country.- After a time,
too, their standards of living begin to rise. But it is
none the less true that their arrival has seriously
endangered, and in places destroyed, the native Ame-
rican standard of living ; and any one who is in-
terested in the theoretic question as to what deter-
mines the rate of wages, and wants to make out a case
for the ' standard of comfort,' may be advised to turn
his attention to the story of immigration into America.
It may easily be imagined that the foreignness of the
labour does not tend towards mutual sympathy and
appreciation between employers and employed ; and
though most of the foreigners are decent and usually
docile folk, they have had little experience in the art
of self-government ; and their proneness to violence
against blacklegs, if not greater than miners of other
races display, seems more terrible to the American
imagination when they are called ' Huns ' and speak a
foreign language. Of course, with so many races

' Virtue, o]p. cit. 750.

- Cf. the impressions of Mr. Spahr when he visited the Pennsylvania
coal fields in 1898; America's Working People (1900), 127-131.

AMERICAN JOINT AGREEMENTS 95

represented, the formation of strong unions is exceed-
ingly difficult, and it is most surprising that so much
success has already been achieved in the task of labour
organisation. In many districts the unions are formed
on the lines of language. Among the employees of a
single company there will be found perhaps half a
dozen branch unions composed of men belonging to as
many nationalities ; and proceedings at great mass
meetings of strikers have often been carried on in as
many as six languages — English, Magyar, Bohemian,
Polish, Lithuanian, and Italian.^

So much, then, for the situation in general. And
now we will begin with the organisation of labour and
the machinery for wage adjustment in what is by
far the most important branch of the industry — the
bituminous. Here we have to realise what — after
all we have said of the difficulties of the position — is
really a most astounding fact, that in the four great
states of Pennsylvania, Ohio, Indiana, and Illinois, pro-
ducing 62 per cent, of the total bituminous output, and
employing more than 125,000 men, there has been in
existence for the last five years a system of 'joint
agreement ' which has so far worked quite satisfactorily
on the whole and has altogether put an end to general
strikes.

Observe the term 'joint agreement.' The equi-
valent English term ' collective bargaining ' — which was
probably first happened upon, and was certainly
popularised, by the Webbs ^ — has found a place in
England in at least one formal agreement of the first

An interesting account is given in Leslie's Monthly for November
1900.

* Industrial Democracy (1897), pt. ii. ch. ii.

96 THE ADJUSTMENT OF WAGES

iiriportance, the Terms of Settlement in the engineering
dispute of 1898.^ But it is not Kkely that the term
will come into general use in the United States ; - where
the phrases 'joint agreement system' or (from the
method of arriving at it) 'joint conference system' —
in shortened forms the ' agreement ' or ' conference
system ' — are already coming to be widely employed,
' Joint agreement ' has the merit of being at once
understood by the ordinary business man, who is
accustomed to use it in other connections ; while
' collective bargaining ' smacks of the economists'
lecture room and imposes the unwelcome strain of
abstract thought.^

Into the origin of the Joint Conference System in
soft coal mining I have not time to enter at any length.
It is sufficient to say that it was the outcome, early in
1898, of a general strike. Trade was improving after a
period of depression, during which wages had fallen
very low ; and the leaders of the young and vigorous
national miners' association, the United Mine Workers,
seized the strategic moment to put forward their de-
mands, both for an increased wage and for a method
of joint conference which would dispense with Strikes
for the future.^ Of course no such organisation springs
at once fully armed from the brain of an industry ;
there has always been a long period of gestation ; and

' Text in Econ. Journal, viii. 118. See official note to § 4 (p. 120),
' Collective bargaining between the unions and the employers' associations
is here made the subject of distinct agreement.'

- Cf. Professor Durand's observations in Eep. Ind. Com. xvii,
pp. Ixxvi-lxxviii.

3 The Final Beport of the Boyal Commission on Labour, 54, 116,
speaks frequently of the agreements themselves as ' collective agreements.'

* I purposelj' omit the lesser causes of dispute — company stores,
methods of S9reening coal, period of payment, appointment of check-
weighmen, &d. &c.

AMERICAN JOINT AGREEMENTS 97

in this case unionism had had a long and chequered
history before the victory of 1898. Indeed before
then, for a period of eight years, from 1886 to 1894,
there had been a system of interstate agreement by
representatives of the two parties meeting in annual
convention. But the experiment failed from want of
concert among the operators and of coercing power
upon the side of the miners. The operators of Southern
Illinois had never joined ; those of Northern Illinois
withdrew in 1888 ; those of Indiana in 1899 ; and the
whole plan disappeared in that most disastrous of all
situations — a strike against a falling market and against
the desperate effort of every operator to save himself
by cutting under his neighbours.' ^

The system since January 1898 has been as follows:
1. An ' Interstate Convention ' (otherwise described
as a ' Joint Convention ' or ' Conference ') of operators
and miners from the four states of Pennsylvania, Ohio,
Indiana, and Illinois, takes place early each year. A
large number of delegates are present, — in 1901, 499
miners and 182 operators; but the negotiations are
chiefly carried on by a Joint Scale Committee of thirty-
two persons, i.e. four members from each side from
each state. The final decision of the precise rate to
be paid for the ensuing year is usually referred by
the Scale Committee to a sub-committee of sixteen. The
Scale Committee reports to the Convention from time to
time the progress which is being made ; and after dis-
cussion in general conference — where also each side
is allowed four votes for each state — the unsettled
questions are referred back. When the Joint Scale

' This most significant bit of history is given by Mr. George in
Q. Jquv. of Economics, xii. 196-199.

98 THE ADJUSTMENT OF WAGES

Committee makes its final report, it is usually adopted
unanimously without change.^

It is to be noticed that there is here no element of
arbitration, no judgment cutting the knot of a dispute
by an outside Umpire, or Chairman with casting vote,
as in England. It is a method of pure bargaining :
and hitherto it has been required that all final votes,
either of the Scale Committee or of the Convention,
shall be unanimous.

At present while the miners at the convention are
all the regularly appointed representatives of the society
of United Mhie Workers (who, indeed, have usually been
engaged in holding their own annual convention before
they are joined in joint convention by the operators),
there is ' no such definite organisation of all the opera-
tors of the four central states ; and the agreements
are signed only by a few operators as the representa-
tives of those present in the convention, but with no
particular power to coerce such operators as refuse to
be bound.' ^'

2. The general agreement, it will be readily under-
stood, requires a good deal of detailed interpretation
and expansion in its application to the several parts of
the enormous area concerned. Accordingly there needs
to be a whole network of local agreements. There is one
for the Pittsburg district of Pennsylvania;^ as many as
six or seven for Ohio (one particular area, the Hocking
district, which produces one-third of the Ohio output,
being what is called ' the basinsf district ' *), two for

' Uei^. Ind. Com. xvii. 327, from which also some sentences in the
above account liave been borrowed.

- Ihid. xvii. 329. A specimen Interstate Agreement, that for 1900,
will be fomid in the Appendix IV. 1.

^ That for 1901 is given in the Appendix IV. 5.

"* That for 1900 is given in the Appendix IV. 4.

AMERICAN JOINT AGREEMENTS 99

Indiana.* In each case the miners at the conferences
are the regular representatives of the district union,
wliile ' in most instances there is no very formal organi-
sation of the coal operators.' ^ In Indiana there is
provision for the arbitration of disputes in particular
collieries by a small committee, two from each side,
with an umpire, if need be, selected by the four ; and,
pending settlement, no stoppage is allowed.

In Illinois, however, there is a most elaborate
system of state and district agreement which deserves
careful attention, first because it applies to some 40,000
men in the state, and secondly because it indicates the
ideal towards which the other states are working.^ To
begin with, the coal operators are better organised than
elsewhere, and the Illinois Coal Operators' Association
is able to act on behalf of the whole body of coal-
owners in the state. Its members meet annually in
joint convention the delegates of the miners (after the
State Convention of the United Mine Workers) ; thus
in 1901, 155 operators were present and 268 miners'
delegates. The procedure is the same as at the Inter-
state Convention ; and the rates of wages to be paid in
each of the nine districts, and in each of the several locaU-
ties comprised in the districts, are arranged by a Scale
Committee of two operators and two miners from each
district, and, after discussion, accepted b}^ both parties.
The State Agreement begins by reciting the Interstate
Agreement just made between the operators of the four
states and the United Mine Workers at the Interstate
Convention, fixing the pick-mining price of bituminous
mine-run coal at Danville, taken as 'the basic point' for

^ One for bituminous and one for block coal. The bituminous agree-
ment for 1900 is given in the Appendix IV. 3.
"^ Bep. Ind. Com. xvii. 332.
^ The text of the agreement for 1902 is given in the Appendix IV. 2.

H 2

100 THE ADJUSTMENT OF WAGES

the State, and then proceeds to adjust all the other dis-
trict rates in accordance therewith. 'Eecognition' of the
union could hardly be carried to a further point than
it is in this agreement. Membership of the union is
practically made compulsory, for its officials are treated
throughout as the natural representatives of the men.
In case of ' local trouble ' at any shaft, there is pro-
vision for negotiation between the pit boss and the
miners' local president and pit committee ; in case of
their disagreement, between the superintendent of the
company and the president of the miners' local execu-
tive board, and so on, up to the highest state officials.
Although it is not mentioned in the agreement, the
Operators' Association employ a skilled expert, called
their Commissioner, whose business it is to settle the
most difficult cases in consultation with the State
President of the United Mine Workers.^ So much are
these two men trusted by the two parties (performing
as they do in some measure the functions of the joint
committees of Durham and Northumberland), that in
the wage agreement itself the determination of the exact
wage is, in some cases, either left to Commissioner Justi
and President Pussell, and ' then to become a part of
this contract,' or to a small committee composed of
these gentlemen and two or three from each side. Even
-more interesting is the readiness of the Illinois operators
to trust to the sound sense of the President of the
national union himself. In 1901 a most troublesome
dispute arose in the Danville sub-district as to the
timbering of the working places. It was finally de-
cided at a joint meeting of the miners and operators of

* It appears from the Beport of the Fourth Interstate Convention
(1901) 56, that there is a functionary bearing the same title in Indiana
also.

AMERICAN JOINT AGREEMENTS loi

the sub-district to refer the matter to Mr. Mitchell,
President of the United Mine Workers of America, and
Mr. Justi, the Illinois Commissioner ; and these, after
visiting the mines, recommended a series of fairly-
precise rules, which were at once adopted. Eemember-
ing that, to many worthy persons in America, Mr.
Mitchell is the typical firebrand, one rubs one's eyes
with surprise when one learns that ' this decision in
general favoured the contentions of the operators.' ^

But I want to further illustrate the close co-opera-
tion between the operators' association and miners'
union arrived at in Illinois. The agreement of 1902
lays down that 'the right to hire and discharge, the
management of the mine and the direction of the
working force are vested exclusively in the operator,
and the United Mine Workers of America shall not
abridge this right,' and ' the operators will recognise
the pit committee in the discharge of its duties as herein
specified, but not otherwise.' - But the operators also
' agree to check off union dues, assessments, and fines,
from the miners and mine labourers, when desired,
on proper individual or collective continuous order^
and furnish to the miners' representative a statement
showing separately the total amount of dues, assess-
ments, and fines collected.' This, while it does not
explicitly establish compulsory union membership, must
necessarily— from the wholesale and rough-and-ready
way in which such things have to be done — practically
bring it about. ^ On the other hand, it is agreed that

' Hej). Ind. Com. xvii. 335.

- § 13 (/) and § 17 of the Illinois Agreement, given in Appendix IV. 2.

^ What is called ' the check-off system ' is formally recognised by the
Indiana Agreement, § 17, and by the Agreements of the several districts
of Ohio. The text is given in Appendix IV. 3 and 4. The leaders of the
United Mine Workers have, I believe, hitherto endeavoured in vain to get

I02 THE ADJUSTMENT OF WAGES

work shall never be suspended while a complaint is
being investigated, and ' if any day man refuse to con-
tinue at work because of a grievance . . , and such
action shall seem likely to impede the operation of the
mine, the pit committee shall immediately furnish a
man to take such vacant place at the scale rate, in
order that the mine shall continue at work ; and it
shall be the duty of any member of the United Mine
Workers, who may be called upon by the pit boss or

' the check-off system ' made part of the Interstate Agreement. It is said
that ' dues are checked off for the organisation in every field except the
Pittsburg district,' and in Indiana and Ohio this has been the practice
' for more than ten years ' (Beport of the Fourth Interstate Convention,
105, 114, 166). The discussion upon the subject in the Joint Scale Com-
mittee at the fourth Convention will be found of extreme interest. The
miners' leaders urged (1) that they could not enforce the rates agreed
upon unless all the miners belonged to the union ; as Mr. Mitchell put it,
' as long as our organisation is held responsible for the observance of
every agreement that we enter into, that every man that is employed by
your companies should hold allegiance to the organisation.' Another
miners' representative frankly represented that, now the operators had
recognised the United Mine Workers ' as a business institution,' they
' should go one step farther and help us to compel the rebellious of our own
ranks to be parties to the compact.' The leaders argued also (2) that the
larger their funds were, the better able they would be to coerce the operators
of West Virginia in the way desired by the operators at the Interstate
Convention. Mr. Bobbins, representing the Pittsburg operators, replied
that to check off union dues would lead to legal difficulties, and that so
many of the Pittsburg miners were outside the union that it would be
improper for the operators to ' take sides.' ' It is foUy to talk of putting
other things into this agreement, which is hard enough as it is. As to the
facts. We have checked off a checkweighman's fund throughout the
entire district, because the checking off of a checkweighman fund is legal
and is authorised by th"e laws of our state. We have offered, fiurther than
that, to check off the expenses of delegates to their state conventions,
district conventions, national conventions, and interstate conferences.
We have refused, and by the advice of our attorneys do refuse, to agree
to check off a fund that will put us into the courts, and we are not going
to put ourselves in that position. We have a district that is partly
organised and largely unorganised, and it would immediately make a
conflict between organised and unorganised men in the Pittsburg district,
where we would be taking sides where I say we have no business to be
taking parts ' {Report, 106).

AMERICAN JOINT AGREEMENTS 103

pit committee, to immediately take the place assigned
to him,' ^ Above all, ' the operators are hereby guaran-
teed the hearty support and co-operation of the United
Mine AVorkers of America in disciplining any miner
who from ignorance or carelessness or other cause fails
to properly mine, shoot, and load his coal.' ^'

Now why this conversion of the great body of the
bituminous operators to systematic co-operation with
the union? Simply because they were tired of the
reckless competition that had previously prevailed, and
saw in the union the only means of obtaining uniformity,
at any rate in the cost of their labour. To be relieved
from the necessity of perpetually watching their com-
petitors to see whether they were getting their labour
more cheaply and, if they were, of forcing lower rates
on their own men in the face of continual ill feelino", if

not of actual strikes, would be worth some little
possible sacrifice in the matter of profit. The depres-
sion of 1893 had broken down the old agreements and
turned every operator's hand against his neighbour ;
and now that trade was reviving, the coal of West
Virginia, mined by cheap and unorganised negro labour,
was pushing its way into the western markets, in com-
petition with Pennsylvania and Ohio, and the coal of
Southern Illinois was beginning to compete with that
of Northern Illinois in the Chicago market.^ It was
the feeling that it was only the action of the men wliich
could set limits to a competition which most operators
hated even while they felt driven to it, which caused so
many of the operators themselves to sympathise with
the strike of 1897. The Pittsburg operators had lately

' Illinois Agreement, § 13 (6) and (c). '^ Ihid. § 5 (6).

' George, Q. Jour, of Economics, xii. 193-194.

104 THE ADJUSTMENT OF WAGES

endeavoured, without the aid of their men, to carry-
through a so-called ' uniformity scheme,' but had failed
to secure the adhesion of the 95 per cent, of the opera-
tors which was deemed necessary.^ The men on their
side recognised that the ' large majority of employers '
were ' not responsible for the conditions ' — the low
wages — which they found fault with. They were ' due,'
they said, ' to the actions of a few who have cut prices
far below the demands of the market, thus demoralising
the trade and cutting wages indiscriminately.' ^

When, therefore, the operators had accepted the
joint agreement plan, it at once became their interest
that the union should be strong. Like the Scotch
coalowners before referred to, they urged upon the
miners' leaders the necessity of extending their organi-
sation ; ^ and the majority of them have since watched
with 'equanimity the various strikes, some of them
serious, which have taken place : for most of these
strikes have been necessary to coerce the operators in
particular districts who refused to abide by the general
agreement. Indeed the operators rely on the miners to
enforce the joint agreement by threat of strike ; and the
Eeport of the Industrial Commission'^ grimly records
the advance towards a common rule in the words : ' As
a general thing the United Mine Workers have been
sufficiently strong to bring the o]jerators into line.''

We are now in a position to realise the full signifi-

• George, Q. Jour, of Economics, xii. 204. ^ Ihid. 191.

^ ' That the agreements arrived at in the joint convention (of 1898)
might be as far-reaching as possible, it was unanimously voted that the
miners' national officials begin a campaign of organisation in all states
where the miners were poorly organised, such as West Virginia,
Kentucky, Alabama, and Iowa.' — George in Q. Jour, of Economics, xii.
457. Mr. George quotes also the Black Diamond (the journal of the
operators) : 'to this the operators pledged their hearty support.'

4 xvii. 329.

AMERICAN JOINT AGREEMENTS 105

cance of the Interstate Convention. I have avoided
hitherto using the terms generally given to the area
covered by its agreement. It is ' the competitive field,'
' the competitive district,' ' the central competitive
field,' ' the competitive coal fields.' All these indicate
that the prime purpose of the agreement is to establish
a substantial uniformity of labour-cost over all the
states whose product appears in the same markets.
It establishes this uniformity for an output which is
about as large as that of the English fields of Yorkshire,
Lancashire and Cheshire, and the Midlands ; so that
the ' competitive coal fields ' of America may be fairly
compared with the ' Federated Districts of England.' In
both countries the purpose is the same — to eliminate
labour-cost differences from market competition ; or, in
other words, to lift competition on to a level plain of
labour-cost.^

In each country the desirability of extending the
mechanism to outside districts largely turns upon a
question of fact — do the outside districts compete in
the same market ? In America it is allowed by all
parties that this is the case with West Virginia in rela-
tion to what, to avoid ambiguity, I shall speak of as
the ' central competitive area.' It is sufiicient to look
at the map to see that the coal tracts of West Virginia
are simply an extension of those of Pennsylvania; and
now that they are being opened up by large capitalists
with the aid of cheap negro labour (employed, many of

^ As against the principle of uniformity, the operators at the con-
ventions have sometimes invoked the principle of paying men what they
are ' worth.' But by ' worth ' they have apparently sometimes meant
individual strength and capacity, sometimes market value as determined
for the time being by the demand and supply of labour in a particular
locality. The recognition of ' worth,' however, in this latter sense might
go far to destroy the whole agreement. See the discussion in Beport
of the Fifth Interstate Convention, 106-108.

io6 THE ADJUSTMENT OF WAGES

them, by white miners on a plan of sub-contract), they
are a perpetual menace to the stability of conditions in
the whole of the central area. Hence both parties are
anxious that the orsfanisation of the United Mine Workers
should be extended to this district ; and some of the
operators at the joint convention are inclined to blame
the union for having ' failed to fulfil their earlier
promise that they would increase their strength in West
Virginia and force the operators of that state to make
terms, and come into the interstate agreement.' It
would seem that up to the present the efforts of the union
have met with only slight success ; and, unless they
make more rapid progress, West Virginia will constitute
a serious source of danger to the joint agreement when
depression in the coal trade again becomes acute. ^

About other states there is not the same unanimity.
The United Mine Workers have added enormously to
their numbers in many other states ; and joint state
or district conferences have succeeded in drawing up
agreements in Kentucky, Tennessee, and Alabama, in
Iowa and Missouri, Kansas and Michigan. The question
now is, shall any or all of these states be admitted to
the Interstate Convention ? The miners are in favour
of it ; the operators have hitherto opposed it. Michigan
has been repeatedly discussed ; but the crucial case is
that of Iowa, which now produces some four or five

^ An account of the discussions on this point up to 1900 will be found
in the Report of the Industrial Commission, xvii. 329. The subject
occupies a large space in the Reports of the Fourth and Fifth Interstate
Conventions (1901 and 1902), The representatives of the operators have
usually alleged the competition of West Virginia as a reason for lowering
the rate ; while the representatives of the miners have replied that it is
the Pennsylvania operators taking part in the convention who have
invested in West Virginia and are responsible for its competition, and
that the United Mine Workers have already succeeded in screwing up
wages a little in one or two districts of tliat state. (See Note below, p. 111.)

AMERICAN JOINT AGREEMENTS 107

million tons annually. The miners allege that Iowa is
'■ as directly a competitor with Illinois and other states in
the present system as West Virginia ; ' while the opera-
tors declare that the conditions in Iowa are already
' fair ' enough, and that there is ' no excessive competi-
tion ' with the central area. Moreover, the admission
of Iowa and other states would, the operators declare,
make the Convention unworkable. The operators of
the four states now included are sufficiently acquainted
with the conditions of the whole area at present dealt
with ; they have not a like knowledge of Iowa. And it is
difficult enough as it is to oet unanimous consent of all
the delegates : it would become impossible if there were
more states to harmonise. Let a new group of states
be formed west of the Mississippi with its own Inter-
state Convention and Iowa as its nucleus. To which an
Iowa operator replied, that any new groups that might
be formed ' would still compete with one another and
with the central field, and that some form of agreement
between all fields would be desirable.' If such inter-
group competition does make its appearance, the policy
which has led to the present system will doubtless dic-
tate its enlargement by the establishment of some sort
of supreme Coal Congress. It may be conjectured
that the representatives of the two parties will by that
time have a somewhat freer hand, and will not be ex-
pected to carry with them the acquiescence of two large
assemblies.^

' The quotations in the last paragraph are drawn from the Beport of
the Industrial Commission, xvii. 328. In the Fourth Interstate Conven-
tion, 1901 {Report 174), the objections of the operators were thus summed
up by Mr. Bobbins, the most prominent of their representatives : ' This
Interstate movement, with its rules and its peculiar organisation, is
different from anything that exists in this or any other country. It is a
movement that is full of pitfalls. It is one where a very small minority
can block the entire proceedings of the majority and prevent a settlement.

io8 THE ADJUSTMENT OF WAGES

Wliat is coming to be known as the ' regulation ' of
an industry may, however, be aimed at from more than
one direction. Uniformity of labour-cost will remove
one of the chief causes of differences in selling price ;
on. the other hand, uniformity of prices will diminish
the temptation to cut down the labour bill. A main
cause for the general strike of the miners in 1897 was
the almost complete absence of combination among the
bituminous owners, and the repeated failure of selling
agreements. But there are indications that this state
of things is passing away. The present anti-trust law
puts formidable obstacles in the way of pooling or other
similar combinations of producers, so long as each re-
tains his legal independence ; for that very reason, as the
economic forces pushing men towards common action
do not cease their pressure, the law has the unintended
effect of encouraging complete amalgamation, — which
of course no statute can prevent. And so in Pennsyl-

. . . That rule was adopted for protection on both sides. It was adopted
as a mutual protection. To increase the possibilities of disagreement
and failure is against the interests of the movement. It is against the
interests of the movement for the miners as well as for the operators.
The movement has been successful now since it was started last in
Chicago. We have come together now in these four cities and have
made agreements, and I tell you to let well enough alone. There is no
reason why the states of Iowa and Michigan should be selected out.
You can just as well select out other states. Kentucky and Alabama are
just as competitive and more competitive than the states of Michigan and
Iowa.' The advocates of the inclusion of Iowa had maintained that that
state and Michigan were more closely connected with the states
represented than the others named : ' If you form other conferences, if
you form a conference south of the Ohio river, another one west of the
Mississippi, have three conferences as was suggested last year in
Indianapolis, then I say that Iowa and Michigan belong to this conference
nevertheless. We compete with Missouri coal just a little, we compete
with Kansas coal just a little ; but we compete with Illinois and Ohio
and the block coal of Indiana in all of our markets ' {ihid. 49). All this is
denied by the operators {ihid. 46). It should not be impossible to obtain
a trustworthy report on the facts of the case which would be authoritative
with both parties.

AMERICAN JOINT AGREEMENTS 109

vania in 1899 an amalgamation was effected of all the
140 bituminous properties accessible to railways, in the
Pittsburg coal district.^ This is the Pittsburg Coal Com-
pany, with 32 million dollars in 7 per cent, cumulative
preferred stock, and a like amount of common stock,
the greater part of which was thrown in as a bonus
to subscribers in the hope that it might earn some-
thing some day. Side by side with this was created
the Monongahela River Coal Company, with a nominal
capital of 30 million dollars (one-third bonds, one-third
preferred stock, one-third common), dealing with all
the coal of the state sent down the Ohio and Mississippi.
These two great companies began with a mutual under-
standing, and they are now under one control. To-
gether they form the largest single coal business in the
world, with a considerable railroad mileage not only
in Pennsylvania, but also at the western end of Lake
Superior. To the great lakes it sends some six mil-
lion tons annually, and it owns docks at various lake
ports. Such a combination evidently makes it much
more feasible to maintain a steady price, and therefore
a steady wage rate, in Pennsylvania. Of course it
strengthens the coal-owning interest in its negotiation
with the miners. But the New York banker who
financed this amalgamation declared before the Indus-
trial Commission that he ' found that the leaders of
labour organisations were fully alive to the advantages
of dealing with one concern, rather than with a hundred
and forty. So far as the company was concerned,
instead of being indisposed to deal with the representa-
tives of organised labour, they were ' doing it all the
time and preferred to do it.' The arrangement with
the United Mine Workers was entirely satisfactory, and

^ Not including the coking coal.

THE ADJUSTMENT OF WAGES

there was not the shghtest friction. The labourer, he
went on to say, has as much right to combine as
they had to combine these properties, and a right to
be represented by the organisation. A manager who
wouldn't listen to such representatives ' ought to seek
other employment.' ' If I owned the property, he
would;' ^

A close combination among all the bituminous opera-
tors for the purpose of controlling prices is probably
not for the present a matter of practical politics, though
to this I shall recur. But something like this, in close
confederacy with an equally complete combination of
the miners, is the ultimate ideal of the leaders of the
United Mine Workers. They do not like to be called
' a trust,' but what they do believe, as they expressed
it before the Industrial Commission, is that ' the best
interests of the coal trade would be served ' by ' a
general union ' or ' association ' of both miners and
operators, ' treating mutually and voluntarily together,
and holding selling prices up to reasonable rates' "^

1 Bep. Ind. Com. xiii. 101-102. Cf. xix. 230. For a list of ten other
large consolidations in 1899-1902 among soft coal operators, see Mineral
Resources of the United States, 1901 (U.S. Geological Survey), 280.

* Bep. Ind. Com. xii. 63. Something may be added here as to the con-
siderations which are urged in the American Interstate Conventions with
regard to the causes which ought to influence wages. Unfortunately it
is not possible to institute a comparison with discussions in England
because the final negotiation in America takes place in a Sub-scale-
committee, whose proceedings are not reported. In the Convention and
in the Scale Committee most stress is laid upon prices. But the leader of
the operators, Mr. Bobbins, of the Pittsburg Coal Company, has also
done what in Great Britain it has usually been left for the miners to do —
called attention to the matter of volume of trade : ' It is not a question of
price that governs alone ; it is a question of volume of business ; that is
as necessary as price.' — BeiJ. Fourth Convention, 55. The operators
also have urged that an alleged increase in the cost of mining should be
taken into account {ibid. 157). On their side the miners have pointed to
an alleged increase in the cost of living as justifying a rise in wages
{ihid. &d), and have disclaimed any intention to rely upon their 'great

AMERICAN JOINT AGREEMENTS

strength ' (iJep. Fifth Convention, 52). As to what the prices are or have
been, neither party has been inchned to accept the figures produced by the
others. The miners have quoted ' the journals published in the interests
of the operators ' {'Rep. Fourth Convention, 70) ; the ' Government coal
reports ' {Bep. Fifth Convention, 42), and especially the Eeports of the
IlUnois Bureau of Statistics {ihid. 63). As to the latter one operator
declared that ' the operators do not give the state statistician the figures as
to cost of production or selling price. It is none of the state statistician's
business, and we won't give him the information.' Accordingly ' the
Coal Reports of Illinois are all buncombe and rot ' {ihid. 78). Mr.
Eobbins, on behalf of the operators, offered in 1902 to substantiate his
facts by a reference to his books {ihid. 74). The x\merican ' scale ' (which
is simply a rate and not a sHding scale) fixes wages for a year ; and Mr.
Eobbins went on to propose that the realised prices of one year should
determine the wages of the next : ' To show our good faith in the matter
we made the proposition that a scale should be established based upon
what our books would show as to the relative difference in the selUng
prices of coal in the year 1901 and the year 1900, and if the records
would show that there was an increased price, a relative increase in the
price of mining would be paid ; and if it shows a decreased selling price
a relative decrease in the price of mining would be paid ' {ihid. 122).
"Whether this has led to anything like the British system of accountants'
' ascertainments,' I do not know.

[Additional Note to Lecture V. — It appears that while the great
strike in the anthracite region (described in the nest Lecture) was
proceeding in Eastern Pennsylvania, a severe strike was also being
engaged in, for several months, in West Virginia, in consequence of the
refusal of the operators to ' sign a scale ' laid before them by the U.M.W.
of A. The strike was only very partially successful ; but the miners
were granted an increase of 10 per cent, in wages in certain districts ;
and, in one important district, that of Kanawha, where some 7,000
men were employed, an agreement was finally reached with the operators,
recognising the right of the men to combine. This the U.M.W. regard
ab ' estabUshing for the first time the nucleus of an organisation in West
Virginia.' An account of these transactions, from their point of view, is
given in the Minutes of the Fourteenth Annual Convention (1903), 38,
52-54.]

112 THE ADJUSTMENT OF WAGES

LECTUEE VI

THE ANTHRACITE PROBLEM

I PROPOSE, in this lecture, to concentrate your at-
tention upon the anthracite or hard coal industry —
the coal-mining of Eastern Pennsylvania ; and this not
only because of the recent strike. That strike, indeed,
has been one of the most significant in the history of
industry. It is, I think, only the third occasion in
modern times that an almost complete cessation has
taken place (outside Eussia or India) in the supply of a
necessary of life for several millions of people. The
only parallels that occur to one are the potato famine
in 1845 and the cotton famine in Lancashire during
the American Civil War. The recent coal famine in
America was likewise the result of war — of civil indus-
trial war — and of civil industrial war in the country
itself that suffered. It is the first time that ' organised
labour ' has actually succeeded in enforcing an embargo
on a necessary article of consumption long enough to
secure its purposes.

And, as a consequence of this, it is the first time
the chief Executive Magistrate of the United States has
intervened and compelled the parties to the dispute
to refer their contention to a tribunal appointed by
himself. It was an important step when, in 1894, the
President of the United States appointed a Commission
to report on the great Chicago railroad strike. But by
that time the strike was practically over, and the report

THE ANTHRACITE PROBLEM 113

of the Commission had no share in determining the issue :
but now both parties have been compelled to resume
work while the case is being heard by a Commission
whose judgment they will be compelled by public opinion
to obey. Just what the nature of the pressure may have
been which President Eoosevelt brought to bear upon
Mr. Morgan, and through him upon the coal operators,
we shall have to wait a few years before we learn.
Nor, indeed, does it much matter ; there are more than
one means of coercion in the hands of the executive
government of a great state. And it does not matter
what the motives were which influenced the President.
I have equally intelligent American friends who beheve,
some of them, that it was sheer humanity which im-
pelled him to intervene, and, some of them, that it was
a deplorable regard for the electoral interests of his
political party. In either case, the step has been taken
and the precedent has been created. If it has an effect
only as great as its nearest parallel — the intervention
of the English Government in the midland coal strike
of 1892 — and opens a new period in the relations
between mining labour and mining capital, in the same
way as the creation of the Board for the Federated
Districts has done in Enoland, it will have left its mark
on history.

I ask your attention, however, to the subject, for
other reasons : because it sets before us, not the labour
problem only, but a whole series of typical problems
of modern industrial life in general and of American
industry in particular ; and, above all, because it
illustrates the necessary approximation in our time of
the two problems of the combination of labour and the
combination of capital.

You will remember that the anthracite of the

114 THE ADJUSTMENT OF WAGES

United States is practically all found in Eastern Penn-
sylvania, separated by some two hundred miles of
mountainous country from the Pittsburg soft coal in
Western Pennsylvania. In appears in a number of
narrow bands or strips of land : the northernmost (or
Wyoming) field being 50 miles long, and in its widest
part 5 J miles across ; the southernmost (or Schuylkill)
55 miles long, and in its widest part 4 miles across, but
much of it very narrow.^ The eastern middle (or
Lehigh) field and the western middle are smaller, in
proportions which the eye may easily gauge on the ac-
companying map. The total coal area is 483 sq. miles.
The number of persons employed in 1900 was 143,831.^
This is not far short of the total number employed in
the ' competitive bituminous fields ' under ' the joint
agreement,' although the tonnage raised, some 47 mil-
lions, is very much less — little more than half.^ The
number of men is somewhat smaller than in our Great
Northern or South Wales fields. This will give some
impression of the magnitude of the problem.

Let us begin by observing that in the anthracite
coal fields an element makes its appearance as of
primary importance which is hardly present at all as a
determining factor in the bituminous fields ; and that
is the element of transportation, or, as we call it in
England, transport. Coal mining is not only dependent
on the railway companies for the carriage of the coal :
the railroads themselves now own by far the greater
part of the coal-bearing land in the district. The
accompanying map indicates the ownership of anthra-
cite coal lands in 1896 ; the absolutely black patches

^ Eoberts, The Anthracite Coal Industry, 5. See Map IV. opposite
p. 126.

- Bulletin 43 of the Department of Labor, 1194.
^ Cf. McLeod in Rep. Ind. Co7n. ix. 567.

THE ANTHRACITE PROBLEM 115

representing the properties, in that year, of what are
known as the 'independent operators.' In that year
the independent output was estimated at some 34
per cent, of the whole ; by 1901 it has fallen to
29 per cent. ; Mt is now probably a good deal less."^
There could scarcely be a better example of the way
in which absolutely free competition works towards
its own destruction. Two out of the eight railways
concerned were, indeed, engaged in mining from the
time they reached the district ; but most of them, on
the contrary, only entered into the mining business to
secure their freight tonnage from competition. Thus,
the largest owner of coal-land at the present time is the
Philadelphia and Reading Railway (known for short
as the 'Reading'). This railway down to 1871 did not
own a yard of coal -land. It had enjoyed up to that
time, however, a practical monopoly of the traffic from
the southern anthracite field ; but in that year two
much greater railroads, the Pennsylvania on the west
and the Lehigh Valley on the east, began to enter its
territory and compete with it for the carriage of coal.^
The Reading company believed, and doubtless with
reason, that it must, at almost anj^ cost, ' assure the
permanence of its tonnage ; ' and for this purpose it
began to buy up coal-land right and left. Other railway
companies have done the same for the same reason.
They are no longer allowed by law to operate their coal
mines directly ; they all make use of subsidiary com-
panies (corporations) for the purpose, sometimes bearing
a similar name — thus the Philadelphia and Reading Rail-

' iJej?' I-nd. Com. ix. ooo.

2 Roberts (August 1901), 66, makes it 20-99 per cent.
^ The situation will be at once apparent on examination of the accom-
panying Map III. opposite p. 124.

1 2

n6 THE ADJUSTMENT OE WAGES

road Co. works through the Philadelphia and Eeading
Coal Co. ; sometimes bearing a quite different name
— thus the Pennsylvania Railroad works through the
Scranton Coal Co. But, having become coal operators
mainly in self-defence against other railroads, they
are exceedingly formidable competitors for the inde-
pendent operators. The independent operators are
dependent upon them for the carriage of their coal ;
and they can charge what rates they please for the
service. As to whether the rates have often been
excessive in themselves there is a good deal of contro-
versy. They are, undoubtedly, much higher than those
which the same companies charge for carrying soft
coal ; but for various reasons the hauling and unload-
ing of soft coal are really less expensive.^ Certainly
there has frequently been a widespread and intense
feeling among the independent coalowners that they
were being penalised by the rates charged. It was no
reply that the railroads charged themselves {i.e. the
subsidiary mining companies practically identical with
themselves) the same rates as they charged every one
else. For to them it was but transferring the money
from one pocket to another. And the feeling among
the independent operators has been such that they
have again and again tried to get railroads of their
own. One or two of the biggest coal companies have
constructed little lines from their own mines to some
one or more of the great competing roads. ^ But the
proposal which has frequently been mooted in one or
other district to construct, in the interest of the small
operators, a new railroad all the way to tide water has
invariably broken down. The railroads, threatened by

^ He'^. Ind. Com. ix., Digest xxvii. ; Bulletin 43 0/ Dep. Labour, 1163.
* E.g. Coxe Bros. & Co., a road of 40 miles, Eej). Ind. Com. ix. 590.

THE ANTHRACITE PROBLEM 117

a new rival, invariably offer good terms to a sufficient
number of those independent mine owners who have
pledged tonnage to the new line to induce them to part
with their property, and so once more to exorcise the
danger even at a heav}^ cost.^

It must not, indeed, be supposed that the pre-
dominance of the railroads has been due simply to their
powers as carriers. It has been caused quite as much
l^y their greater command of capital. Mining, as first
carried on in these parts, required very little capital.
The operators worked at the outcrops ; they took what
they could get easily and cheaply ; and then many of
them left the workings, uncharted and uncared for, to
be a source of danger to future generations. As
deeper shafts have become necessary and more capital
has been called for — both to meet the greater cost of
successful mining and the greater financial risk in-
volved in seeking the coal''^ — the larger capitalists
(mainly the railways) have been able to buy up the
small holdings, and have justified their presence by
developing resources which would otherwise have
remained unutilised.^ Not that railways have been
alone in taking advantage of the situation : there have
grown up two or three other great coal-mining com-
panies which have owned but little railroad : ^ and
there is everywhere a tendency towards the absorption
of the smaller in the larger concerns.

The combination of mining with railroading has
one minor consequence which is worth noting. It
makes it very difficult, if not impossible, to disentangle

^ i?ep. Ind,. Com. ix., Digest xxvi.
"^ McLeod, in Eep. hid. Com. ix. 570.

^ De Rousiers, Les Industries Monopolisces aux Etats-Unis (1898),
100-103. Roberts, 19.

■* E.g. Coxa & Co. and the Pennsylvania Coal Company.

n8 THE ADJUSTMENT OF WAGES

the accounts of the two businesses. And when the
miners employed by the raiboads refuse to beUeve
what the officials tell them of the small or non-existent
profits of the mining business, and declare their con-
viction that the railroads are making large profits as
carriers of coal, they are simply echoing what the
independent operators are always saying. There may
be an answer to this : it may be true, as the president
of the Beading Company avers, that neither the carry-
ing nor the mining branch has paid any profits for
years on a perfectly genuine and unwatered stock.'
Still, some of the roads have undoubtedly at times
obtained large profits on their carrying business ; '^
and anyway the situation is such that no very con-
vincinij; financial statement seems available."^

This, then, is the first point : practically all the coal
is carried, and more than three-quarters of it is mined,
by eight great railway companies. Hitherto the de-
mand from the West and South has been comparatively
small — perhaps one-fifth of the whole. All the rest is
consumed in the eastern states, from Pennsylvania north-
ward ; and a very large part of it is carried to ' tide-water,'
as it is called, at New York and Philadelphia, to be
thence distributed.'* The carrying roads have con-
sequently been driven for many years past into the
fiercest competition, a competition which has exhibited
on an increasingly large scale all the phenomena which
we have now learnt to expect. The ine\dtable result has

^ Bulletin 43 of Lab. Dep. 1160; Bep. Ind. Com. ix. 566.

^ Roberts, Anthracite Industry, 75 ; Virtue, in Quarterly Journal of
Economics, x. 321 (April 1896).

■' See the evidence before the Industrial Commission (Beport, ix. 474)
of Mr. Greene, the well-known authoritj"^ on ' Corporation Finance.'
Of. the observations in Final Report of Ind. Com. xix. 448.

* Eep. Ind. Com. ix. 562.

THE ANTHRACITE PROBLEM ,19

been the repeated attempt, during the last thirty years,
to moderate the competition by some measure of com-
bination. Several plans have been resorted to: an
agreed schedule of tide-water prices — i.e. prices at com-
petitive points ; a definite division or allotment of tide-
water tonnage ; an allotment of permissible output ; a
curtaihnent of total output by general stoppages. But
until recently each has broken down after about a year's
trial. Desperation drove the roads into one compact
after another, but the memories of business men are
surprisingly short : and after a few months of compara-
tive prosperity, the members of the combination simply
broke away from their agreements. They could not
control their selhng airents — all anxious to do as laro-e a
trade as they could possibly get hold of ; and each dis-
trusted the other, and beheved the other was playing
fiist and loose with the agreement. These plain men of
common-sense have expended an amount of casuistry
on self-excuse that would have done credit to a pro-
fessional director of consciences.^ And it must be
confessed that, even if all the participants in the
compact had been firm, it would have been exceed-
ingly difficult to maintain it so long as the independent
operators were left free outside — including some quite
large concerns ; and wliile one great railway company,
the Pennsylvania Eailroad (^which owned, it is true,
little coal-land, but carried about one-ninth of the
output -), steadily refused to enter into any agreement.
To all these causes must be added in the late eighties
the popular outcry against monopohes, and the various

' The whole history of the matter is cleailj set forth by
Mr. Virtue in the Quarterly Journal of Economics for April 189G
(X. 296 seq.).

- In 1900, Rc^. Ind. Com. six. 444.

I20 THE ADJUSTMENT OF WAGES

legislative measures prohibiting combination in re-
straint of trade.

Of all the railroad companies it seems to be
generally agreed that it was only the Reading which
was never guilty of breach of faith. The Eeading is
nothing but a local Eastern Pennsylvanian line, with-
out any of the through traffic of some of its rivals ;
it is dependent almost entirely upon its carriage of
anthracite, and therefore impelled to get control of as
much of it as it can ; and it has for some time owned
much the larger part of the southern or Schuylkill field.
It has always been the company which has felt com-
petition most keenly, and whose financial position has
been most perilous. Twice it has been bankrupt, in
1880 and 1884, after 'periods of free competition.'^
Under these circumstances its anxiety for combination
is easily explicable, and its faithfulness to its word
certainly admirable. You may be surprised, perhaps,
at its cheerful re- emergence after each bankruptcy.
Time was that when the profits were out the business
would die ; but with our modern fiixed or specialised
capital we have changed all that. A bankrupt business
goes into the hands of a receiver ; it is ' reorganised,'
relieved of some of its debt, and once more enters
into the fray, competing on equal terms with companies
which are trying to meet all their obligations.

In 1892 the Reading had for its president a real
general of commerce, a certain Mr. McLeod ; and
Mr. McLeod devised a new method of controlling the
situation, which only failed owing to a quite un-
foreseeable concurrence of circumstances, and which
anticipated the successful effort of more recent years.
He realised that it was impossible to enforce a mere

^ Roberts, Anthracite Industry, 310.

THE ANTHRACITE PROBLEM 121

agreement among roads remaining legally independent ;
and he hit upon the policy of ' consolidation by lease.'
The two nearest rivals to the Eeading road (as
the map shows) — putting on one side the always im-
practicable Pennsylvania Eailway — are the Central
Railroad of New Jersey and the Lehigh Valley Eail-
road. Early in January 1903 President McLeod, having
won over the two other directorates, brought about a
lease of these two roads to the Eeading/ and so secured
the direct control of almost 40 per cent, of the total
quantity of coal carried. The actual shipments had
been about 21-47 per cent, by the Eeading, 11-51 by
the Central of New Jersey, and 15-81 by the Lehigh
Valley.^ The combination now also commanded, be-
sides access to Philadelphia, two alternative routes to
New York, and a route also to the Great Lakes. The
only very powerful rival remaining outside was the
Lackawanna road, which carried some 13-lG per cent,
of the total shipment ; but, as will be seen from the
map, this tapped only the northern field. It was either
not worth while or impracticable to lease, or be leased
by, this road ; but the acceptance of a common policy
by this road also was insured by large purchases of stock
by Lackawanna and New Jersey directors in one
another's railways, and their appointment on one an-
other's boards. And now there were the independent
operators to be brought into line. It had long been
the practice of some of the roads to buy coal from
independent operators along their lines, paying them
55 per cent, of what the coal fetched at tide- water.
Mr. McLeod now offered them 60 per cent, if they

^ This was the practical result of the arrangement, which legally was
rather more complicated {Re'p. Ind. Com. xix. 455).

^ Figures of 1895 in Roberts, Anthracite Industry, 74.

122 THE ADJUSTMENT OF WAGES

would sign contracts for longer periods, seven or eight
years/ Most of them were glad enough to accept
these terms ; but some, it is said, had to be convinced
by an advance in freight rates. ^ So now some TO or
80 per cent, of the whole business was gathered into
one set of hands.

But Mr. McLeod looked beyond the anthracite field
itself. ' My idea,' he afterwards told the Industrial
Commission, ' was to benefit the consumer as well as the
corporations I represented by bringing every interest^ so
far as possible, into one harmonious organisation.'' ^ He
proposed to do something towards eliminating that un-
necessary, or, at any rate, too abundant middleman, the
coal dealer, by erecting large ' pocket depots ' in certain
places in the city of New York and other large cities,
and expected to save the family consumer some 75 cents
(35.) a ton by the new plan. Moreover, to steady the
trade, to counteract in part its seasonal character and
enable the mines to be worked more regularly — a great
boon to the men, by the way — he built two large storage
bins near the Eeading mines, where during the dull
months of spring and summer he could house 300,000
tons of coal.^

This masterly conception was too vast for a company
to successfully carry out which enjoyed only the very
mediocre financial reputation of the Eeading. The
Eeading had to borrow eight million dollars ; and, before
the money came in, the financial crisis of the summer of
189 3 began to cast its shadow before, and the money
market became too tight for the operation. It is true
there had been a good deal of public outcry when coal

' B,ejp. Ind, Com. xix. 456 ; ix. 563.

'^ Virtue, Q. Jour, of Econ. x. 306.

' Bep. Ind. Com. ix. 568. ' Ibid. ix. 564.

THE ANTHRACITE PROBLEM 125

prices had gone up and Congress had appointed a com-
mittee of inquiry. It is true also that the lease of the
Central of New Jersey was of doubtful validity, and it
was being attacked in the courts/ It seems, moreover,
that the attempt of the Eeading to secure the control
of one of the great New England roads, the Boston and
Maine system, in order to get a market for its coal in the
cities of Massachusetts and Maine, aroused the hostility
of the financial interests associated with other railways.^
But it is probable that the stringency of the loan market
would have been sufficiently hampering, without these
additional causes, to wreck the scheme. And so far was
the Eeading from carrying out its projects, that it once
more became bankrupt itself, and passed into the hands
of a receiver.

Then the same old story was repeated. Each com-
pany, in desperation, lowered its prices, driven by the
competition especially of the unfortunate Eeading —
which no longer, while bankrupt and before reorganisa-
tion, was under the necessity of earning interest on its
obligations.^ The year 1895 marked the lowest point
reached by prices ; and then the task of restoring
' harmony ' was again undertaken. As the tide of
prosperity began to return, the intensity of the struggle
for existence diminished ; until finally, in the years
1900-1901, when the tide reached high water, a prac-
tical consolidation has been actually, and, so far as we
can see, permanently effected of a sufficiently large pro-
portion of the coal interest to control the whole situa-
tion. In this last act of the drama Mr. Pierpoint
Morgan takes the part as protagonist, but this time
with success, which Mr. McLeod had tried to fill in the

» McLeod in Bei^. Ind. Com. ix. 572. Cf. Virtue, Q.J.E. x. 316 n.
2 Bejj. Ind. Com. xix. 456. ' Virtue, in Q.J.E. x. 317.

124 THE ADJUSTMENT OF WAGES

preceding act — takes it at any rate in the public eye.
It is common now to speak of ' the Morgan interests '
in the anthracite coal business.^ How much has been
due to Mr. Morgan's personal initiative, we must wait
some time before we find out. Meanwhile, what we do
know is that some very large financial operations,
much bigger than these which broke down Mr. McLeod
in 1893, have been successfully carried through — for
a very substantial reward if the arrangement proves
profitable — by the banking house of Messrs. J. P.
Morgan & Co., and that last year Mr. Morgan was in
such a position that he could compel all the coal
interests to accept President Koosevelt's proposal which
they had just before positively declined. Without,
however, seeking" to determine who the strateoists
actually were, or troubling about the details of the
several arrangements, it will be enough for our purpose
to observe the general nature of the new disposition of
forces.

In the first place, it has been found possible at last
to effect the railroad consolidation which the Eeading
has long set its heart upon — that between the Eeading
and the Central of New Jersey.'^ This was effected by
the purchase by the Reading of a majority of the
Central's shares. This not only ended a most dis-
turbing rivalry, and enabled the Eeading to send its
coal direct to New York, instead of by the expensive
roundabout route via Philadelphia ; it also brought
under the Eeading's manas^ement the coal-lands of the
New Jersey Central. These lie mainly in the southern
field, which is much further from exhaustion than
the northern field ; and by their acquisition the
Eeading is able to boast that it ' now owns and controls

' Bep. Ind. Com. xix. 463. ^ In January 1901, ibid. xix. 461.

MAPnr.

RAILROADS

entering the

ANTHRACITE FIELDS

PENNSYLVANIA.

ALBANY

THE ANTHRACITE PROBLEM 125

about 63 per cent, of all the unmined anthracite coal
in the state of Pennsylvania.^

But the significance of this is for the future to see ;
and if the reserves of other fields are smaller, their
operators are still in the field of competition. Ac-
cordingly it is thought advisable to take measures for
the removal or the control of the individual operator : and
that is the second feature in the process of consolida-
tion. The largest single operator remaining, other than
the great railroads, was the Pennsylvania Coal Com-
pany in the northern field, whose output was about
5 per cent, of the whole. Its shares have now been
bought up by Morgan's, and sold to the Erie Eailroad.^
The Erie has incurred a heavy debt for them ; but it
has tried to safeguard itself by establishing a sinking
fund of 10 cents per ton, which, it is calculated, will
about suffice to extinguish the debt by the time the
coal is exhausted {i.e. in this case, some fifty years
hence). This is a good example which it is understood
some other lines are thinkino- of followinsf. Hitherto
they have bought coal-lands and added the price to
their bonded indebtedness or other similar burden of
' capital ' upon which they continue to seek to earn
interest or dividends even after the coal is exhausted ;
and thereb)^ they have given some ground for the
charge of over-capitalisation which the leaders of the
miners commonly bring against them.

As for the multitude of small operators, it was
sought to control them by offering to fix the contract
prices of coal they sold to the roads at 65 per cent, of
tide-water prices, and by making the contract cover the

^ Bep. Ind. Com. xix. 462.

- As to the price paid, see Bep. Ind. Com. xix. 459 ; and of. McLeod,
ibid. ix. 572.

126 THE ADJUSTMENT OF WAGES

whole life of their properties. There was some difficulty
in making them all agree to sign away their freedom
for ever ; and just what the situation may be at present
is not readily ascertained. They are probably kept
sufficiently under control, so far as price is concerned,
by the railroads' command of the means of transport.
They are not equally under control so far as their
relations to their men are concerned ; and herein con-
sists one of the present industrial difficulties. It will
be remembered that they probably still mine about
one-fifth of the output.

These consolidations and other arrangements, it will
be seen, still left some seven great companies facing
one another. It is in the plan which has been resorted
to to prevent their undue competition that the chief
novelty of the present system lies. This is the now
famous community of interest plan.^ It is really very
simple — nothing but the acquisition, through purchase
or exchange, by a few large capitalists who are disj^osed
to work harmoniously together, of sufficient stock in
all the roads to secure a powerful influence in their
management. Some optimistic financiers seem to think
that this plan, which has been largely adopted in
several of the great industries of the country, will quite
prevent any great disaster in the future, by bringing to
the support of any one interest in danger the financial
backing of all the others. Whether this is so or no, the
plan does appear to have been pretty effectively carried
out in the case of the anthracite roads. No one knows
exactly which roads are concerned or to what extent ;
but it seems to be evident that, for the last three
years, the anthracite roads have all of them — including
even the Pennsylvania — followed a common policy

' Bep. Ind. Com. xix. 462.

MAP iv:

NORTHERN or
WYOM ING
FIELD

N MIDDLE OR
GH FIELD

J T H E R N OR
-KILL FIELD

Gzcrge, Phihp & SoTi^Itd. Ike. Icridrnv Oco^aphuiaLInstLUUe.

^ Bomhay.

OWNERSHIP

ANTHRACITE COAL LANDS

Heading Co,

Central R.H. of New Jersey.

Lehigh Vaileg R.H.

Laoli. i Wettern R.H.
VI Pennayiuania R.R.
Pennayloania Coai Co.
I Erie ft. ft.

Delaware d Hudeon Co.
I Delaware, Suiguehanna, A Schuylkill

an.

Independent.

NORTHERN OR

WYOM I N G

FIELD

WESTERN MIDDLE

SOUTHERN OR
SCHUYLKILL FIELD

THE ANTHRACITE PROBLEM 127

with regard to price and with regard to quotas of

tonnage.

Capitalistic combination, we may then say, is now
to all intents and purposes complete in anthracite coal-
mining. It may have been hastened by exceptional
ability now and then ; but to anyone who has looked
into the history of the matter it gives the impression
of some slow-moving natural phenomenon, working
itself out to completion almost without the interven-
tion of the human will. These ' coal barons ' are, after
all, not long-sighted schemers ; they are very ordinary
men, moved, whither they hardly know, by every day's
pressure of circumstances. Their primitive philosophy
is one of individual enterprise; like most Americans
in business, they are fair examples of the ' economic
man ; ' and, if unrestrained competition has ever had
a fair chance in the world and failed — not on account
of government action or any other exceptional cir-
cumstances, but just because it is in the long run
opposed to the nature of things — it has been in Eastern
Pennsylvania.^

But what has all this to do with the organisation of
labour ? This : that, even if other circumstances had
been favourable, the operators were for many years far
too much taken up with the commercial struggle to
have any time or thought to spare for the industrial
side of their business. Moreover, in the central and
southern anthracite fields, there existed a sliding-scale
arrangement whereby miners' wages varied with the
price of coal at tide-water ; and this quite satisfied
the conscience : if wages went down, or employment

^ For the economies possible under combination, see the testimony
reviewed in He^. Ind. Com. ix., Digest xxxii.

128 THE ADJUSTMENT OF WAGES

dwindled, masters and men were but partners in
misfortune. How unfavourable, however, the other
circumstances were the history of the sliding scale itself
suggests. From the evidence of both sides before the
recent Industrial Commission one would gather that
the sliding scale was the invention of the operators in
1875.^ So great are the changes in American life, so
complete, in particular, the chasm which divides this
generation from the preceding in anthracite mining,
that it is only academic historical investigation which
brings out the fact that the sliding-scale method was
originally forced upon the operators in 1869 by trade-
union pressure.- There was then a strong union — the
Working Men's Benevolent Association — in the anthra-
cite regions, composed of miners of American and British
blood, officered largely by men who had had experience
in English and Welsh unionism. They followed con-
temporary English precedent in urging the adoption of
the sliding-scale principle ; there were the same diffi-
culties as to the basis, and as to the proportions in
which wages should follow prices — difficulties which
were referred to arbitration ; and there were heroic
attempts in 1871 to found district boards, composed of
three miners and three operators, with an umpire, to
settle all local questions.^ But all this machinery came
to an end in 1875. 'The long strike' in that year
ended in the unconditional surrender of the men and the
destruction of the Workmen's Benevolent Association ;
the sliding scale was retained for the convenience of

1 Beport, ix. 583, xii. 146.

- Dr. Virtue's article on ' The Anthracite Mine Laborers ' in
Bulletin 13 of the Department of Labor (November 1897) presents
some of the work done by him in the Graduate School of Harvard
University.

^ Somewhat like the joint committees of the North of England.

THE ANTHRACITE PROBLEM 129

the operators, but there was no longer a joint committee
to ascertain selHng prices in a way satisfactory to both
parties. The destruction of the union was soon followed
by an almost complete change in the loersonnel of the
labouring force — men of American and English stock
leaving, or putting their sons into other occupations,
from chagrin at defeat, from ambition to rise in the world,
from indisposition to work by the side of foreigners, and
half a dozen other motives, and their places being taken
by ' Huns ' and Poles. No continuous union tradition
could survive under such circumstances. Moreover,
about this time the Reading and some other railroad
companies began to enter into mining, and the consoli-
dation of mine properties began to take place apace ;
and if the formation of larger competing units makes
combination easier when they wish to combine, it
makes competition keener when they wish to compete.

For almost a quarter of a century the operators in
the anthracite district were practically untroubled by
strikes ; and here, again, in the matter of industrial
administration, the policy of ' freedom ' was given a
fair trial, if ever it was.^ And the result is a sufficient
comment. It was not so much the irregularity of
employment ; that might be ascribed to the nature of

' ' We had twenty-three years of perfect peace— nothmg to trouble
us in our mines anywhere,' said a leading operator, Mr. Olyphant, in the
operators' interview with the Commissioner of Labor, June 10, 1902;
Bulletin 43 of the Dep. of Labor, 1210. Cf. the remarks of Dr. Virtue
in Bulletin 13 (1897), 748 : ' Since the failure of the strike of 1887-8
there has been no organisation of importance among the anthracite
miners. . . . The great obstacle to union herq, as elsewhere, is lack of
confidence and faith among the members ; and scarcely anywhere is
that obstacle so great and so hard to remove as among the coalminers.
Here is ignorance ... in an unusual degree ; . . . a marked dissimi-
larity in race, language and religion ; . . . and above all the steady,
rmited opposition of the operators to the rise of any sort of labor
organisation.'

I30 THE ADJUSTMENT OF WAGES

the industry. It was not so much that wages were
low, for that may be disputed — and lowness of wage
is relative ; but it was that the whole mechanism of
industrial remuneration was allowed to become anti-
quated and unbusinesslike (if ' businesslike ' means a
(3omphment). To pass over a crowd of other grievances
— companies' stores, companies' tenements, docking,
monthly payment (in spite of the state law demanding
fortnightly payment), absence of check- weighmen, &c.
— look only at the matter of the charge for gunpowder.
The miners use a good deal of gunpowder in blasting.
This they buy of the operator, and they had to pay
B'l'lh per keg for it. It l)ecame well known that it
cost the company wholesale from 90 cents to $\. The
defence of the operators was that this price had been
agreed upon at some earlier period to offset an advance
in wages. But, if so, why not readjust the wages and
charge the market price for powder? Can anything
be imagined more calculated to create constant irrita-
tion ? The fact is that unless there is pressure from
the employed — especially when there is fierce compe-
tition among the several concerns in the business —
there is often far too little inclination to give serious
attention to the management of the labour. So long as
labour is quite passive, it does not attract the attention
of first-rate business abiUtv ; the task of watchinsj
the market is quite interesting and absorbing enough ;
and industrial administration does not present itself
as a matter of high policy until some day ' labour '
stops the machine. The London Docks are a case in
point.

The two great strikes of 1900 and 1902 have been
due to the extension to the anthracite region of the
influence of the sfreat union of soft-coalminers — the

THE ANTHRACITE PROBLEM ijr

United Mine Workers. Flushed with their success in
the great bituminous strike of 1897, and in the esta-
bhshment of the Joint iVgreement system in the com-
petitive soft-coal area, it was inevitable that they should
turn their attention to the anthracite field — inevitable
because of mere fellow-feeling ; inevitable also because
of that love of national completeness of organisation
which is so prevalent in all directions and among all
classes in America ; inevitable, finally, because there is
still some competition between bituminous and anthra-
cite. In a rough sort of way we may find a parallel in
the extension to South Wales of the Miners' Federation
of Great Britain. After a strike of forty-two days the
struggle of 1900 ended in an armistice, in which the
advantage was on the side of the men. Entering into
the struggle with a membership of less than 8,000, the
union came out with a membership of 100,000.^ The
degree of solidarity which the ' national organisers '
succeeded in bringing about among a population com-
posed of fourteen nationalities, is indeed marvellous.
One considerable independent operator had for years
made it a part of the contract of hire that all difficul-
ties should Ije submitted to local arbitration, and that
his men should never strike. Nevertheless, most of
his men went on strike in order to secure a general
settlement. How far they were justified would depend
in some measure on the extent to which it had been a
voluntary and conscious contract. Less doubtful was
the propriety of the miners' refusal to accept conces-
sions from a single railroad — even though that road
was the Eeading, employing. 25,000 out of the 130,000
men on strike — until aU the operators would accept a
common settlement.^'

J Be:p. hid. Com. xvii. 190. - Ihid. 191.

132 THE ADJUSTMENT OF WAGES

The settlement in 1900 was premature and unstable^
because it was brought about not by economic but by-
political forces. Mr. Baer, the present president of the
Heading Eailroad, has recently told us the story :

' Shortly after this strike was inaugurated, Senator
Hanna' — the most influential of the Eepublican politicians

' met a number of gentlemen and insisted that, if the

strike were not settled, it would extend to Ohio, Indiana,
and Illinois, and the election of Mr. McKinley and
Mr. Eoosevelt would be endangered. He insisted that
he was authorised to settle the strike through Mr.
Mitchell if the operators would agree to a 10 per cent,
advance in wages. After a good deal of pressure had
been brought to bear upon the presidents of the coal
companies, and positive assurances were given that the
situation was really dangerous. President McKinley
sending to me personalty a gentleman to assure me that
Ohio and Indiana were in danger unless some adjust-
ment were made, we agreed to put up a notice which
was prepared, as we understood, at Indianapolis, and
furnished by the United Mine Workers.' ^

What did the men secure ? They gained an im-
mediate rise in wages, and the gunpowder grievance
was redressed. The sliding scale was abolished.^
But there was no provision for future readjustments
of the rate, nor for the settlement of local disputes.
The miners argued : ' The anthracite coalowners form
a combination '• — it will be remembered how very
appropriate this argument was in 1900. 'If combi-
nation is good for capital, it is good for labour. We

' Bulletin 43 of Dep. of Labor, 1204.

- Indeed, if one may trust the account in Roberts' Anthracite In-
dustry, 200, some of the miners' leaders put forward the claim, of which
we have heard so much in England, that ' wages should govern the selling
price, and not price wages.'

THE ANTHRACITE PROBLEM 133

should organise in order that combined labour may do
business with combined capital.' ^ But in this settle-
ment combined capital had refused to do business in
any formal way with ' combined labour,' or, as the
phrase went, in any way to ' recognise ' it. They
refused to meet the leaders of the United Mine Workers,
and the terms finally agreed upon had come to them
through third parties.^ And that is why I called it an
armistice.

The events of the next two years can only be under-
stood when we remember the sudden collapse of many
earlier labour movements in the United States. The
success since 1897 of the United Mine Workers in the
bituminous districts is probably much more impressive
to an average Englishman than to an average American.
As I have elsewhere said,^ the state of mind of the
elderly hard-headed American capitalist is that of
Browning's Legate, ' I have known four-and-twenty
leaders of revolt.' Let him but hold on, he thinks, and
the trouble will pass away.

The first great anthracite campaign terminated at
the end of October 1900 : the second beoan in the
middle of May 1902. We are not far enough away in
point of time to see the events of that period in true
perspective, and I do not propose to play the part of
judge, still less that of advocate. In the course of the
second strike the miners put forward certain specific
demands with regard to wages, hours of labour, and
the weighing of coal, which were to some extent

' Roberts, Anthracite Industry, 200.

^ Cf. the comment of the New York Nation in its issue for
November 1, 1900: ' The men have received "concessions," but they do
not go back to work imder any " agreements." The operators have
merely " declared " their intentions and " posted " notices.'

' Surveys, 416.

134 THE ADJUSTMENT OF WAGES

discussed in the course of the negotiations.^ But the
preHminary and primary cause of the strike was the
refusal of the coal operators to grant ' recognition ' to
the United Mine Workers' Union. What ' recognition '
means was repeatedly explained in the clearest terms
by both parties : it means any form of direct negotiation
with the national officers of the union. -

The concessions of 1900 expired in April 1901.
In March there was a convention of the three anthra-
cite districts, which voted that the national executive
board of the whole union, together with the officers of
the three districts, should approach the operators and
propose a joint conference to determine wages for the
ensuing year. The operators refused to agree to such
a conference ; but certain ' outside friends of the labour
movement ' brought about ' an interview ' between the
leaders of the miners and certain representatives of the

1 They will be found in Bulletin 43, 1150.

^ It may be worth while to quote two definitions. One will be found
in the proceedings of the Industrial Commission {Report, ix, 575), where
one of the members of the Commission observed : ' We understand that
they have upwards of 80 per cent, of the men organised, and that they
are moving in the direction of getting recognition for their union; that
is, that they shall confer and arrange a scale of prices and fix conditions
for every succeeding year, as is done in the bituminous regions.' A
second is in the Report of Mr. Loomis, Superintendent of the Coal
Mining Department of the Delaware, Lackawanna, and Western Rail-
road Company (in Bulletin 43 of Dej). of Labor, 1191). Under the
paragraph-heading Becognition of the Union he says : ' The question of

ecognition is one that has been prominent before the operators since the
strike of 1900. We have agreed to meet committees of our own
employees, and adjust any actual grievances. These committees are in
most cases selected by the United Mine Workers' Union or so-called

' Locals." In other words, we are dealing indirectly' with the local
unions at the different mines. We have refused, however, up to this
time, to deal with any of the national ofiicers of the union, and have
taken the position that they, not being acquainted with the conditions
which exist at the different mines, are in no position to talk intelligently
about them ; and not being our employees have no right to interfere or
attempt to dictate to us.'

THE ANTHRACITE PROBLEM 135

coal roads. ISTo authoritative account of what then
occurred was given to the pubUc by the operators. The
account which the miners' leaders gave to their union
was that the operators ' held out the hope that, if
during the present year the mine workers demonstrated
their willingness and ability to abstain from engagino-
in local strikes, full and complete recognition of the
organisation would unquestionably be accorded at a
future date ; ' ^ and with such assurances the United
Mine Workers thought it best to be content for the time.
The operators, on their side, posted notices that work
would go on upon the existing terms for another year
— until April 1, 1902 ; and probably many of them
expected, and some of them hoped, that the condition
they had imposed would never be fulfilled. There were
undoubtedly a good many local strikes in the year that
followed, and the operators had some difficulty in main-
taining discipline in their mines. However, in February
1902, the United Mine Workers invited the operators
' to a joint conference of operators and miners . . .
the object of the conference to be the formation of a
wage scale for the year beginning February 1, 1902,
and ending March 31, 1903.' The presidents of the
various coal companies all declined the invitation ; and
on March 14 they once more posted their own indepen-
dent notices in the following terms :

' The rates of wages now in effect wiU be continued
until April 1, 1903, and thereafter subject to sixty
days' notice. Local differences will, as heretofore,
be adjusted with our employees at the respective
collieries.'

Still once more did the Miners' Convention pro-
pose a joint conference, and once more the operators

1 i?ej>. Ind. Com. xvii. 192

136 THE ADJUSTMENT OF WAGES

declined ; and then the strike was inevitable.^ It was
only delayed, and the situation was in no respect really
altered by the intervention (at the request of the miners)
of the Civic Federation. The Civic Federation is an
organisation of distinguished American citizens for the
purpose of mediation and conciliation in labour dis-
putes. It had already done good service in terminating
industrial disputes elsewhere ; but its intervention is
certainly more appropriate in the case of employers or
employed who possess no strong organisation of their
own. It might also conceivably perform a useful
service, when one party to a dispute is really beaten,
by enabling it to ' save its face,' and yield gracefully on
alleged grounds of public interest. But in the present
case the two parties were well organised ; they knew
their own mind ; and it was really better for the com-
munity, in spite of the suffering it would occasion, that
the fight for which both sides had been ' spoiling '
should finally take place. We cannot but feel a certain
sympathy with the remark of the President of the
Eeading Company, ' Anthracite mining is a business, and
not a religious, sentimental, or academic proposition.' ^
For it has to be clearly understood that the ulti-
mate arbiter in the industrial world, as in the world of
international politics, must be force : the determining-
decisions can commonly be arrived at only by an
avowed or tacit trial of strength. This sounds very
materialistic and brutal ; though, even in ordinary war-
fare, it has been observed that there must be a man
and some sort of human will at the other end of the
bayonet. But the statement becomes an economic
commonplace when for ' force ' we put the more harm-

' The correspondence is given in full in Bulletin 43 of the Dep. of
Labor. - Ibid. 1187.

THE ANTHRACITE PROBLEM 137

less-sounding ' forces,' and say that ' the conditions of
labour are determined by the play of economic forces.'
And this really means the same thing if we include the
human will among our forces, and remember that an
immediate victory does not necessarily mean a final
settlement. ' We can get men to do the work for so
much.' — ' You cannot get men to do the work for so
much.' ' We will not submit to a reduction of profits.' —
' You must submit to a reduction of profits.' Anta-
gonisms like these can only be brought to an issue, in
our present society, by a trial of strength. They could
only be determined otherwise if we possessed, what we
do not possess, an accepted doctrine as to what wages
or what profits were in themselves desirable. Of course
in the trial of strength, in this instance, the starvation
of the men and the bankruptcy of the masters, the
usual ' sanctions ' of the law of competition, were re-
inforced by the public interest in keeping itself warm in
winter. But this also is a ' force,' like others.

As I cannot see my way to joining off'hand in the
condemnation of either party, let me put before you, as
fairly as I can, what I understand to have been the
contentions of each. On the side of the men the con-
tention was that the determination of wages by joint
agreement was desirable : and we do no injustice to
them when we suppose that, in their belief, such
' recognition ' would strengthen the union in various
ways, and so enable it to secure better conditions —
among others, higher wages. On the side of the
masters it was argued that such joint agreement was
impossible, because the conditions of anthracite coal-
mining were so complicated that no common agreement
was possible on the subject ; ^ that, if possible to start

1 This was put in different ways by different operators. Mr. Baer,

138 THE ADJUSTMENT OF WAGES

with, the difficulties of ' interpretation ' would be in-
superable, and would cause so much friction that it
had better not be attempted. Moreover, such an
agreement, they declared, would mean submitting to
the ' dictation ' of the men, and being compelled to
give higher wages, which the trade could not afford.
The men of course argued that the trade could afford
to pay higher prices. The operators urged that the
union had not prevented unnecessary local strikes,
and that the men had often been unruly and un-
trustworthy. The union replied that if it were ' re-
cognised,' as in the bituminous districts, it would
have more hold upon the men, and would ' discipline '
them itself. The operators on their side again alleged
that the union was everywhere trying to compel
men to join the society, and declared that ' every
man has an inalienable right to work.' ^ To which
the union could reply that a practically universal
membership was a condition precedent to effective
union action, and that it was their business to get
all the men in by legitimate means. As to the
means, there is usually a strange reluctance on the
part of the intelligent public to face the facts of human
nature. Of course there is a great deal of coercion in
cases like this of the anthracite union — coercion which
begins with denunciation and goes on to hustling, and

the President of the Reading Company, argued that it was impracticable
to form a wage scale for the whole anthracite region, and declared that
' the dissimilarity between anthracite and bituminous mining is so great
that it does not follow that any success attending the creation of a
uniform wage scale in the bituminous region could be repeated in the
anthracite fields.' — BriUetin '^^ of Dep. of Labor, 1176. The President
of the Scranton Coal Company went further, and said that even a con-
ference of all his own miners would be impracticable. — Ibid. 1182.

^ Mr. Thomas, representing the Erie Raikoad, went on : ' And if he is
required to have a licence from a labor leader to do so, I say the time has
come for a new Declaration of Independence.' — Ibid. 1215.

THE ANTHRACITE PROBLEM 139

may go on to a good deal worse. Considering what
the population was in the anthracite fields, we may be
surprised that there was not much more violence. Of
actual physical violence there was, indeed, hardly any ;
and the public authorities ought to be strong enough
to prevent it. But no display of police can make a
small minority really quite free to do as they please in
the midst of a great majority imbued with unionist
principles. In the case of ' a natural craft,' such as
the coalminers form when they constitute the bulk of
the population, the question for a business administrator
is not one of ethics, but one of intelhgent forecast of
circumstances. Are the great mass of the miners really
united, and how long are they hkely to hold together ?
The event proved that they could hold together for
several months, long enough to terrify the people of
the United States with the dread of cold ; and the
event proved also that there was substantial unanimity
among the men.^ Under these circumstances the
criticism to be passed upon the operators is not that
they did something morally wrong (the matter is by
no means clear enough for any such condemnation),
but that they showed defective business judgment.
Anticipation of the way in which masses of men are
likely to act is just as much a matter for 'business
sense ' as anticipation of the market.

Further comment is best postponed until the
President's Commission has made its report.^ Mean-
while it is worth while observing that Mr. Carroll D.
Wright, the well-known statistician, who has been
engaged in the study of industrial aflairs for thirty

' The impressions of an eye-witness will be found in Dr. Roberts'
article on 'The Anthracite Coal Strike in its Social Aspects' in the
Economic Journal for March 1903. ^ See the Preface.

I40 THE ADJUSTMENT OF WAGES

years, and who as Commissioner of Labor was asked
to look into the matter in June last and report to the
President, does not think the difHculties in the way of a
joint agreement insurmountable. But he suggests that
the agreement on the part of the operators should be
made with a ' new ' ' anthracite coalminers' union, in
its autonomy to be independent of the United Mine
Workers,' ^ though possibly affiliated with it. The
operators have been very sore, or have professed to
be sore, at the invasion of their district by a soft-coal
union 'which has its headquarters in the State of
Indiana.' It is something like the annoyance of the
South Wales coalowners at the interference of the
Miners' Federation of Great Britain. But, in the first
place, but for the action of the United Mine Workers
the anthracite miners would have remained unorga-
nised, and would not have secured the concessions of
1900 ; without their help, the anthracite unions are
much more likely to fall to pieces, both because of their
more composite foreign membership, and also because
of the greater consolidation of capital in this field ;
and, so long and so far as anthracite and bituminous
coal compete in the same markets, a common policy is
economically justifiable. I conjecture that the miners
wiU think themselves bound in honour not to dissociate
themselves from the soft-coalminers ; and even if they
announce their readiness to do so, the necessities of the
situation will force them into unity of action practically
indistinguishable from unity of organisation.

And now let us return to what we have seen of the
organisation of capital in the anthracite field. With
the establishment of ' community of interest ' on the

1 Bulletin 43 of Dep. of Labor, 1166. The test of Mr. Wright's
suggestions is given in Appendix IV. 6. See also Appendix VII.

THE ANTHRACITE PROBLEM 141

capitalistic side, some of the chief causes of the un-
satisfactory industrial conditions of earlier years have
already disappeared. The operators are sufficiently
united to enter into and carry out a joint agreement
if they wish to ; the lessening of the commercial
tension, with the moderating of competition, leaves
them time and energy for what is undoubtedly
a difficult and delicate business — the drawing up
of a common rate, and its adaptation to particular
circumstances ; while the non- recurrence of periods
of ' cut prices ' will make it possible for them to pay
fairly good wages, and that more regularly. And,
as to the relations between the anthracite and the
bituminous districts, it is more than possible that the
connection will at no distant date grow closer on
the capitalistic side. It is an open secret that some
of the capitalists who now control the hard-coal output
have already begun to lay their plans for bringing soft
coal under their direction ; and this by their command
of the railways.^ If they should succeed in their pro-
ject, it will be too ridiculous to object on principle to
a combination of the men who hew the two kinds of
coal. The American people prides itself on its sense
of humour.

• Brooks, Social Unrest, 19. Diuring 1899 and 1900 four of the great
soft-coal carrying roads, the Pennsylvania, Baltimore and Ohio, Chesa-
peake and Ohio, and Norfolk and Western, were brought under one
control. These do not operate mines, but they are able by combination
to ' abolish to a considerable extent the competition of dififerent coals in
the same market which caused low prices to the mine owners.' — Bep. Ind.
Com. xix. 230.

142 THE ADJUSTMENT OF WAGES

LECTUEE VII

THE IRON INDUSTRY IN GREAT BRITAIN AND AMERICA

I HAVE taken so long over coal that I shall be
unable to deal as I had intended with iron and steel,
except in the most cursory manner. There are, how-
ever, a few things I should like to say in a summary
way about England, and then we will return to
America. The whole field of the iron industry and
a large part of the field of the steel industry in Great
Britain is covered by a network of boards of concdlia-
tion. There is the oldest of them, The Board of Con-
ciliation and Arbitration for the Manufactured Iron and
Steel Trade of the North of England, whose thirty-fourth
annual report has just been issued.^ There is The Mid-
land Iron arid Steel Wages Board, whose twenty-seventh
annual report was presented at Birmingham this morn-
ing.^ At Glasgow the two branches are divided, and
there is The Board of Conciliation and Arbitration for
the Manufactured Steel Trade of the West of Scotland,
now in the thirteenth year of its existence ; ^ and
The Scottish Manufactured Iron Trade Conciliation and
Arbitration Board, established six years ago.'* In South
Wales there is The Welsh Plate and Sheet Conciliation

^ Given in Appendix V. 2.

- March '2, 1903. Its Rules and Sliding Scale, together with a typical
Quarterly Report, will be found in Appendix, V. 1, V. 1a, and V. 1b,
^ Its rules are given in Appendix V. 4.
■* Appendix V. 3.

THE IRON INDUSTRY IN GREAT BRITAIN 143

Board, now in its fourth j^ear.^ Moreover the Associa-
tion of Steel Ingot Manufacturers (embracing both the
North-East Coast of England and the West of Scotland)
has been in the habit, for some years past, of arranging
rates of wages in informal conferences with the Steel
Smelters' Association.

In the case of ' manufactured,' i.e. puddled or rolled
iron, the wages of puddlers form the basis in relation to
which the remuneration is determined of all the other
classes of operatives employed. The blast-furnacemen,
making the crudest form of iron, pig-iron, which serves
as raw material to the puddler, fall within the operations
of another series of similar mechanisms. There is The
Board of Conciliation established between the Oioners
of Blast Furnaces in Scotland and the Scottish Blast-
Furnacemen ; and though in the Cleveland district
there seems to be no permanent board, wages are
determined by a sliding scale, set forth in an Agreement
between the Cleveland Ironmasters' Association and the
Representatives of the Blast- Furnacemen einployed at
the Associated Works, which provides that all disputes
shall be referred to a Committee representing the two
parties. Nor are the ironfounders, or even the com-
paratively small body of pattern-makers who serve them,
without their boards where their numbers are at all large.
And at Newcastle there meet periodical^ the Board of
Conciliation for the Ironfounding Industry of the North-
East Coast (since 1894), and the Board of Conciliation
for the Pattern-making Industry of the North-East Coast.

All these boards, I believe, are working pretty well^

' This is of peculiar interest, since it provides for the representation
on the board of four workmen's unions — the Steel Smelters, the Tin and
Sheet Millmen, the Dockers, and the Gasworkers. The rules of the
workmen's section are given in Appendix V. 5.

^ For the rules of three of the last mentioned, see Appendix V. 6-8.

144 THE ADJUSTMENT OF WAGES

. I

In the Midland Iron Trade, about which I am naturally-
best informed, there has been no strike for a good many-
years. Recently, at the suggestion of the Operatives'
Section of the Standing Committee, Sir Benjamin
Hingiey was presented by the board with his portrait,
in recognition of his services as chairman for twenty
years — at a cost, coming out of funds provided almost
equally by the two parties, of 325 guineas !

Now the first thing to observe is that all these
boards depend for their efficacy on the existence, and
practical recognition by the employers, of strong trade
unions amoni? the men. On the north-east coast the
Constitution of the Ironfounders' Board expressly states
that ' the parties to the Board are the Associated Em-
ployers of the Tyne, Wear and Tees and Hartlepool
Districts, and the Friendly Society of Ironfounders
of England, Ireland, and Wales.' The Associated
Employers now, I understand, form the North-East
Coast Association — a member of the great Employers'
Federation of Engineering Associations ; while the
Friendly Society of Ironfounders, extending through
the whole of the country, has some 18,000 members, an
annual income of some £57,000, and unexpended funds
amounting to £100,000.^ Similarly 'the parties' to
the neighbouring pattern-making board ' are the North-
East Coast Engineering Employers' Association and the
United Pattern-makers' Association ; ' and the pattern-
makers, though there are necessarily only few of them,
some 4,800, have funds to the amount of about £8 per
man. All the other boards, following the example of the
oldest, that for the Manufactured Iron Trade of the North

The only recent breakdown of a board has been in the case of South
Wales Siemens Steel. This expired, or passed into a state of suspended
animation, some eighteen months ago, after an activity of three years.
' Figures in Board of Trade Beport on Trade Unions for 1901, 122.

THE IRON INDUSTRY IN GREAT BRITAIN 145

of England, carefully avoid any formal ' recognition ' of
the union. The reason is, of course, that the creation of
the North of England Board goes back some thirty-four
years, to a time when unionism was only beginning to
obtain respectful treatment, and when the principles on
which rests the successful working of such bodies were
not so clearly understood as they are now coming to be.
The phrases used in every case are such as the follow-
ing : ' The board shall consist of one employer and one
operative representative from each works joining the
board ; ' ' the operatives of each works shall elect a
representative by ballot ; ' ' the chairman shall be ap-
pointed by the employers' section from among their body.
The vice-chairman shall be appointed by the operatives'
section from among their body. A secretary shall be
appointed by the employers, and a secretary shall be
appointed by the operatives,' &c.^ One might read
through a score of the board's reports and not guess
that there was such a thing as a union in existence.^
But all this time the operatives' representatives are to
all intents and purposes representatives of the union,
and the operatives' secretary of the board is invariably
a leading official of the union. Thus the national
Secretary of the Associated Iron and Steel Workers
is the secretary of the North of England Board ; and
the national Secretary of the similar Scotch society,
the Amalgamated Steel and Iron Workers, has been
the operatives' secretary on all the three Glasgow
boards. It is undoubtedly the case that the fighting
strength of the unions sometimes secures them better
terms than the masters' own judgment would volun-

^ See the Constitutions of these Boards in the Appendix.

- This coy reticence is, however, passing away. Thus the Bex)ort of
the Midland Iron and Steel Wages Board for 1901 explains the recent
legal action taken by the Ironworkers' Association and its Secretary.

146 THE ADJUSTMENT OF WAGES

tarily offer : on the other hand, the strength of the union
is the only guarantee that the mutual agreements will
be loyally accepted by the men.^ Perhaps our charac-
teristically British and indirect way of doing a thing,
without saying we are doing it, might contain a useful
suggestion for the American anthracite situation.

The second point to observe is that throughout the
manufactured iron trade (with the exception of the
ironfounders), as well as in several branches of the
steel trade, general rates of wages are determined by
sliding scales. In the case of the manufactured iron
trade of the North of England and of the Midlands, the
scale has been long established and works automatic-
ally. Wages are in a fixed ratio to the ' average net
selling price,' deduced according to recognised rules
from the quantities ayd prices of the various descrip-
tions of iron as ascertained by accountants every two
months. In the case of the Midland Board, tlie prin-
ciple is recognised that wages shall be ^d. per ton
above the North of England rate for puddling, in order
to make up for certain northern ' extras,' and therefore
that if the accountant's ascertaiimient does not give Gt/.
above the northern rate the difference shall be made
up. Some irritation is occasionally felt by the men

' It may be worth quoting the following express recognition of this
necessity for strong unions for the purpose of peaceful adjustment of wages
by Mr. Trubshaw, Chairman of the Masters' Association in the South Wales
steel industry : ' He did not in the least object to their being affiliated
with a union, but what he held was that it was absolutely necessary
that the union should be a strong one. Now that the masters had a
strong association and the men were banded together in a strong union '
(the British Steel Smelters' Amalgamated Association) ' he felt quite
satisfied that their deliberations . . . would end in peace. . . . He was
glad to see a number of the boys and youths of the trade present with
the seniors that night. He would like to take the opportunity of asking
them to join some strong union, so that they might be guided in their
actions.' — British Steel Smelters' Montlily Report for February 1900, 87.

THE IRON INDUSTRY IN GREAT BRITAIN 147

in this, as in the coahnining industry, when newspaper
reports of advances in the price of iron are not imme-
diately, or not at all, borne out by the ascertainments
of realised prices ; ^ and it is much to the credit of the
men that they acquiesce so readily in the assurances of
their representatives that the prices are fairly returned.
The Scotch Iron Board, formed in 1898, has, indeed,
been unable to agree upon a permanent sliding scale,
in spite of the strong feeling of the employers that ' the
best method of preventing difficulties ' is an ' automatic
system, independent altogether of the opinions of either
side.' ^ But a certain rate for puddling in proportion
to realised price — formulated in the phrase ' shillings
for pounds, plus 25. 6c/. premium net ' ^ — having been
provisionally agreed upon until a permanent sliding
scale should be drawn up, it has been continued from
time to time by vote of the board for so-and-so many
' audits,' •* and seems almost as firmly established as if it
had been formally accepted. The representatives of
the men explained to the employers in feeling terms
how hard they found it to carry their men with them :
'Our delegates . . . are placed in a very j^eculiar
position. They have to meet in their works sometimes
hundreds of men who do not understand how the award
has been arrived at, what has been done here, or the
arguments which have been used on both sides.' And
the men's representatives are therefore naturally loath
to tie their hands more than they can help, especially
as they realise that they ' are only beginning just now
to grasp the business side of the iron trade.' '^

' Midland Report, July 1902. Cf. Scotch Iron Minutes of Septem-
ber 15, 1898, 15.

2 Minutes of Meeting, September 15, 1898, 2. ' Ihid. 27.

* This is a common Scotch equivalent for the EngUsh ' ascertainment.'

■' Minutes of Meeting, September 15, 1898, 3.

THE ADJUSTMENT OF WAGES

We have already seen that the Midland wages are
adjusted so as to be equivalent to those of the North of
England. Similarly the Scotch ironmasters rej^resent
that they cannot pay higher wages than their North of
England rivals.^ There is a general desire on the part
of both parties in each district that wages should every-
where be ' on a level,' and there are no great difficulties
in the way of discovering the facts. But the circum-
stance that English and Scotch ironworkers belong to
different unions renders it less easy than it might other-
wise be for either set of men to be thoroughly well
informed of conditions elsewhere.

In the case of blast-furnace men manufacturing
pig-iron, the scale of wages follows the quarterly ascer-
tainments of the net average selling price of the
pig-iron. In the Middlesborough district this is taken
for convenience as sufficiently indicated by ' No. 3
Cleveland Pig-iron.' The nominal ' standard ' is paid
when the price is between 34.s. and 34^. 2-46/. ; and the
scale provides for price falling to 29.9., with a deduc-
tion from standard of 6-25 per cent., and rising to 6O5
with an addition to standard of 35 per cent., ' and so
on in either direction in the same ratio ; ' although it
is agreed that for 'spare furnacemen' there shall be
a ' minimum rate of wage ' of 3^. a day.

And finally, at the other end of the manufacture, in
the manufactured steel trade of Scotland, while there
is no formal sliding scale, there is an informal one,
inasmuch as ' a rise or fall of 1 O5. per ton in the price
of steel plates is taken to mean a rise or fall of 5 per
cent, in wages.' "

' Mimttes of 1900, 22.

- From MS. Notes kindly furnished to me hy Dr. Dyer, the Vice-Presi-
dent of the Scotch Manufactured Steel Board. Dr. Dyer goes on to explain

THE IRON INDUSTRY IN GREAT BRITAIN 149

I must content myself with this exposition of the
actual state of affairs, and can only just touch in pass-
ing upon the interesting question why the sliding-scale
method seems to possess so much vitality in the iron trade,
while it has had to be abandoned in name and greatly
modified in practice in the coal-mining industry. Prob-
ably the explanation is to be found in two circumstances.
In the first place, the ' long-contract ' or ' selling-ahead '
system, which, as we have seen, has always endangered
the sliding scale in the coal industry, does not exist at
all in the iron and steel trades. The reason is thus
given by the Secretary of the Associated Iron and Steel
Workers :

' In coal, wages and demand are perhaps the two
principal factors in the general selling price, while in
our own trade wages count but little ; demand does
not always count much more, but the price of raio
material is the determining factor, perhaps more than
in any other industry. This varying, uncertain and
ofttimes bewildering fluctuation in the prices of raw
materials renders long contracts in the iron and steel
trades too dangerous and speculative ; and so our wages
under our sliding scales respond more readily to the

that ' the difficiolty is to fix when a price has been established. Both sides
have hitherto taken my decision on this point after an examination of the
order books of a few representative firms.' The Secretary informs me that
' other departments in the works of the firms connected with the board
base their claims, or are arranged with, according to its decision.' The
wages of the steel smelters employed by the ingot makers of the North-
East Coast and the West of Scotland apparently follow in practice the
nett selling price of ship plates. I am informed by the Secretary of the
Smelters' Association, Mr. John Hodge, that in the abortive negotiations
some years ago for the creation of a formal Board, the union expressed
its readiness to accept a sliding scale definitely based upon the ascertained
prices of plates. This they agreed to for the sake of the advantages of
an ' automatic ' regulation of wages, in spite of some theoretic difficulties
not unworthy of consideration.

I50 THE ADJLSTMENT OF WAGES

actual conditions of trade than would be the case in
the coal trade.' ^

And, in the second place, there is some reason to
believe that combination among the employers has been
more successful in ' regulating ' prices in the iron than
in the coal industry. The Marked Bar Association in
the Midlands is reputed to be notably efficient in that
direction ; and the significance of the fact is apparent
when one observes that ' bars ' form the most consider-
able item in the accountants' ascertainments. And in
the North of England there is said to be ' a firm grip
upon prices by the manufacturers, adjusted according
to the price of raw material and the general state of the
market.' -

No wide divergence between the industrial policies
of large bodies of men is ever without its explanation
in the surrounding circumstances. If these two causes
explain the difference between the ironworkers and the
miners, the former are ready to have their wages deter-
mined by prices simply because the movement of prices
means to them something different from what it means
in the case of coal.

It may be asked, however, what there is for a
board to do if wages are determined automatically in
accordance with an agreed scale. If the scale will work
quite automatically, there is no need for a board so far
as general rates are concerned ; and so the Cleveland
ironmasters and blast furnacemen, with a scale agreed

* From a Letter from the ironworkers' Secretary, Mr. James Cox.

^ From Mr. Cox's Letter. I have been glad to find that these two
suggestions, which I laid before Mr. Cox and in which he concurred, also
meet with the concurrence of Mr. Daniel Jones, the employers' Secretary
of the Midland Board, himself a man of experience as a manager of iron-
works. It is noteworthy- that at the Scotch blast furnaces a minimum and
maximum form part of the Agreement ; see § 2 of Schedule in App. V. 5.

THE IRON INDUSTRY IN GREAT BRITAIN 151

to for three years, have no board. But it is a good
thing that the two parties should meet periodically ; it
promotes mutual understanding. Moreover, the scale
may seem to one or other party to require revision from
time to time, or the number of descriptions of iron to
be included in the ascertainment may need to be added
to or lessened. Still, the annual meeting of the full
board is naturally rather formal. More activity is
shown by the bi-monthly meetings of the smaller stand-
ing committee, whose business it is to settle questions
of interpretation and of application to unusual circum-
stances.

Particular grievances are commonly referred by
the standing committee to the two secretaries, who are
frequently empowered to visit particular works and try
to arrive at a settlement. And it is interesting to see
how great is the assistance which the operatives' secre-
tary (usually, it will be remembered, the secretary or
president also of the union) renders to the businesses
represented, by removing tri^dal misunderstandings, and
by inducing the men to continue at work while their
grievances are under consideration.*

Eeturning now to America, you will not be surprised

' ' It is a matter for confjratulation that during the latter half of the
year no complaints have been before the board, this being to a great
extent due to the fact that Councillor Cronin and the operatives' repre-
sentatives at the various works have been able to adjust any disputes which
have arisen.' — Minutes of the Fourth Annual Meeting of the Scottish
Manufactiu'ed Iron Trade Conciliation Board, January 1901, 12. ' It is a
remarkable fact that during the year not a single case from the works
has been submitted to the standing committee. This may be accouiited
for, to some extent, by the greater efficiency and recognition of their
duties by the operatives' works representatives, the intervention of the
operatives' secretary, and in a large degree to certain principles having
been laid down, in past years by the decisions of the standing committee.' —
Annual Report of the Midland Iron and Steel Wages Board for the year
ended December 31, 1902.

152 THE ADJUSTMENT OF WAGES

to learn that the fundamental ideas of organised labour
in the iron and steel industry in that country do not
greatly differ from those in vogue in England. In what
I have to say of the matter I shall be compelled to limit
myself to the years before the summer of 1901, the date
of the steel strike. There has yet been hardly time to
see what is going to be the outcome of the events of
that year.

There has existed for more than a quarter of a
century a large and, for much of the time, a powerful
union known as the Amalgamated Association of Iron,
Steel, and Tin Workers of the United States — itself, as
the name implies, a consolidation of some much older
bodies. It was one of these societies, the United Sons
of Vulcan, composed of the puddlers around Pitts-
burg, which drew up in 1865, in concert with repre-
sentative employers, what seems to have been the
first slidino- scale in either America or Enc^land.'
The Amalgamated Association has clung to the old
tradition. The iron trade has widened and spUt up into
several branches, and the new methods of manufacturing
soft steel have enormously enlarged and modified the
industry. The Amalgamated Association has endea-
voured, with a fair measure of success, to include all
the new branches and to cover the whole of the country.
The American passion for completeness has so far
prevented the growth of geographical^ sectional socie-
ties, like the English Association and the Scotch

' jRep. Ind. Com. xvii. 339. The text of the ' Memorandum of
Agreement, made this thirteenth day of February 1865, between a Com-
mittee of Boilers and a Committee for the Iron Manufaetiu-ers, appointed
to fix a scale of prices to be paid for boiling pig-iron, based on the
manufacturers' card of prices ' will be found in Mr. Carroll T>. Wright's
article on the history of the Amalgamated Association, in the Q. Jour, of
Economics for July 1893. Cf. Munro in Scales in the Iron Industry, 2.

THE IRON INDUSTRY IN AMERICA 153

Amalgamation, or the splitting-off of the steel workers
from the iron, which seems to be taking place to
some extent in Great Britain. And throughout, the
Amalgamated Association in America has abided by
its policy of annual conferences and joint agreement
to sliding scales. The state of things in 1900 and the
years immediately preceding was that four scales were
drawn up annually by as many divisions of a general
Conference Committee appointed at the annual Conven-
tion of the Association, in consultation with the several
interests involved. It is significant that by 1900 those
other interests were no longer represented, as they had
been, by associations of manufacturers, but by single
great companies which had taken the place of the
individual emjjloyers. Thus one division negotiated
a scale for boiling [i.e. puddling) and allied processes
with representatives of the Eepublic Iron and Steel
Company, instead of with the Association of Bar-Iron
Manufacturers, because that company now included
most of the bar-iron mills. A second division negotiated
with the same company a scale for iron bars and plates
and allied products. A third conferred with repre-
sentatives of the American Sheet Steel Company, which
included nearly all the sheet steel mills in the country,
and no longer with an Association of Iron and Steel
Sheet Manufacturers. And finally, a fourth negotiated
with the American Tinplate Company, which had
brought together nearly all the tinplate mills. ^ The
method of conference seems to have been less cumbrous
than that of the soft-coalminers, and the Conference
Committee seems to have been more independent of the
Convention. Besides these general agreements, there

1 The substance of the Agreements for 1900 wiU be found in
Appendix VI. 2.

154 THE ADJUSTMENT OF WAGES

were local agreements in the case of rail mills and other
establishments not covered by the general conferences.

In all the agreements for different classes of iron
the sliding scale followed the price of bar-iron, as
ascertained every two months.^ In the case of the bar-
iron mills, the manufacturers employed an expert, called
an Adjuster, who enjoyed the confidence of both sides.
It was his business, in conjunction with a small com-
mittee, to report bi-monthly as to what the average
price had been for the preceding period ; and it was his
duty — and a dut}' very successfully performed — to settle
with the officials of the union any disagreement that
might arise as to the construction of the agreement. -
Each scale, it must be remembered, was only agreed to
for a year ; and it always contained a minimum proviso.^
In 1895 the Amalgamated Association numbered 34,000
members in 21)0 local unions.'*

But though the Association included, it would seem,
most of the skilled operatives in most of the iron and
steel mills of the country, or at any rate of those
turning out the more finished forms of steel, it by no
means included all. One great exception was the large
Carnegie plant at Homestead, near Pittsburg. There
an ill-advised strike in 1892, one of the most terrible
in its incidents that has ever occurred even in America,
had absolutely destroyed the local union, and had
created a state of affairs in which no man dared join
the Association. I gladly relieve myself of the respon-
sibility of pronouncing upon the merits of the dispute

^ A statement of prices between 1837 and 1897 is printed in
Appendix YI. 1.

^ An account given by himself of the duties of the Adjuster, Mr. James
H. Nutt, will be fomid in Appendix VI. 3. The ascertainments are based
on the sworn statements of manufacturers.

3 Be:p. Ind. Com. xvu. 389 seq. * Ihid. 213.

THE IRON INDUSTRY IN AMERICA 155

by referring you to what seems an impartial account of
the strike, to be io\nidim.\hQ Economic Journal for 1893,
from the pen of my Harvard colleague, Professor
Taussig.^

The Carnegie mills were not alone in being non-
unionist ; many of the mills in the great capitalist com-
binations just referred to (though apparently usually a
minority in each branch) had not been unionised in 1901 ;
and the scales signed annually as the result of con-
ference, while they might have more or less affected the
wages paid in others, were only definitely agreed to so
far as the mills which the company recognised as union
mills were concerned. The agreement, e.g. for 1901-2
in the tinplate branch opens thus : ' We, the American
Tinplate Company, parties of the first part, and the Tin-
plate Workers' International Protective Association of
America,^ parties of the second part, do hereby agree
that in all mills recogriised by the parties of the first part
as now organised the following scale of prices shall
govern the wages of employees.' ^ Such was the situa-
tion when the United States Steel Corporation was
formed, early in 1901.

Into the history of the formation of that gigantic
capitalistic combination we cannot now enter. It is
enough to notice that it is the most stupendous example
yet witnessed of a process which is probably going to
transform more and more the organisation of industry

^ The benefits conferred upon society by the action at this time of
the Carnegie management have been set forth with entire sincerity by
Mr. Schwab on many occasions, before the Industrial Commission and
elsewhere, and his arguments are easily accessible ; while a less optimistic
view of the resulting situation will be found in a chapter in Mr. Spahr's
America's Working People.

2 A branch of the Amalgamated Association. ' International,' in the
titles of American trade unions, is intended to include Canada.

^ Text in Appendix VI. 4.

156 THE ADJUSTMENT OF WAGES

— the process known as industrial ' integration : ' the
process, namely, of bringing under one ultimate con-
trol the whole series of operations in any particular
field, from the securing of the raw material to the
turning out of the finished product. Hitherto great
undertakings have usually concerned themselves mainly
with one or other end of the series of operations or
with some intermediate phase. But, with the widening
of the market, the representatives of the two ends are
coming inevitably into conflict. The finished product
people, to insure a supply of material at a price that
suits them, are more and more tempted to produce that
material themselves, and so curtail the market of the
raw material producers. The raw material producers,
on their side, are anxious to secure a steady demand
for their output, and for this purpose are inclined them-
selves to work up their materials into finished goods.
Naturally, in this general statement, ' materials ' and
' finished goods ' are only relative terms.

Now in the steel business there had come to be two
groups of great consolidated companies — one, of which
the Carnegie Steel Company was far the greater, which
produced steel billets, ingots, bars, plates, and slabs,
all constituting the material for the second group of
companies, which turned these billets &c. into tubes,
wire, tin-plate, sheets, structural material, and other
relatively finished goods. And things had come to
such a pass that each group was believing itself obliged
to enter into the business of the other. ^ An internecine
conflict was imminent when the financial interests
(which, for reasons I need not pause to explain, were
at this time in control of most of the companies) inter-

^ The history of the matter is given by Mr. IMeacle in the Quarterhj
Journal of Economics for August 1901.

THE IRON INDUSTRY IN AMERICA 157

veiled and prevented the conflict by welding all the
opposing interests into one great organisation — the
United States Steel Corporation.

In this transaction the Carnegie Steel Company,
which was best equipped for the struggle, had secured
the best terms, and its manager, Mr. Schwab, was
appointed President of the combination, which now
included some 75 per cent, of all the steel interests
of the country.

Into this combination had entered three of the
great companies with which the Amalgamated Associa-
tion of Iron and Steel Workers had been accustomed
to ' sio-n ' the annual ' scale.' The Amalo-amated knew
what the Carnegie Company's policy had been ; and
though the several constituent companies in the new
corporation were left free to manage their business as
before, the Amalgamated naturally dreaded the influence
of example. They thought they had better take time
by the forelock, and, before the Homestead influence
should begin to deunionise the partially unionised
subsidiary companies, make an efibrt to completely
unionise them. Accordingly, when the time came to
sign the scale, e.ij. with the Sheet Steel Company, they
demanded that the scale should be signed for all the
twenty-eight mills belonging to the company, and not
for the twenty-one only which had hitherto been re-
cognised as ' organised ' or ' union ; ' and similar de-
mands were made on the other companies. How far
this demand agreed with the wishes of the men in the
mills not previously recognised as ' union ' it is hard to
say. In some cases branch unions had secretly been
formed in them ; and the employers seemed to go so far
as to say that it was a breach of faith when the men of
a mill, not previously 'recognised' as 'union,' volun-

158 THE ADJUSTMENT OF WAGES

tarily unionised themselves. In other cases it may be
true that the demand of the Amalgamated was tanta-
mount to compelling the employers to coercively
unionise a mill.^ However, in the strike that followed,
the Amalgamated was badly beaten. They had
miscalculated the extent of their command over the
labour market ; they had exaggerated the probable
effect of a prolonged strike upon the stock market.
It was this last u})ou which they had counted;
for great masses of the bonds of the companies
were still in the hands of financiers. But the
American people just at that time were rather proud
of the Steel Corporation as the hugest thing of its
kind, and destined to dominate the world ; and high
prices for steel do not come home to the masses like
high ])rices of coal. There was no popular outcry and
no panic in the money market, and the strike failed.
It was never one for wages in the present, but avowedly
one to compel complete ' recognition ' of the union,
and that only — so as to influence wages in the future.

It has been several times pointed out already that
the combination of capital facilitates the introduction
and maintenance of the method of collective bargaining
or joint agreement — when capital is read}^ to adopt
it. It also, as this last example shows, enormously
strengthens capital in its resistance, so long as it
wishes to resist. We cannot expect so momentous an
issue as the nature of the mechanism for the adjust-
ment of wages to be determined without protracted
conflict in a country where the individualist spirit in
business, and therefore the monarchical spirit in busi-
ness, is so strong as in the United States. The leading
American business men, however, are in their way

^ Cf. Talcott WilliamB in American Eeview of Ecviews for September
1901.

THE IRON INDUSTRY IN AMERICA 159

industrial statesmen. They will not be content simply
to suppress unions again and again : tliey will seek an
alternative policy. Mr. Schwab's own policy has just
been announced as one of profit-sharing ; and he is now
carrying through a scheme to faciHtate the acquisition
of stock in the Steel Corporation by the operatives
employed.^ I am ready to confess that I am not
absolutely sure he may not succeed thereby in kill-
ing unionism in his particular branch of trade.
I hold no brief for unionism. It is not an end
in itself, but only a means to an end; and the end
or ends may conceivably be reached in other ways.
But I doubt whether the management of the Steel
Corporation realises the grave practical difficulties in
the way of the permanent success of this alternative
policy. The problem is one very largely of business
administration — how to deal, with least expenditure of
time and energy, with large masses of men engaged in
more or less similar work. And I should not be
surprised if American ])usiness administrators, after
desperately fighting unions until they are tired, should
suddenly come to terms with the men, and orafanise
'joint agreements,' with a completeness and with a
thoroughness the world has never seen. The critic
may object to such an alliance, and talk of the interests
of the consumer. But we have so long idolised the
consumer and with such unsatisfactory results, that
society may do well to try the experiment of thinking
first of the producers — of all the producers.

' An abstract of the scheme is given in the Labour Gazette of the
Board of Trade for February 1903. The plan provides (1) for the
acquisition by employees of preferred stock, (2) for the payment of an
additional ' dividend ' of 5 per cent, to employees who keep their stock,
remain in the service of the corporation and ' show a proper interest in its
welfare and progress,' (3) the payment of a still further dividend to
employees who remain in service for five years and whom the corporation
' shall find deserving thereof.'

i6o THE ADJUSTMENT OF WAGES

LECTURE VIII

THE LEGAL POSITION OP TRADE UNIONS

Those of you who have done me the honour to listen
to the previous lectures of this course will have anti-
cipated the conclusion : that the differences between
the United States and Great Britain in the matter of the
organisation of labour are differences of degree and
not of kind. This is true of the whole of the indus-
trial life of the two countries ; and, when one stops to
reflect, one sees that it must necessarily be so. Both
are engaged in carrying on large-scale production, with
the assistance of modern machinery ; both exhibit that
' capitaHsm ' which is the necessary result of modern
mechanical methods ; both are inhabited by peoples of
the same stocks ; both are self-governing republics—
the one of the Presidential and the other of the Cabinet
type ; and they share the same ideas of political and
personal liberty. In certain deep fundamental traits,
indeed, all countries resemble one another which have
entered into the modern phase of capitalistic produc-
tion ; and Tokyo, Bombay, Lyons, Bradford, and Fall
Eiver present more than one identical problem. But
between Great Britain and the United States the resem-
blance is peculiarly close, as may be illustrated by the
fact that exactly what some English observers are
saying just now of America, French observers, until
recently, and some of them even now, have been saying
of Ensfland. Both Enolish observers of America and

THE LEGAL POSITION OF TRADE UNIONS i6i

French observers of England are holding up the
individual enterprise, the self-reliance, the energy and
vigour of the observed country as examples for their
own.

The differences of degree are not inconsiderable.
The spirit of independence, readiness to look after one's
own interests, readiness also to let other people take
care of themselves, are undoubtedly more widely dif-
fused in America than in England. The greater oppor-
tunity for individual advancement so often to be found ;
the fact that the population of the New World repre-
sents that part (or the descendants of that part) of the
less comfortable classes in the Old World which had
such exceptional enterprise that they tore themselves
up from their old roots and crossed the Atlantic ; the
more abundant food enjoyed by the large body of the
manual labouring class ; the dryer, brighter, and more
stimulating (climate — all these, and a score of similar
influences, have had their effect. And it is obvious
that England, for good or for ill, is less completely de-
feudahsed socially than America. America is a far less
' deferential ' country, to use Bagehot's phrase. On the
poUtical side this ' deference ' has been, on the whole,
hitherto a great advantage for England : it has left the
administration mainly in the hands of ' the governing
classes,' though subject to the salutary check of a public
opinion which prevents the grosser forms of corruption.
But one set of consequences of such a state of mind
cannot be enjoyed without another set. And as ' defer-
ence ' implies the recognition of differences of social
status, it involves in industry a ' class-consciousness '
which has greatly strengthened Enghsh unionism. All
this is true ; and yet how carefully all such statements
need to be i^uarded will occur to us when we reflect

i62 THE ADJUSTMENT OF WAGES

that the Yorkshire or Northumberland miner, or the
Lancashire operative, is hardly over-burdened with
' deference ' in the usual sense of the word !

What, I think, we may fairly say is this. First, that
the population of the United States is still far more
agricultural and rural than that of England ; and, in the
smaller country towns, of which there are hundreds,
the tone is set by the fairly comfortable, very indepen-
dent, farming class, tilling their own land. In such
towns unionism is probably weaker than in similar
English localities. Such are the neighbourhoods, for
instance, described by the lady of Iowa who writes
under the name of Octave Thanet ; and of its people
her phrase ' the contented masses ' is true enough.'
Moreover, one cannot help suspecting that in many of
the smaller industries of England, whether in great
towns or small, there still survives not a little of the
old guild spirit in its later and more decadent aspect.
And the mobility of American (conditions will not suffer
the prudent selfishness of a little stationary group.
But when we pass from the mainly rural areas, or from
those charming ' residential ' districts which are all that
a travelling Englishman usually sees, to the great staple
industries of the country — coal-mining, iron and steel
working, the textile manufactures, &c. — we come to
conditions much more like those in this country. The
fact is that when men are engaged in considerable
numbers upon a comparatively few uniform operations,
they must of necessity receive a more or less uniform
treatment from their employers, and they inevitably
tend (if they are men of European stock) towards a
more or less formal unionism.

The moral of the trade union history of America
^ See her article in the Forum for October 1894.

THE LEGAL POSITION OF TRADE UNIONS 163

will be drawn differently by different observers. It
may be said, with perfect truth, that unions have never
yet succeeded in America in maintaining for any con-
siderable period their influence and numbers. Their
story has been that of one great wave after another,
each breaking soon after it has reached a head. But I
cannot help thinking that with the filling-up of the
country, and the lessening of the opportunities for in-
dividual advancement, there has been a distinct pro-
gress on the whole towards a more permanent solidarity.
The history of the efforts towards the unification of
labour may suggest, it is true, the very same conclu-
sion as the repeated failures to unify capital led to
in the ante-trust days — the conclusion, for instance,
that M. Paul de Eousiers reached with regard to
the anthracite operators as lately as 1896, i.e. that
they were always destined to ill-success.^ But, as the
successive capitalistic combinations are now seen each
to have represented a stage towards a more perma-
nently unified control, so, with graver difficulties to
contend with, the consolidation of labour has never-
theless made considerable headway. One should not
prophesy unless one knows ; and it is conceivable, as
I have before said, that a gigantic counter-policy of
labour-partnership, such as the Steel Corporation seems
about to initiate, may so conciliate the workpeople that
labour unions will no longer be maintained. But I
doubt whether such a counter-policy is sufficiently
in keeping with the democratic temper to be per-
manently successful, and, moreover, whether it does
not require more continuous prosperity on the part of
the Corporation than can be reasonably counted upon.
And, if this is so, the only alternative to unionist

' Let Industries Monopolisees aux Etats-Unis, 125.

M 2

1 64 THE ADJUSTMENT OF WAGES

co-operation in the management of industrial life would
seem to be State control. Meanwhile the striking
similarity between the tendency everywhere in Eng-
land, in the industries we have examined, towards
' collective bargaining,' and in America towards 'joint
agreement' — the tendency in each country a spontaneous
and independent one, and certainly not merely imitative
— is surely impressive to the neutral spectator.

In the short time that now remains to me, I want to
call your attention to the question of the legal position
of unions, and especially to the bearing of that question
on the })roposal to give joint agreements or collective
bargains a legal validity enforceable by process of law.
Those of you who have studied the history of political
theory will remember the way in which great ideas,
such as the divine right of kings or the sovereignty of
the people, make their appearance from time to time in
the most diverse contexts, and as theoretical justification
for very widely different parties. It is much the same
in the history of economic ideas : ' laissez faire,' for
instance, is at one time the gospel of ' Liberalism,' and
at another time the creed of ' Conservatism.' The par-
ticular topic before us furnishes an example of the same
piquant juxtaposition of opposites.

During the recent anthracite coal strike in America
it was again and again urged by the operators that, if
the miners' union wished them to enter into a joint
agreement with it, it ought to become incorporated and
so capable of entering into an enforceable contract.
Thus one operator replied to Mr. Mitchell's invitation
to a conference that he ' questioned whether the method
of conducting the affairs of the company would be
improved by entering into arrangements which do not

THE LEGAL POSITION OF TRADE UNIONS 165

have the legal quality of contracts ; ' while another
declared that ' until the union assumes some legal and
pecuniary responsibility, no contract would be of any
avail.' Mr. Wright was so impressed by these con-
tentions that, in his report to the President, to his
'suggestion' that the anthracite miners should form
a separate union of their own, he added the clause,
' and be financially responsible for its agreements.' ^

This report has concentrated attention in America
upon a proposal which hitherto no one perhaj^s had
taken very seriously : the proposal that unions should
be incorporated. The state of the law is apparently
very much what it is in England ; unions have refrained
from becoming incorporated because they did not wish
to be. Things are a little different in that, in several
states, the incorporation of trade unions is expressly
permitted by statute,^ and a federal law authorises the
incorporation of national unions.^ In the state of New
York a number of unions have actually incorporated
themselves.^ But the stronger trade unions have al-
most all refused to avail themselves of the opportunity.
Before 1902 there was, indeed, some division of opinion
on the subject among labour leaders. Two or three of
the heads of very important unions regarded incorpora-
tion as in itself desirable, e.g. the president of the Cigar
Makers' Union '^ (with some 27,000 members), and the
president of the Amalgamated Association of Iron, Steel,
and Tin Workers. Said the latter in 1899 before the
Industrial Commission, ' I hope the time will come when
the Amalgamated Association will be able to take out

1 Bulletin 43 of the U.S. Department of Labor (November 1902),
1175, 1212, 1166. The more important passages in Mr. Wright's Eeport
are printed in the Appendix IV. 5.

- Eep. Ind. Com. xvii. 616 seq. ^ Text, ibid. v. 126.

4 Ibid. vii. Digest, 106. ^ Ibid. vii. 172.

i66 THE ADJUSTMENT OF WAGES

letters of incorporation and become a chartered institu-
tion.' But he would not, he went on to say, advise it
until his men were ready, and they were not ready yet.
They had not yet completely learnt the lesson of disci-
pline and obedience to the constitution of the union,
and some of them still indulged in unauthorised strikes.^
But most labour leaders were not so favourable to in-
corporation even as this. Their state of mind is well
expressed in the evidence before the Commission of
Mr. Gompers, the President of the American Federation
of Labor, in the same year, 1899. He did not believe
that a contrac^t could be practically enforced by legal
proceedings against an employer who sought to evade
it ; the only way to enforce it was ' by the power of the
organisation ' — i.e. by a threatened strike ; and if a union
was strong enough to bring an employer to terms, it
did not need to be incorporated or make a formal
agreement.^

Confronted anew in 1902 with the demand that
unions should incorporate themselves, ' organised la-
bour ' saw in it only a device of the enemy, and
would have nothing to do ijvith the proposal.^ Some
outside impartial observers, also, felt that the call for
trade-union incorporation was at any rate premature.

1 Beiu Ind. Com. vii. 388.

^ Ibid. vii. 601-4. The president of an American union holds
practically much the same position as the secretary of an English union.

^ ' It is, indeed, strange how many gentlemen are solicitous for the
trades union to become incorporated, and to be placed within what they
called the purview of the law, in order that it may be mulcted in
damages for any suit that may be brought against the organisation. We
leave out the opportunity for harassing the union by interminable law-
suits. And besides this, the union attacked from any and from all sides
would be in constant litigation, and it is unquestioned that our organisa-
tions could not attempt to retain counsel, either in numbers or m talent,
comparable to the counsel which is always at the command of wealthy
concerns.' — Mr. Gompers at the Industrial Conference held under the
auspices of the National Civic Federation, December 1902, Report 262.

THE LEGAL POSITION OF TRADE UNIONS 167

Incorporation, with the consequent power over the unions
of the law courts, would, they thought, frighten multi-
tudes of men from joining the labour organisations.
And Mr. Graham Brooks uroed with much force that the
method of voluntary joint agreement had an educational
value such as belonged to no compulsory observance of
a contract.^ But the most forcible utterance was that
of Senator Hanna, at the December (1902) Conference
of the Civic Federation. Senator Hanna, the chief
manager of the Eepublican machine, is certainly the
most important among the men, other than the Pre-
sident, who are in public life at the present day in
the United States. He is also a large capitalist, and
a man of considerable business experience. To many
of my ' mugwump ' friends in the United States he is
the incarnation of all evil ; and it is open to anyone
to believe that, in saying what I am now going to
quote, he was thinking only of gaining votes. But
I take the liberty of believing that Senator Hanna
was sincere in what he said. His point was that the
unions — he was thinking of the great unions, and
especially of that of the miners — could, on the whole,
be trusted to carry out any agreements they made.
I make no apology for quoting the passage, especially
as it incidentally carries down the history of the United
Mine Workers a stage later than I have hitherto
brought it.

' In the discussion during the great coal strike . . .
I heard the argument that it was an absolute necessity
that incorporation must be had, because a contract
with working-men was worthless. The test has come ;
for when, in their dire extremity, the anthracite miners
of Pennsylvania appealed to their fellows in the bitu-

' Beport of Conference of Civic Federation (1902), 352.

i68 THE ADJUSTMENT OF M^AGES

minous fields in the West to come out and strike in
sympathy, in order that conditions might be forced
upon this country which would enforce a settlement of
the trouble, it is known to many others that the bitu-
minous coal miners thus appealed to were under con-
tract for a year, known as the Interstate Contract,
between the producers and the operators of those sec-
tions of the country. Under the constitution of the
United Mine Workers it became the duty of their
president to call together a delegates' convention to act
upon that question. Those of us who had followed this
trouble from the beginning with interest and anxiety
felt that it was an important moment in the history of
the labour question as to how that would be settled.
For my part I had confidence as to the outcome. The
convention met at Indianapolis, represented by persons
or proxies of 1,000 delegates ; and the appeal was made
coming from the striking miners of the anthracite
region to their fellow-workmen under most distressing-
circumstances and conditions, under influences which
are so potent among that class — brotherhood sympathy.
That convention appointed a committee of twenty-three
to consider the application. They spent nearly a whole
night considering it ; they were confronted with the fact
that they had made a contract with their employers,
which for the fourth time had been made, to work for
a scale agreed upon, to be in operation for one year,
upon which the sales of coal were made and contracts
binding upon the operators were made. After full con-
sideration, allowing sentiment to play its part upon the
minds and hearts of those men, with calm, cool judg-
ment and loyalty to their agreement, that committee
reported unanimously against a sympathetic strike. . . .
That report was made to that convention the day fol-

THE LEGAL POSITION OF TRADE UNIONS 169

lowing, and was adopted unanimously by 1,000 votes.
They agreed to stand by the word they had given in
making that contract,

' Now, gentlemen, that case came up at a time when
all the conditions surrounding it were as aggravating
and forcible as could be brought into play. Therefore
I say that the test has come, and the men have won the
confidence of the whole people of this country, and, as
far as I am concerned, satisfied me that we want no
incorporation of labour organisations.' ^

I must now ask you to return to England and to go
back a few years, to the Eeport of the Eoyal Commis-
sion on Labour in 1894. That report stated that at
present ' collective agreements are, as a matter of fact,
frequently made between great bodies of organised
workmen and employers, which bodies have no legal
personality and cannot sue or be sued for damages
occasioned by the breach of such agreements.' Under
these circumstances, eight out of the nineteen members
of the Commission united in representing that, in their
opinion, ' the state ot things thus described might be
beneficially altered by some amendments of the exist-
ing law, such as would enable industrial associations
(whether of employers or employed) to enter into legal
contracts.'

The minority so recommending consisted of five
great employers of labour, the Duke of Devonshire
(chairman), Sir David Dale, and Messrs. Ismay, Livesey,
and TunstiU; two politician-economists. Sir Michael
Hicks-Beach and Mr. Leonard Courtney ; and a distin-
guished jurist. Sir Frederick Pollock. And two things
must be noticed with regard to their proposal : (1) that
it did not propose compulsory incorporation ; and (2)

^ Ite2iort of Conference, 365.

no THE ADJUSTMENT OF IVAGES

that it recommended incorporation only for the purpose
of enforcing eollective agreements. Their language was
as follows :

' In order to enable trade associations to enter into
collective legally binding agreements, with the conse-
quence that in case of breach of contract they would
be liable to be sued for damages payable out of their
collective funds, it would not be sufficient to repeal
subsection 4 of section 4 of the Act of 1871.' (To this
subsection we shall return later.) ' Even if that legis-
lative incapacity were taken away, the trade asso-
ciations would be prevented by their want of legal
personality from entering into such agreements, or
suing or being sued, except in regard to the manage-
ment of their funds and real estate. It would be
necessary that they should acquire by some process
of registration a corporate character sufficient for these
purposes. We are anxious to make it clear that we
propose nothing of a compulsory character, but that we
merely desire that existing or future trade associations
should have the liberty, if they desire it, of acquiring a
larger legal 2:)ersonality and corporate character than that
which they can at present possess.'

And, again, with regard to agreements to submit to
arbitration, they speak of the advantage of ' putting it
within the power of such bodies to acquire legal per-
sonality sufficient to enable them to enter into collective
agreements with the legal sanction of collective liability
in damages.'

It is clearly implied in the words italicised that
these new powers could be limited to the required pur-
poses, and need not involve complete incorporation.^

' Fifth and Final Report, Boyal Commission on Labour, 116, 118.
The signatories did not press for early action : ' The evidence does not

THE LEGAL POSITION OF TRADE UNIONS 171

The four unionist members of the Commission
(Messrs. Abraham, Austin, Mawdsley, and Mann), in
their dissenting minority report, did not come to close
quarters with the proposal as thus expressly limited.
They denounced the much wider proposal that trade
unions should all be compulsorily made legally respon-
sible as corporate bodies for all the actions of their
agents. Their representations run thus :

' One proposal made to the Commission by several
witnesses appears to us open to the gravest objection.
This suggestion is that it would be desirable to make
trade unions liable to be sued by any person who had
a grievance against the action of their officers or
agents. To expose the large amalgamated societies of
the country with their accumulated funds, sometimes
reaching a quarter of a million sterling, to be sued
for damages by any employer in any part of the
country, or by any discontented member or non-
unionist, for the action of some branch secretary or
delegate, would be a great injustice. If every trade
union were liable to be perpetually harassed by
actions at law on account of the doings of individual
members ; if trade-union funds were to be depleted
by lawyers' fees and costs, if not even by damages or
fines, it would go far to make trade unionism impos-
sible for any but the most prosperous and experienced
artisans.

The present freedom of trade unions from any
interference by the courts of law — anomalous as it may
appear to lawyers — was, after prolonged struggle and
parliamentary agitation, conceded in 1871, and finally

show that pubhc opinion is as yet ripe for the changes in the legal status
of trade associations which we have suggested ; but we have thought it to
be desirable to indicate what may ultimately prove to be the most
natixral solution,' &c. — Ibid. 119.

172 THE ADJUSTMENT OF WAGES

became law in 1876. Any attempt to revoke this
hardly won charter of trade-union freedom, or in any
way to tamper with the purely voluntary character of
their associations, would, in our opinion, provoke the
most embittered resistance from the whole body of
trade unionists, and would, we think, be undesirable
from every point of view.' ^

No legislation has taken place since 1894 in Eng-
land to realise the moderate desires of the Duke of
Devonshire and his fellow-signatories, or to arouse
the alarm of Mr. Abraham and his three unionist
colleagues. But far-reaching changes have taken place
since then in the common law as defined by judicial
decision, to which we must soon revert. Meanwhile
observe that in 1894 it was the opinion apparently
of all the members of the Commission that no suit of
any kind could be brought against a trade union as
such.

Before, however, looking more closely into the legal
revolution that has since taken place, let me introduce
parenthetically a chapter of trade-union legislation
from another quarter of the globe, from Australasia.
Hitherto we have seen the proposal for more or less
complete incorporation of unions proceeding usually
from the capitalist or non-labour side, and resisted
strenuously by the great body of unionist opinion.
We have now to see it as part of a system of ' pro-
gressive labour legislation,' carried with the enthusiastic
support of the unionists themselves.

The recent compulsory arbitration legislation of
New Zealand and New South Wales covers a very
wide field, and 1 do not propose to enter upon its
discussion. It may be enough for me to express my

^ Fifth and Final Report, JRoyal Commission on Labour, 146.

THE LEGAL POSITION OF TRADE UNIONS 173

opinion ; firstly, that such measures are more hkely
to be practicable in comparatively small communities,
possessing the social characteristics of the Australasian
States, than might be concluded from a statement of
the theoretical difficulties in the way of their success ;
and secondly, that the fact that they are there success-
ful, if it be the case, while it commends them to our
respectful examination, by no means proves that the
difficulties in a country like Great Britain (let alone
the United States) could be overcome with equal ease.
The one feature of the legislation which I want to
single out is that which concerns the incorporation of
unions. Both in New Zealand and in New South
Wales the intention of the legislators has been to secure
(among others) the particular advantage desired by the
Duke of Devonshire and his associates, without subject-
ing the unions to the risks dreaded by Mr. Abraham
and his colleagues. It was desired to make the unions
corporate bodies, so that their funds could be reached
for disobedience to the award of the court of arbitra-
tion or failure to carry out a collective bargain
authorised by the court. It was anticipated that the
measure would greatly diminish the number of strikes ;
and such has, as a matter of fact, been its result in
New Zealand. But inasmuch as the court could only
prescribe the terms on which labour should be en-
gaged if the employer wished to engage it, and could
not compel him to continue any particular business, it
similarly could only prescribe the minimum wages the
men should accept, and could not order men to serve
for them. Accordingly, where there was no formal
collective bargain, the men could not be prevented
from striking to get higher wages than the court
awarded, after duly waiting for the award. Hence the

174 THE ADJUSTMENT OF WAGES

unionists were anxious to effect no change in what they
supposed the existing law with regard to the legal
responsibility of the union {e.g. for picketing). Accord-
ingly the Acts, both of New Zealand and New South
Wales, expressly enacted, in the most definite language
that could be selected, that the legal incorporation
which they conferred should be limited in its con-
sequences to the purposes of the arbitration provisions.
The clause in the New Zealand Act runs :

* Every society registered as an industrial union
sliall^ as from the date of registration, but solely for the
purposes of this Act, become a body corporate by the
registered name, having perpetual succession and a
common seal, until the registration is cancelled as here-
inafter provided.'

The New South Wales Act is even more cautious :

' Upon the issue of a certificate of incorporation,
the members for the time being of the company, asso-
ciation, trade union, or branch incorporated in the
industrial union, shall, until the registration and incor-
poration of the union is cancelled in pursuance of the
Act, be, /or the purposes of this Act, a body corporate by
the name mentioned in such certificate, and shall have,
for the purposes of this Act, perpetual succession and a
common seal.

' An industrial union may purchase, take on lease,
hold, sell, lease, mortgage, exchange, and otherwise
own, possess, and deal with an}^ real or personal pro-
perty : Provided that nothing in this Act shall render an
industrial union liable to be sued, or the property of an
industrial union, or of any member thereof, liable to be
taken in execution by any process in law other than in
pursiia7ice of this Act or in respect of obligations incurred
^ New Zealand, Act of 1900, No. 51, § 7.

THE LEGAL POSITION OF TRADE UNIONS 175
in the exercise of rights and powers conferred by this

Act: 1

The intention of this clause was thus stated by the
Attorney-General of New South Wales in moving the
second reading of the bill : ' A trade union, by apply-
ing to be registered as an industrial union, acquires a
legal personality only for the purpose of making a
collective bargain.' -

The remarkable thing is that at the very time the
Attorney-General of New South Wales was thus speak-
ing, the legal position of trade unions was being
fundamentally changed in England by the decision in
the Taff Vale case. It had been assumed all round
that trade unions could not be sued in England, since
they possessed no corporate capacity, and unionists had
fought shy of proposals to give them more of a cor-
porate capacity lest it should involve liability to legal
action. It was now held that, without any legislative
change at all, unions could be sued in their registered
names by way of an action in tort.

The history of the Taff Vale case is a striking
example of the uncertainty of our law. In 1900 it
was held by Mr. Justice Farwell that a trade union was
suable in tort. In 1901 his order was unanimously
set aside by the Court of Appeal, consisting of three
judges presided over by that eminent lawyer, the late
Sir Archibald Smith, the Master of the EoUs. Two or
three months later it was restored with equal unanimity
by the House of Lords, the court consisting of the Lord
Chancellor and four law lords ; and it is now the law
of the land. It was no hrutum fidmen. At the end of
1902 a verdict was given by a London jury, directed by

1 New South Wales, Act No. 59, 1901, § 7 (1) and 7 (2) (a).
~ Speech of July 4, 1900.

176 THE ADJUSTMENT OF WAGES

Mr. Justice Wills, against the Amalgamated Society of
Eailway Servants, in an action for damages due to the
Taff Vale Eailway Company, for having carried out
the strike of 1900 in unlawful ways. The damages
claimed were £26,626 ; and, before the judge could
assess the amount, the union thought it wise to agree
to a settlement by paying down the sum of £23,000.
Little wonder that all the trade unions of England are
greatly perturbed.

As to the original laff Vale decisions of 1900-1901
I (cannot but think that the honours of the controversy
were about equally divided. From a purely historical
point of view, considering the form of the Act of 1871
and the circumstances of its origin, I must confess that
the argument of the Master of the Eolls seems to
me unanswerable. From the point of view of sheer
logicality, the same is to be said, I think, for the argu-
ments of Mr. Justice Farwell and the Law Lords. For
once logic triumphed, almost ostentatiously one may
say, over history.

It is easy to attribute the Taff Vale judgment of
the Lords to unconscious class bias. Whether there
was bias or no I do not feel qualified to pronounce.
But the logicality of the judgment is now recognised
even by the eminent counsel whose business it was to
maintain the opposite before the court, and it seems
to commend itself generally to the legal profession. It
must be noticed that circumstances had for some time
been breaking down the old sharp distinction between
corporations and individuals. All sorts of associations
had been forming themselves {e.g. clubs), which prac-
tically exercised the functions of corporations, and
therefore had to be subjected to the legal liabilities of
corporations, whether they were called corporations or

THE LEGAL POSITION OF TRADE UNIONS 177

no. The matter has, indeed, of late been the subject
of much discussion among jurists of a philosophical
turn in several countries.^ Some of the law lords were
careful to say that, in spite of its liability to be sued, a
trade union was still ' neither a corporation, nor an
individual, nor a partnership between a number of
individuals.' But Lord Brampton, less careful in his
language, summed up the situation in the following
remarkable words : ' I think that a legal entity was
created under the Trade Union Act of 1871 by the
registration of the society under its present name . . .
and that the legal entity so created, though not pei^haps
in the strict sense a cori^oration, is nevertheless a newly
created corporate body . . . distinct from the unincor-
porated trade union, consisting of many thousands of
separate individuals, which no longer exists under any
other name.' This obiter dictum is not yet law ; mean-
while a ' corporate body ' which is not a ' corporation '
may be commended to the attention of the lawyers.

It would be rash after so many surprises for one to
say what a union cannot now do or be done to. The
TafF Vale decision was limited to the liability of a union
for tort, and Mr. Justice Farwell imphed that the Act
of 1871 would prevent a suit for breach of contract.
The Act of 1871 expressly lays down that a union shall
not be liable for the breach of any one of a number of
specified agreements, and among them is ' any agree-
ment between one trade union and another.' The same
statute defines a trade union in a way which seems
(I say seems) to include a union of employers ; and so
the Duke of Devonshire and his associates in 1894
thought the Act would prevent the enforcement of

^ See Professor Maitland's Introduction to his translation of Gierke's
Political Theories (1900).

178 THE ADJUSTMENT OF WAGES

a collective bargain. But such a bargain is not ex-
pressly taken out of the category of enforceable con-
tracts. Moreover, this year Mr. Justice Grantham
has held in the Denahy case that a member of a
union can obtain an injunction against the society
to prevent the spending of its funds contrary to its
rules, on the ground that membership under the
rules involves a contract which can be enforced, in
spite of what seemed the clear intent of the Act. The
matter has been appealed, and we must wait for the
final decision. But my point is this — and I am afraid
you will tliink I have taken a long time to come to it —
that the Taff Vale decision has removed from Enghsh
unions their chief reason for declining to assume a cor-
porate character for the purposes of collective agree-
ments. They are already subject, by the Taff Vale
decision, to the liabilities which they thought to avoid :
and now that they can be sued, whether they are
incorporated or not, they have no particular reason to
remain unincorporated.

The law, as stated in the Taff Vale case, is pretty
certain to remain for the future ; and unions will in
future be responsible for the wrongful acts of their
representatives. The real question which demands an
answer is, what are wrongful acts ? I shall not attempt
to disentangle the complexity of the present legal position
as formulated in the decisions of the last three or four
years. Eminent lawyers are still capable, in the interest
of their clients, of making large and positive assertions
in court ; but they know very well that in reality the
law is at present in a state of great obscurity and un-
certainty. It is an actionable offence to maliciously
induce a person to break a contract. Granted. But
what is malice f It is not easv to see how the decision

THE LEGAL POSITION OF TRADE UNIONS 179

of the law lords in the Irish case of Quinn v. Leathern
can be reconciled with the more recent decision of Mr.
Justice Bigham in the so-called Stop-day case. In each
case a breach of contract was induced — in the former,
in order to unionise a shop, in the latter in order to keep
up the price of coal. Both purposes are quite natural
objects for trade unions to pursue. I am not saying
that there was no distinction, but that the distinction
cannot be found in any compendious definition of
' mahce,' but must be found, if at aU, in circumstances
which the courts have not yet analysed. Then take
the matter of picketing. There is a great deal of un-
reality in the language people use on this subject, and
I am bound to say trade unionists are not free from it.
We had better recognise at once that picketing is a
form of suasion which is necessarily bound up with an
implied threat of as much social excommunication as
the union can procure. The distinction between physical
violence and social excommunication is a tolerably clear
one. The former can be provided against by law : the
only provision that I can see against the latter is the
support of the employer and a stout heart. Certainly
the distinction in Lyons v. Wilkins in 1896 between
' besetting ' for the purpose merely of ' conmiunicating
information ' (which was held to be legal) and ' besetting '
for the purpose of ' persuading " men not to work for
an employer (wliicli was held to be illegal) is too subtle
a one for the workaday world — to say notliiug of the
doubtful justice of penahsing mere ' persuasion.'

Furthermore, even if the offences were clear, the
law of agency is not ; and it is surprising that lawyers
do not more generally reahse this difficulty. An
agent is only acting as agent when he is acting
within the scope or range of his employment. But

i8o THE ADJUSTMENT OF WAGES

ill most cases it is clear when he is within that sphere.
The coachman who involves his master in damages
when he runs over a person, even in spite of his master's
warning — the example sometimes given in this connec-
tion — is at any rate engaged in driving his master's
carriage. But if he goes out bicycling for liis own
pleasure and runs over some one, his employer is not
responsible. It will not always be equally easy to de-
cide whether, when A. B. tells a group of workmen that
they ought to do this or that, he is acting as an official
of a union or as a private person with a right to an
opinion of his own. The Bill just introduced into Par-
liament by the unionists, which would exempt the union
from responsibility for acts done without ' the directly
expressed sanction or authority of the rule of such
union,' does not meet the case. Unionists, though as
honest as other men, follow the advice of their lawyers,
and they would naturally be advised to make their
rules as reticent and non-committal as possible. We
must leave it to the judge, it seems to me, to deter-
mine whether in particular instances the officer of the
union was really acting as its agent or not. Yet this
may involve an intimate knowledge of unionism, such
as possibly all judges do not at present possess.

For these reasons I agree with those who urge that
before proceeding to further legislation it is expedient
that the whole question should be first considered by a
small commission of legal and administrative experts.
I would only add that it will be quite necessary for
such a commission to frankly take into their considera-
tion modern industrial conditions and the natural pur-
poses of trade combinations. This has already been
done to some extent with regard to capitalistic combi-
nations, in the case of the Mogul Steamshijj Company in

THE LEGAL POSITION OF TRADE UNIONS i8i

1892 : a case which has made a vast breach in the old
law of conspiracy as previously understood, and which
most American lawj^ers still regard with bewilderment.
But the process will have to be carried further. I do
not say that the Mogul decision is verbally inconsis-
tent with the trade-union decisions ; but I should like
to have its inner economic consistency with them exa-
mined by competent critics. And it would not be
surprising if the outcome of the work of such a com-
mission were to compel our courts to enter more than
they have hitherto done into the actual constitution and
•character of the unions which come before them. This
is what the Australasian courts of arbitration are doino-
in determining whether such and such demands are
justifiable ; and their action seems to commend itself to
Australasian common sense. But, of course, such a task
will be far more difficult here.

Meanwhile of the recent legal decisions it may be
•said with some confidence that, while they will weaken
weak unions, they will strengthen strong unions. Weak
unions are more apt to make use of picketing ; and
weak unions can least afford the expense of litigation.
But the great societies will be unaffected by much of
the recent judicial legislation, or affected only in the
direction of greater internal consoUdation. Associa-
tions, like those of the miners and the cotton operatives,
where practically all the people employed are in the
union and form the bulk of the population in particular
districts, do not need to resort to picketing. It has
been said that the new legal liability for the acts of
agents will compel the unions to completely separate
their friendly benefit fund from their strike fund.
It is not clear that it will be altoo-ether the case ; for
the unions must stiU retain, for purely trade purposes

THE ADJUSTMENT OF WAGES

(such as out-of-work donation), funds, other than those
provided for strike contingencies, which will be quite
considerable in amount. In any case it may be ob-
served that the miners' unions do not usually carry on
friendly society functions to any large extent ; that is
done, in the mining districts, by separate organisations.
If some unions are actually led to surrender their
friendly societ)^ functions, it is not certain that the
effect will be a soothing and quieting one. Whether
unions should exercise friendly society functions or not
has often been a moot point in trade-union policy. If
such functions help to bring in members and keep
them in, they also make the society more cautious : it is
stronger when it wants to fight but less disposed to
fight. The recent history of unionism among English
miners would not, one would suppose, lead coalowners
to regard the absence of friendly society functions as
necessarily a merit in trade unions.

What we may expect to be most marked will be
the effect of recent decisions in promoting greater con-
solidation, unity, discipline, within the unions. We all
know now, for instance, that the Taff Vale strike was
undertaken in spite of the advice of the general
secretary, and that his hand, and the hands of the
society, were forced by one of the inferior officers who
' acted directly contrary to the rules and instructions
of the Executive Council.' The result of the recent
verdict has been a resolution which will in future
subject the inferior officers more directly to the general
secretary. And, again, in the recent Denaby case, it is
pretty clear that the central executive was afraid to
enforce the Federation's own rules against an important
local branch which wanted to strike. If Mr. Justice
Grantham's decision should be confirmed, — that, in such

THE LEGAL POSITION OF TRADE UNIONS

a case, any individual member can sue the union for
a breach of the contract implied in the rules, — the
union executive will be supplied with a new and powerful
argument why the men should abide by the constitu-
tion they have themselves set up.

I cannot conclude without thanking you for the
attention with which so many members of the Uni-
versity have listened to what I have had to say. I
have felt the great responsibility of the opportunity,
and I can only hope that you will allow that I have
endeavoured to be impartial. These are only the pro-
visional conclusions of one who has tried to take a
general view of a very wide subject. You will not think
of them as ' ex cathedra ' pronouncements, but as a pre-
liminary survey of a field of investigation on which I
trust some of you will enter for yourselves. It is two-
and-twenty years since I heard Toynbee lecture in this
University on the work of Boards of Conciliation. If
a comparison of the situation then and now is not
altogether encouragincf, it does show that the world
has been moving ; and if I have not used in this course
the language of economic ethics, it is because I think
the greater need of our own day is for absolutely
colourless economic dynamics. Before we set about
judging the forces at work, we have to learn what
they are.

APPENDIX

I. COAL MINING IN GEEAT BRITAIN : SOUECES OF
INFORMATION.

1, Official Statistics. — Of these the best known are those
to be found in the General Beport and Statistics : Mines
and Quarries, issued annually by the Mine Inspection
Department of the Home Office. This appears now in
three parts. The first, entitled District Statistics, presents
the figures, as the introduction apologetically remarks, in
a form * governed by administrative arrangements.' The
information is arranged under the heads of the statutes
empowering inspection — the Coal Mines Regulation Acts, the
Metalliferous Mines Regulation Act and the Quarries Act —
as well of the twelve inspection districts, which have only
a very loose connection with the real geography of the
trade, so that for purposes of social enquiry the figures
are almost valueless. Part II. Labour, edited by Dr. Le
Neve Foster, is more useful. It classifies the mines not
according to Acts of Parliament, but according to the dif-
ferent kinds of minerals worked, and arranges the figures
not according to artificial districts but according to natural
divisions, such as coal fields. Here then will be found the
number of persons employed in each of the great coal fields,
classified according to sex and age and employment, above
ground and under ; together with all the figures as to
accidents, prosecutions, and a good deal of miscellaneous
information, e.g. with regard to the use of mechanical coal
cutters. Part III. Output, gives for coal the output classified
according to counties and chief coal fields, and the average

i86 THE ADJUSTMENT OF WAGES

price per ton at the pit's mouth. In one important table it
gives the total output for the last twenty-nine years, the
amount exported, the quantity remaining for home consump-
tion and its proportion per head of the population— figures
not directly pertinent to our particular enquiry, but of the
utmost interest in relation to the duration of British coal
supplies. In another are given the average prices at the pit's
mouth, in the London market, and at the principal shipping
ports for the same period ; and a series of other tables give
the amount of coal conveyed by the several railways and
canals, the amounts shipped coastwise and exported from the
several ports, and the quantities exported, with declared
value, to each foreign country. These figures are as well pre-
sented as is perhaps possible with the present returns ; the
chief among them are probably as accurate as can be obtained ;
and the statistical work of the Department seems to deserve
the high esteem in which it is held by mining authorities. If
any suggestion might be ventured it is that we should be
given a table showing output and number employed in each
of the districts which go to make up ' the principal coal fields.'
The ' Northern Coal Field,' for instance, is a natural unit, lying
in one great mass, while the * Midland Coal Fields ' include
several distinct and geographically separate areas, e.g. North
Staffordshire and South Staffordshire, which are in some
respects very different. It must be added that for the em-
ployment of the figures for any but the very broadest con-
siderations a good deal of knowledge of the peculiarities
of the several districts is indispensable.

Of more direct importance for our immediate purpose are
the publications of the Board of Trade concerning wages,
hours, and organisation of labour. Much of this information
appears first in the monthly Labour Gazette. It is then
brought together by the Labour Departr)ient, and presented
in a corrected form in a number of annual volumes. There are
(1) the Keport on Trade Unions, issued annually ; (2) the
Report on Strikes and Lockouts during each year ; (3) The
Report on Changes in Bates of Wages and Hours of
Labour during each year.

These are all boiled down, together with the like annual

SOURCES OF INFORMATION 187

volumes on Co-operative and Friendly Societies, and a vast
amount of other information, and the totals put together in a
fourth annual publication, the Abstract of Labour Statistics.
But this does not exhaust the number of publications of the
Board of Trade which the student is bound to attend to.
Two important Reports were issued in 1900 (in continuance
of previous Reports of 1894), one on Standard Piece Bates
of Wages and Sliding Scales in the United Kiiigdom, and
one on Standard Time Bates of Wages. I fail to see
any sufficient reason why these should have been published
apart from one another, especially as the most important
tables as to the variations in the great piece-working
trades — coal and cotton — appear in the Appendix not to
the Piece Eate but to the Time Rate volume. From time
to time the Department also issues a Directory of Indus-
trial Associations in the U.K. Nor must one neglect the
Annual Report by the Board of Trade to the House of
Commons (the others are technically Reports to both Houses
of Parliament) on Proceedings under the Conciliation Act
of 1896. This list is a fair sample of the piecemeal way in
which our administrative services, and the statistics they
produce, have come into existence. The British public pro-
ceeds by a series of happy thoughts — ' Happy Thought. Let's
have the statistics of Trade Unions '—' Happy Thought.
Let's have the statistics of strikes,' &c. ; and each means a
separate publication. I cannot but think that the time has
come for the collection of most of this information, so far as
it relates to conditions of employment, into one well-digested
annual volume. But it should be added that so far as I can
see there is no basis at all for the charge of partiality to
labour which has been brought against the Labour Depart-
ment. The criticism the student of social affairs has to brmg
is that the Department is only too anxious to reduce every-
thing to tabular figures, and that when it does devote a para-
graph to any particular labour difficulty of the year it
confines itself so very cautiously to the alleged causes of the
dispute and to the bare external facts of the settlement,
without entering into the merits of the case on either side.
But that is only to say that it remains within the proper

THE ADJUSTMENT OF WAGES

limits of a Government Department. It should not be neces-
sary to add that only the very largest and broadest facts
presented by the Department's statistics can be safely
■employed as indications of industrial tendencies. The parti-
cular figures require for their interpretation a great deal of
knowledge of the circumstances of the trade or district
concerned, and indeed are chiefly valuable as statistical
measurements of conditions otherwise ascertained.

2. Turning next to governmental 'publications of a non-
statistical character, there is the great ' corpus ' of evidence
before the Royal Labour Commission, whose first thick
volume in group A, issued in 1892, and a part of the second,
are taken up by mining. The conclusions of the majority of
the Commissioners on Wages Boards and Sliding Scales are
briefly set forth in three pages in the final report issued in
1894. The rules of a considerable number of employees' and
employers' associations are given in a tabulated form in a
separate volume, Rules of Associations of Employers and
Employed (1892). The whole collection was supplied with an
•elaborate digest of evidence, on a scale more liberal than in
any previous Royal Commission. But it is significant of the
state of economic studies that, so far as I know, no attempt has
ever been made to gather out of all this mass of information
the more considerable and significant facts as they concern
any one of the great staple industries of the country, and put
them together in an interesting form for the general public.
There is still nothing for it but to wade through the evidence
itself.

3. We now come to non-governmental piihlications, and
in the first place those which have to do with general mining
conditions, (a) As to the probable mineral resources of the
several fields, there is still nothing better than the work of
Dr. Edward Hull, late Director of the Geological Survey of
Ireland, on The Coal Fields of Great Britain, which appeared
first in 1861, and of which the fourth and last edition was is-
sued twenty years later in 1881. The veteran geologist has set
forth his later opinions in a little supplementary work — Our
Coal Resources at the Close of the XIX. Century — in 1897 ;
and it is a matter of satisfaction that after having been a chief

SOURCES OF INFORMATION 189

contributor to the discussion at the time of the j&rst Eoyal
Commission on Coal Supplies between 1866 and 1871, Dr.
Hull should himself take a place in the Commission on the
same subject appointed on the last day of 1901. To these
works may now be added The Coal Fields of Scotland, by
R. W. Dron, 1893. (6) The last attempt to describe the
several coal fields in a systematic way in relation to kinds of
coal produced, modes of working, numbers and terms of
employment, &c., was made as long ago as 1882 by Mr.
Richard Meade, then Assistant-Keeper of Mining Records, in
his Goal and Iron Industries of the United Kingdom. For
developments since then the investigator must turn to the
columns of the great trade journals, such as the Colliery
Guardian and the Iron and Coal Trades Beview. These
print a large number of the more important papers read
before mining and engineering institutes ; and the chief annual
statistics and some of the most valuable of the papers appear
in the handy and inexpensive little yearly volume — the
Colliery Managers' Pocket Book, published by the Colliery
Guardian. On all labour subjects the trade journals
naturally take what may be called a moderate employer's
view. On Colliery Working and Management, including the
control and remuneration of labour from the colliery manager's
point of view, we are fortunate in possessing a recent (1896)
authoritative treatise by Mr. Bulman and my colleague at
Birmingham, Professor Redmayne, who, before he conde-
scended to academic life, was manager of the well-known
Seaton Delaval Colliery in Northumberland.

Reaching at last the sources of information which deal espe-
cially with the conditions of labour, we have to distinguish
between the official publications of associations of employers
and employed, and of Conciliation Boards and the like, and
the private publications of individuals.

In the first class are the Rules of Associations, the Con-
stitutions of Boards of Conciliation and the like. These are
not always easy to obtain from the secretaries. They are
not regularly published and offered for sale ; and, with the
best will in the world, the secretaries do not always have a
supply of them on hand to meet the requirements of the

190 THE ADJUSTMENT OF WAGES

economic investigator. The secretaries and other officials
are always desperately busy with the immediate concerns of
the moment, and have not time to provide the inquirer with
historical material. But it should be one of the functions
of the economic library of a university to keep in touch with
the secretaries of the important organisations, to secure their
current documents, and to file and bind them systematically
for future reference. Fortunately some of the most impor-
tant documents have been printed in the appendices to the
Labour Commission's volumes, others in the publications of
the Labour Department already referred to, and others in
various private works.

The printed material most valuable for the economic in-
vestigator is, however, often of a semi-confidential character.
This is true, for instance, of the Monthly Circulars of the
Durham and Northumberland miners and the Atinual Beports
of the Yorkshire Association. But having been allowed to
read through several such documents, I fail to see how the
unions could be injured by the widest publicity. It would be
wise, I should think, to publish such reports in the usual way,
so that any interested person might buy them without troubling
the secretaries. This observation does not apply, however, to
the shorthand Beports of Proceedings before Conciliation
Boards. These boards would lose much of their efficiency if
the speakers were conscious that every impatient word, every
slip of grammar, was to be criticised by the cold outsider. The
officers of such boards will, however, always use their dis-
cretion in allowing access to these minutes to economic
investigators, and I trust they will find I have not abused
their confidence.

Among the private works the first place must be given for
several reasons to the three modest papers of the late Professor
Munro of Owens College, entitled Sliding Scales in the Coal
Industry, 1885, Sliding Scales in the Iron Industry, 1885
also, and Slidi^ig Scales in the Coal and Iron Industries
fro7n 1885 to 1889. This was the first attempt by an econo-
mist to make a systematic collection of data, and to comment
on their significance. His brief observations are still among
the very best characterisations of the merits and demerits of

SOURCES OF INFORMATION 191

sliding scales. On the basis of this collection of scales, and
of his own study of arbitration proceedings and of personal
inquiry in the North, is prepared the well-known work of Mr.
Price on Industrial Peace (1887). Mr. Price has made the
subject of industrial conciliation peculiarly his own, and his
comments from time to time on the changing situation, as they
are to be read in the Economic Journal and elsewhere, will be
found both informing and suggestive. A great deal of help
may also be obtained from the H'istory of Trade Unionisrti
(1894) and the Industrial Democracy (1897) of Mr. and Mrs.
Sidney Webb. And I take this opportunity of remarking that
the value of the actual information as to the mechanism and
immediate working of unionism which these writers furnish
to us is quite independent of the validity of their ultimate
conclusions. Of course all their narrative is arranged to
converge in a certain direction ; but with such good indices
no one is compelled to read the books right through !

I have reserved for a place of honour at the end the series
of publications connected with the Musee Social at Paris. It
is a curious fact that practically the only attempts to come to
close quarters with the problems of English industry, and
especially those of the coal trade, in the way of concrete
description of industrial environments and of organisation in
relation to environment, have been made by a French institu-
tion. The Musee Social, which began its work in 1896, owes
its foundation to the generosity of the late Comte de Cham-
brun, who, after seeing it established, left it by will the whole
of his considerable fortune, together with his house in one of
the most quiet and aristocratic streets of the St. Germain
quarter. Its function is the systematic collection of informa-
tion concerning various practical directions of social reform,
and the furnishing of advice to persons engaged in promoting
it. The spirit of its management — which is in the hands of a
committee composed of men of high social standing, including
many leading officials in the civil service — may be described
in the French term and with the French sense, as one of
patronage, i.e. they are mainly interested in benevolent move-
ments ' from above to below ' — housing, provident funds and
the like, or in efforts of a co-operative character. They are

192 THE ADJUSTMENT OF WAGES

in touch with the numerous manufacturers all over the
country, who are engaged in works of social amelioration
under the auspices of the Catholic and Protestant churches.
The Musee represents therefore an altogether different social
milieu from either the socialist party or the syndicate propa-
ganda (so closely associated with socialism in France). And
yet it is in the Bulletins and other publications of this insti-
tution that we get perhaps the most interesting accounts of
English unionism. The reason is that the investigators whom
they have despatched to England have taken trouble, and have
described honestly and entertainingly what they have seen ;
and finally, that English unionism, even the unionism of
Mr. Pickard, seems to these continental observers an emi-
nently conservative and sane phenomenon as compared with
the unpractical Utopias and violent class antagonisms which
hinder the organisation of labour in their own country. The
publications to which I am referring are the ' Circular ' of
March, 1896, translating Mr. Pickard's presidential address to
the Miners' Federation in that year, with historical introduc-
tion and explanatory notes ; the * Circular ' of June, 1896,
giving a full account of the proceedings at the International
Congress of Miners in that year, with a biography of Mr.
Thomas Burt ; that of August, 1897, giving the proceedings
at the International Congress of the next year, with a bio-
graphy of Mr. Pialph Young, corresponding secretary of the
Northumbrian miners ; and that of August, 1901, giving the
proceedings of the International Congress of the same year.
To these must be added the volume by M. Paul de Eousiers
translated into English in 1896 under the title The Labour
Question in Britain. This was indeed written (in 1893) before
the Musee was established ; but it is a product of the same
group, and M. de Rousiers afterwards became the chief of the
investigators representing the Musee. In collaboration with
four younger men, he issued in 1897 the volume entitled Le
Trade-Unionisme en Angleterre; and it is interesting to
compare M. de Rousiers' own attitude, which is one of extreme
individualism and distrust of associated action, with the
sympathetic treatment which unionism receives from his
younger fellow inquirers. M. de Rousiers' first volume is

SOURCES OF INFORMATION 193

worth looking at, it may be remarked, as showing the best
that can be done with the 'Le Play ' method which has found
so many admirers in France : the method, that is to say, of
* family monographs,' centring in a ' workman's budget.'
His second volume, on the other hand, illustrates the method
of institutional study — the study of the organisation of the
group as a whole, with only occasional insertion of family
housekeeping particulars to enliven and make more vivid the
picture. Both are most instructive works ; and I would
strongly recommend the second, that on Trade Unionism in
England, to anyone who is inclined to read a single volume
which covers pretty well the whole field, industry by industry.
Of course it has mistakes of detail ; but then it does manage
to present a fairly distinct picture to one who knows nothing
about the matter to begin with ; and that is a great merit.

194 THE ADJUSTMENT OF WAGES

11. COAL MINING IN GEEAT BRITAIN: RULES OF
CONCILIATION BOARDS, &c.

1. The Federated Districts.

Bules of Procedure for the conduct of the business of the
Board of Conciliation, established between the Federated
Goalowners and the Miners' Federation of Great Britain,
to determine the Bate of Wages from January 1, 1901,
to January 1, 1904, within the following limits, namely :
That during such period the Bate of Wages shall not be
below 30 per cent, above the Bate of Wages of 1888, nor
more than 60 per cent, above the Bate of Wages of 1888.

1. Title.— 1\iQ title of the board shall be 'The Board of
Conciliation for the Coal Trade of the Federated Districts.'

2. Object. — The board shall determine, from time to time,
the rate of wages as from January 1, 1901.

3. Constitution of Board. — The board shall consist of
an equal number of Coal Owners or Coal Owners' Representa-
tives elected by the Federated Coal Owners, and Miners or
Miners' Representatives elected by the Miners' Federation of
Great Britain — fourteen of each, with a chairman from out-
side, who shall have a casting vote.

4. The present members of the board are and shall be :
Chairman : The Right Honourable Lord James of

Hereford.

Coal Owners or Coal Owners' Bepresentatives : Messrs.
Alfred Hewlett, Walter L. Bourke, William Kellett, Henry
Bramall, F. J. Jones, J. J. Addy, A. C. Briggs, A. J. Holiday,
Fitzherbert Wright, J. A. Longden, Arthur G. Barnes, Henry
Dennis, W. Heath, and Captain Harrison.

Miners or Miners' Bepresentatives : Messrs. B. Pickard,
M.P., S. Woods, William Parrott, Edward Cowey, Thomas

RULES OF CONCILIATION BOARDS 195

Glover, W. E. Harvey, Thomas Chambers, Enoch Edwards,
Benjamin Dean, Edward Hughes, J. G. Hancock, Andrew
Sharp, William Abraham, M.P., and Robert Smellie.

Of whom Mr. Alfred Hewlett shall be President, and
Mr. B. Pickard, M.P., Vice-President.

Whenever a vacancy has arisen, from any cause, on the
board, except in the office of chairman, such vacancy shall
be filled up within one month of its occurrence by the body
which appointed the member whose seat has become vacant.
Intimation of such appointment shall be at once sent to the
secretaries. On the death, resignation, or removal of the
first or any subsequent chairman, the board shall endeavour
to elect another chairman, and should they fail, will ask the
Speaker for the time being of the House of Commons to
nominate one.

5. Flace of Meeting. — The meetings of the board shall
be held in London, or such other place as the board shall
from time to time determine.

6. Short Beference : ' The Parties.' — The constituents of
the board, i.e. coalowners or coalowners' representatives,
and miners or miners' representatives, are, for brevity, herein
referred to as ' the parties.'

7. Secretaries. — The parties shall each respectively elect
a secretary to represent them in the transaction of the busi-
ness of the board, and each party shall give written notice
thereof to the secretary of the other party, and both such
secretaries shall remain in office until they shall resign or
be withdrawn by the parties electing them. The secretaries
shall attend all meetings of the board, and are entitled to
take part in the discussion, but they shall have no power to
move or second any resolution, or to vote on any question
before the board.

8. Duties of Secretaries. — They shall conjointly convene
all meetings of the board and take proper minutes of the
board and the proceedings thereof, which shall be transcribed
in duplicate books, and each book shall be signed by the
chairman, president, or vice-president, or other person, as
the case may be, who shall preside at the meeting at which
such minutes are read and confirmed. One of such minute

196 THE ADJUSTMENT OF WAGES

books shall be kept by each of the secretaries. The secre-
taries shall also conduct the correspondence for the respective
parties and conjointly for the board.

9. Board Meetings. — The secretaries shall, on the written
application of either of the parties made by the chairman
and secretary of either party for an alteration in the rate
of wages, or an alteration of these rules, or for any of the
objects mentioned in Clause 4, call a meeting of the board
within twenty -one days, at such time and place as may be
agreed upon by the secretaries. The application for the
meeting shall state clearly the object of the meeting.

10. Duties of President, Vice-President, and Chair-
man. —The president, or, in his absence, the vice-president,
shall preside at all the meetings at which the chairman is
not present as herein provided. In the absence of both
president and vice-president, a member of the board shall be
elected by the majority to preside at that meeting. The
president or vice-president, or other person presiding, shall
vote as a representative, but shall not have any casting vote.
When the chairman is present he shall preside and have a
casting vote.

11. Business at Meetings of the Board. — All questions
shall, in the first instance, be submitted to and considered
by the board, it being the desire and intention of the parties
to settle any difficulties or differences which may arise by
friendly conference if possible. If the parties on the board
cannot agree, then the meeting shall be adjourned for a period
not exceeding twenty-one days, and the matter in dispute
shall be further discussed by the constituents of the two
parties, and the chairman shall be summoned by the secre-
taries to the adjourned meeting, when the matter shall be
again discussed, and in default of an agreement by the
parties on the board, the chairman shall give his casting vote
on such matter at that meeting, which shall be final and
binding.

12. Procedure. — All questions submitted to the board
shall be stated in writing, and may be supported by such
verbal, documentary, or other evidence and explanation as
the parties may desire, subject to the approval of the board.

RULES OF CONCILIATION BOARDS 197

13. Voting. — All votes shall be taken at meetings of ^e
board by show of hands. When at any meeting of the board
the parties entitled to vote are unequal in number, all shall
have the right of fully entering into the discussion of any
matters brought before them ; but only an equal number of
each shall vote. The withdrawal of the members of which-
ever body may be in excess to be by lot, unless otherwise
arranged.

14. Expenses and Provision of Funds. — Each party shall
pay and defray the expenses of its own representatives and
secretary, but the costs and expenses of the chairman,
stationery, books, printmg, hire of rooms for meeting, shall
be borne by the respective parties in equal shares.

Thos. Eatcliffe Ellis, ] Joint Secretaries
Thomas Ashton, of the Board.

2. Northumberland.

Rules of Procedure for the conduct of the business of the
Board of Conciliation established between the North-
umberland Coalotoners' Association and the North-
umberland Miners' Association.

1. Ti^^e.— The title of the board shall be 'The Board of
Conciliation for the Coal Trade of the County of North-
umberland.'

2. Object. — The board shall determine from time to time
the county rate of wages.

3. Constitution of Board. — The board shall consist of
an equal number of coalowners, or coalowners' representa-
tives, elected by the Northumberland Coalowners' Associa-
tion, and miners, or miners' representatives elected by the
Northumberland Miners' Association, fifteen of each, with an
independent chairman.

4. Appointment of Chairman. — The chairman to l^e
elected annually by the members of the board. If they
should not be able to agree on the appointment of a chairman,
the chairman for the time being of the County Council of

198 THE ADJUSTMENT OE WAGES

Nojthumberland shall be asked to nominate one after con-
ferring jointly with the parties.

5. Vacancies. — Whenever a vacancy shall arise from any
cause on the board, except in the office of chairman, such
vacancy shall be filled up within one month of its occurrence
by the association which appointed the member whose seat
shall have become vacant. Inthnation of such appointment
shall be at once sent to the other association.

6. Place of Meeting. — The meetings of the board shall
be held in Newcastle-on-Tyne, or such other place as the
board shall from time to time determine.

7. Short Beference : ' The Parties.' — The members of
the board, i.e. coalowners or coalowners' representatives,
and miners or miners' representatives, are for brevity herein
referred to as * the parties,'

8. Secretaries. — The parties shall each respectively elect
a secretary to represent them in the transaction of the
business of the board, and each party shall give written
notice thereof to the secretary of the other party, and both
such secretaries shall remain in office until they shall resign
or be withdrawn by the parties electing them. The secre-
taries shall attend all meetings of the board, and are entitled
to take part in the discussion, but, unless they are members
of the board, they shall have no power to move or second any
resolution or to vote on any question before the board.

9. Duties of Secretaries. — They shall conjointly convene
all meetings of the board, and take proper minutes of the
board and the proceedings thereof, which shall be transcribed
in duplicate books, and each book shall be signed by the
chairman or other person who shall preside at the meeting
at which such minutes are read and confirmed. One of such
minute books shall be kept by each of the secretaries. The
secretaries shall also conduct the correspondence for the re-
spective parties and conjointly for the board.

10. Board Meetings. — Ordinary meetings of the board
shall be held as early as possible in the months of January,
April, July, and October in each year. For the purpose of
considering the election or re-election of the chairman, the
secretaries shall, on the application of either party, convene

RULES OF CONCILIATION BOARDS 199

a special meeting, to be held within twenty-one days of such
application, to consider such election or re-election.

11. Chairman. — The chairman shall preside at all ordi-
nary meetings at which he is present, and in default of agree-
ment by the parties on any question before the board, he
shall have power to decide such question as he may think fit,
with or without modification by him of its terms as submitted
to the board, and his decision shall be final and binding on
all parties.

12. At special meetings of the board, or at ordinary
meetings at which the chairman is not present, the members
present shall appoint one of their number to preside, who
shall have an initial vote as a member, but shall have no
casting vote.

13. Voting. — All votes shall be taken at meetings of the
board by show of hands. When at any meeting of the board
the parties entitled to vote are unequal in number, all shall
have the right of fully entering into the discussion of any
matters brought before them ; but only an equal number of
each shall vote. The withdrawal of the members of which-
ever body may be in excess to be by lot, unless otherwise
arranged.

14. Expenses. — Each party shall pay the expenses of its
representatives and secretary, but the cost and expenses of
the chairman, stationery, books, printing, hire of rooms for
meeting, shall be borne by the respective parties in equal
shares.

15. Alteration of Bales. — No alteration of these rules
shall be made except at the July meeting in any year. Either
party desiring an alteration of the rules shall, not less than
one month before such meeting, give notice to the secretary
of the other party of the alterations desired, and the secre-
taries shall, not less than fourteen days before such meeting,
forward a copy of the proposed alterations to each member of
the board.

16. Notice to Terminate. — The board shall continue
until either party gives six months' notice of withdrawal
from it, but neither party to withdraw before June 30, 1901.

NEWCASTiiE : December 1899.

200

THE ADJUSTMENT OF WAGES

2 a. Northumberland — Wages and Prices, 1879-1902.

[Copy of a Card Issukd by the Union to its Members.]

Northuviberland Miners' Mutual Confident Association.

Variations iii prices and wages from June, 1879, to the
present time.

The sliding scale was established in November, 1879,
the basis price being 5."?. 1-28(7. for a standard wage of 5s. 2d.
In March, 1883, the basis price was reduced to 45. ^d. for the
same standard wage of bs. 'Zd. This scale was terminated by
the owners at the end of 188G, and a reduction of 12^ per
cent, enforced after a strike of seventeen weeks.

At the end of the strike in May, 1887, the scale was re-
established and the basis price raised to 5s. 5d., with an
advance or reduction of 1| per cent, for every Id. rise or fall
in price below 5s. 5d., which gave the above-mentioned 12^
per cent, reduction, and 1^ per cent, for every 2d. rise or fall
in price above 5s. 5d. This scale was terminated by the
workmen at the end of 1887.

The Conciliation Board was established on the applica-
tion of the workmen and the first meeting held July 24, 1894,
under the chairmanship of J. Strachan, Barrister-at-Law.
The Board was terminated on the notice of the workmen at
the end of 1896. The Conciliation Board was re-established
and the first meeting held January 1, 1900, under the chair-
manship of Judge Greenwell.

E. Young, Secretary.

Wages and Selling Prices.

Ascertained Selling Prick

Changes in Wages

Period

Average

Realised

Price

Date of Obauge
taking effect

Advance

Per

Oent.

Making Wages

Above
Standard

Below
Standard

1 870 / April, May, June .

^'*''' 1 Sept., Oct., Nov. .

1879-80 Dec, Jan., Feb. .

s. d.
4 7-96
4 5-96
4 6-58

Jan., 1880

Per
Cent.

RULES OF CONCILIATION BOARDS

Wages and Selling Prices — continued.

Ascertained Selling Price

Changes

IN Wages

Making Wages

Period

Average j, ^ ^ Change

Advance

Realised
Price

taking effect

Above

Below

Standard

Per

s. d.

Cent.

( Mar., April, May .

5 0-23

July, 1880

—

Par.

1880 \ June, July, Aug. .

5 3-49

—

( Sept., Oct., Nov. .

4 9-30

—

1880-81 Dec, Jan., Feb. .

4 7-99

April, 1881

( Mar., April, May .

4 8-74

—

1881 \ June, July, Aug. .

4 11-58

Sept., „

—

Par.

i Sept., Oct., Nov. .

4 10-92 —

—

1881-82 Dec, Jan., Feb. .

4 9 33 ; —

—

( Mar., April, May .

4 10-71 1 —

—

1882 ■ Jane, July, Aug. .

5 0-63 —

—

(Sept., Oct., Nov. .

5 0-30 : —

—

1883

— 5 & 12 Mar. 1883
4 11 7 & 14 April „

—

1882-83

Dec, Jan., Feb. .

Mar., April, May .

5 0-80 9 & 16 July „

—

1883 June, July, Aug. .

5 4-87 1 & 8 Oct., „

—

( Sept., Oct., Nov. .

5 304 7 & 14 Jan., 1884

—

1883-84 Dec, Jan., Feb. .

5 1-16 , 7«fc 14 April „

—

f Mar., April, May .

5 1-50

—

1884 \ June, July, Aug. .

5 2-46

6 & 13 Oct., „

—

ISept., Oct., Nov. .

5 1-39

5&; 12 Jan., 1885

—

1884-85 Dec, Jan., Feb. .

4 lU-66

6 & 13 April „

—

( Mar., April, May .

4 11-13

—

1885 I June, July, Aug. .

4 11-75

—

(Sept., Oct., Nov. .

4 9-36

4 & 11 Jan., 1886

—

Par.

1885-86 Dec, Jan., Feb. .

4 7-21

—

Mar., April, May .

4 7-31

—

1886 • June, July, Aug. .

4 7-66

—

( Sept., Oct., Nov. .

4 6-73

—

1886-87 Dec, Jan., Feb. .

4 7-4

May, 1887

steam 12J

—

Steam I24

—

i«87 fMar., April, May.
*'"" 1 June, July, Aug. .

—

Soft 6i

—

Soft 6i

—

4 7-90

—

Steam I24

—

1887

—

May,

—

Soft 6i

1887-88 Dec, Jan., Feb. .

4 3-40

—

/ Mar., April, May .

4 3-21

—

June, J uly, Aug. .
1888 J

Sept., Oct., Nov. .

4 4-60

25 Nov., 1888 |

Steam 5
Soft 2i

—

Steam74
Soft 3^

4 4-82

18 Feb., 1889 |

Steam 7^
Soft 3^

Par.

18 Mar., 1889

■ —

1888-89 Dec, Jan., Feb. .

4 9-67

—

Mar., April, May .

5 4-09

24 June, 1889

—

1889 '

June and July . .

5 7-34 j 30 Sept.,

—

Aug., Sept.,Oct., )
Nov. . . . f

5 9-68, 30 Dec,

1889-90 Dec, Jan., Feb. .

6 11-05 1 24 Mar., 1890

—

274

—

t Mar., April, May .
1 RQft J May ( separately)

7 9-87 1 1 , , .

7 9-91 [ 7 •'"ly-

^"^"1 June, July, Aug. .

8 0-42 6 Oct.,

—

!^i

—

[ Sept., Oct., Nov. .

7 9-64 9 Feb., 1891

—

1890-91 Dec, Jan., Feb. .

7 3-42 —

—

( Mar., April, May .

7 5-79 —

—

1891 \ June, July, Aug. .

7 5-25 —

—

I Sept., Oct., Nov. .

7 1-77: 4 Jan., 1892

—

1891-92 Dec, Jan., Feb. .

6 4-64 1 —

—

( Mar., April, May .

7 1-52, —

—

1892 \ June. July, Aug. .

6 5-86 1 7 Nov.,

—

( Sept., Oct., Nov. .

6 1-96 1 6 Mar., 1893

—

1892-93 Dec, Jan., Feb. .

5 7-60 1 —

—

( Mar., April, May .

5 4-60 1 —

—

1893 .| June, July, Aug. .

5 6-95 1 6 Nov.,

—

, Sept., Oct., Nov. .

7 2-24

15 Jan., 1894

—

224

—

202

THE ADJUSTMENT OF WAGES

Wages

and Selling Prices — continued.

Ascertained Selling Price

Changes

IN Wages

Making Wages

Period

Average

Realised

Price

Date of Change
taking effect

Advance

Above

Below

Standard

Per

s. d.

Cent.

1893-94 Dec, Jan., Feb. .

(i 11-U

—

Mar., April, May .

6 4-72

30 July,

1894

—

1894 June, July, Aug. .

6 6-46

—

\ Sept., Oct., Nov. .

6 5-63

7 Jan.,

1895

—

16}

—

1894-95 Dec, Jan., Feb. .

6 8-68

8 April,

„

—

( Mar., April, May .

5 6-58

—

1895 \ June, July, Aug. .

6 6-44

7 Oct.,

„

—

( Sept.. Oct., Nov. .

5 6-07

13 Jan.,

1896

—

1895-96 Dec, Jau., Feb. .

5 0-77

13 April,

„

—

( Mar., April, May .

5 0-17

—

1896 ] June, July, Aug. .

6 1-32

—

(Sept., Oct., Nov. .

6 0-71

—

189G-97 Dec, Jau., Feb. .

4 11-52

—

Mar., April, May .

5 2-69

6 Sept.,

1897

—

1897- June, July, Aug. .

5 5-08

—

( Sept., Oct., Nov. .

5 4-33

—

1897-98 Dec, Jan., Feb. .

5 2-96

—

/ March

5 215

—

April

5 11-92

—

iQQo March and April .
^^^^ Mar., April, May .

5 6-98

25 April,

1898

7i«

—

13J

—

5 10-96

—

.Inne, July, Aug. .

6 H-88

26 Sept.,

„

—

18J

—

l Sept., Oct., Nov. .

6 6-63

—

1898-99 Dec, Jan., Feb. .

6 4-31

—

Mar., April, May .

6 11-91

26 June,

1899

—

23i

—

1899 • June, July, Aug. .

7 4-41

2 Oct.,

„

—

( Sept., Oct., Nov. .

7 6-12

1 Jan.,

190U

—

1899-00 Dec, Jan., Feb. .

8 9-29

9 April,

„

—

( Mar., April, May .

10 1-72

9 July,

„

12i

—

62}

—

1900 \ June, July, Aug. .

U 0-65

8 Oct.,

„

—

61i

—

(. Sept., Oct., Nov. .

11 2-62

5 Jan.,

1891

—

1900-1 Dec, Jan., Fob. .

9 9-63

4 April,

„

13J

47*

—

( Mar., April, May .

8 7-60

6 July,

—

38^

—

1901 \ June, July, Aug. .

8 6-34

7 Oct.,

„

—

i Sept., Oct., Nov. .

8 1-74

4 Jan.,

„

—

32i

—

1901-2 Dec, Jan., Feb. .

7 8-19

7 April,

„

—

30"

—

( Mar., April, May .

7 3-64

July,

„

—

26k

—

1902 ■> June, July, Aug. .
(Sept., Oct., Nov. .

7 4-44

2 Oct.,

„

—

7 3-65

3 Jan.,

„

—

1902-3 Dec, Jan., Feb. .

—

Mar., April, May .

—

1903 • June, July, Aug. .

—

(Sept., Oct., Nov. .

3. Durham.

Durham Coalowners' Association and Durham County
Mining Fedei-ation. Conciliation Board.

The Durham Coalowners' Association and the Durham
County Mining Federation hereby agree to form a ' Board of

RULES OF CONCILIATION BOARDS 203

Conciliation for the Durham Coal Trade,' hereinafter called
' the Board.'

The following shall be the Objects, Constitution, and Rules
of Procedure : —

Objects.

By conciliatory meaiiis to prevent disputes, and to put an
end to any that may arise, and with this view to consider
and decide upon all claims that either party may from time
to time make for a change in county rates of wages or county
practices, and upon any other questions, not falling within
the jm'isdiction of the Joint Committee, that it may be agreed
between the parties to refer to the board.

Constitution and Bides of Procedure.

1. The board shall be constituted of the following
number of representatives appointed by the following bodies,
viz. by the «

Miners' Association 9

Cokemen's Association .... 3

Mechanics' Association .... 3

Enginemen's Association .... 3

By the Coalowners' Association . . 18

Total 36

2. The coalowners' representatives on the one hand,
and the representatives unitedly of the four other associa-
tions on the other hand, are, for brevity, herein referred to as
' the parties.'

3. The board shall continue till either of the parties
gives six months' notice of withdrawal from it, but neither of
the parties to withdraw before the end of 1902.

4. An umpire shall be forthwith agreed upon by the
board, or, failing agreement, be appointed by the Board of
Trade, after conferring unitedly with each of the parties
represented by the board. Each umpire shall hold office
until his successor is appointed. The board shall at its
meeting in November, 1900, and in November of each

204 THE ADJUSTMENT OP WAGES

succeeding year, and within one month of the death or
resignation of any umpire, proceed to appoint a successor in
the manner herein provided.

5. No decision shall be altered until it has been in
operation for three calendar months.

6. All questions submitted to the board shall be stated in
writing, and may be supported by sufti verbal, documentary,
or other evidence as either party may desire to adduce and as
the board may deem relevant.

7. All questions shall in the first instance be submitted
to and considered by the board without the presence of the
umpire, it being the desire and intention of the parties to
settle, by friendly conference if possible, any difficulties or
differences which may arise. If the board cannot agree, then
the meeting shall be adjourned, and the umpire shall be
summoned to the adjourned meeting, when the matter shall
be again discussed, and in default of an agreement by the

"board the umpire shall give his casting vote on such matter.
The decision of the board or its umpire shall be final and
binding on the parties.

8. The umpire may at his discretion require either party
to afibrd him the means of obtaining, for the information of
the board only, any facts that, in his judgment, are essential
to the decision of any question at issue.

9. The parties shall each respectively elect a secretary to
represent them in the transaction of the business of the
board, and each party shall give written notice thereof to the
secretary of the other party, and both such secretaries shall
remain in office until they shall resign or be withdrawn by
the party electing them. The secretaries shall attend all
meetings of the board and be entitled to take part in the dis-
cussion, but they shall have no power to move or second any
resolution or to vote on any question before the board, unless
either secretary be also one of the representatives, in which
case he shall in that capacity have all the rights and
privileges of a representative.

10. The secretaries shall conjomtly convene all meetings
of the board, of which not less than seven days' notice shall
be given, such notice specifying the business to be considered.

RULES OF CONCILIATION BOARDS 205

and shall take proper minutes of the board and the proceed-
ings thereof, which shall be transcribed in duplicate books,
and each such book shall be signed by the umpire, chairman
or vice-chairman, or other person, as the case may be, who
shall have presided at the meeting to which such minutes
relate. One of such minute books shall be kept by each of
the secretaries. The secretaries shall also conduct the
correspondence for the respective parties and conjointly for
the board.

11. The secretaries shall, on the written application of
either of the parties, made by the chairman and secretary of
either party, call a special meeting of the board within 21
days, at such time as may be agreed upon by the secretaries.
The application for the meeting shall state clearly the object
of the meeting.

12. Each party shall pay the expenses of its own re-
presentatives and secretary, but the costs and expenses of
the umpire, stationery, books, printing, hire of rooms for
meetings, &c., shall be borne by the respective parties in
equal shares.

13. At the first meeting of the board in each year the
board shall appoint a chairman and vice-chairman, one of
whom shall be a representative of the Coalowners' Associa-
tion, and the other of the Miners', Cokemen's, Mechanics', or
Enginemen's Association.

14. The chairman, or in his absence the vice-chairman,
shall preside at all meetings at which the umpire is not
present as herein provided. In the absence of both chair-
man and vice-chau*man a member of the board shall be
elected by the majority to preside at that meeting. The
chairman or vice-chairman, or other person presiding, shall
vote as a representative, but shall not have any casting vote.
When the umpire is present he shall preside and have a
casting vote only.

15. Ordinary meetings of the board shall be held as early
as possible in the months of February, May, August, and
November in each year. The meetings of the board shall be
held at Newcastle or such other place as the board shall from
time to time determine.

2o6

THE ADJUSTMENT OF WAGES

16. All votes shall be taken at meetings of the board by
show of hands. When at any meetmg of the board the
representatives of the respective parties are unequal in
number, all shall have the right of fully entering into the
discussion of any matters brought before them, but only an
equal number of each shall vote, the withdrawal of the repre-
sentatives of whichever party may be in excess to be by lot
unless otherwise arranged.

For the Durham Coalowners' Association —

Keginald Guthrie, Secretary.

For the Durham County Mining Federation —

John Wilson,
John Johnson,
T. H. Cann,
W. House,
S. Galbraith,

W. GOLIGHTLY,
G. M'GUINNESS,

T. Richardson,
J. Leonard,

October 17, 1899.

J. W. Taylor, j

W. Knaggs, y Mechanics.

J. Fletcher, j

W. H. Lambton, ]

Miners. W. B. Charlton, \Enginemen.

W. E. Nicholson, j

J. Ogg, I
R. Hansom, Cokemen.

T. Duffy. i

3a. Durham : Joint Committee Rules.
(Reprinted June 1899.)

1. Formation of Committee. — The Joint Committee to be
composed of six members of the Owners' Association and six
members of the Workmen's Association, and a chairman to
be chosen annually by the Owners' Association and the
Federation Board.

2. Districts. — The collieries to be classed into three dis-
tricts, with the following boundaries :^

{a) The East District to comprise all those collieries
which lie to the east of the Team Valley Railway.

(b) The North District to comprise all those collieries
which lie to the west of the Team Valley Railway
and north of the Lanchester Valley Railway.

RULES OF CONCILIATION BOARDS

which lie to the west of the Team Valley Eailway

and south of the Lanchester Valley Eailway.

The owner of any colliery situated on the boundary line of

any district shall have the option of choosing the district in

which such colliery shall be included.

3. Meetings. — The meetings of the Joint Committee to be
held within the respective districts, or at such places as may
be fixed upon as being most generally convenient for each
district ; and to be held at such times as may be approved by
the chairman.

4. Order of Busifiess. — At the meetings of the Joint
Committee, the business of each district shall be considered
in rotation, unless it shall be absolutely necessary for such
meeting to act otherwise.

5. Representatives. — In any case brought before the Joint
Committee, the owners may be represented by one or more of
their agents, and the workmen by any of the workmen, or
the check- weighman employed upon the colliery from which
the case is sent.

6. Poivers of Committee. — The Joint Committee shall have
full power to refer to arbitration, or otherwise settle all ques-
tions (except such as may be termed county questions, or
which may affect the general trade) relating to wages, com-
pensation for alteration in practices of working, and all
questions or disputes of any other description which may
arise from time to time at any particular colliery, between
the owner of such colliery and his workmen, and which shall
be referred to the consideration of the committee by either of
the parties concerned, and the decision of the committee shall
be final and binding upon all parties.

7. Alteration of Practices. — In the event of any altera-
tion in the manner or system of working, in accordance with
county arrangements, no stoppage of work shall occur pend-
ing the decision, by agreement or arbitration (to be afterwards
confirmed by the Joint Committee), of any question as to re-
adjustment of wage, or other question arising out of the
altered mode of working. The decision shall date from the
commencement of such alteration.

2o8 THE ADJUSTMENT OF WAGES

8. Fixing Prices in new Seams, dtc. — The prices and
wages to be paid to hewers employed in new seams, or at
broken or other changed mode of working in any seam, for
which prices are not ah'eady fixed, shall, on application, be
settled by arbitration if they cannot be arranged by mutual
agreement or by the Joint Committee.

9. Extension of Districts. — In cases of extension or re-
commencement of districts, the prices previously paid in such
districts shall be paid in all extensions of the workings, except
where boundaries are otherwise specifically defined.

10. Average Wages ; 5 per cent, margin. — Before any
change in the wages of hewers shall be entertained, it must
be clearly shown that the average wage of the seam (or por-
tion of a seam where cavilled separately) is at least 5 per
cent, above or below the recognised average wages earned by
hewers throughout the county of Durham.

11. Counter-claims. — All applications by one party for
advances or reductions shall entitle the other side to open out
the question of the prices paid to the same class of workmen
throughout the whole of the seams, provided that, not less
than seven clear days before the hearing by Joint Committee,
a statement of any counter-claim intended to be made,
together with the average wages of not less than three pays,
shall be handed to the manager, or, as the case may be, to
the workmen of the colliery, specifying the names of the
districts where the advances or reductions are sought.

12. Objections to Hearing of Gases. — If any objection is
to be raised to the hearing of any case, not less than seven
clear days (or of any counter-claim four clear days) before
the hearing by Joint Committee, a notice of such objection
shall be handed to the manager, or, as the case may be, to
the workmen of the colliery ; or, if the cause of objection
arises within such seven days or four days, then at any time
previous to such meeting.

13. Standard Wage. — The average standard wage of
hewers shall be 4s. 2^., modified up or down by any change
brought about under any county agreement.

14. Bevision of Prices. — The Joint Committee in con-
sidering claims for revision of hewing prices shall take the

RULES OF CONCILIATION BOARDS 209

average wage for not less than three pays received by the
workmen before the date of hearing (but excluding the two
pays following the date of its being last heard, or from the
date of an award ; and the average wages of the first and last
pays of the cavils).

15. Averages to be supplied nine days before Hearing. —
No request for alteration of prices or of datal wages shall be
entertamed unless the average wages for not less than three
pays or the datal wages paid to such workmen have been
supplied, at least nine clear days before the hearing by Joint
Committee.

16. Objections to Cases.— ]^o demand from the workmen
shall be entertained where early riding is a general practice ;
or where it is shown that the workmen are restricting their
work ; or where it is proved that the men have generally
limited their hours in violation of the agreement of Decem-
ber 24, 1890.

17. County Average. — No change shall be made in the
prices and wages paid to any class of workmen for altered
practices or conditions of working, unless it be clearly shown
that their average daily wage is reduced or increased thereby
below or above the average daily wage of their class through-
out the county of Durham.

18. Pits laid idle. — If a pit is laid idle by the owners or
workmen on account of any dispute between them, no claim
by the offending party shall be considered until after work
has been resumed.

19. Previous Dccisiois. — No request shall be considered
if the party making the application is proved not to be
carrying out any previous decision of the Joint Committee, or
award.

20. Back Money. — In the event of any payment of back
money being awarded, the chau'man of the Joint Committee
shall decide upon the period for which such pajonent shall
be made.

21. Broken Prices. — On the application of either party
the broken area and distance from goaf within which broken
prices shall be paid, shall, if not already fixed by agreement
or custom, be fixed by the Joint Committee or by arbitration.

2IO THE ADJUSTMENT OF WAGES

22. Date of Alterations. — Unless otherwise arranged, all
advances and reductions shall commence from the beginning
of the next pay after the date of the decision or of the award.

23. Rehearing — Any case can be reconsidered after the
lapse of twelve weeks from the date of its being last heard, or
from the date of an award.

24. Order of Cases : Fourteen Days' Notice : Urgent
Cases. — When both owners and workmen have cases for
consideration the cases of each shall be considered alter-
nately, and a cu-cular, specifying the cases to be heard by
the Joint Committee at any meeting, shall be sent to each
member of the committee at least fourteen days before such
meeting ; and it shall not be competent for the committee to
discuss any other matter than shall be specified in such
circular, unless the parties concerned agree to any very
urgent case being heard, and both sides of the committee
concur.

25. Appointment of Arbitrators. — In any case referred
to arbitration each party shall appoint a disinterested arbi-
trator within twenty-one days of the date of the reference ;
and if within the said twenty-one days either of the parties
fail to appoint an arbitrator, the arbitrator appointed shall
ask the chairman of the Joint Committee to authorise him to
hear and determine the matter referred, and make an award,
which shall be binding on both parties.

26. Appointment of Umpire. — If, in any case referred to
arbitration, the arbitrators fail to agree as to the appointment
of an umpire, the chairman of the Joint Committee shall
make the selection of an umpire.

27. Voting. — All questions at any meeting of the Joint
Committee shall, in the event of dissent, be determined by a
majority in number of members to be ascertained by a show
of hands, and the declaration of the chau-man as to the
result of any such show of hands shall be final. In case of
an equality of votes between the owners' and the men's
representatives, the chairman shall give his decision on the
question at issue.

December 6, 1892.

RULES OF CONCILIATION BOARDS 211

Additional Joint Committee Rules (extracted from the
Minute Books).

1. Average Wages. — It was agreed that Eule 10 applied
to counter-claims. (March 11, 1898, East District.)

2. Kirvers. — It was ruled that men kirving are hewers,
as named in Rule 10. (August 1, 1893, East District.)

3. Kirvers and Heivers when cavilled separately. — It
was understood as regards Rule 10 that the average wages of
kirvers and hewers when cavilled separately shall be taken
separately. (September 25, 1893, East District.)

4. Tub-loaders. — Decided that tub-loaders are hewers,
and included in Rule 10. (April 30, 1894, East District.)

5. Objections to Hearing of Cases. — Any objection by
either party to the hearing of a case where any class of work-
men are affected, referring to another class of workmen, shall
not be valid, (June 25, 1894, East District.)

6. Revision of Hewing Prices. — It was agreed that
Rule 14 was governed by Rule 10 — that is, there can be no
revision of hewing prices at Joint Committee unless it be
clearly shown that the average wage of the seam (or portion
of a seam where cavilled separately) is at least 5 per cent,
above or below the recognised average wages earned by hewers
throughout the county of Durham. (January 27, 1893,
Auckland District.)

7. Average Wages : Seams. — It was agreed that the
seam's averages shall be separately supplied in each case.
(March 13, 1896, North District.)

8. Districts. — Applications for advances or reductions of
prices in seams shall be heard, although the averages of
the separate districts have not been previously supplied.
(December 10, 1897, North District.)

9. Exchanged. — Average and datal wages shall be
exchanged between owners' and workmen's secretaries of
Joint Committee. (July 29, 1898, East District.)

10. Shall be paid. — All average and datal wages for any
pay shall be paid before being exchanged. (August 12, 1898,
x\uckland District.)

p 2

212

THE ADJUSTMENT OF WAGES

11. Shall he dated. — All pays shall be dated, when
average wages are supplied. (April 24, 1899, North District.)

12. Agreements. — It was agreed that settlements of local
cases between the [Owners' and Workmen's] Associations
should be reported to the Joint Committee for convenience of
reference. (May 3, 1897, East District.)

13. Date of Alterations. — It was agreed that, unless
otherwise arranged, all awards and agreement operated from
the first pay commencing after the date thereof. (March 7,
1892, North District.)

14. Beports. — All reports should be submitted to the next
meeting of the Joint Committee for the same district after the
date of reference. (July 11, 1890, North District.)

15. In future, when referees cannot agree upon a joint
report, they shall send in separate reports, showing clearly
where they are unable to agree. (July 8, 1895, Auckland
District.)

June 30, 1899.

3b.

Durham.

Wages,

1897-1902.

Per cent.

1897,

2h advance.

1900, Aug.,

8| advance.

1898,

„ Nov.,

>»

2i ,

1901, Feb.,

1^ reduction

2i ,

„ May,

lU „

1899,

u ,

„ Aug.,

7i „

H ,

„ Nov.,

July,

1902, Feb.,

H »

Sept.,

„ May,

^ „

1900,

Feb.,

» Aug.,

2i „

May,

„ Nov.,

No change.

RULES OF CONCILIATION BOARDS

4. Scotland.

B,ule8 of 'Procedure for the Board of Conciliation, esta-
blished between the Coalowners of Scotland and the
Scottish Miners' Federation, on January 5, 1900.

1. Ti^Ze.— The title of the board shall be ' The Board of
Conciliation for the Regulation of Wages in the Coal Trade of
Scotland.'

2. Object. — The board shall have for its object the regu-
lation of miners' wages from February 1, 1900. From that
date to August 1, 1900, the rate of wages shall not be reduced
below a point of ^1\ per cent, over the 1888 basis, nor be
advanced above a point 75 per cent, over the 1888 basis.

3. Constitution of Board. — The board shall consist of
twelve coalowners or coalowners' representatives elected by
the coalowners, and twelve miners or miners' representatives
elected by the miners.

4. Chairman and V ice-Chairman. — The chairman and
vice-chairman shall be elected by the representatives to the
board at the first meeting, the one being a coalowner, and the
other a miners' representative.

5. Members of Board. — The first members of the board
are and shall be : — Coalowners or Coalowners' representa-
tives : Messrs. Andrew K. M'Cosh, John Wilson, M.P., Charles
Thomson, John Addie, George A. Mitchell, James Nimmo,
James Wood, James A. Hood, R. W. Wallace, Charles Carlow,
James B. Thorneycroft, and James A. Clarke. Miners or
Miners' representatives : Messrs. Robert Smillie, David
Gilmour, John Robertson, James Murdoch, John Wilson,
John M'Gough, John Guthrie, James Cook, Peter Muir, John
Weir, James Innes, and Robert Brown. Of whom Mr. Andrew
K. M'Cosh shall be chairman, and Mr. Robert Smillie vice-
chairman.

Vacancies. — Whenever a vacancy has arisen, from any
cause, on the board, such vacancy shall be filled up within
one month of its occurrence by the body which appointed the
member whose seat has become vacant. Intimation of such
appointment shall be at once sent to the secretaries.

214 THE ADJUSTMENT OF WAGES

6. Flact of Meeting. — The meetings of the board shall be
held m Glasgow, or such other place as the board shall from
time to time determine.

7. Short Reference : ' The Parties.' — The constituents of
the board, i.e. coalowners or coalowners' representatives,
and miners or miners' representatives, are, for brevity, herein
referred to as * the parties.'

8. Secretaries. — The parties shall each elect a secretary
to represent them in the transaction of the business of the
board, and each party shall give written notice thereof to the
secretary of the other party, and such secretaries shall
remain in office until they shall resign or be withdrawn by
the parties electing them. The secretaries shall attend all
meetings of the board, and are entitled to take part in the
discussion, but they shall have no power to move or second
any resolution, or to vote on any question before the board,
unless they are duly elected members of the board.

9. Duties of Secretaries. — The secretaries shall conjointly
convene all meetings of the board and take minutes of the
proceedings, which shall be entered in duplicate books, and
each of these books shall be signed by the chairman, vice-
chairman, or other person, as the case may be, who shall pre-
side at the meeting at which such minutes are read and
confirmed. One of such minute books shall be kept by each
of the secretaries.

10. Board Meetings. — The secretaries, on the written
application of the chairman and secretary of either party for
an alteration in the rate of wages, or an alteration of these
rules, shall call a meeting of the board within fourteen days*
at such time and place as may be agreed upon. The applica-
tion for the meeting shall state clearly the object of the
meeting.

11. Duties of Chairman and V ice-Chairman. — The
chairman, or, in his absence, the vice-chairman, shall preside
at all the meetings of the board. In the absence of both
chairman and vice-chairman, a member of the board shall
be elected by the majority to preside at that meeting. The
chairman or vice-chairman, or other person presiding, shall
vote as a representative, but shall not have any casting vote.

RULES OF CONCILIATION BOARDS

12. Business at Meetings of the Board. — All questions as
to general advances or general reductions in the rate of wages
shall, in the first instance, be submitted to and considered by
the board, it being the desire and intention of the parties to
settle any such general advances or general reductions by
friendly conference if possible. If the parties cannot agree,
then the meeting shall be adjourned for a period not exceed-
ing fourteen days, to allow the matter to be discussed by the
constituents of the two parties. In the event of a disagree-
ment at the second meeting a neutral chairman may be called
in to settle the matter, but only if both parties agree to that
course. If it is agreed to call in a neutral chairman, he shall
be nominated at this second meeting, or an adjournrqent
thereof, and a third meeting of parties shall be held not later
than fourteen days thereafter. The decision of the neutral
chairman shall be final and binding on both parties.

13. Procedure. — All questions submitted to the board
under Eule 12 shall be stated in writing, and may be sup-
ported by such verbal, documentary, or other evidence and
explanation as either party may submit, subject to the
approval of the board.

14. Voting. — All votes shall be taken at meetings of the
board by show of hands. When at any meeting of the board
the parties entitled to vote are unequal in number, all shall
have the right to take part in the discussion, but only an
equal number of representatives of each party shall vote. The
withdrawal of the members of either party which may be in
excess will be by lot, unless otherwise arranged.

15. Expenses and Provision of Funds. — Each party
shall pay and defray the expenses of its own representatives
and secretary, but the costs and expenses for stationery,
books, prmting, hire of rooms for meetings shall be borne by
the respective parties in equal shares.

EoBERT Baird,

EoBEET Brown,

Joint Secretaries of the Board.

January 5, 1900.

2i6 THE ADJUSTMENT OF WAGES

Conciliation Board.

The committee recommend that the board should be con-
tinued under its present rules, and should agree as follows,
viz. : —

1. That the present minimum and maximum in miners'
wages, being 37^ per cent, and 100 per cent, over 1888 basis
rates respectively, shall remain binding on both parties on the
board : provided always that this obligation shall be termi-
nable by either party on giving three months' notice.

2. That the net average realised value of coal at the pit-
bank for the time being, taken in conjunction with the state
of trade and the prospects thereof, is to be considered in
fixing miners' wages between the minimum and maximum
for the time being ; and that in current ordinary circum-
stances a rise or fall of 6^ per cent, in wages on 1888
basis for each 4^rZ. per ton of rise or fall in the value of coal
is reasonable.

3. That the present wage shall meanwhile be taken as
corresponding to a value of one penny per ton above the net
average realised value of coal at the pit-bank in Scotland for
the three months of December, January, and February last,
and for any average value 2^c?. per ton over the same, and
2^-fZ. per ton under the same.

4. The employers shall, by the machinery presently
arranged with the Lanarkshire, the Fifeshire, and the
Ayrshire Coalmasters' Associations, collect, and have tabu-
lated by their accountants, the tonnage of the total miners'
output of coal from the associated collieries, for the above
three months of December, January, and February, and the
total net money received for the same at the pit-bank ; and
the net average receipts per ton, as shown by these figures,
shall be accepted as the net average realised value of coal at
the pit-bank in Scotland, referred to in Article 3 hereof — pro-
vided always that the miners' representatives shall be at
liberty, at their own expense, to appoint accountants (to be
approved of by the Conciliation Board, and pledged to secrecy)
to verify the foresaid figures from the employers' books, or
from any of them.

RULES OF CONCILIATION BOARDS i\-j

5. When the employers, in any subsequent discussion,
quote net average realised values for coal, the figures so
quoted shall be accepted by the miners' representatives as
correct — provided always that the miners' representatives
shall be at liberty to verify the same from the employers'
books, by their own accountants (as provided for in Article 4
hereof), who shall report within one week from the date of
the meeting at which the quotations are made.

6. While employers and workmen are confirmed in their
freedom of employment and their rights at law, both parties
will endeavour to insure regular working at the collieries ;
and the Miners' Federation will not be parties to throwing
idle any colliery without adequate warning.

Glasgow : May 1902.

With the view to making more clear the intention of
parties under clauses 2 and 3 of the wages agreement entered
into on May 26, 1902, it is agreed as follows, viz. : —

1. The nett average realised value of coal for the three
months of December, January, and February last having
been ascertained under Article 4 of agreement to be 7s. 0*45ci.
per ton, or including the \d. per ton agreed upon, 7.s. V^^d.
per ton. Article 3 provides that a wage 50 per cent, over 1888
basis shall meanwhile be taken as corresponding to any value
of coal ^\d. per ton under and ^\d. per ton over that rate,
viz. any value between 6s. ll-20cZ. per ton and 7.s. 3-70^. per
ton.

2. Thereafter wages may rise %\d. per cent, whenever the
average value of coal rises above 7.s. %-l^d. per ton to any
extent within A.\d. per ton, and may fall by 6^ per cent,
whenever the average value of coal falls below 6s. ll'20c?.per
ton to any extent within ^\d. per ton. When values rise
more than ^\d. per ton above 7s. 3*706?. per ton, or fall more
than ^\d. per ton below ^s. 11*20^. per ton, another step is
entered upon and a further advance or fall in wages to the
extent of 6^ per cent, may take place ; and so on by stages of
6^ per cent, on wages for \.\d. per ton on values of coal until
the present maximum and minimum rates are reached, pro-

2l8

THE ADJUSTMENT OF WAGES

vided always that the state and prospects of trade are such as
to make said advances or reductions expedient.

Ascending.

Per ton.

Over 1888

s. d.

Per cen

Per cent.

we(

3n 6 11-20

and

3-70.

change (basis) 50.

7 3-70

8-20.

advance .

. 56^.

7 8-20

0-70.

. 62i.

8 0-70

5-20.

. 68f.

8 5-20

9-70.

. 75.

8 9-70

2-20.

. 81i.

9 2-20

G-70.

. 87i

9 G-70

11-20.

. 93|.

9 11-20

3-70.

.100.'

Descending

7 3-70

11-20.

change (basis) 50.

6 11-20

6-70.

reduction

. 43|.

6 6-70

hrr 16, 1902.

2-20.

. ^IhJ

5. South Wales.

[The Sliding Scales of 1875, 1880, and 1882, will be found in Munro,
Scales in the Coal Industry, 35-42. Another scale was drawn up in
1890, and still another in 1892, which is given in the Board of Trade
Report on Standard Piece Bates and Sliding Scales (1900), 10-15.
After the unsuccessful strike against the sliding scale in 1898, in the
course of which the miners of South Wales received certain assist-
ance from the Federation of Great Britain, the South Wales Federa-
tion became, as it were, a probationary^ member of the Federation of
Great Britain. It was the avowed policy of the Federation of Great
Britain to so limit all wage agreements that the way should be clear
at the end of 1903 for the construction of a single board covering the
whole of Great Britain. The acceptance by the Welsh miners of an
agreement for three years led accordingly to much discussion in the
Federation of Great Britain. At a conference of the latter body,
held on Friday, March 13, 1903, it was voted to concede freedom of
action to the Welsh miners, by a resolution in the following terms : —
' That seeing the South Wales Conference of delegates have been
unable to carry out the Southport Conference resolution on the ques-

Present maximum.

- Present minimum.

RULES OF CONCILIATION BOARDS 219

tion of when agreements on the wages question shall commence and
when they shall terminate, this conference cannot endorse the agree-
ment entered into by the South Wales Miners' Conference, and
therefore leaves the matter in the hands of the South Wales workers
and their authorised committee ; after which a further conference of
the Miners' Federation of Great Britain shall be called together by
the president and secretary to deal with the serious questions involved
therein.']

Memorandum of Agreement

made this 31st day of March, 1903, between the undersigned
— William Jenkins, Edwaed Jones, Fred. L. Davis, Charles
H. Eden, M. Wolstenholme, Joseph Shaw, Henry Davies,
J. Boyd Harvey, H. E. Gray, Thos. H. Deakin, W. S. B.
McLaren, William Evans, William Smith, H. W. Martin,
Hugh Watts, Thomas Griffiths, Fred. Cleeves, W. W.
Hood, Hugh Bramwell, Thomas Wilson, W. D. Wight,
and H. T. Wales, duly authorised to act on behalf of the
owners of collieries in Monmouthshire and South Wales,
whose names or titles are set forth in the schedule hereto
(hereinafter called the owners), of the one part, and the under-
signed — W. Abraham, W. Brace, Alfred Onions, David
Beynon, Evan Thomas, David Watts Morgan, John Thomas,
Enoch Morrbll, Thomas Evans, Charles B. Stanton,
Thomas Thomas, John Davies, Ben Davies, John Williams,
Thomas George, Thomas James, James Winstone, Vernon
Hartshorn, James Manning, John Kemp, William Vyce,
William E. Morgan, and John D. Morgan, duly authorised
to act on behalf of the workmen (excepting enginemen,
stokers, and outside fitters) now employed at the collieries
of the said owners, of the other part, whereby it is mutually
agreed as follows : —

1. That a Board of Conciliation shall be established to
determine the general rate of wages to be paid to the work-
men and to deal with disputes at the various collieries of the
owners subject to the conditions hereinafter mentioned.

2. The title of the board shall be 'The Board of Con-
ciliation for the Coal Trade of Monmouthshire and South
Wales,' hereinafter called ' the board.'

3. The board shall consist of twenty-four duly authorised
owners' representatives and twenty-four duly authorised

THE ADJUSTMENT OF WAGES

representatives of the workmen employed at the collieries of
the owners, and when dealing with questions relating to
general advances or general reductions in the rate of wages
also of a chairman from outside, who shall not be financially
interested in any coal mine in the United Kingdom, and who
shall have a casting vote only.

4. The first members of the Board shall be

the Chairman from outside as afore-
said, and who is hereinafter called the Chairman.'

Owners'
William Jenkins
Edward Jones
Fred. L. Davis
Charles H. Eden
m. wolstenholme
Joseph Shaw-
Henry DA\r[ES
J. Boyd Harvey
H. E. Gray
T. H. Deakin
W. S. B. McLaren
William Evans

Representatives : —
William Smith
H. W. Martin
Hugh Watts
Thomas Griffiths
Fred. Cleeves
W. W. Hood
T. Forster Brown
Thomas Wilson
Clifford J. Cory
H. T. Wales.
Edmund Mills Hann
W. J. Heppbll

Woi'kmeji's
William Abraham
W. Brace
Alfred Onions
David Beynon
Evan Thomas
David Watts Morgan
John Thomas
Enoch Morrell
Thomas Evans
Charles B. Stanton
Thomas Thomas
John Davies

Representatives : —
Ben Davies
John Williams
Thomas George
Thomas James
James Winstone
Vernon Hartshorn
James Manning
John Kemp
William Vyob
William E. Morgan
John D. Morgan

' Sir Francis Hopwood, the Permanent Secretary of the Board of Trade, was
unanimously invited to accept this position, but declined on the ground that
it was inconsistent with his official position.

RULES OF CONCILIATION BOARDS

of whom there shall be two presidents, one elected by the
owners' representatives, and the other by the representatives
of the workmen.

Whenever a vacancy on the board occurs from any cause
(except in the office of chairman) such vacancy shall be filled
within one month of its occurrence by the body which
appointed the member whose seat has become vacant, but
during such vacancy the board may transact the business of
the board. Intimation of such appointment shall be at once
sent to the secretaries. Wlien and so often as the office of
chairman becomes vacant the board shall endeavour to elect
a chairman, and should they fail to agree, will ask the Lord
Chief Justice of England for the time being, or in case of his
refusal the Speaker of the House of Commons, to nominate
one.

5. The parties to this agreement pledge their respective
constituents to make every effort possible to avoid difficulties
or disputes at the collieries, and in case of any unavoidable
difference the owners or their officials, together with their
workmen or their agent or agents, shall endeavour to settle all
matters at the collieries, and only in case of failing to effect a
settlement shall a written appeal be made to the board by
either or both of the parties concerned in the dispute to
consider the same ; and no notice to terminate contracts shall
be given by either owners or their workmen before the parti-
cular question in dispute shall have been considered by the
board and it shall have failed to arrive at an agreement.
The board shall have power to refer such questions to a
committee consisting of one or more owners' representatives
and an equal number of workmen's representatives, all of
whom shall be members of the board, to consider and if so
directed with power to settle, and in all cases to report either
a settlement or a failure to agree to the board, within three
calendar months from the date of the reference to such
committee ; and should the board then fail to arrive at an
agreement within one month, or any extended period that
may be agi'eed upon by the board, either party may give
notice to terminate contracts.

6. Rules of procedure for the conduct of the business of

THE ADJUSTMENT OF WAGES

the board are set forth at the end hereof, and the same shall
be deemed to be incorporated with and to form part of this
agreement.

7. The mineral to be gotten is clean large coal only as
hereinafter described.

The cutting prices to be paid to the collier shall be the
several standard prices prevailing and paid at the collieries of
the owners respectively.

Such standard cutting price shall be paid upon the weight
of the large coal, to be ascertained in manner hereinafter
appearing, and includes all services in respect of the small
coal necessarily produced in filling the large coal, in convey-
ing it from the working places to the screen at the surface,
and in the process of screening ; that price being equal to the
value of all the services involved in getting such large coal
and small coal, and being more than the value of the services
rendered in respect of the large coal only.

The respective weights of such large coal and small coal
for the purpose of paying the collier shall be ascertained as
follows : —

After each tram of coal is brought to the weighing
machine it shall be weighed, and the tare of the tram shall be
deducted from the gross weight. The coal shall then be
tipped over the screen in use at the colliery to separate the
small coal passing through the screen from the large coal
passing over it.

The small coal which shall pass through the screen shall
be weighed, and that weight shall be deducted from the gross
weight of the coal in the tram in order to ascertain the
weights of such large screened coal and small coal respectively;
and the cutting price paid to the collier upon the weight of
the large screened coal as aforesaid shall during the continu-
ance of this agreement be deemed to be the value of the
services rendered in respect of both the large screened coal
and small coal the weights of which respectively shall be
ascertained as aforesaid.

8. It is distinctly understood that Clause 7 in this agree-
ment is not intended to change the system of weighing and
screening the coal as it at present exists, but the owners shall

RULES OF CONCILIATION BOARDS

22^

be at liberty to adopt such improved methods of screening as
they may consider necessary, provided that any methods so
adopted shall not in any way prejudicially affect the wages of
the workmen.

9. Clause 7 shall not apply to or alter or in any way
interfere with any agreements now existing or hereafter to be
made for payment for through and through coal or where
small coal is now separately paid for.

10. The board shall at the meetings held under Rule 6 of
the said rules of procedure determine the general rate of
wages to be paid for the three months commencing on the
first day of the month following the dates of such meetings ;
but should neither party desire to vary the rate of wages, the
then prevailing rate of wages shall contmue until the same
shall be varied in accordance with the said rules of procedure.

(a) All standard rates and prices shall be the standards
known as the standards of December 1879 and 1877
respectivel3\

(6) The wages payable to the workmen shall, as from the
date of this agreement and until the same shall be advanced
or reduced by the board, be 48| per cent, above the several
rates actually paid at the respective collieries under the
standard of December 1879.

(c) During the continuance of this agreement the rate of
wages shall, subject to sub-section d hereof, not be less than
30 per cent, above nor more than 60 per cent, above the
December 1879 standard of wages paid at the respective
collieries ; and in considering any proposal for an alteration in
the general rate of wages the said minimum of 30 per cent,
shall for that purpose be considered as equivalent to such an
average nett selling price per ton of large coal, not being less
than 11.S. 3<:Z. nor more than 12s. 2td.^ as shall be forthwith
determined by an independent person to be agreed upon by
the parties,' or, failing an agreement, to be nominated by the
Lord Chief Justice of England, or, in case of his refusal, by
the Speaker of the House of Commons. Such average nett
selling price shall be taken as for large colliery screened coal,

' Sir David Dale, Bart., was unanimously invited to act in this capacity
and consented.

224 THE ADJUSTMENT OF WAGES

delivered f.o.b. at Cardiff, Barry, Newport, Swansea, and
Llanelly.

{d) At collieries where the standard or basis upon which
wages are now regulated is the rate of wages paid in the year
1877 the percentage payable thereat shall be 15 per cent, less
than at the collieries where the 1879 standard prevails, pro-
vided that in cases where workmen have hitherto been paid
nett rates of wages or fixed or other percentages, whether upon
the 1877, 1879 standards or any other existing standards, they
shall continue to be paid such nett rates, fixed or other per-
centages only.

11. At the collieries under this agreement all wages due
to the workmen shall be paid once in each fortnight, provided
that at those collieries where wages are now paid weekly such
practice shall continue in force.

12. A question having been raised by the owners as to
the prices to be charged to workmen entitled to house coal
for their own domestic purposes, it is agreed that the coal
field shall be divided into not more than 10 sections, to be
settled by the two chairmen and secretaries of the committee
negotiating this agreement, or, failing them, by a third party
to be nominated by them in advance, such division to be
settled not later than April 30, 1903.

The prices to be paid for house coal in the various
sections shall be first considered by the board, and in the
event of their failing to agree by May 30, 1903, shall be fixed
by the person to be appointed under Clause 10, subsection c
of this agreement, who shall give his decision not later than
June 30, 1903.

In fixing the prices to be paid regard shall be had to the
cost of production, the origin and conditions under which coal
has been supplied to the workmen hitherto, also the quantity
and quality of the same, and the period of supply in the
different sections.

13. During the continuance of this agreement all notices
to terminate individual contracts on the part of the owners as
well as on the part of the workmen shall be given on the first
day of any calendar month and shall terminate upon the last
day of the same month, provided that if the first day of any

RULES OF CONCILIATION BOARDS 225

calendar month fall on a Sunday, the notice shall be given on
the previous Saturday.

14. Subject as aforesaid the owners and workmen at the
respective collieries shall be bound to observe and fulfil and
shall be subject to all customs, provisions, and conditions
existing in December 1879 at the collieries respectively, and
no variation shall be made therein by the owners or work-
men, except by mutual arrangement at the collieries respec-
tively or by a decision of the board, after a reference thereto
in accordance with the provisions of Clause 5, of any proposal
for a variation.

15. Nothing in the clauses of this agreement or in the
rules of procedure is to preclude either party bringing any
matters before the board or independent chairman which
they consider as factors bearing upon the general wage
question, but any evidence brought forward as to the selling
price of coal shall be confined to the three calendar months
immediately preceding the first day of the month in which
the meeting is held.

16. This agreement shall continue in force until Decem-
ber 31, 1905, and shall then terminate, unless an agreement
shall have been made before that date between the parties
for an extended period. Upon the termination of this agree-
ment all contracts of service between the owners respectively
and their workmen respectively shall terminate.

17. A copy of this agreement shall be placed in a contract-
book at each colliery, which shall be signed by or on behalf of
the owners of such colliery and also by each workman em-
ployed thereat as one of the terms of the engagement between
the owners and the said workman.

Bides of Procedure.

1. The constituents of the board — i.e. owners' represen-
tatives and workmen's representaiives — are for brevity herein
referred to as ' the parties.'

2. The meetings of the board shall be held at Cardiff
or such other place as the board may from time to time
determine.

3. Each of the parties shall appoint a secretary, and shall

226 THE ADJUSTMENT OF WAGES

give notice of such appointment when made to the other
party, and such secretaries shall remain in office until they
shall resign or be withdrawn by the parties appointing them.
The secretaries or their respective deputies for the time being
shall attend all meetings of the board and be entitled to take
part in the discussion, but they shall have no power to move
or second any resolution or vote on any question before the
board.

4. The secretaries shall conjointly convene all meetings of
the board and record the names of the persons present thereat,
and at all meetings held under Eule 6 of the rules of procedure
full minutes of the proceedings thereof shall be taken, under
the conjoint supervision of the secretaries, by an official short-
hand writer to be mutually agreed on by the parties, which
minutes shall be transcribed into duplicate books, and each
such book shall be signed by the presidents or other persons
presiding at the meeting at which such minutes are con-
firmed. One of such minute-books shall be kept by each of
the secretaries, such minutes to be for the private use of the
board and not for publication. The secretaries shall also
conduct correspondence for their respective parties, and con-
jointly for the board,

5. The board shall meet once at least in each month for
the purpose of dealing with difficulties or disputes arising at
the several collieries, and referred to in Clauses 5 and 14
of the foregoing agreement, and the same shall be dealt with
by the board without reference to the chairman. The secre-
taries shall give to each member of the board five days' notice
of the intention to hold any such meeting, and of the business
to be transacted thereat.

6. Should there be a desire by either party to vary the
rate of wages, the board shall meet to consider the same on
the 14th day of the months of February, May, August, and
November in every year (except where the 14th day of any
of the said months falls on a Sunday, when the meeting
shall be held on the following day), to determine the general
rate of wages to be paid for the three months commencing on
the Ist day of the month next following the date of such
meetings. Either party intending to propose at such meetings

RULES OF CONCILIATION BOARDS 227

any alteration in the general rate of wages shall, ten days
before the said 14th day of the months of February, May,
August, and November, for holding such meetings, give to
the secretary of the other party notice in writing of the
proposition intended to be made, and of the grounds thereof,
and the secretaries shall enter such intended proposition, and
the grounds thereof, on the agenda to the notice convening
the meeting. The secretaries shall send to each member of the
board seven days' notice of each such meeting and of the
business to be transacted thereat.

At all such last-mentioned meetings the questions to be dealt
with thereat shall in the first instance be considered by the
board, it being the desire and intention of the parties to settle
any differences which may arise by friendly conference if
possible. If the parties on the board cannot agree, then the
meeting shall be adjourned for a period not exceeding seven
days, to which adjourned meeting the chairman shall be
summoned and shall attend and preside thereat, when the
questions in difference shall be again discussed by the parties ;
and in the event of their failing to arrive at an agreement
with regard thereto, the chairman either at such meeting
or within seven days thereafter shall give his casting
vote on such questions, and the parties shall be bound
thereby.

7. Both presidents shall preside at all meetings (other
than at meetings at which it shall be the duty of the chairman
to preside in accordance with Clause 6 of these rules) ; but if
either or both of them shall be absent, then a member or
members of the board shall be elected by the respective
parties to preside at such meetings according as such
president who shall be absent shall represent the owners
or workmen. The presidents or other persons presiding
shall vote as representatives, but shall have no other
votes.

8. All questions submitted to the board shall be stated in
writing, and may be supported by such verbal, documentary,
or other evidence and explanation as either party may submit,
subject to the approval of the board.

9. Each party shall pay and defray the expenses of its

228

THE ADJUSTMENT OF WAGES

own representatives, secretary, and accountant, but the costs
and expenses of the chah-man, official shorthand writer, and
of the stationery, books, printing, and hire of rooms for
meeting shall be borne by the respective parties in equal
shares.

W. Gascoyne Dalziel, Owners' Secretary.

Thomas Eichards, Wor'kmen''s Secretary.

The Schedule referred to in the foregoing agreement.

Abercrave Collieries Co.
Albion Steam Coal Co., Ltd.
Ammanford Colliery Co., Ltd.
Bargoed Coal Co., Ltd.
Blaenavon Co., Ltd.
Blaenclydach Colliery Co., Ltd.
Blaina Colliery Co., Ltd.
BwUfa & Merthyr Dare Steam

Collieries (1891), Ltd.
Cardiff Navigation Colliery Co.
Cartwriglit, T. G.

Corrwg Rhondda Colliery Co., Ltd.
Cory Bros. & Co., Ltd.
Orawshay Bros. Cyfarthfa, Ltd.
Cwmaman Coal Co., Ltd.
Davis, D., & Sons, Ltd.
Deep Navigation Collieries, Ltd.
Dinas Main Coal Co.
Ebbw Vale Steel, Iron & Coal Co.,

Ltd.
Evans & Bevan
Ffaldau Collieries Co., Ltd.
Foxhole Collieries Co., Ltd.
Gas Coal Collieries, Ltd.
Glamorgan Coal Co., Ltd.
Glyncorrwg Colliery Co., Ltd.
Glynea Coal & Brick Co., Ltd.
Glenavon Rhondda Collieries Co.,

Ltd.
Graigola Merthyr Co.. Ltd.
Great Mountain Collieries Co., Ltd.
Great Western Colliery Co., Ltd.
Guest, Keen & Nettlefolds, Ltd.
Gwaimcae Gurwen Colliery Co.,

Ltd.

Gwendraeth Anthracite Collieries

Co., Ltd.
Harry, David & Bros.
Hedle3''s Collieries Co.
Hill's Plymouth Co., Ltd.
Hoskins & Llevpellyn.
Insoles, Ltd.

International Coal Co., Ltd.
Lancaster, John & Co., Ltd.
Levi^is Merthj^r Consolidated Col-
lieries, Ltd.
Locket's Merthyr Collieries (1894),

Ltd.
Main Colliery Co., Ltd.
Marquess of Bute.
Marquess of Bute, The Trustees of

the.
Monmouthshire and Cwm Collieries

Co.
New Cross Hands Collieries, Ltd.
Newport Abercarn Black Vein

Steam Coal Co., Ltd.
Nixon's Navigation Co., Ltd.
North's Navigation Collieries

(1889), Ltd.
Ocean Coal Co., Ltd.
Partridge Jones & Co., Ltd.
Penrikyber Navigation Colliery Co.,

Ltd.
Pentremawr Colliery Co., Ltd.
Pont Henry Colliery Co., Ltd.
Pontyberem Collieries Co., Ltd.
Powell Duffryn Steam Coal Co.,

Ltd.
Powells Tillery Steam Coal Co., Ltd.

RULES OF CONCILIATION BOARDS

229

Pwllbach Colliery Co.

Rhynmey Iron Co., Ltd.

Ehos Colliery Co.

South Wales Anthracite Colliery

Co., Ltd.
South Wales Primrose Coal Co.,

Ltd.
Thomas, Griffith.
Thomas, Samuel.
Tirpentwys Black Vein Steam Coal

& Coke Co., Ltd.

Tredegar Iron & Coal Co., Ltd.
United National Collieries, Ltd.
Universal Steam Coal Co., Ltd.
Vipond, John & Co., Ltd.
Vivian & Sons.
Varteg Deep Black Vein Collieries,

Ltd.
Williams, Representatives of the

late E. D.
Williams, Thomas & Sons.
Ynishir Steam Coal Co.

230 THE ADJUSTMENT OF WAGES

III. COAL MINING IN THE UNITED STATES :
SOURCES OF INFORMATION.

The statistics of output are given in the annual Beports on
the Mineral Besources of the United States, issued by the
U.S. Geological Survey, which performs in this respect the
functions of the Enghsh Board of Trade. The figures down
to 1900 are conveniently presented in the review of The Coal
Trade of the United States, which appeared in the Summary
of Commerce and Finance for April 1900, issued by the
Bureau of Statistics of the Treasury Department, and also
separately. An elaborate account of the coal resources of the
country, from the geological point of view only, is given in the
Twenty-second Annual Beport of the U.S. Geological Survey,
Part III. (1902).

Parallel to the volumes of the English Labour Com-
mission of 1892-1894 are the nineteen volumes of the
Beports of the Industrial Commission, issued between 1900
and 1902. Several of the volumes contain vast masses
of information bearing upon mining conditions, especially
volumes xii., xvii. and xix. Unfortunately, American
Government reports are not published in the English
fashion and offered to any would-be purchasers at a fixed
price. They are distributed only in ' allotments ' to sena-
tors and representatives ; and the surplus, if any, is
given away by the office to persons known to be interested.
Accordingly, though those who do obtain them get them
more cheaply than in England — for English Government
offices have no special regard for mere professors — those who
do not happen to get them at the time are in a worse plight
than in England. I have to thank a number of American
friends, and especially Professor Ripley of Harvard, and Pro-
fessor Jenks of Cornell (both of whom acted as ' Expert Agents '
for the Commission), for enabling me to make up my set.

SOURCES OF INFORMATION 231

On the great strike of 1898 in the bituminous field, and
on the subsequent settlement there, there are two very useful
articles in the Quarterly Journal of Economics for 1898, by
my former pupil Mr. George, himself once a miner and now
a Professor of Economics in a well-known college. For the
Anthracite Goal Industry there is an elaborate monograph
by Dr. Koberts (1901). The efforts towards capitalistic com-
bination are narrated and explained in a substantial piece of
investigation by a former graduate student of Harvard, Mr.
Virtue, in the Quarterly Journal of Economics for 1896, and
on this is based the chapter in de Eousiers' Industries
Monopolisees aux Etats Unis (1898). To Bulletin 13 of the
Department of Labor (November 1897) Mr. Virtue has also
contributed a full account of the conditions of labour and the
attempts at organisation among the anthracite miners up to
1897. In Bulletin 43, finally, will be found the report to the
President by the Commissioner of Labour, and a most im-
portant series of letters and memoranda by the leading
anthracite operators.

Parallel to the Keports of Proceedings before the English
Conciliation Boards, are the Beports of the Interstate Con-
vention of Goal Miners and Operators of Illinois, Indiana,
Ohio, and Pennsylvania. Of these I have been enabled
to make use of the Fourth and Fifth (1901, 1902). As the
proceedings of the sub- Scale Committee, which as a rule finally
determines the rate for the ensuing year, are not published,
these reports are neither so confidential nor so valuable as
their English parallels. For the miners' side of current con-
troversies they may be supplemented by the annual Minutes
of the Convention of the United Mine Workers. For recent
opinion on the labour question in general in the United
States, reference may be made to the work of Mr. Graham
Brooks, The Social Unrest, and to the Beport of the Industrial
Conference of the National Civic Federation, December 1902.
The Beport to the President by the Anthracite Goal Strike
Commission has appeared too late to be used in these
Lectures. Some comments upon it will be found in the
Preface, and the Awards of the Commission are printed in
Appendix VII.

232 THE ADJUSTMENT OF WAGES

IV. COAL MINING IN THE UNITED STATES:
JOINT AGEEEMENTS, &c.

Interstate Agreement between the United Mine Workers
OF America and the Coal Operators of Pennsylvania,
Ohio, Indiana, and Illinois.

Covering and effective during the Scale Year from April 1,
1900, to April 1, 1901.

[A specimen of the general agreements for the whole ' competitive field,'
which have been drawn up each year since 1898. It settles the wide
limits within which the State and district agreements can determine
the conditions of labour.]

It is hereby agreed :

Section I. {a) That an advance of fourteen (14) cents
per ton of two thousand (2,000) pounds for pick mmed,
screened coal shall take effect in Western Pennsylvania thin
vein, the Hocking, the basing district of Ohio, and the block
coal district of Indiana.

{h) That the Danville district, the basing point of Illinois,
shall be continued on an absolute run-of-mine basis, and that
an advance of nine (9) cents per ton over present prices be
paid in the district named.

(c) That the bituminous coal district of Indiana shall pay
forty-nine (49) cents per ton for all mine-run coal loaded and
shipped as such. All other coal mined in that district shall
be passed over a regulation screen, and be paid for at the rate
of eighty (80) cents per ton of two thousand (2,000) pounds
for screened lump.

Section II. That the screen hereby adopted for the State
of Ohio, Western Pennsylvania, and the bituminous district of
Indiana shall be uniform in size, six (6) feet wide by twelve
(12) feet long, built of flat or Akron-shaped bar of not less
than five-eighths (gr) of an inch surface, with one and one-fourth
(1^) inches between bars, free from obstructions, and that

JOINT AGREEMENTS

such screen shall rest upon a sufficient number of bearings to
hold the bars in proper position.

Section III. That the block coal district of Indiana may
continue the use of the diamond bar screen, the screen to be
seventy-two (72) feet superficial ar^a, of uniform size, one and
one-quarter (1^) inches between the bars, free from obstruc-
tion, and that such screens shall rest upon a sufficient number
of bearings to hold the bars in proper position.

Section IV. That the differential between the thick and
thin vein pick mines of the Pittsburg district be referred to
that district for settlement.

Section V. {a) That the price of machine mining in the
bituminous district of Indiana shall be eighteen (18) cents
per ton less than the pick mining rate for screened lump coal,
when punching machines are used ; and twenty-one and one-
half (21^) cents per ton less than pick mining rates when
chain machines are used.

When coal is paid for on run-of-mine basis, the price shall
be ten (10) cents, per ton less than the pick mining rate when
punching machines are used, and twelve and one-half (12|)
cents per ton less than pick mining rates when chain machines
are used.

QS) That the machine mining rate in the Danville district,
the basing point of Illinois, on both punching and chain
machines be thirty-nine (89) cents per ton.

Section VI. That the machine mining rate in the thin
vein of the Pittsburg district, and the Hocking, the basmg
district of Ohio, for shooting, cutting, and loading, shall be
advanced nine (9) cents per ton ; and that the block coal
district of Indiana shall be advanced eleven and one-half
(11^) cents per ton.

Section VII. That the mining rates in the central district
of Pennsylvania be referred to that district for adjustment.

Section VIII. That the advance on inside day labour be
twenty (20) per cent., based on the present Hocking Valley
scale ; with the exception of trappers, whose compensation
shall be one dollar (,^1.00) per day.

Section IX. That all narrow, dead work, and room turning
shall be paid a proportionate advance with the pick mining rate.

234 THE ADJUSTMENT OF WAGES

Section X. That internal differences in any of the States
or districts, both as to prices or conditions, shall be referred
to the States or districts affected for adjustment.

Section XL The above scale is based upon an eight (8)
hour workday.

The foregomg scale, having been unanimously adopted by
the interstate convention of miners and operators at Indiana-
polis, Indiana, on February 2, 1900, in witness hereof we
hereto attach our signatures : —

In behalf of Operators. — F. L. Bobbins, Wm. B. Rodgers,
for Pennsylvania ; J. S. Morton, Walter J. Mullins, for Ohio ;
J. Smith Talley, A. M. Ogle, for bituminous district of
Indiana ; W. W. Risher, M. H. Johnson, for block coal
district of Indiana ; E. T. Bent, Chas. E. Hull, for Illinois.

In behalf of Miners. — P. Dolan, Wm. Dodds, for Penn-
sylvania ; W. H. Haskins, T. L. Lewis, for Ohio ; William
Wilson, Barney Navin, for block coal district of Indiana ;
W. D. Van Horn, J. H. Kennedy, for bituminous district of
Indiana ; John M. Hunter, W. D. Ryan, for Illinois.

In behalf of U.M.W. of A.

John Mitchell, President.

W. C. Pearce, Secretary.

Attest: F. S. Brooks, Secretary.

2. Illinois State Agreebient for Scale Year
ENDING March 31, 1903.

Whereas a contract between the operators of the competi-
tive coal fields of Pennsylvania, Ohio, Indiana, and Illinois
and the United Mine Workers of America, has been entered
into at the city of Indianapolis, Ind., February 8, 1902, by
which the present scale of prices at the basic points, as fixed
by the agreement made in Indianapolis, Ind., February 2,
1900, is continued in force and effect for one year from
April 1, 1902, to March 31, 1903, inclusive ; and.

Whereas this contract fixes the pick-mining price of
bituminous mine-run coal at Danville, at 49 cents per ton of
2,000 pounds : Therefore, be it

JOINT AGREEMENTS 23s

Besolved, That the prices for pick-mined coal throughout
the State for one year beginning April 1, 1902, shall be as
follows : —

First District.

Streator, Cardiff, Clarke City, and associated mines, including $

Toluca thick vein 0.58

Third vein and associated mines, including 24 inches of brushing . .76
Wilmington and associated mines, including Cardiff long wall and

Bloomington thin vein, including brvishing 81

Bloomington thick vein 71

Pontiac, including 24 inches of brushing 81

Pontiac top vein 58

Marseilles 1.09

Kate at Marseilles to continue imtil September 1, 1902, at which
time the conditions are to be investigated by President RusseU
and Commissioner Justi, and if conditions are changed as now
contemplated an ecxuitable adjustment shall be made.
Morris and Seneca (referred to a committee composed of Com-
missioner Justi and two operators and President Russell and
two miners to fix mining prices, which shall become a part of
this contract; the same to be considered before May 1, 1902).
Clarke City lower seam, brushing in coal ..... .66

Second District.

Danville, WestvUle, Grape Creek, and associated mines in
Vermilion County 49

Third District.

Springfield and associated mines 497

Lincoln and Niantic 53

Colfax 53

Fourth District.

Mines on Chicago and Alton south of Springfield, to and including
Carlinville ; including Taylorville, Pana, Litchfield, Hillsboro,

Witt (Paisley), Divernon, and Pawnee 49

Assumption long wall, under present regulations 65J

Moweaqua room and pillar . 53

Mount Pulaski room and pillar 66

Decatur, present conditions 64

Fifth District.

Glen Carbon, Belleville, and associated mines, to and including

Pinckneyville, Willisville, and Nashville 49

Coal 5 feet and under 54

236 THE ADJUSTMENT OF WAGES

Sixth District.

Du Quoin, Odin, Sandoval, Centralia, and associated mines . . .45
Salem and Kinmundy '"iO

Seventh District.

Moimt Vernon 50

Jackson County 45

(All coal 5 feet and under, 5 cents extra per ton ; this not to apply

to lower bench, nor rolls or horsebacks.)
Lower bench, Jackson County, for shipping mines, miners to carry

14 inches brushing 58

Saline Coimty 45

"Williamson County . •»• 52

Gallatin County (price to be determined by Thomas Jeremiah and

Commissioner Justi and become a part of this contract).

Eiglith District.
Fulton and Peoria counties, thin or lower vein (third vein con-
ditions) 76

Fulton and Peoria counties, No. 5 vein ...... .56

Astoria, No. 5 vein (Fulton and Peoria counties' conditions) . . .56
Pekin (price of 60 cents per ton continued under provisions similar
to those in State agreement for year ending April 1, 1902, viz. :
Price of 60 cents per ton, with Fulton and Peoria counties' con-
ditions to be in force for 9P days, from April 1, 1902, during
which time a record is to be kept to determine cost of removing
dirt, &c. Should this rate be found to work a hardship, it shall
be readjusted ; if it transpires that it is equitable it shall continue
during the life of this agreement. It is understood that the
Pekin operators and delegates will determine by what method
the readjustment shall be considered).
Fulton and Peoria counties, No. 6 vein (referred to a committee
composed of Commissioner Justi and two operators and Presi-
dent Russell and two miners to fix a mining price which shall
become a part of this contract ; the present rate of 59 cents per
ton to continue in force pending adjustment by said committee.
The same to be considered before May 1, 1902).
Gilchrist, Wanlock, Cable, Sherrard, and Silvis mines, 60 cents per
ton with last year's conditions. In case of deficient work, where
miner and mine manager cannot agree as to compensation, the
mine committee shall be called in ; and, if they can not agree,
the dispute shall be carried up under the thirteenth clause of the
present scale.
Kewanee and Etherley ......... .65

Pottstown, No. 1 seam, scale to be the same as Gilchrist and
Wanlock, except in the brushing of the top, that shall be settled
by the subdistrict.

JOINT AGREEMENTS 237

Nivth District.

Mount Olive, Staunton, Gillespie, Clyde, Sorento, and Coffeen,
and mines on the Vandalia line as far east as and including
Smithboro, and on the B. & O.S.W. as far east as Breese . . .49

Coal 5 feet and imder 54

1. The Indianapolis convention, having adopted the
mining and underground day-labour scale in effect April 1,
1900, as the scale for the year beginning April 1, 1902, no
changes or conditions shall be imposed in the Illinois scale
for the coming year that increase the cost of production of
coal in any district in the state, except as may be provided.

2. No scale of wages shall be made by the United Mine
Workers for mine manager, mine manager's assistant, top
foreman, company weighman, boss drivers, night boss, head
machinist, head boilermaker, head carpenter, night watch-
man, hoisting engineers. It being understood that ' assis-
tant ' shall apply to such as are authorised to act in that
capacity only. The authority to hire and discharge shall be
vested in the mine manager, top foreman, and boss driver.
It is further understood and agreed that the night watchman
shall be exempt when employed in that capacity only.

3. Any operator paying the scale rate of mining and day
labour under this agreement, shall at all times be at liberty
to load any railroad cars whatever, regardless of their owner-
ship, with coal, and sell and deliver such coal in any market
and to any person, firm, or corporation that he may desire.

4. The scale of prices for mining per ton of 2,000 pounds
run-of-mine coal herein provided for, is understood in every
case to be for coal free from slate, bone, and other impuri-
ties, loaded in cars at the face, weighed before screening ;
and that the practice of pushing coal by the miners shall be
prohibited.

5. («) Whether the coal is shot after being undercut or
sheared by pick or machine, or shot without undercutting or
shearing, the miners must drill and blast the coal in accord-
ance with the state mining law of Illinois, in order to protect
the roof and timbers in the interest of general safety. If it
can be shown that any miner persistently violates the letter
or spirit of this clause, he shall be discharged.

238 THE ADJUSTMENT OF WAGES

(b) The system of paying for coal before screening was
intended to obviate the many contentions incident to the use
of screens, and was not intended to encourage unworkman-
like methods of mining and blasting coal, or to decrease the
proportion of screened lump ; and the operators are hereby
guaranteed the hearty support and co-operation of the United
Mine Workers of America in disciplining any miner who from
ignorance or carelessness or other cause fails to properly mine,
shoot, and load his coal.

6. In case slate, bone, clay, sulphur, or other impurities
are sent up with the coal by the miner, it shall be the duty
of whomever the company shall designate as inspector to
report the same, with the estimated weight thereof, and the
miner or miners so offending shall have such weight de-
ducted from the established weight of the car, and for the
first offence in any given month shall be fined 50 cents ; for
the second offence in the same month he or they shall, at the
option of the operator, be fined $2 or suspended for two work-
ing days ; and for the third or any subsequent offence in the
same month, or in malicious or aggravated cases for the first
or any subsequent offence, the operator may indefinitely
suspend or discharge.

The company weighman shall post in a conspicuous place
at the pit head the names of all miners dealt with hereunder.

The inspector designated by the operator shall be a
member of the United Mine Workers of America, but in
the discharge of the duties herein specified shall not be
subject to the jurisdiction of the local union or president or
pit committee, and against any miner or committeeman
seeking in any way to embarrass the inspector in or because
of the discharge of such duties, the provisions of the miners'
State constitution shall be invoked, and in addition he shall,
at the option of the operator, be suspended for two working
days.

In case it shall be alleged by either the local representa-
tives of the miners or by the operator that the inspector is
not properly performing his duties hereunder, it shall be so
reported to the miners' subdistrict president, who shall,
within forty-eight hours after the receipt of notification, take

JOINT AGREEMENTS 239

it up with the superintendent of the company for adjudica-
tion ; and, if it shall be found that the inspector is not faith-
fully performing such duties, he shall be discharged or trans-
ferred to other duties, as the operator may elect.

The proceeds of all fines hereunder shall be paid to the
miners' subdistrict secretary-treasurer, and under no circum-
stances shall any such fine be remitted or refunded.

7. The miners of the state of Illinois are to be paid twice
a month, the dates of pay to be determined locally, but in no
event shall more than one-half month's pay be retained by
the operator. When any number of men at any mine so
demand, statements will be issued to all employees not less
than twenty-four hours prior to pay day. No commissions
will be charged for money advanced between pay days, but
any advance between pay days shall be at the option of the
operator.

8. The price for powder per keg shall be ^1.75. The
miners agree to purchase their powder from the operators,
provided it is furnished of standard grade and quality ; that
to be determined by the operators and expert miners jointly,
where there is a difference.

9. The price for blacksmithing for pick mining shall be
six-tenths of a cent per ton for room and pillar work, and 12i
cents per pay per man, or 25 cents per month for long wall
or pick and drill sharpening.

10. It is understood that there is no agreement as to the
price of oil.

11. The inside day- wage scale authorised by the present
agreements, i.e. the Columbus scale of 1898, plus an advance
of 20 per cent., shall be the scale under this agreement ; but
in no case shall less than ;^2.10 be paid for drivers.

12. The above scale of mining prices is based upon an
eight-hour workday, and it is definitely understood that this
shall mean eight hours' work at the face, exclusive of noon
time, six days a week, or forty-eight hours in the week, pro-
vided the operator desires the mine to work ; and no local
ruling shall in any way affect this agreement or impose con-
ditions affecting the same.

Any class of day labour may be paid, at the option of the

240 THE ADJUSTMENT OF WAGES

operator, for the number of hours and fractions thereof
actually worked, at an hour rate based on one-eighth of the
scale rate per day : Provided, homever, That when the men
go into the mine in the morning they shall be entitled to two
hours' pay whether the mine hoists coal two hours or not,
except in the event that they voluntarily leave their work
durino- this time without the consent of the operator they
shall forfeit such two hours' pay : Provide':^, further, That
overtime by day labourers, when necessary to supply railroad
chutes with coal by night or Sunday, where no regular men
therefore are exclusively employed, or when necessary in
order not to impede the operation of the mine the day follow-
ing, and for work which can not be performed or completed
by the regular shift during regular hours without impeding
the operation of the mine, may be performed and paid for at
the same rate per hour.

13. {a) The duties of the pit committee shall be confined
to the adjustment of disputes between the pit boss and any
of the members of the United Mine Workers of America
working in and around the mine, for whom a scale is made,
arising out of this agreement or any subdistrict agreement
made in connection herewith, where the pit boss and said
miner or mine labourers have failed to agree.

(6) In case of any local trouble arising at any shaft
through such failure to agree between the pit boss and any
miner or mine labourer, the pit committee and the miners'
local president and the pit boss are empowered to adjust it ;
and in the case of their disagreement it shall be referred to
the superintendent of the company and the president of the
miners' local executive board, where such exists ; and shall
they fail to adjust it — and in all other cases — it shall be
referred to the superintendent of the company and the miners'
president of the subdistrict ; and, should they fail to adjust
it, it shall be referred in writing to the officials o^ the
company concerned and the State officials of the United Mine
Workers of America for adjustment ; and in all such cases,
the miners and mine labourers and parties involved must
continue at work, pending an investigation and adjustment,
until a final decision is reached in the manner above set forth.

JOINT AGREEMENTS 241

(c) If any day men refuse to continue at work because of
a grievance which has or has not been taken up for adjust-
ment in the manner provided herem, and such action shall
seem likely to impede the operation of the mine, the pit
committee shall immediately furnish a man or men to take
such vacant place or places at the scale rate, in order that the
mine may continue at work ; and it shall be the duty of any
member or members of the United Mine Workers, who may
be called upon by the pit boss or pit committee, to imme-
diately take the place or places assigned to him or them in
pursuance hereof.

{d) The pit committee, in the discharge of its duties, shall
under no circumstances go around the mine for any cause
whatever, unless called upon by the pit boss or by a miner or
company man who may have a grievance that he cannot
settle with the boss ; and, as its duties are confined to the
adjustment of any such grievances, it is understood that its
members shall not draw any compensation except while
actively engaged in the discharge of said duties. Any pit
committeeman who shall attempt to execute any local rule or
proceeding in conflict with any provision of this contract, or
any other made in pursuance hereof, shall be forthwith
deposed as committeeman. The foregoing shall not be con-
strued to prohibit the pit committee from looking after the
matter of membership dues and initiations in any proper
manner.

(e) Members of the pit committee employed as day men
shall not leave their places of duty during working hours,
except by permission of the operator, or in cases involving the
stoppage of the mine.

(/) The right to hire and discharge, the management of
the mine, and the direction of the working force are vested
exclusively in the operator, and the United Mine Workers of
America shall not abridge this right. It is not the intention
of this provision to encourage the discharge of employees, or
the refusal of employment to applicants, because of personal
prejudice or activity in matters affecting the United Mine
Workers of America. If any employee shall be suspended or
discharged by the company and it is claimed that an injustice

242 THE ADJUSTMENT OF WAGES

has been done him, an investigation to be conducted by the
parties and in the manner set forth in paragraphs {a) and (6)
of this section shall be taken up promptly ; and, if it is proven
that an injustice has been done, the operator shall reinstate
said employee and pay him full compensation for the time he
has been suspended and out of employment : Provided, If no
decision shall be rendered within five days, the case shall be
considered closed in so far as compensation is concerned.

14. The wages now being paid outside day labour at the
various mines in this state shall constitute the wage scale for
that class of labour during the life of this agreement : Tro-
vided, That no top man shall receive less than ^1.80 per day.

15. In the event of an instantaneous death by accident in
the mine, the miners and underground employees shall have
the privilege of discontinuing work for the remainder of that
day ; but work, at the option of the operator, shall be resumed
the day following, and continue thereafter. In case the
operator elects to operate the mine on the day of the funeral
of the deceased, as above, or where death has resulted from
an accident in the mine, individual miners and underground
employees may, at their option, absent themselves from work
for the purpose of attending such funeral, but not otherwise.
And in the event that the operator shall elect to operate the
mine on the day of such funeral, then from the proceeds of
such day's operation each member of the United Mine
Workers of America employed at the mine at which the
deceased member was employed shall contribute 50 cents and
the operator ^25 for the benefit of the family of the deceased
or his legal representatives, to be collected through the office
of the company. Except in case of fatal accidents, as above,
the mine shall in no case be thrown idle because of any death
or funeral ; but in the case of the death of any employee of
the company or member of his family, any individual miner
may, at his option, absent himself from work for the sake of
attending such funeral, but not otherwise.

16. (a) The scale of prices herein provided shall include,
in ordinary conditions, the work required to load coal and
properly timber the working places in the mine, and the
operator shall be required to furnish the necessary props and

JOINT AGREEMENTS 243

timber in rooms or working face. And in long wall mines it
shall include the proper mining of the coal and the brushing
and care of the working places and roadway according to
the present method and rules relating thereto, which shall
continue unchanged.

(&) If any miner shall fail to properly timber, shoot, and
care for his working place, and such failure has entailed falls
of slate, rock, and the like, the miner whose fault has
occasioned such damage shall repair the same without com-
pensation ; and if such miner fails to repair such damage he
may be discharged.

Any dispute that may arise as to the responsibility under
this clause shall be adjusted by the pit committee and mine
foreman, and in case of their failure to agree, shall be taken
up for settlement under the thirteenth section of this
agreement.

In cases where the mine manager directs the placing of
crossbars to permanently secure the roadway, then, and in
such cases only, the miner shall be paid at the current price
for each crossbar when properly set.

The above does not contemplate any change from the
ordinary method of timbering by the miner for his own
safety.

17. The operators will recognise the pit committee in the
discharge of its duties as herein specified, but not otherwise ;
and agree to check off union dues, assessments, and fines from
the miners and mine labourers, when desired, on proper indi-
vidual or collective continuous order, and furnish to the
miners' representative a statement showing separately the
total amount of dues, assessments, and fines collected. When
such collections are made, card days shall be abolished. In
case any fine is imposed, the propriety of which is questioned,
the amount of such fine shall be withheld by the operator
until the question has been taken up for adjustment and a
decision has been reached.

18. The operators shall have the right in cases of
emergency work or ordinary repairs to the plant to employ in
connection therewith such men as in their judgment are best
acquainted with and suited to the work to be performed,

B 2

244 THE ADJUSTMENT OF WAGES

except where men are permanently employed for such work.
Blacksmiths and other skilled labour shall make any necessary
repairs to machinery and boilers.

19. The erection of head frames, buildings, scales, ma-
chinery, railroad switches &c. necessary for the completion
of a plant to hoist coal, all being in the nature of construction
work, are to be excluded from the jurisdiction of the United
Mine Workers of America. Extensive repairs to or rebuilding
the same class of work shall also be included in the same
exception. The employees thereon to be excluded, as above,
when employed on such work only.

20. When any employee absents himself from his work
for a period of two days, unless through sickness or by first
having notified the mine manager and obtained his consent,
he ma}* be discharged.

21. («) Except at the basing point, Danville, the difleren-
tial for machine mining throughout the state of Illinois shall
be 7 cents per ton less than the pick-mining rate. It being
understood and agreed that the machine-mining rate shall
include the snubbing of coal either by powder or wedge and
sledge, as conditions may warrant, where chain machine is
used ; but it is understood that this condition shall not
apply where two men have and work in one place only in the
same shift, except at the option of the miner ; and it shall
also be optional with the miner which system of snubbing
shall be followed. The division of the machine-mining rate
shall be fixed in joint subdistrict meetings.

(&) The established rates on shearing machines and air or
electric drills as now existing shall remain unchanged during
the ensuing year.

22. Any underground employee not on hand so as to go
down to his work before the hour for commencing work, shall
not be entitled to go below, except at the convenience of the
company. When an employee is sick or injured, he shall be
given a cage at once. When a cage-load of men comes to the
bottom of the shaft who have been prevented from working
by reason of falls or other things over which they have no
control, they shall be given a cage at once. For the accommo-
dation of individual employees less than a cage load, who

JOINT AGREEMENTS 245

have been prevented from working as above, a cage shall be
run mid-forenoon, noon, and mid-afternoon of each working
day : Provided, however, That the foregoing shall not be
permitted to enable men to leave their work for other than
the reasons stated above.

23. This contract is in no case to be set aside because of
any rules of the United Mine Workers of America now in
force or which may hereafter be adopted ; nor is this contract
to be set aside by reason of any provision in their national,
State, or local constitutions.

24. All classes of day labour are to work full eight hours,
and the going to and coming from the respective working
places is to be done on the day hand's own time. All
company men shall perform whatever day labour the foreman
may direct. An eight-hour day means eight hours' work in
the mines at the usual working places, exclusive of noon-time,
for all classes of inside day labour. This shall be exclusive
of the time required in reaching such working places in the
morning and departing from same at night.

Drivers shall take their mules to and from the stables,
and the time required in so doing shall not include any part
of the day's labour ; their time beginning when they reach
the change at which they receive empty cars — that is, the
parting drivers at the shaft bottom, and the inside drivers at
the parting — and ending at the same places ; but in no
case shall a driver's time be docked while he is in waiting
for such cars at the points named. The inside drivers, at
their option, may either walk to and from their parting or
take with them, without compensation, either loaded or
empty cars, to enable them to ride. This provision, however,
shall not prevent the inside drivers from bringing to and
taking from the bottom regular trips, if so directed by the
operator, provided such work is done within the eight hours.

The methods at present existing covering the harnessing,
unharnessing, feeding, and caring for the mules shall be
continued throughout the scale year beginning April 1, 1902 ;
but in cases where any grievances exist in respect to
same, they shall be referred to the subdistrict meetings for
adjustment.

246 THE ADJUSTMENT OF WAGES

When the stables at which the mules are kept are located
on the surface and the mules are taken in and out of the
mines daily by the drivers, the question of additional com-
pensation therefor, if any, is to be left to the subdistricts
affected for adjustment, at their joint subdistrict meetings.

25. Mission Field scale is referred to Danville subdistrict
for adjustment.

26. The company shall keep the mine in as dry condition
as practicable by keeping the water off the roads and out of
the working places.

27. The operator shall keep sufficient blankets, oil, ban-
dages, &c., and provide suitable ambulance or conveyances at
all mines to properly convey injured persons to their homes
after an accident.

28. The operator shall see that an equal turn is offered
each miner, and that he be given a fair chance to obtain the
same. The check-weighman shall keep a turn bulletin for
the turn-keeper's guidance. The drivers shall be subject to
whomever the mine manager shall designate as turn -keeper,
in pursuance hereof.

In mines where there is both hand and machine mining,
an equal turn shall mean approximately the same turn to
each man in the machine part of the mine and approximately
the same turn to each man doing hand work ; but not
necessarily the same to each hand miner as to each working
with the machines.

29. There shall be no demands made locally that are not
specifically set forth in this agreement, except as agreed to in
joint subdistrict meetings held prior to May 1, 1902. Where
no subdistricts exist, local grievances shall be referred to the
United Mine Workers' State executive board and the mine-
owners interested.

The United Mine Workers of America, District No. 12.
W. R. EussELL, President.
T. J. Reynolds, Vice-President.
W. D. Eyan, Secretary -Treasurer.

The Illinois Coal Operators' Association.
0. L. Gareison, President.
E. T. Bent, Secretary.

Peobia : March 13, 1902.

JOINT AGREEMENTS 247

I attest that this is a correct copy of the joint State agree-
ment of coal miners and coalmine operators of Illinois for the
year ending March 31, 1903.

Herman Justi, Commissioner.

3. Indiana State Agreement.

Bituminous.

Pursuant to an agreement between the Coal Operators
and United Mine Workers of America, of Illinois, Indiana,
Ohio, and Pennsylvania, made at Columbus, Ohio, February 9,
1900, the price of mining for bituminous coal m the State
of Indiana shall be eighty cents per ton of 2,000 pounds
for screened lump coal, made over a standard screen, and
forty-nine cents per ton of 2,000 pounds for run-of-mine.
That further details in scale of prices for pick and machine
mining in the State of Indiana for one year, beginning
April 1, 1901, shall be as follows : —

Pick Mining.
Yardage.

In entries 7 to 9 feet wide 1.66

In entries 12 feet the price shall be five-eighths of regular price or 1.03J

Entries shall not exceed 12 feet ; it being understood that
this applies to entry work only.

Break-throughs.

Break-throughs between entries shall be paid for at entry
prices. Break-throughs between rooms, when sheared or
blocked, shall be paid for at entry prices ; but no break-
throughs shall be driven without the consent of the operators.
Nothing herein shall interfere with the law governing break-
throughs.

Boom Turning.

Eoom turning )?4.00

Koom necks to be driven 12 feet in and widened at an
angle of 45 degrees when so desired by the operator. Any
distance in excess of above shall be paid for proportionately,

248 THE ADJUSTMENT OF WAGES

but no room neck shall exceed 15 feet. When room necks
are driven 12 feet wide, the price shall be five-eighths of
regular price, or ^^2.50.

Machine Mining.

In entries 7 to 9 feet wide 1.19

In entries 12 feet wide, five-eighths of price for narrow entries, or . .74

Narrow work after punching machines shall be sheared
when demanded by the operator. Narrow work after the
chain machine must be done in a workmanlike manner.

Break-throughs.

Break-throughs between entries, same as entry prices.
Break-throughs between rooms shall be paid for at same price
when similarly driven.

Boom Turning.
Room turning .......... ^^3.00

Eoom necks to be driven 12 feet in and widened at an
angle of 45 degrees when so desired by operators. Any
distance in excess of above shall be paid for proportionately,
but no room neck shall exceed 15 feet. When room necks
are driven 12 feet wide, price shall be five-eighths of regular
price, or ^1.87.

Day Worh for Punchirig Machines.

Machine work, when paid for by the day, shall be for machine $

runner 2.82

Helper 2.25

Day Worh, Chain or Cutter-har Machine.

"When paid for by the day shall be, for machine runner . . . 2.67^
Helper 2.67|

Day work by machines shall apply only to opening new
mines and defective work, such as horsebacks, &c.

Price per Ton for Machine Mining.

For punching machine. — Screened lump — runner, 9 c. ;
helper, 8 c. ; loading, shooting, and timbering, 45 c. ; total,
62 c.

JOINT AGREEMENTS 249

Run-of-mine. — Runner, 5f c. ; helper, h\ c. ; loading,
shooting, and timbering, 28 c. ; total, 39 c.

For chain machine. — Screened lump —runner, 5| c. ;
helper, 5^ c. ; loading, shooting, and timbering, 48 c. ;
total, 58| c.

Run-of-mine.— Runner, 3|^ c. ; helper, 3;^ c. ; loading,
shooting, and timbering, 30 c. ; total, 36^ c.

Machine shovels shall be furnished by the operators, but
when replaced, the old shovels must be returned, and, in case
of careless breaking or destruction, the helper shall pay for
the shovel so destroyed.

Blacksmithing .

Price of blacksmithing shall be 1^ c. on the dollar.
Sharpening shall be done in a workmanlike manner, and men
shall not have to wait for their tools.

Day Labour.

Inside day labour shall not be less than ,^2.25 per day of
eight hours, when men are employed, and track men and
timber men shall receive #2.30 per day of eight hours, and
all outside day labourers working at the mines, excepting
weighmasters, flat trimmer and dumper, who shall be
regarded strictly as company men, shall be recognised as
members of the United Mine Workers of America ; provided
that the present scale of prices now paid for outside day
labour shall prevail during the existence of this contract,
together with present conditions and hours of labour, and
provided further, that, in emergencies or in the absence of
any regular employee, the right of the operator to employ men
not members of the United Mine Workers for outside day
labour shall not be questioned.

General.

1. When the coal is paid for mine-run, it shall be mined in
as good condition as when paid for on a screened lump basis ;
and, when loaded on the miner's car, it shall, as nearly as
possible, be free from slate, bone coal, or other impurities ;
and if it can be shown that any miner persistently violates

250 THE ADJUSTMENT OF WAGES

the letter or spirit of this clause, he shall be discharged.
Nor shall he load out an undue proportion of fine coal in any-
one car, but shall see that the fine coal is mixed with the
large coal in such a way as to make a fair quantity of mine-
run coal. This provision for cleaning coal and penalty for
failure also applies to screened lump coal,

2. The semi-monthly pay shall continue until the con-
stitutionality of the law providing for weekly pay shall have
been passed upon by the Supreme Courts of Indiana and of
the United States.

3. The time of beginning work in the morning and the
length of intermission at noon shall be considered a local
question.

4. That the above scale is based upon an eight-hour work-
day ; that it is definitely understood that this shall mean
eight hours' work at the face, exclusive of the noon time ; six
days in the week, or forty-eight hours in the week, and that
no local ruling shall in any way deviate from this agreement,
or impose conditions affecting the same ; but any class of day
labour may be paid at the option of the operator for the
number of hours and fraction thereof actually worked at the
hour rate, based on one-eighth of the scale rate per day ;
provided that, when men go into the mine in the morning, they
shall be entitled to two hours' pay whether the mine works or
not ; provided further, that overtime of day labour shall be
paid for at the same rate per hour.

5. Inside day work may be done upon idle days, and in
case of emergency, on overtime.

6. It is agreed that if any difference arises between the
operators and the miners at any time, a settlement shall be
arrived at without stopping the work. If the parties imme-
diately affected cannot reach an agreement themselves, the
question shall be referred without delay to a board of
arbitration, consisting of two operators, selected by the
operator interested, and two miners, selected by the local
union of the United Mine Workers of America involved. In
the event of these four being unable to reach a decision, they
shall select a fifth man, and the decision of the board so

JOINT AGREEMENTS 251

constituted shall be final, but no miner or operator interested
in the difference shall be a member of such board.

7. The duties of the mine committee shall be confined to
the adjustment of disputes between the mine boss or super-
intendent and any of the members of the United Mine
Workers of America, working in and around the mines,
except as hereinafter set forth in article 16. In case they
fail to agree, they shall proceed to adjust the trouble by the
selection of an arbitration board as provided in article 6
of this agreement. The mine committee shall have no other
authority, nor exercise any other control, nor in any way
interfere with the operation of the mine ; and, for violation of
this agreement, the committee or any member thereof or
mine boss or superintendent shall be discharged.

8. That under no circumstances will the operators recog-
nise or treat with a mine committee or any representative of
the United Mine Workers of America, during the suspension
of work, contrary to this agreement.

9. The operator shall have the privilege of working a night
shift for cutting coal with machines. All men so employed
shall be paid 25 cents extra for each eight hours' work at night,
in addition to the scale price per ton.

10. Work on driving entries and drawing pillars may be
by double shift at the option of the operator.

11. This contract shall in no case be set aside because of
any rules of any local union of the United Mine Workers of
America, nor shall there be any rules made controlling or
interfering with the operations of the mines except by the
consent of the operators and miners.

12. Coal may be dumped as slowly as the operator may
find necessary to thoroughly screen it, even if the car is
brought to a stop, but it shall not be dumped in such a way
as to throw the coal over the car door or unnecessarily
break it.

13. Any miner knowing his place to be unsafe, shall
protect same without delay and shall go into the mine for
that purpose outside of regular hours and on idle days.

14. No restrictions shall be placed on the amount of coal

252 THE ADJUSTMENT OF WAGES

which machines may mine, nor on the number of cars that
any miner may load in any specified time.

15. The price of powder per keg shall be $ 1.75. The
miners agree to purchase the powder from their operators,
provided it is furnished of standard grade and quality, that
to be determined by the operators and expert miners jointly
where there is a difference.

16. It is agreed that any hoisting engineer shall not be
subjected to the interference or dictates of the mine committee
or the local unions ; but all differences between the engineer
and his employer shall be adjusted by the officers of the
United Mine Workers of America and the employer.

17. It is further agreed that the operators shall offer no
objection to the check-off for the eheck-weighman and for
dues for the Federation, provided that no check-off shall be
made against any person until he shall have first given his
consent in writing to his employer. This applies to all day
"work as well as miners.

J. Smith Talley, President.
P. H. Penna, Secretary.

Indiana Bituminous Coal Operators' Association.
W. D. Van Horn, President.

Dist. No. 11, U.M.W. of A.
J. H. Kennedy, Sec'y-Treas.

Dist. No. 11, U.M.W. of A.

4. Ohio.
Detailed Mining Scale for the Hocking Valley,

the Basing District of Ohio.

Effective during the scale year, from April 1, 1900, to
April 1, 1901, as adjusted and fixed by and between the Ohio
State officials. United Mine Workers of America, and the
operators of the said district, by their duly authorised repre-
sentatives, at Columbus, Ohio, on Tuesday, February 20,
1900, and renewed and continued March 6, 1901, to be effective
from April 1, 1901, to April 1, 1902.

JOINT AGREEMENTS 253

Fick Mining Bate.

Per ton of screened lump coal 0.80

Kun of mine, 5-7 lump price 57ij^

Entries.

Dry entries per yard ......... 2.00

Break-throughs in entries ........ 2.00

Break-throughs in rooms ........ 1.39

Room turning ........... 3.03

Timber men, per day ......... 2.28

Track layers, per day 2.28

Track layers' helpers, per day 2.10

Pipe men, per day 2.22

Trappers, per day .......... 1.00

Cagers, drivers, machine haulers, water haulers, and all other inside

day labour, per day 2.10

Dumpers and trimmers, per day 2.10

Couplers, greasers, slack haulers, firemen, engineers,
carpenters, blacksmiths, cleaners, hostlers, and other outside
day labour — Special prices according to nature of work.

Machine.

Cutting, by Jeffrey styles of machine, in rooms, per ton . . .09

Cutting, by Jeffrey styles of machine, in entries 12|-

Cutting, by punching machine, in rooms ..... .13J

Cutting, by punching machine, in entries ..... .14f

Loading, in rooms, per ton ........ .41

Loading, in rooms, with hand drilling, per ton 44

Loading, in entries .......... .51^

Loading, in entries, with hand drilling 54i

Loading, break-throughs, in entries . . . Entry price

Loading, break-throughs, in rooms 48^

Loading, break-throughs, with hand driUing ..... .51^

Drilling by hand 03

DrilUng by machine ......... .02^

Room turning, ciitter and loader .... Entry price

Bules and Conditions governing Mining in Hocking
District, from A2)ril 1, 1901, to April 1, 1902.

Turns. — There shall be no free turns allowed to either
rooms or entries. The entries shall be driven as fast as
operators desire or conditions permit ; but in no case shall

254 THE ADJUSTMENT OF WAGES

entry miners be allowed more cars per week than room
miners, and at least once each week the turn shall be made
uniform throughout the mine for the time previously worked.
If, however, the regular turn will not allow ears enough to
drive the entries as fast as desired, the operators shall increase
the number of miners in each entry, so that, by giving to each
the regular turn, the entries shall be driven as fast as two
miners could do with full work.

If, however, the room men decline to take their place in
the entries when requested to do so by the operator, then the
entry men shall have free turns until the entries are driven
their required length.

Limit on Mbie Cars. — No limit of weight shall be placed
on loading mine cars ; and in case of loss in transit the com-
pany shall not be held responsible, except, where cars are
broken by employees or where a wreck occurs, the average
weight shall be made good by the company.

In order that miners cannot take advantage of this clause,
the mine manager and committee, of any mine where com-
plaint is made of loading cars over their capacity, shall
mutually agree on a standard height of loading mine cars.

Check off. — The system of checking off for the United
Mine Workers' organisation remains in force and must be
observed. Same to be checked off by per cent, of earnings.

Clay Veins. — Where clay veins, rolls in bottom or horse-
backs exist, the price for removing same shall be determined
between loader, mine boss, and mine committee.

Bottom, Sprags, dec. — All machines shall be fitted with
front shoe not to exceed two and one-half inches in thickness,
and the machine men be required to cut coal level and close
to bottom ; and in no case shall thickness of bottom exceed
four inches, except in case of pots or other extreme variation ;
and all machine men leaving more bottom than above must
lift the same, or it shall be lifted at their expense.

Where the mine boss or superintendent orders left greater
thickness than four inches, the company shall take care of it ;
and where the bottom left is sulphurous and unmarketable
the miner may call the attention of the mine boss to it and
«endeavour to arrive at an agreement for its removal or reten-

JOINT AGREEMENTS 255

tion. If the mine boss and miner fail to reach an agreement
as to compensation or otherwise, the matter shall be sub-
mitted to the superintendent and mine committee for adjust-
ment.

In case of sprags being left by a machine man, he shall
be notified by loader, and if he refuse to remove the same,
the loader shall remove the same and be allowed fifty cents
for so doing, the said fifty cents to be deducted from the
machine runner. And where any machine runner leaves six
or more sprags in any one pay, he shall be removed from
machine and his services be disposed of as deemed best by the
general superintendent.

Booms. — All rooms shall be thirty feet wide with two
tracks in each room, where practicable. Where rooms have
to be cut twenty-four feet wide or under eighteen feet, same
shall be paid three cents per ton extra. Not to affect pillars
or entries.

Each two men shall be given two rooms where practi-
cable.

Blacksmithing . — Machine loaders not to be charged for
blacksmithing.

Pick Mine Necks. — In opening rooms in pick mines,
where narrow work exceeds eighteen feet before widening
room, all in excess of eighteen feet shall be paid for at entry
price.

Wet Places. — Where the mine boss and miner fail to agree
as to whether the working place is wet and entitled to extra
pay, it shall be referred to the committee and mine boss or
superintendent, and, if adjudged wet, three cents per ton addi-
tional shall be paid.

Mi7ie Idle on account of Idle Men. — Where there are
four men out of cutting or drilling, working after same
machine or drill when work is commenced in the morning,
and the same is not caused by accident, the mine shall
remain idle that day.

But in no case shall the mine be stopped before the matter
is brought to the attention of mine boss and mine committee,
and only on their order.

Slate. — The company shall remove the slate from the

256 THE ADJUSTMENT OF WAGES

working places of the miner ; and if the company fails after
being notified, the miner shall be employed to remove such
slate and be paid therefor at the price agreed upon between
the mine boss and the miner, based on the price of inside day
labour.

Double Shift Entr^j. — Twenty-five cents per yard shall
be paid for driving double shift entries and break-throughs
between entries.

Stops. — No stoppage shall take place at any mine on
account of any grievance until the matter has been presented
to the mine boss and superintendent, and an opportunity for
adjustment permitted ; and, failing to adjust, then the matter
be referred to the officials and operators.

Clean Goal. — (Adopted at joint meeting held at Athens,
Ohio, April 17, 1901.) No dock shall be taken for less than
100 pounds of dirt, unless it is apparent that dirty coal has
been loaded intentionally ; then 300 pounds of good coal shall
be taken for 100 pounds or less.

For from 150 to 250 pounds of dirty coal, 700 pounds of
good coal shall be taken.

For 250 or more pounds of dirty coal, 1,000 pounds of
good coal shall be taken.

For the third dirty car of coal in the same day from the
same working place, 1,500 pounds of good coal shall be taken;
and if the man or men are found to have an average place by
bank boss and committee, he, or they, shall be laid off for one
day, or more, at the discretion of the mine boss and com-
mittee.

All good coal to be placed in the burial fund.

Weigh offices to be so arranged that check-weighmen can
see chutes and railroad car.

Signed, as authorised at joint meeting, held at Athens,
Ohio, April 17, 1901.

[Edward Johnson,
For Operators : \ Z. Williams,
[j. M. Roan.

[W. H. Haskins, President.
For Miners : J Michael Collins, Dist. Pres.
(Joseph Richards, Dist. Secy.
Attest : F. S. Brooks, Secretary.

JOINT AGREEMENTS

557

5. Mining and Dead Woek Scale for Pennsylvania :
Pittsburg District.

For the year beginning April 1, 1901.

'Pick Mining.

$
Thin vein 1\ inch screened coal, per ton ..... .80

Thick vein 1\ inch screened coal, per ton 6680

All clay veins 6 inches and less than 12 inches .... 2.20

Anything over 12 inches in all places at the rate per foot . . 2.20

When clay veins run at an angle, there shall be paid in all places

while it continues, per yard 55

Anything 6 inches or less shall be considered a spar, for which

shall be paid in all places 1.09

When the spar runs at an angle, there shall be paid additional

per yard in all places 28

Room turning, neck not to exceed 7 yards ..... 3.03

Entry, single shift, per yard 1.64

Entry, double shift, per yard 1.94

Entry, treble shift, per yard 2.24

For 12-foot places, per yard 1.21

Break-throughs between rooms, per yard 1.15

Break-throughs between entries, where slate is taken down, or

comes down and has to be removed, per yard .... 1.64
Break-throughs between entries, where slate is not taken down,

per yard 1.15

Cutting drains, per yard, in entries ...... .12

Eipping roof, per yard, in entries 18

Pick sharpening, on the dollar ....... .Oli

Ripping roof and cutting drain in any place to be paid at above
prices
Cross-cut entries, 45 degrees, extra per yard . . . . "20

Machine Mining.

—

Haebison, Ingebsoll, ok
Sullivan Machines

Thin
Vein
Uin.

Thick
Vein
liin.

Thin
Vein
M.R.

Thick
Vein
M.R.

The undercutting in rooms, per ton
For unloading in rooms, per ton .
For drilling by hand and loading in

rooms, per ton

1 For drilling by power and loading in
1 rooms, per ton

.1500
.3968

.4268

.4168

.in

.3390
.3630
.3550

.0957
.2565

.2759

.2694

.0743
.2191

.2346

.2294

>58

THE ADJUSTMENT OF WAGES

Machine Mining — continued.

Harbison, Ingebsoll, ob
Sullivan Machines

For cutting in all narrow work, per ton

and .2424 per yard, as yardage.
For drilling by hand and loading in

entries, per ton ....

and .2121 per yard, as yardage.
For drilling by power and loading in

entries, per ton ....

and .2121 per yard, as yardage.
For loading in entries, per ton

and .2121 per yard, as yardage.
For loading and hand drilling in break-
throughs between entries, entry price

to be paid.
For loading in break-throughs between

rooms, per ton ....
For loading and hand drilling in break

throughs between rooms, per ton
Drilling by power drill, per ton .
Drilling by hand drill, per ton

Thin Thick Thin
Vein Vein Vein
liin. Hin. M.R. i

Thick
Vein
M.K.

1542 I .1198 .0997 .0774

.5298 .4454 | .3424 .2879

.5198 I .4374
.4998 i .4163

.4631 I .8920

.4995 I .4212

.02 I .0160

.03 1 .0240

.3359 I .2827
.3230 .2690

.2993 .2533

.3228 I .2722

.0130 i .0100

.0200 ! -0160

For loading and cutting in room turning, entry price shall
be paid.

Wherever narrow work prices are mentioned, on all
machine cutting and loading, its equivalent may be paid in
yardage, by mutual agreement.

Pick sharpening, loading after machines, | cent on dollar,
both thick and thin vein.

Loaders to receive 10 cents per yard in addition to above
prices when driving entries double shift.

Price of entry on equivalent plan.

Air Machines — Thin Vein.

Cutter, entry price
Cutter, room price

.1542
.1500

Tons to one yard of entry

.0042

.0126
Entry yardage added 2424

Total cost of cutting one yard of entry 2550

JOINT AGREEMENTS 259

Loader, entry price .5298

Loader, room price .4268

.1030

Tons to one yard of entry . 3

.3090
Entry yardage added 2121

Total cost of loading one yard of entry 5211

B>oom Turning.

Cutter, for 13 yards @ .2550 3.3150

Loader, for 13 yards @ .5211 6.7743

Electric Machines — Thin Vein.

Cutter, entry price .1300

Cutter, room price .0950

.0350

Tons to one yard of entry 3

.1050
Entry yardage added 0250

Total cost of cutting one yard of entry 1300

Loader, entry price .5400

Loader, room price .4350

.1050

Tons to one yard of entry . 3

.3150
Entry yardage added 2560

Total cost of loading one yard of entry 5710

Boom Tu7'ning.

Cutter, for 13 yards @ .1300 1.6900

Loader, for 13 yards @ .5710 7.4230

Air Machines — Thick Vein.

Cutter, entry price .1198

Cutter, room price .1150

.0048

Tons to one yard of entry ........ 4J

.0204
Entry yardage added 2424

Total «08t of cutting one yard of entry 2628

s 2

26o THE ADJUSTMENT OF WAGES

Loader, entry price .4454

Loader, room price ....... .3630

.0824

Tons to one yard of entry 4^

.3502
Entry yardage added 2121

Total cost of loading one yard of entry 5623

Boom Turning.

Cutter, for 13 yards @ .2628 3.4164

Loader, for 13 yards @ .5623 7.3099

Electric Machines — Thick Vein.

Cutter, entry price .1030

Cutter, room price .0740

.0290

Tons to one yard 4|

.1232

Entry yardage added 0318

Total cost of cutting one yard of entry 1550

Loader, entry price .4504

Loader, room price ....... .3680

.0824

Tons to one yard of entry 4|

.3502
Entry yardage added 2560

Total cost loading one yard of entry ...... .6062

Boom Tui'ning.

Cutter, for 13 yards @ .1550 2.0150

Loader, for 13 yards @ .6062 7 8806

Equivalent Plan Tonnage.

All tonnage from entries and rooms to be paid at room
work price.

Machine Dead Work — Thick and Thin Veins — With
Harrison, higersoll, or Sullivan Machines.

Clay veins 6 inches and less than 12 inches ;^1.62

Of which the cutter receives 41 cents and the loader ;^1.21.

Anything 12 inches or over, at the rate per foot of , . . .1.62
Of which the cutter receives 41 cents and the loader ^^1.21.

JOINT AGREEMENTS 261

When clay veins run at an angle across the room, there shall be

paid while it continues, per yard ...... .40

Of which the cutter receives 10 cents and the loader 30 cents.
Anything 6 inches or less shall be considered spar, which shall be

paid 80

Of which the cutter receives 20 cents and the loader 60 cents.
When the spar runs at an angle, there shall be paid additional, per

yard 21

Of which the cutter receives 6 cents and the loader 15 cents.

Jeffrey, Link Belt, Morgan-Gardner, or any other
Chain Machine.

Clay veins 6 inches and less than 12 inches ..... ^^1.48

Of which the cutter receives 26 cents and the loader .^1.22.
Anything 12 inches or over, at the rate of, per foot .... 1-48

Of which the cutter receives 26 cents and the loader ,^1.22.
When clay veins run at an angle across the room, there shall be

paid while it continues, per yard 36

Of which the cutter receives 6 cents and the loader 30 cents.
Anything 6 inches or less shall be considered spar, for which shall

be paid 73

Of which the cutter receives 13 cents and the loader 60 cents.
When the spar runs at an angle, there shall be paid additional, per

yard 18

Of which the cutter receives 4 cents and the loader 14 cents.

All prices for narrow work and dead work in the thin vein
shall apply for similar work in the thick vein.

Inside Day Wage Scale.

Track layers, per day ^^2.28

Track layers' helpers, per day 2.10

Trappers, per day 1.00

Bottom eagers, per day 2.10

Drivers, per day .......... 2.10

Trip riders, per day 2.10

Water haulers, per day 2.10

Timber men, where employed, per day 2.28

Pipe men, for compressed air plants, per day 2.22

All other inside day labour, per day 2.10

The hours of day labour at the mines to be from 7 o'clock
a.m. until 12 o'clock noon, with one full hour for dinner, and
from 1 o'clock p.m. until 4 o'clock p.m.

Wet entries to be agreed upon between mine boss and
miners.

262 THE ADJUSTMENT OF WAGES

On the question of thick slate in rooms and entries : All
slate over 12 inches shall be considered * thick slate,' and is
to be paid for at a rate agreed upon between the miners and
mine boss ; and in case they cannot agree, then it shall be
left to the superintendent and miners for adjustment.

It is especially agreed that the run-of-mine price shall be,
in thin vein pick mines, .5171 cents per ton, and in thick
vein pick mines, .4318 cents per ton, and that two days'
notice shall be given to miners when change is to be made
from run-of-mine to screened coal. No mine to go on a rmi-
of-mine basis unless mutually agreed to by operator and
miners.

^ (Geo. W. Schluederberg,

Signed hy Operators: j^^ ^^ Blackburn.

/Thomas Brown,

F. C. WiNBUSH,

Andy Davidson,
Signed hy Miners : { Jos. Glancy,

Matthew Charlton,
Wm. Dodds, Secretary.
P. DoLAN, Chairman.

6. Concluding Passages from

The Report to the President on the Anthracite Coal Strike.

By Carroll D. Wright, Commissioner of Labor.

Department of Labor, Washington, D.C. :
Jrinc 20, 1902.

Sir, — I have the honour to submit herewith a report
on the causes of and conditions accompanying the present
controversy between the anthracite coal miners of Penn-
sylvania and the coal operators. I undertook this investi-
gation in accordance with your verbal request of the 8th
instant.

The organic law of the Department of Labor provides
that the Commissioner of Labor is * authorised to make
special reports on particular subjects whenever required to
do so by the President or either House of Congress.' . . .

JOINT AGREEMENTS 263

General Considerations.

Much evidence has been offered to show the general con-
dition of miners, their complaints and grievances, and the
complaints and grievances of the operators. In a critical
sense, these have all been referred to above, and the various
appendices give them more fully. It is very clearly shown
by the evidence that the miners have done something in the
way of securing discipline, although they have disappointed
the operators in such attempts. The mmers claim that they
have forced their members to accept discharge whenever they
were wrong, and have ordered men back to work when the
strike was not authorised by the labour union ; that when
the officers of the union have been able to see the manager of
a company concerning any case and have been allowed to
confer, they have almost invariably been able to arrive at an
adjustment of the difficulty, but that where the manager
refused to deal with the representatives of the union, there
was no choice but to pass upon the matter according to the
evidence of one side only, such evidence being taken as con-
clusive, and the officers being obliged to decide in favour
of the men, who have preferred a wish not to work under
existing conditions.

This, it is claimed, injures the corporations, because the
results have not been based upon full evidence. The miners
feel that the corporations, when they refuse to recognise the
right of the unions to represent the men in adjusting any
difficulty, can not deny that the officers have the power to
decide whether or not the employees shall strike. They also
state that if the operators will make an agreement with them,
they will carry it out as far as it lies m their power to
do so, but that without an agreement they are all the time
quibbling as to conditions under which miners shall work.
They feel that an agreement i% writing will protect the
corporations from unjust strikes, if they really desire such
protection. The way it appears to the average workman is
that the operators do not want an agreement that will bind
them and prevent them from following their usual course.

On the other hand, the operators contend that no such

264 THE ADJUSTMENT OF WAGES

agreement would have any binding effect upon the miners,
and that it is ridiculous and foolish to undertake to make
one ; that they are interfered with constantly in their efforts
to preserve order and good discipline.

All this shows, and proves clearly, that there is no confi-
dence existing between the employees and their employers,
and that suspicion lurks in the minds of everyone and dis-
trust in every action on either side.

It is represented to me by reputable parties who have no
interest in the mining business one way or the other that the
chief difficulty lies in lack of organisation. This is shown
by the existence of many practices in the management of
coal mines which appear to be unwise, unfair, and calculated
to work hardship. There are many prosperous miners in the
coal region, and of course there is also, as in every industry,
great destitution. The whole problem is an extremely com-
plex one, and involves many practices that have been built
up through long years. The mine owners too often have
regarded the average miner as unreasonable, and likely to
be unruly when occasion offered. The miner has come to
regard the average owner as greedy and ready to do any-
thing which will take advantage of him. Long-continued
conditions on this basis of suspicion make the question one
of great difficulty.

It would seem reasonable that if the men should be sure
of steady work, or fairly steady work, they could well afford,
perhaps, to take less wages, or even to continue on the present
basis of payment. It is insisted by many that eight hours a
day for six days in the week at less wages than they are now
receiving would make the miners as prosperous a class of
workmen as can be found in the United States.

Some of the miners have testified that if they can be paid
by honest weight they do not care anything about the increase
of wages. They say they would rather work nine hours a day
with a decreased wage than on the old basis.

So there are all sorts of conflicting statements from both
sides. Nevertheless, considering all the testimony that has
been offered, and weighing it as carefully and as impartially
as I can, and listening to the statements of operators, miners,

JOINT AGREEMENTS 265

capitalists, bankers, students, and others — to all of whom I
am grateful for their generous assistance — I cannot help feel-
ing that there are certain suggestions that are reasonable and
just in the premises.

Suggestions that seem I'easonahle and just.

1. That the anthracite employees should organise an
anthracite coal miners' union, in its autonomy to be inde-
pendent of the United Mine Workers of America. The new
union might, of course, be affiliated with the United Mine
Workers and the American Federation of Labor ; but in the
conduct of all the* afifairs relating to the anthracite coal
regions the new union should preserve its own autonomy and
be financially responsible for its agreements.

2. That, considering all the facts relative to production,
cost of coal at the mines, profits, freight traffic, &c., it would
be reasonable and just for the operators to concede at once a
nine-hour day, but that this should be done for the period of
six months as an experiment, in order to test the influence
on production, with the guaranty that if production is not
materially reduced thereby the agreement shall be made for
a more permanent reduction of time.

3. That under a new organisation consisting of anthracite
employees there shall be organised a joint committee on
conciliation, composed of representatives of the operators and
of the new union, to which all grievances as they arise shall
be referred for investigation, and that when two-thirds of
the committee reach a decision, that decision shall be final
and binding upon both parties. (For practical illustration
see Appendix H — * Contract of Bituminous Coal Miners and
Operators.' ' )

4. That the first duty of such joint board of conciliation
shall be to enter upon a thorough examination and investiga-
tion of all conditions relative to mining anthracite coal, to
question of weighing, to discipline, to wage scales, and to all
matters that now form the burden of the complaints and
grievances of both operators and miners ; such investigation

' This is the Illinois State Agreement, printed above in Appendix IV. 2.

266 THE ADJUSTMENT OF WAGES

or examination to be made through the employment of experts
to be selected by the joint committee ; the results of such
investigation not to be considered in the nature of an award
of a board of arbitration, but as verified information on which
future contracts can be made.

5. That whenever practicable and where mining is paid
for by the ton, and until the joint committee referred to shall
have made its report, coal shall be paid for by the ton and be
weighed by two inspectors, one representing the operators and
one representing the men, each side to pay its own inspector.

6. That there shall be no interference with non-union
men.

7. That, whenever practicable, collective bargains shall be
made relative to wages, time, and other conditions, under
rules to be established by the joint committee referred to.

The proposition has been made that with the experience
of the past the operators, in agreement with the miners,
might establish a uniform or fixed percentage of deduction
from all coal mined as representing, on the average, the
impurities, the result of which would be that every miner
would know that a certam fixed percentage is to be deducted
from the coal mined without reference to its purity ; that
such a rule, while it would be unfair and absurd in some cases,
would be generous in others, and thus an understanding
reached which would avoid all the irritations which now
accompany the subject of weighing and the deduction for
impurities. The question is full of difficulties, and it may not
be possible to crystallise the proposition into a fixed rule ;
but it may be worth consideration by a joint committee such
as has been suggested.

The conclusions stated above, Mr. President, seem to me,
in the light of all the evidence that has been furnished me,
to be reasonable and just, and should they be adopted, with
some modifications, perhaps, here and there, they would lead
to a more peaceful and satisfactory condition in the antliracite
coal regions. They may not lead, even if adopted fully, to
perfect peace nor to the millennium ; but I believe they will
help to alla}^ irritation and reach the day when the anthracite
coal regions shall be governed systematically and in accord-

JOINT AGREEMENTS 267

ance with greater justice and higher moral principles than
now generally prevail on either side.

I am, Mr. President, very respectfully, your obedient
servant,

Carroll D. Wright, Commissioner.

The President.

[Note. — This is to be carefully distinguished from, but compared,
clause by clause, with, the lieport of the Anthracite Coal Strike Com-
mission subsequently appointed by the President, The Aivards of that
Report are printed in Appendix VII.]

268 THE ADJUSTMENT OF WAGES

T. IRON AND STEEL IN GREAT BRITAIN: RULES
OF CONCILIATION BOARDS, SLIDING SCALES, &c.

1. Rules of the Midland Iron and Steel Wages Board.

Bevised and adopted at a Meeting of the Board held at
Queen's Hotel, Birmingham, February 26, 1894.

1. The title of the board shall be * The Midland Iron and
Steel Wages Board.'

2. The objects of the board shall be to discuss, and, if
necessary, to arbitrate on wages or any other matters affecting
the respective interests of the employers or operatives, and by
conciliatory means to interpose its influence to prevent dis-
putes and put an end to any that may arise.

3. The president shall be a person of position not con-
nected with the iron trade, chosen by the board, whose duty
it shall be to attend at special meetings, upon being requested
by the board to do so. He shall take no part in the discus-
sions, beyond asking for an explanation for the guidance of
his own judgment, and if no settlement can be made, he shall
give his adjudication.

4. The board shall consist of one employer and one opera-
tive representative from each works joining the board.
Where two or more works belong to the same proprietors,
each works may claim to be represented on the board.

5. The employers shall be entitled to send one duly ac-
credited representative from each works to each meeting of
the board.

6. The operatives of each works shall elect a representa-
tive by ballot, at a meeting to be held for the purpose, on
such day or days as the standing committee may fix, in the
month of December in each year, the name of such representa-
tive, and of the works he represents, being given in to the
secretaries, on or before January 1 next ensuing.

SLIDIXG SCALES 269

The secretaries shall, in the month of November in each
year, issue a notice to each works connected with the board,
requesting the election of representatives in the month of
December, and shall supply the requisite forms.

7. If any operative representative die, or resign, or cease
to be qualified by terminating his connection with the works
he represents, a successor shall be chosen within one month,
in the same manner as is provided in the case of annual
elections.

8. The operatives' representatives so chosen shall continue
in office for the calendar year immediately following their
election, and shall be eligible for re-election.

9. Each representative shall be deemed fully authorised
to act for the works which he represents, and the decision of
a majority of the board— or in case of equality of votes, of
its chairman— shall be binding upon the employers and
operatives of all works connected with the board.

10. The chairman shall be appointed by the employers'
section from among their body. The vice-chairman shall be
appointed by the operatives' section from among their body.
A secretary shall be appointed by the employers, and a secre-
tary shall be appointed by the operatives, and a treasurer
and a professional auditor shall be appointed by the board.
Either of the secretaries, the treasurer, or auditor may be
dismissed by a resolution of the respective bodies appointin^^-
them, subject to three months' notice.

11. The board shall meet for the transaction of business
in February of each year ; but, by order of the standing
committee, the secretaries shall convene a meeting of the
board at any time. The circular calling such meetmg shall
express, m general terms, the nature of the business for con-
sideration.

12. At the annual meeting of the board a standing com-
mittee shall be appointed as follows : — The employers shall
nominate 12 of their number, exclusive of the chairman ; and
the operatives 12 of their number, exclusive of the vice-
chairman.

If at a meeting of the board or standing committee any
employers' representative, or any operatives' representative,

270 THE ADJUSTMENT OF WAGES

be absent, the employers' secretary, or the operatives' secre-
tary, shall vote for such absent member or members as the
case may be.

The standing committee shall have power to fill up all
vacancies in their own committee that may arise during the
year.

13. The standing committee shall meet for the transaction
of business prior to the yearly meeting, and in addition as
often as business requires. The time and place of meeting
shall be arranged by the secretaries in default of any special
direction.

14. The chairman shall preside over all meetings of the
board, and of the standing committee, except in cases that
require the president. In the absence of the chairman, a
temporary chairman shall be elected by the meeting.

15. All questions requiring investigation shall be sub-
mitted to the standing committee, or to the board, as the
case may be, in writing, and shall be supplemented by such
verbal evidence or explanation as they may think needful.

An official form shall be supplied to each representative,
on which complaints can be entered. Either secretary re-
ceiving a complaint shall be required to forward a copy of the
same to the other secretary, and the complaint shall be con-
sidered as officially before the board from the date of such
notice.

16. All questions shall, in the first instance, be referred to
the standing committee, who shall investigate and have
power to settle all matters so referred to it, except a general
rise or fall of wages, or the selection of a president, which
shall be referred to a special meeting of the full board. In
case the standing committee fails to agree, the question in
dispute shall be submitted to the full board, and if not decided
by the board, shall then be submitted to the president ; but
in all cases witnesses from the works affected may be sum-
moned to attend and give evidence before the president in
support of their case.

17. No case which the standing committee is called upon
to deal with, or subject of dispute, shall be brought forward
at any meeting unless notice thereof has been given to the

SLIDING SCALES 271

secretaries seven clear days before such meeting ; but this is
not to apply to routine business or to matters the investi-
gation of which may be considered necessary by the standing
committee.

18. All votes shall be taken at the board and standing
committee by show of hands, unless any member calls for a
ballot.

19. When the question is a general rise or fall of wages,
a board meeting shall be held, and in case no agreement can
be arrived at, it shall be referred to the president, and his
decision shall be final and binding on all parties.

20. The expenses incurred by the board shall be borne
equally by the employers and operatives.

The two secretaries shall arrange for the collection of the
contributions quarter by quarter, on June 30, September
30, December 31, and March 31, which shall be forth-
with remitted to the treasurer through the works' offices,
and it is expected that the employers will allow their pay
clerks to assist the operatives' representative in making the
collection upon being furnished with a list of those desiring
to contribute.

The employers' contribution shall be at the rate of one
shilling and sixpence per quarter for each puddling, ball, and
scrap furnace, three shillings for each mill, heating, and
annealing furnace, and ten shillings for each open hearth,
steel furnace, or converter per quarter.

The operatives' contributions per quarter shall be — for all
puddlers (including level hands), shinglers, rollers, heaters,
steel workers, and all other tonnage men, fourpence per man.
Also all time men (including puddlers' underhands) receiving
three shillings and sixpence and over per day, a contribution
of fourpence per quarter ; and all time men receiving under
three shillings and sixpence per day, twopence per quarter.

The banking account of the board shall be kept in the
name of the treasurer, and all accounts shall be paid by
cheques signed by him.

21. The sum of ten shillings shall be paid to each mem-
ber of the board, both employers and operatives, for each
day's attendance, and second-class railway fare both ways.

272 THE ADJUSTMENT OF WAGES

22. The operatives' representative shall be paid for time
necessarily lost in attending to difficulties at the works to
which he belongs, upon a certificate signed by the vice-
chairman and the operatives' secretary, at the rate of IO5.
for each shift so lost.

23. Should it be proved to the satisfaction of the standing
committee that any member of the board has used his
influence in endeavouring to prevent the decisions of the
board or standing committee from being carried out, he
shall forthwith cease to be a representative, and shall be
liable to forfeit any fees which might otherwise be due to him
from the board.

24. If the employers and operatives at any works not
connected with the board should desire to join the same, such
desire shall be notified to the secretaries, and by them to the
standing committee, who shall have power to admit them to
membership on being satisfied that these rules have been or
are about to be complied with.

25. No alteration or addition shall be made to these rules
except at the meeting of the board to be held in February in
each year, and unless notice in writing, of the proposed altera-
tion, be given to the secretaries at least one calendar month
before such meeting. The notice convening the annual
meeting shall state fully the nature of any alteration that
may be proposed.

26. The standing committee shall have power to make,
from time to time, such bye-laws as they may consider
necessary, provided the same are not inconsistent with or at
variance with these rules.

27. No suspension of work shall take place pending the
decisions of the board or of the president.

Instructions.

The board earnestly invites the attention of all who
belong to it to the following instructions :—

1. If any subscriber to the board desires to have its
assistance in redressing any grievance, he must explain the
matter to the operatives' representative of the works at which
he is employed. Before doing so he must, however, have

SLIDING SCALES 273

done his best to get his grievance righted by seeing his fore-
man, or the manager, himself.

2. The operatives' representative must question the com-
plainant about the matter, and discourage complaints which
do not appear tc be well founded. Before taking action, he
must ascertain that the previous instruction has been com-
plied with.

3. If there seem to be good grounds for complaint, the
complainant and the operatives' representative must take a
suitable opportunity of laying the matter before the foreman
or works manager, or head of the concern (according to what
may be the custom of the particular works). Except in case
of emergency, these complaints shall be made only upon one
day in each week, the said day and time being fixed by the
manager of the works.

4. The complaint should be stated in a way that implies
an expectation that it will be fairly and fully considered, and
that what is right will be done. In most cases this will lead
to a settlement without the matter having to go further.

5. If, however, an agreement cannot be come to, a state-
ment of the points m difference shall be drawn out, signed by
the employers' representative and the operatives' representa-
tive, and forwarded to the secretaries of the board with a
request that the standing committee will consider the matter.
An official form, on which complaints may be stated, can be
obtained from the secretaries.

6. It will be the duty of the standing committee to meet
for this purpose as soon after the expiration of seven days
from receipt of the notice as can be arranged, but not later
than the first Thursday in each month.

7. It is not, however, always possible to avoid some delay,
and the complainant must not suppose that he will necessarily
lose anything by having to wait, as any recommendation of
the standing committee, or any decision of the board, may
be made to date back to the time of the complaint being
sent in.

8. Above all, the board would impress upon its sub-
scribers that there must he no strike or suspension of work.
The main object of the board is to prevent anything of this

274 THE ADJUSTMENT OF WAGES

sort ; and if any strike or suspension of work take place the

board will refuse to inquire into the matter in dispute till

work is resumed, and the fact of its having been interrupted

will be taken into account in considering the question.

9. It is recommended that any changes in the modes of

working requiring alterations in the hours of labour, or a

revision of the scale of payments, shall be made matter of

notice, as far as possible, and of arrangement beforehand, so

as to avoid needless subsequent disputes as to what ought to

be paid.

Benjamin Hinglby, Chairman.

Samuel Haeris, Vice-Chairman.

Daniel Jones, Employers' Secretary.

William Aucott, Operatives' Secretary.

1a. Midland Iron and Steel Wages Board,
sliding scale for the regulation of ironworkers' wages.

Prepared hy the Sliding Scale Committee appointed
October 8, 1889, and finally confirjned hy the unanimous
resolution of the Board, passed October 21, 1889.^

1. The employers have selected six firms, and the operatives
six firms, as follows, whose books are to be examined by the
accountants.

Chosen by the employers : (1) Messrs. T. U. Eatcliff & Co. ;
(2) The District Iron and Steel Company ; (3) Messrs. Roberts
& Cooper ; (4) Messrs. Lones, Vernon, & Holden ; (5) Messrs.
Eobert Heath & Sons, Limited ; (6) Messrs. John Bagnall &
Sons, Limited.

Chosen by the operatives : (1) Messrs. P. Williams &
Sons ; (2) Messrs. George Adams & Sons, Limited ; (3) Messrs.
John Bradley & Co.; (4) Earl of Dudley; (5) Messrs. W.
Barrows & Sons ; (6) Messrs. N. Hingley & Sons.

2. The employers and operatives jointly appointed Messrs.
B. Smith, Sons, & Wilkie, accountants, of Darlington Street,

' In clause 1 the names of the firms are those at present (March 1903)
selected.

SLIDING SCALES

275

Wolverhampton, as accountants for the purposes of the scale,
and they are instructed

(a) To take out the weights and selling price of all classes
of iron as rolled and delivered from the mills {excepting
charcoal iron, cold rolled, or that which has been subject to
any additional process, and steel sheets, scrap ends, and
defective sheets) sold by the twelve selected firms, every tivo
months, commencing with September and October, 1889, as
the first bi-monthly period. This ascertainment shall regulate
wages for the two months of December and January, and so
on, as shown thus : —

The average net Selling Price Will regulate Wages for

Two months ending Two months ending

October 31, 1889. last Saturday in January, 1890.

December 31, 1889.
February 28, 1890.
April 30, 1890.
June 80, 1890.
August 31, 1890.
October 31, 1890.

And so on.

March, 1890.
May, 1890.
July, 1890.
September, 1890.
November, 1890.
January, 1891.

(6) For this purpose, books or sheets are to be provided
by the board for the private use of each firm, in which all
sales as aforesaid are to be entered, and the selling expenses
are to be shown under the following heads : —

i. Kailway Dues, Freight, Insurance, &c.

ii. Discount, 2| per cent, being the usual amount for each
payment in the district.

iii. Commission.

(c) The books or sheets shall be cast up at the end of each
two months, showing totals of sales and expenses, from which
the net average selling price of the total tonnage shall be
ascertained.

{d) These books or sheets shall be examined by the
accountant, by comparing them with the existing books of the
firm.

(e) The accountant shall forward to the employers' and
the operatives' secretaries certificates duly signed, showing
the result of his examination, at least one week before the
bi-monthly wages settlements.

T 2

276 THE ADJUSTMENT OF WAGES

(/) The accountant to be so chosen and instructed shall
give an undertaking in writing that he will under no circum-
stances disclose to any other person the details of the books
he has examined.

3. The average selling price having thus been ascertained,
the standing committee, consisting of the chairman and
vice-chairman of the board, and the two secretaries, with
two other members belonging to each section of the board,
shall meet and declare the price of puddling per imperial ton,
in the following manner.

(a) Puddlers' wages shall be one shilling and ninepence
(one shilling and sixpence, — Besolution of July 31, 1893) in
excess of one shilling for each pound sterling per ton in
selling price, and the fractional parts shall be regulated
thus: —

ih)

d. s.

Wages

From over

6 to 5

. Sd.

to 7

6 .

. M.

6 to 10

. 6d.

to 12

6 .

. 6d.

6 to 15

. 9d.

to 17

. 9^.

6 to 20

. Is.i

Is. Puddling . . 10 per cent. Millmen.

OIA/. ,, . . I 2 ,} J, J,

K)CL. ,, . . o ,, ,, ,,

od. ,, • . A^ ,, ,, ,,

{d) Such rates to include all claims m lieu of Northern
extras.

4. The sliding scale thus established shall continue in
operation until determined by notice from either side, in
writing, of one calendar month, such notice to terminate at
the close of one of the bi-monthly periods for which wages
are regulated by this scale.

' The rate paid i^er ton between 1892 and 1899, in accordance with this
scale, varied between 7s. 'del. and 9s. The list will be found in the Board of
Trade Report on Standard Piece Rates and Sliding Scales (1900), 28.

SLIDING SCALES

277

iB. Midland Iron and Steel Wages Board.

A BI-MONTHLY DECLARATION OF WAGES.

Meeting of the Standing Committee, ' Grand Hotel,
Birmingham, Thursday, July 31, 1902.

ETnployers' Section — Sir B. Hingley, Bart., Cliairman.

. J. LONES • . . (

Messrs. Lones, Vernon, & Holden).

G. Macpherson . (

P. Williams & Sons).

E. E. Cooper . (

Roberts & Cooper).

G. Adams . . (

))

G. Adams & Sons, Limited).

E. Parkes . . (

E. Parkes & Co.)

J. B. Lees . . (

J. B. & S. Lees).

Burslem . . (

?»

John Lysaght, Limited).

J. F. Cay . . (

Patent Shaft & Axletree Co.
Limited).

Keen . . . (

Guest, Keen, & Co., Limited.

G. Hatton . . (

Earl of Dudley's Round Oak Co.

Limited).

Colonel Patchett . (

The Shropshire Iron Co., Limited)

Operatives' Section-

-Mr. i

3. Harris, Vice-Chairman.

Mr. W. Chrimes.

Mr. L. Churm.

„ J. Hill.

„ A. Goodreid.

„ J. Callear.

„ J. 0. Kelford.

„ J. Richards.

„ J. Rainbow.

„ E. Hollier.

„ J. Smith.

,, W. Allen.

„ R. Pagett.

Daniel Jones. | Secretaries.
William Aucott, 1

1. The minutes of the last meeting were confirmed and
signed.

2. The accountants' certificate for May and June, 1902,
was presented, of which the foliowmg is a copy : —

' To the Midland Iron and Steel Wages Board.

' 22 Darlington Street, Wolverhampton :

' Jidy 25, 1902.

* Gentlemen, — We beg to report that we have examined
the returns of sales of iron made by the twelve selected firms

278 THE ADJUSTMENT OF WAGES

for the months of May and June, 1902, and have verified the
same with their books.

' We certify the average net selling price to have been
6?. 17s. 9-896Z. per ton.

* Below is a statement of the different classes of iron sold,
and the average net selling price of each : —

[Figures here omitted.]

' The following table shows the figures for the previous
two months : —

[Figures here omitted.]

* We are. Gentlemen, your obedient servants,

* Benjamin Smith, Son, & Wilkie,
' Chartered Accountants.'

In accordance with the sliding scale the rate of wages for
puddling remains eight shillings and sixpence per ton, basis
price, and millmen's wages in proportion, to commence
August 4, and continue until Saturday, October 4.

Sliding Scale.

Mr. Harris stated that meetings of the operatives' repre-
sentatives had been held to consider the disparity between
the rate of wages for puddling in this district as compared
with the North of England. The understanding for many
years past had been that the Northern extras were worth
Qd. per ton, and that had been paid in lieu of Northern
extras. The scale on its own merits had not given that
result ; and although concessions had been made to remedy
the difficulty the men had lost faith in the scale, and wished
it to be modified or suspended, as it was from 1890 to 1893,
pending the settlement of the premium.

It was urged that since 1893 changes had taken place
which affected the scale unfavourably for the men, the
selected firms had been changed, and the newspaper reports
of advances in the price of iron whilst the ascertainments
showed a reduction, added to the difficulty. They did not ask

SLIDING SCALES 279

to increase the premium to Is. 9cZ. because the trade was not
in a normal condition, and it might be found to give too
high a result, but they asked for a suspension of the scale
for a time, and to follow the Northern ascertainment, adding
Qd. to the rate given by that scale.

The employers put in a statement showing the working of
the scale since 1893, and with the concessions that had been
made the men had only lost 3(^. per ton over a period of two
months. It was true the scale itself had not given that result,
but recently all classes of iron had been included, which would
give a slight improvement, and Northern prices tended to
lower faster than Midland prices. It was not a time, con-
sidering the state of trade both in the Midlands and the
North, to add to the difficulties of the employers, and what-
ever decision might be ultimately arrived at, it should not be
hurried.

The operatives said they had no desire to take a false
step by hurrying, and if the employers would assure them
that if the next ascertainment did not give them the Northern
rate for puddling, plus Qd., they would agree that the differ-
ence should be made up ; they should be willing to allow the
question to stand over until then.

It was then unanimously agreed — ' That if the next
ascertainment by the accountants does not give %d. per ton
above the North of England rate for puddling, the difference
shall be made up.'

Mr. Jones reported that the accountants wished to know
whether another firm would be selected in place of Messrs.
P. Williams & Sons for the examination of their books.

The operatives said it was their place to make the selec-
tion, as Messrs. P. Williams & Sons were originally selected
by them, but so far they had been unable to fix upon a firm,
and therefore the accountants had better examine the books
of the eleven firms, as they had done on a former occasion.

On the motion of Mr. Callear, seconded by Mr. G. Mac-
pherson, this course was agreed to.

>8o THE ADJUSTMENT OF WAGES

Messrs. I. Jenks d Sons {Minerva Ironworks).

The firm had, in a correspondence with Mr. Jones, made
complaint of the behaviour of a roller and his furnaceman,
by neglecting their work.

Mr. Aucott had been to the works and investigated the
case, and advised the roller that he was in the wrong, and
had better make the best arrangement he could. Under
Mr. Aucott's pleading, the firm decided to fine the roller 10s.,
but to remit it back to him if he attended well to his work for
a fortnight.

The firm wished the occurrence to be brought to the
Tinowledge of the standing committee, which approved of
what had been done.

Daniel Jones, Employers' Secretary.
William Aucott, Operatives' Secretary.

2. The Board of Conciliation and Arbitration for the
Manufactured Iron and Steel Trade of the North of
England.

an annual report.

The Thirty-fourth Annual Meeting of the Board was
held at the Station Hotel, Newcastle-on-Tyne, on Monday,
January 26, 1903, Mr. William Whitwell in the Chair, and
Mr. James Walsh in the Vice-Chair.

The following Eeport of the Standing Committee and
Statements of Account were submitted and adopted.

Standing Committee's Report.

The standing committee have to report that the number
of works represented at the board is one less than six months
ago, due to the closing of the Moor Works of the South
Durham Steel and Iron Co. Ltd. The number now con-
nected is 10 works owned by 8 firms.

The average number of operative subscribing members
during the half-year has been 4,128. In the first half of

SLIDING SCALES 281

1902 the number was 4,071, the last six months thus showing
an increase of 57.

The financial statement for the past twelve months,
duly audited by Messrs. Abbott & Pugh, is submitted here-
with, and shows as follows : —

Balance in hand, January 1, 1902 . . . 604 8 2
Eeceipts during the year .... 859 2 5

£1,463 10 7

Expenditm-e 953 8 7

Balance in hand, December 31, 1902 . . 510 2

£1,463 10 7

The standing committee have met four times since the
half-yearly board meeting, and there have been three
meetings of subcommittees appointed to deal with cases
that have required investigation by a visitation of the works
affected.

The following are the matters that have come before the
standing committee : —

Consett Worhs. — Claim of enginemen and others at
No. 4 cogging mill for an advance in wages in consequence
of increased output.

Consett Worhs. — Claim of the men employed at the angle
cogging mill for a revision of their rates.

JarroiD Works. — Claim of the operatives in the sheet
mill to be paid their average day's earnings on the old mode
of working, for the period they have been under the new
mode of working.

Jarroiv Works. — Claim by the firm for reduction of rates
paid in the 36 in. mill cogging mill, on the ground of the
improved appliances provided.

West Hartlepool Works. — Claim of the firm for reduction
in the wages of the soaking-pit firemen on the ground of the
furnaces being now partly gas-heated.

General Wages. — Neither in the case of the works under
the general sliding scalQ, nor in the case of the steel-mill men
at the works affected by the scale that applies thereto, has
there been any change in wages during the past half-year.

282

THE ADJUSTMENT OF WAGES

The usual tabular statement of the ascertainments for the
purpose of the general sliding scale is appended : —

Period

Tons

Average net
Selling Price

Effect upon Wages
under Sliding Scale

Two months ending —

August 31, 1902 . )
October 31, 1902 . r
December 31, 1902 )

Figures

here
omitted.]

S. s. d.
(6 3 11-03

6 5 7-36
(6 5 1-54

No change
»

An event which it is believed will be of considerable
interest to the members of the board was the visit to the
United States in the autumn of last year of the ' Moseley '
commission, for the purpose of inquiring into the industrial
conditions and methods of that country, and this interest will
doubtless be enhanced by the fact that the operatives'
secretary of your board was selected to act on that
commission as the representative of the British iron and
steel trades.

The result of the investigations of this important
delegation has not yet been made known, but the report
which will be available to the public is awaited with more
than usual interest by all connected with the trades with
which your board is more immediately concerned.

The past year has been chiefly marked by the decline in
the shipbuilding industry, which has reacted seriously upon
the manufacturing trade in plates and angles. It is to be
hoped that the present depression may only be of a temporary
character, and that ere long renewed activity of trade in this
direction may be experienced.

In other departments trade has been on the whole fairly
normal, though the continued high prices of raw material in
relation to the depressed prices of the finished products leaves
but small margin for competitive trading purposes.

Economy in manufacture, the avoidance of waste, the
production of outputs to the fullest capacity of the machinery
employed, are matters necessitating the urgent attention of
all, in order to successfully hold our own in the markets of
the world.

The employer and operative members of the board may

SLIDING SCALES

28s

well take a legitimate pride in the influence exercised by their
organisation in the direction of industrial peace and the
avoidance of strikes — so disastrous to the general trade of the
country. It may confidently be asserted that the principles
of conciliation and arbitration represented by this board are
finding more general acceptance in every branch of industry ;
and your standing committee feel they are therefore war-
ranted in the belief that with a more extended knowledge of
these principles and methods, industrial warfare will speedily
cease its destroying and retrograde influence upon all sections
of trade.

Statement of Receipts and Expenditure
for the tivelve months ending December 31, 1902.

Receipts.

£ s.

To Balance from 1901 .

604 8

To Wm. Whitwell & Oo., Ltd.

60 1

To South Durham Steel & IroL

Co., Ltd., Malleable Works

145 6

Moor Works

49 17

West Hartlepool Works .

81 1

To Sir Theodore Fry & Co., Ltd.

60 15

To Consett Iron Co., Ltd.

291 5

To John Abbott & Co., Ltd. .

41 7

To John Spencer & Sons, Ltd.

33 10

To Palmer's Shipbuilding & Iron

Co., Ltd

41 18

To S. Tyzack & Co., Ltd.

40 13

To Interest on Beposit with N.P

Bank .

13 4

£1,463 10 7

Expenditure.

£ s. d.
By Amount paid to Operatives : —
Attendance at Meet-
ings . . . 77
Lost time . . . 100 10
Witnesses . . . 40 15

By Amount paid to Employers :—
Attendance at Meet-
ings . . . 57 1
Witnesses . . . 11

By Amount paid to Employers

under Rule 21 . . .

By Railway Fares —

Operatives . . 39 16

Employers . . 27 18

£ «. d.

218 5

68 1
75 2 6

67 14
300
28 5 10

12 19 8

4 5
17 2 10
20

6 13 6

5 13

By Secretaries' Salaries .
By „ Travelling Expenses .
By Postages, Telegrams and Office
Expenses :— (Secretaries)

(Representatives)
By Printing and Stationery .
By Office Rent ....
By Rooms for Meetings .
By Reporting ....

By Accountant's fee for getting

out Certificates of average net

selling prices .... 125
By Auditors' and Treasurers' Fees 4 4
By N.P. Bank for Receipt Stamps 3 2
By Balance 510 2

£1,463 10 7

Audited and found correct,
January 24, 1903.

B. A. Abbott, ) . ^ .,
T.B.PUGH. '[Auditors.

284

THE ADJUSTMENT OF WAGES

statement sliowing the Amounts received by the Employer
and Operative Representatives during the twelve months
endiiig December 31, 1902 {Railway fares excluded).

Operat

ves

Amount
received

Name of Works

Operative
Representatives

by Em-
ployers

tor
Meetings

Meetings

Lost Time

Total

' £.

£ s.

£ «.

£ s. d.

Thornaby

J. Cotterill

5 14 3

Malleable

( F. Carrol, 10s. )
1 E. Williams, lOs. | "

„ Steel Dept. .

Wm. C. Griffiths

12 10

4 10

12 9 3

Moor ....

A. Harkuess

2 10

3 10

West Hartlepool .

J. Harrington .

7 10

14 10

Rise Carr

J. Jones .

10 10

11 10

5 8 2

Consett ....

E. Holliday

12 10

21 10

5 13

Park (Gateshead).

R. Bf>lton .

7 6 4

Newburu

Hy. Scott .

8 10

5 10

5 10 6

Jarrow ....

G. Battersby .

9 13 10

Monkwearmouth .

J. Longville

10 10

18 10

5 4 10

Tudhoe ....

W. Outhwaite .

—

Treasurer

Hy. Higgins .

Vice-President

James Walsh .

9 10

Witnesses

40 15

—

40 15

117 15

100 10

218 5

68 1

Election of Officers and Standiiig Committee.

The officers and standing committee were elected as fol-
lows : — Referee, Sir David Dale, Bart. President, Mr. Wm.
Whitwell. Vice-President, Mr. Jas. Walsh. Secretaries,
Messrs. J. K. Winpenny and James Cox. Auditors, Messrs.
B. A. Abbott and T. B. Pugh. Treasurers, Messrs. William
Thackray and Henry Higgins, with power to attend board
and standing committee meetings and to take part in dis-
cussions, but not to vote.

Standing Committee. — Employers. — Messrs. C. J. Bagley,
J. Eeay, E. W. Davies, Geo. Ainsworth, Edward Towers,
J. W. Spencer, Douglas Upton, W. Thackray, and Thomas
Williams. (Mr. Philip Hopkins to have the right of attend-
ing in place of Mr. Eeay, Mr. S. S. Horsfield or Mr. J. Heymer
in place of Mr. Ainsworth, Mr. E. B. Ferry or Mr. A. Fairbairn
in place of Mr. Towers, Mr. James Davis or Mr. H. C.
McBeath in place of Mr. J. W. Spencer, Mr. Arthur J. While
or Mr. A. Sopwith in place of Mr. Upton, and Mr. W. G. C.

SLIDING SCALES 285

Wylde in place of Mr. Thackray.) Opera^^ue,s.— Messrs.
Wm. C. Griffiths, E. Holliday, H. Scott, J. Longville, and
J. Harrington.

Vote of Tha7iks.

The best thanks of the meeting were accorded to the
chairman for his conduct in the chair, and for his services
to the board during the past year.

William Whitwell, President.
Jambs Walsh, Vice-President.

J. R. WiNPENNY,) „

T n f Secretaries.

James Cox, J

3. Eules of the Scottish Manufactueed Iron Trade
Conciliation and Arbitration Board.

Amended and adopted by the Board on January 23, 1899,
and again aynended on January 30, 1902.

1. Title.— l^\iQ title of the board shall be, ' The Scottish
Manufactured Iron Trade Conciliation and Arbitration Board.'

2. Objects. — The objects of the board shall be to discuss,
and if necessary to arbitrate, on wages or any other matters
affecting the respective interests of the employers or opera-
tives, and by conciliatory means to interpose its influence to
avert stoppages, prevent disputes, and put an end to any that
may arise.

3. Constitution of Board. — The board shall consist of
one employer representative and one operative representative
from each works joining the board. Where two or more
works belong to the same proprietors, each may claim to be
represented at the board.

4. Bepresentatives. — The employers shall be entitled to
send one duly accredited representative from each works
to each meeting of the board. The operatives of each works
shall elect their representative to the board, who must be a
subscriber to the board.

5. Election of Operative Bepresentatives. — -The secre-
taries shall, in the month of November in each year, issue
a notice to each works connected with the board, requesting

286 THE ADJUSTMENT OF WAGES

the election of a representative in the succeeding month of
December. The employers will have the notices posted in
their works, and will, if desired by the acting representative,
appoint a person to assist at the election if more than one
candidate be nominated. The notice will call a meeting
of the operatives for such day or days in the month of
December, and at such place or places as the standing
committee hereinafter mentioned may appoint, when candi-
dates shall be nominated. If only one person be nominated,
he shall be considered to be duly elected. If more than one
person be nominated, an election by ballot shall be held on
an early convenient day, to be fixed by the acting representa-
tive and the operatives' secretary, the candidate receiving the
largest number of votes to be declared duly elected. The
acting representative shall on or before the first day of
January next ensuing send to the secretaries the name
of the representative so chosen and of the works he repre-
sents. The secretaries will supply all printed forms necessary
for the election.

6. Term of Office. — The operative representative so chosen
shall assume office at the next ensuing annual meeting of the
board, and shall retain office until the succeeding annual
meeting. Both old and new representatives shall be present
at each annual meeting, but only the old representatives
shall vote on the adoption of the annual report and accounts.
This being done, they shall at once demit office, and be
immediately succeeded by the new representatives. Eepre-
sentatives shall be eligible for re-election.

7. Interim Elections. — If any operative representative
die, or resign, or cease to be qualified, or terminate his
connection with the works he represents, a successor shall be
chosen within one month, in the same manner as is provided
in the case of annual elections, and shall remain in office
over the same period as would the representative in whose
room he was elected.

8. Bepresentatives disqualified by Stoppage of Works ;
Committees to fill tip Vacancies. — In case of the total
stoppage of any works connected with the board, except from
temporary causes, both employer and operative representa-

SLIDING SCALES 287

tives shall, at the end of one month from the date of such
stoppage, cease to be members of the board, and of any com-
mittee on which they may have been elected. Any vacancies
resulting from this or any other cause shall be filled up by the
committee affected.

9. Poivers of Bepresentatives. — Each representative shall
be deemed fully authorised to act for the works which has
elected him, and the decision of a majority of the board shall
be binding upon the employers and operatives of all works
connected with the board.

10. Board Meetings.— The annual meeting of the board
attended by new and old members shall be held in January
of each year, when the accounts for the previous year shall be
submitted. By order of the standing committee the secre-
taries shall convene a meeting of the board at any time,
giving at least seven days' notice. The circular calling such
meeting shall state in general terms the nature of the business
for consideration.

11. Election of Officers ; Casual Vacancies. — At the
annual meeting the new members shall elect an arbiter, a
president, a vice-president, two treasurers, two secretaries,
and two auditors, who shall continue in office till the corre-
sponding meeting of the following year, but shall be eligible
for re-election. All except the arbiter and secretaries shall
be elected from the members of the board. The secretaries
shall be appointed, one by the employers' representatives and
one by the operatives' representatives, and both shall be
paid by the board. Neither of the secretaries shall be an
employer or an employee of the trade. Any casual vacancies in
the offices of treasurers or auditors which may occur during
the year may be filled up by the standing committee ; and
any casual vacancy in the office of employers' or operatives'
secretary may be filled up by the representatives on the
standing committee of the employers or of the operatives, as
the case may be.

12. Duties of Officers. — The president and vice-president
shall be ex-officio members of all committees, but without a
casting vote. It shall be the duty of the president to preside
over all meetings of the board and of the standing com-

THE ADJUSTMENT OF WAGES

mittee, except iii cases that require the arbiter. In the
absence of the president and vice-president a temporary
chairman shall be elected by the meeting ; but in no case,
whoever presides, shall the chairman have a casting vote.
The secretaries shall be appointed as paid officials of the
board without power to vote ; they may, however, take part
in all discussions.

13. Appointment of Standing Committee. — At the annual
meeting of the board a standing committee shall be appointed
as follows : The employers shall nominate twelve of their
number (not more than one from each firm), exclusive of the
president (not more than six of whom shall be entitled to
vote or take part in any discussion at any meeting of the
committee), and the operatives six of their number, exclusive
of the vice-president. Six to form a quorum.

14. Standing Committee Meetings. — The standing com-
mittee shall meet as often as business requires. The time
and place of meeting shall be arranged by the secretaries, in
default of any special direction by the board or the president
and vice-president.

15. Poivers of Standing Committee, of Board, and of
Arbiter, — All questions, including any not settled at the
works, shall, in the first instance, be referred to the standing
committee, who shall investigate and have power to settle all
matters so referred to them (except a general rise or fall of
wages, which shall be referred to a special meeting of the
board). In any case where the standing committee fails to
agree, or its decision is not accepted by either party, the
question in dispute shall be submitted to the board ; and, if
not decided by the board, it may then be submitted to the
arbiter, whose decision in all cases submitted to him shall
be final and binding on all parties.

16. System of Voting. — All votes at the board and
standing committee shall be taken by show of hands. If at
any meeting of the board either the employer representative,
or the operative representative, of any works be absent, the
other representative of such works shall not be entitled to
vote.

17. MetJiod. of Procedure in Disjjutes. — Questions re-

SLIDING SCALES 289

quiring investigation by the standing committee or the
board shall be submitted in writing through the secretaries.
Either secretary receiving a complaint shall forward a copy
of the same to the other secretary, and the matter referred to
shall be considered as officially before the committee from
that date. Before any question be considered, an agreement
of submission shall be signed by the employer and operative
representatives of the works affected, and given to the secre-
taries, who shall bring the same before the committee.
Forms for these purposes shall be supplied by the secretaries.

18. Witnesses may he Summoned. — The committee or
the board, or the secretaries in their discretion, may summon
from the works affected, witnesses to give evidence in any
case submitted to them. Such witnesses to be paid by the
board such allowances and expenses as the committee may
direct.

19. Notice required by Standing Committee. — No case
referred to the standing committee, nor any subject of
dispute, shall be considered at any meeting unless notice
thereof has been given to the secretaries four clear lawful
days before such meeting, but this is not to apply to routine
business nor to matters the investigation of which may be
considered necessary by the standing committee.

20. General Wages Questions. — When the question is a
general rise or fall of wages, a board meeting shall be held ;
and in case no agreement can be arrived at, it shall be referred
to the arbiter, and his decision shall be final and binding on
all parties.

21. No Suspension of Work. — No suspension of work
shall take place pending the consideration or settlement of
any question in dispute.

22. Contributions to the Board ; Bankers ; Operators
of Banking Account. — The sum of one penny per head
per fortnight (which sum may be altered if found neces-
sary) shall be deducted from the wages of all puddlers
(forehand, levelhand, and underhand), bushellers, scrap
furnacemen and assistants, shinglers and assistants, forge
rollers and assistants, puddled-bar bankmen, cutters-down,
heaters and assistants, rollers and all assistants, finished-

290 THE ADJUSTMENT OF WAGES

bar bankmen, pig-iron wheelers, and tap or cinder wheelers,
earning over three shillings per shift. Each firm shall pay
an amount corresponding to the total sum deducted from the
workmen. The contributions, along with the official forms to
be supplied by the secretaries, shall be forwarded to the
bankers (the National Bank of Scotland, Limited, Glasgow),
within one week from the pay when the money is deducted
from the operatives. The banking account of the board shall
be kept in the name of the treasurers, and all accounts shall
be paid by cheque signed by them.

23. Expeiises of Board. — All expenses incurred by the
board shall be borne equally by the employers and operatives.

24. Alloicaiices to Members for Attending Meetings. —
The sum of ten shillings shall be paid to each member attend-
ing a meeting of the board, or of the standing committee.
The sum of fifteen shillings shall be paid to each member
attending a meeting of subcommittee. In addition, each
member shall be allowed travelling expenses at the rate of
three-halfpence per mile, and when an operative member is
engaged on the night-shift following the day on which a
meeting is held, he shall be allowed payment for a second
shift.

25. Alloioances to Rej^resentatives for attending to
Grievances; Concurrent Allowances to Employers' Repre-
sentatives. — The sum of £2 lO.s. per annum shall be paid to
each employers' and operatives' representative, as in full
compensation for all time lost by him attending to grievances
at the works with which he is connected. In the case of any
representative who has held office during part of a year only,
he shall receive a proportionate amount, corresponding to the
time during which he has held office. In the case of any sums
being in any way paid to operatives' representatives in excess
of what is paid to employers' representatives (railway fares
alone excepted), a sum equal to such excess shall concurrently
be credited to the employers collectively.

26. Members preveyiting Decisions being carried out. —
Should it be proved to the satisfaction of the Standing Com-
mittee that any member of the board has used his influence
in endeavouring to prevent the decisions of the board or

SLIDING SCALES 291

standing committee from being carried out, he shall forthwith
cease to be a representative, and shall be liable to forfeit any
fees which might otherwise be due to him from the board.

27. Alteration of Bules. — No alteration or addition shall
be made to these rules, except at the meeting of the board
held in January in each year, and unless notice in writing of
the proposed alteration be given to the secretaries at least
one calendar month before such meeting. The notice con-
vening the annual meeting shall state fully any alteration
that may be proposed.

28. Poiver to make Bye-laics. — The standing committee
shall have power to make, from time to time, such bye-laws
as they may consider necessary, provided the same are not
inconsistent with or at variance with these rules.

29. Works loishing to join Board. — If the employers and
operatives at any works not connected with the board desire
to join the same, such desire shall be notified to the secre-
taries, and by them to the standing committee, who shall
have power to admit them to membership on being satisfied
that these rules have been or will be complied with.

Instructions.

The board earnestly invites the attention of all who
belong to it to the following instructions : —

[Then follow the same instructions as in the Rules of the North of
England and Midland Boards. See above, p. 27-.]

4. EULES OF THE BoARD OF CONCILIATION AND ARBITRATION

FOR THE Manufactured Steel Trade of the West
OF Scotland.

I. The title of the board shall be, ' The Board of Con-
ciliation and Arbitration for the Manufactured Steel Trade of
the West of Scotland.'

II. The object of the board shall be to arbitrate on wages
or any other matters affecting the respective interests of the
employers or operatives, and by conciliatory means to inter-
pose its influence to prevent disputes and put an end to any
that may arise.

V 2

292 THE ADJUSTMENT OF WAGES

III. The board shall consist of one employer and one
operative representative from each works joining the board.
Where two or more works belong to the same proprietors,
each works may claim to be represented at the board.

IV. The employers shall be entitled to send one duly
accredited representative from each works to each meeting of
the board.

V. The operatives of each works shall elect a representa-
tive by ballot at a meeting held for the pm-pose, on such day
or days as the board may fix, in the month of December in
each year. At the same time and in the same manner they
shall also elect a substitute representative, who shall attend
all meetings in the absence, through illness or otherwise, of
the representative ; the names of the representative and sub-
stitute representative, and of the works they represent, being
given in to the secretaries, on or before January 1 next
ensuing.

VI. If any operative representative die, or resign, or cease
to be qualified by terminating his connection with the works
he represents, a successor shall be chosen within one month,
in the same manner as is provided in the case of annual
elections, and shall remain in office till date of next general
election.

VII. The operative representatives so chosen shall con-
tinue in office for the calendar year immediately following
their election, and shall be eligible for re-election.

VIII. In case of the total stoppage of any works connected
with the board, both employer and operative representatives
shall, at the end of one month from the date of such stoppage,
cease to be members of the board and of any committee on
which the}^ may have been elected. Any vacancies so result-
ing from this or any other cause shall be filled up by the
committee affected.

IX. Each representative shall be deemed fully authorized
to act for the works which has elected him ; and the decision
of a majority of the board, or in case of equality of votes, of
its referee, shall be binding upon the employers and opera-
tives of all works connected with the board.

X. The board shall meet for the transaction of business

SLIDING SCALES 293

four times a year, in January, April, July, and October ; but
the secretaries may, with the sanction of the president and
vice-president, convene special meetings at any time to deal
with matters of urgency. Seven days' notice shall be given
of the date of such meeting ; and the circular calling such
meeting shall express in general terms the nature of the
business for consideration.

XI. At the meeting of the board, to be held in January in
each year, it shall elect a referee, a president, and vice-
president, two secretaries, two auditors, and two treasurers,
who shall continue in office till the corresponding meeting of
the following year, but shall be eligible for re-election. The
president and vice-president shall be ex-offi,cio members of
all committees, but without casting vote.

XII. The president shall preside over all meetings of the
board, except in cases that require the referee. In the
absence of the president and vice-president, a temporary
chairman shall be elected by the meeting ; but in no case
shall the chairman have a casting vote.

XIII. All questions requiring investigation shall be stated
in writing to the board, and shall be supplemented by such
verbal evidence or explanation as the board may think
needful.

XIV. The employer and operative representative of the
works affected shall each make out and sign a statement of
the matters in dispute ; and this shall be given to the board.
In case of the board failing to agree, the question in dispute
shall be submitted to the referee, who shall be requested to
decide the same ; but in all such cases witnesses from all the
works affected may be summoned to attend and give evidence
in support of their case.

XV. No subject shall be brought forward at any meeting
of the board unless notice thereof be given to the secretaries
seven clear days before the meeting at which it is to be intro-
duced.

XVI. All votes at the board shall be taken by show of
hands, unless any member calls for a ballot. If, at any
meeting of the board, the employer representative or the
operative representative of any works be absent, the other

294 THE ADJUSTMENT OF WAGES

representative of such works shall not, under the cn-cum-
stances, be entitled to vote.

XVII. When the question is a general rise or fall of wages,
a board meeting shall be held, at which the referee may be
invited to preside ; and in case no agreement be arrived at, a
single arbitrator shall be appointed, and his decision at, or
after, a special arbitration held for the purpose, shall be final,
and binding on all parties. The referee may, by special vote
of a majority of the board, be appointed arbitrator.

XVIII. Any expenses incurred by the board shall be
borne equally by the employers and operatives. The banking
account of the board shall be kept in the name of the
treasurers, and all accounts shall be paid by cheque signed
by them.

XIX. The sum of ten shillings for each member of the
board shall be allowed for each meeting of the board. This
sum shall be divided equally between the employers and
operatives, and shall be distributed by each side in proportion
to the attendances of each member. In addition, each
member shall be allowed second-class railway fare each way,
and when an operative member is engaged on the night-shift
following the day on which a meeting is held, he shall be
allowed payment for a second shift.

XX. The operative representative shall be paid for time
lost in attending to grievances at the works to which he
belongs, at the rate of ten shillings for each shift actually and
necessarily lost. Should he, however, lose more time than is
reasonably necessary in the opinion of the manager, the latter
shall fill up the certificate only for such amount as he con-
siders due before signing it. Whatever sum or sums in this
or any other way be paid to operative representatives, in
excess of what is paid to employer representatives, the amount
of such excess shall concurrently be credited to the employers
collectively. An account of attendances and fees paid to each
representative shall be kept ; and the secretaries shall call the
attention of the board to any case where the cost of adjusting
disputes at any works exceeds, in their opinion, a proper
amount in proportion to the number of operatives employed.

XXI. Should it be proved to the satisfaction of the board

SLIDING SCALES 295

that any member of the board has used his influence in
endeavouring to prevent the decisions of the board from
being carried out, he shall forthwith cease to be a represen-
tative.

XXII. If the employers and operatives at any works not
connected with the board should desire to join the same, such
desire shall be notified to the secretaries, and by them to the
board, who shall have power to admit them to membership
on being satisfied that these rules have been, or are about to
be, complied with.

XXIII. No alteration or addition shall be made to these
rules, except at the meeting of the board to be held in
January in each year, and unless notice in writing of the
proposed alteration be given to the secretaries at least one
calendar month before such meetmg. The notice convening
the annual meeting shall state fully the nature of any
alteration that may be proposed.

XXIV. The board shall have poiyer to make, from time
to time, such bye-laws as they may consider necessary,
provided the same are not inconsistent with, or at variance
with, these rules.

Bye-laws.

Rule V. The secretaries shall, in the month of November
in each year, issue a notice to each works connected with the
board, requesting the election of representatives in the month
of December, and shall supply the requisite forms. It is
understood that the substitute representative shall only act,
either in the works or at the board, in the absence of the
representative.

Eule VIII. No section of men in any works connected
with the board shall have power to sever their connection
with same without first giving six months' notice of their
intention to do so, and no employer shall have the power to
remove any section of men from the jurisdiction of the
board unless with the consent of two-thirds of its members.
Should any section of men cease work and thus sever their
connection with the board, they shall not again be allowed
to become members without the consent of at least two-

296 THE ADJUSTMENT OF WAGES

thirds of the board, and on such conditions as the board may
decide.

Eule XIII. An official form shall be supplied to each re-
presentative, on which complaints can be entered. Either
secretary receiving a complaint shall be required to forward
a copy of the same to the other secretary ; and the complaint
shall be considered as officially before the board from the
date of such notice.

Eule XVIII. The sum of one penny per head per fort-
night shall be deducted from the wages of each operative
earning two shillings and sixpence per day and upwards.
Each firm shall pay an amount corresponding to the total
sum deducted from the workmen. The contributions shall be
forwarded on official forms, to be supplied by the secretaries,
to the bankers (the Bank of Scotland, Glasgow), within one
week from the pay when the money is deducted from the
operatives.

The board earnestly invites the attention of all who
belong to it, either as subscribers or as members, to the
following instructions : —

[These are the same as in the Eules of the North of England, Midland,
and Scotch Manufactured Steel Board. See above, p. 272.]

4a. Form of Statement of Case.

A copy of this statement to be sent to each of the secretaries of the
board — Mr. W. H. Pearson, 23 Royal Exchange Square, Glasgow, and
Mr. John Cronin, 144 West Regent Street, Glasgoiv ; one copy to
be Jiepit by the employers' representative and one by the operatives^
representative.

BOARD OF CONCILIATION AND AEBITRATION FOR THE
MANUFACTURED STEEL TRADE OF THE WEST OF
SCOTLAND.

Case from Works.

Belative to

Received 190 .

SLIDING SCALES 297

We, the undersigned representatives of these works,
having made inquiry into dispute which has arisen between
the employers and employed, and which we are unable to
settle, desire, in accordance with the rules and bye-laws, that
the board should take the matter up, and with this view we
hereby submit statement of the subject in dispute from each
side.

Signed this day of 190 .

Employers' repi'esentative.
Operatives' representative.

Employers' Statement.

OpEEATIVES' STATE:»rENT.

5. EuLEs OF Pkocedure for the Board of Conciliation

ESTABLISHED BETWEEN THE OwNERS OF BlAST FuRNACES

IN Scotland and the Scottish Blastfurnacemen.
Established April 13, 1900.

1. Title.— ThQ title of the board shall be ' The Board of
Conciliation for the Eegulation of Wages in the Pig-iron
Trade of Scotland.'

2. Objects. — The board shall have for its object the
regulation of furnacemen's wages. Furnacemen's wages
shall, until August 1, 1901, be regulated in terms of schedule
hereto annexed.

3. Constitution of Board; Election of Fur^iacemen's
Representatives. — The board shall consist of a representative
of the owners and a representative of the furnacemen from
each of the pig-iron works in Scotland. The same person
may act as representative for more than one work. The
furnacemen's representative at each work shall be elected from
among their own number by the furnacemen who contribute
to the board in terms of rule 16, and he shall cease to be
qualified if he terminates his connection with the works.

298 THE ADJUSTMENT OF WAGES

4. Chairman and Vice-Chairman. — The chairman and
vice-chairman shall be elected by the representatives to the
board at the first meeting, the one being an owners' repre-
sentative and the other a furnacemen's representative.

5. Place of Board Meetiiigs.—The meetings of the
board shall be held in Glasgow or such other place as the
board shall from time to time determine.

6. Interpretation of Terms.— The constituents of the
board, i.e. the owners or owners' representatives and furnace-
men or furnacemen's representatives, are, for brevity, herein
referred to as ' the parties.'

7. Election of Officials ; Duties and Bemuneratio7i. —
The parties shall each elect a secretary to represent them in
the transaction of the business of the board, also a treasurer
and an auditor ; and each party shall give written notice
thereof to the secretary of the other party, and such secre-
taries, treasurers, and auditors shall remain in office until
they shall resign or be withdrawn by the parties electing
them. The secretaries shall attend all meetings of the
board, and shall be entitled to take part in the discussions,
but they shall have no power to move or second any resolu-
tion, or to vote on any question before the board, unless they
are duly elected members of the board. The same party
may be appointed secretary and treasurer. The board shall
fix the remuneration of the secretaries, treasurers, and
auditors.

8. Convening of Board Meetings — Minutes. — The secre-
taries shall conjointly convene all meetings of the board and
take minutes of the proceedings, which shall be entered in
duplicate books, and each of these books shall be signed by
the chairman, vice-chairman, or other person, as the case
may be, who shall preside at the meeting at which such
minutes are read and confirmed. One of such minute-books
shall be kept by each of the secretaries.

9. Bequisitions to call Meetings. — The secretaries, on
the written application of the chairman or vice-chairman
and the secretary of either party, for an alteration in the
rate of wages, for considering any question falling to be
brought before the board in terms of rule 18, or for an

SLIDING SCALES 299

alteration of these rules, shall call a meeting of the board
within fourteen days, at such time and place as may be
agreed upon. The application for the meeting shall state
clearly the object of the meeting.

10. Chairman to preside at Board Meetings. — The
chairman, or, in his absence, the vice-chairman, shall pre-
side at all the meetings of the board. In the absence of
both chairman and vice-chairman, a member of the board
shall be elected by the majority to preside at that meeting.
The chairman or vice-chairman, or other person presiding,
shall vote as a representative, but shall not have any casting
vote.

11. Procedure in Disjmtes ; Neutral Chairman maybe
called in. — All questions as to general advances or general
reductions in the rate of wages, and any question arising
under rule 18, shall, in the first instance, be submitted to
and considered by the board, it being the desire and intention
of the parties to settle any such general advances or general
reductions and such questions by friendly conference if
possible. If the parties cannot agree, then the meeting shall
be adjourned for a period not exceeding fourteen days, to
allow the matter to be discussed by the constituents of the
two parties. In the event of a disagreement at the second
meeting a neutral chairman may be called in to settle the
matter, but only if both parties agree to that course. If it is
agreed to call in a neutral chairman, he shall be nominated
at the second meeting, or an adjournment thereof, and a
third meeting of parties shall be held not later than fourteen
days thereafter. The decision of the neutral chairman shall
be final and binding on both parties.

12. Questions to be stated in Writing — Evidence.^All
questions submitted to the board under rule 11 shall be
stated in writing, and may be supported by such verbal,
documentary, or other evidence and explanation as either
party may submit, subject to the approval of the board.

13. System of Voting. — All votes shall be taken at the
meetings of the board by show of hands. Each representative
on the board shall have one vote for each work which he
represents. If at any meeting of the board the representative

300 THE' ADJUSTMENT OF WAGES

of one of the parties for any work shall be absent, the other
party's representative for such work shall have right to take
part in the discussion, but he shall not be entitled to vote.

14. Expenses. — All expenses incurred by the board,
including the remuneration of the secretaries, treasurers,
and auditors, as the same shall be fixed by the board, shall
be defrayed out of a fund contributed by the owners and
furnacemen as provided by rule 16.

15. Allowances to Furnacemen' s Bepresentatives attend-
ing Meetings ; Concurrent Payment to Oivners collectively. —
Each furnacemen's representative shall receive out of the
funds of the board the sum of lOs. for each day occupied
in attending meetings of the board, or of any committee
appointed by the board, and in addition return railway
fare from the place where the work which he represents
is situated to the place of meeting. When the represen-
tative is engaged on the night-shift following the day on
which the meeting is held, he shall receive the further
sum of lO.s. A sum equal to that which is paid to the fur-
nacemen's representatives for attending each meeting (railway
fares excepted) shall concurrently be credited to the owners
collectively.

16. Contributio7is to Expenses Fund. — To provide a
fund to meet the expenses of the board, the sum of one penny
per fortnight shall be paid by all keepers, assistants, fillers,
chargers, pig-lifters, gasmen, ammonia-works men, furnace
labourers, and others directly employed about the blast fur-
naces. The said contributions shall be collected by the
owners at each work, and shall be paid by them into an
account to be opened with the Clydesdale Bank, Limited,
Glasgow. The owners of each work shall concurrently pay
into said account an amount equal to the total contributions
of the furnacemen at each work. When the funds in bank
amount to 300Z. the contributions thereto may be suspended,
to be resumed when the funds fall below 150Z.

17. Bankers — Accou7its — Audit. — The bank account
shall be kept in the name of the treasurers, and all accounts
shall be paid by cheque signed by them. Proper books of
account shall be kept by the secretaries, which shall be

SLIDING SCALES 301

examined and certified by the auditors at the end of each
year.

18. Freedom of Enqyloyment and Labour ; No Collec-
tive Action to leave Employment until Dispute brought
before Board. — The owners will employ union and non-union
men impartially, and no union member or official shall use
threats or violence to influence any other workman to join
the union, who has conscientious objections against doing so.
Every union workman who elects to work in any ironwork
shall, on giving the usual notice, be free to leave the employ-
ment, but while he remains in the employment he shall work
in harmony with the non-union men. In the event of friction
arising between workmen from any cause, the parties reserve
freedom of action ; but before any collective action is taken on
the part of workmen to leave the employment the matter
shall be brought before the board, in terms of rule 11, and
an attempt made to have it adjusted.

Schedule referred to.

(1) Wages to August 1, 1900. — The present rate of
furnacemen's wages shall be increased by 5 per cent, on the
basis rates as from May 1, 1900, and the wage so fixed shall
remain in force until August 1, 1900.

(2) Sliding Scale to regulate Wages. — Thereafter, and
until August 1, 1901, wages shall be regulated by the
average selling price of Scotch pig-iron warrants in the
Glasgow market, and shall rise or fall 5 per cent, on the basis
rates for every 45. &d. of rise or fall in the price of pig-iron
as above, the wage fixed in article No. 1 hereof being under-
stood to be the wage applicable to a selling price of Scotch
pig-iron warrants over 75s. 8(Z., and not over 80s. 2d. per
ton, but in no case shall the wages so to be fixed fall below a
point 15 per cent, over the basis rates ruling at January 1,
1899, nor rise above a point 10 per cent, on basis rates over
the wage fixed in article No. 1 hereof, and the labourmg wage
shall not fall below 3s. per shift for efficient furnacemen.

(3) Ascertainment of Average Selling Price. — The aver-
age selling price of Scotch pig-iron warrants shall be ascer-

302

THE ADJUSTMENT OF WAGES

tained by two accountants chosen one by either party, or by
one accountant chosen mutually, and shall be struck every
three months, the ascertained price for each three months to
regulate the wages for the succeeding three months. The
daily average shall be the mean of the highest and the lowest
price paid for the day, and the three months' average shall
be the average of the total daily averages for the three
months.

6. Agreement entered into December 7, 1897, between the
Cleveland Ironmasters' Association of the one part and

THE EePRESENTATIVES OF THE BlASTFURNACEMEN EMPLOYED

AT THE Associated Works of the other part.

The wages of all classes of men working blastfurnace
shifts shall, from December 31, 1897, till the agreement
be determined by either party giving to the other three
calendar months' notice — which, however, may not be given
before September 30, 1900 — be regulated by the following
sliding scale : —

When the

net average

selling price,

There shall be

selling price,

ascertained

made the

ascertained

There shall be

in the

manner

hereinafter

defined, of

But has

not
reached

following de-
ductions from
the standard
rates and
wages

in the

manner

hereinafter

defined, of

But has

not
reached

made the
following de-
ductions from
the standard

No. 3 Cleve-
land pig-

rates and
wages

iron has

reached

s. a.

Per cent.

.s. d.

fZ.

Per cent.

2-40

6-25

31 7-20

9-60

3-00

29 2-40

4-80

6-00

31 9-60

2-75

29 4-80

7-20

5-75

2-40

2-50

29 7-20

9-60

5-50

32 2-40

4-80

2-25

29 9-60

5-25

32 4-80

7-20

2-00

2-40

5-00

32 7-20

9-60

1-75

30 2-40

4-80

4-75

32 9-60

1-50

30 4-80

7-20

4-50

2-40

1-25

30 7-20

9-60

4-25

33 2-40

4-80

1-00

30 9-60

4-00

33 4-80

7-20

0-75

2-40

3-75

33 7-20

9-60

0-50

31 2-40

4-80

3-50

33 9-60

0-25

31 4-80

7-20

3-25

2-40

Standard.

SLIDING SCALES

303

When the

net average

selling price,

ascertained

in the

manner

hereinafter

defined, of

No. 3 Cleve- :

But has

not
reached

There shall be !

made the
following addi-
tions to
the standard [
rates and

selling price,

ascertained

in the

manner

hereinafter

defined, of

No. 3 Cleve-

But has

not
reached

There shall be

made the
following addi-
tions to
the standard
rates and

land pig-

wages j

land pig-

wages

iron has

reached

s. d.

Per cent.

s. d.

Per cent.

34 2-40

4-80

0-25 ,

42 4-80

42 7-20

13-00

34 4-80

7-20

0-50 !

42 7-20

42 9-60

13-25

34 7-20

9-60

0-75

42 9-60

13-50

34 9-60

1-00

43 2-40

13-75

2-40

1-25

—

44 2-40

15-00

2-40

2-50

—

45 2-40

16-25

2-40

3-75

—

46 2-40

17-50

2-40

5-00

—

47 2-40

18-75

2-40

6-25

—

39 2-40

4-80

6-50

48 2-40

20-00

39 4-80

7-20

6-75

—

39 7-20

9-60

7-00

49 2-40

21-25

39 9-60

7-25

—

1-20

7-50

50 2-40

22-50

40 1-20

2-40

7-75

- —

—

40 2-40

3-60

8-00

51 2-40

23-75

40 3-60

4-80

8-25

—

40 4-80

8-50

52 2-40

25-00

40 6

7-20

8-75

—

40 7-20

8-40

9-00

! 53

53 2-40

26-25

40 8-40

9-60

9-25

—

40 9-60

10-80

9-50

54 2-40

27-50

40 10-80

9-75

—

1-20

10-00

55 2-40

28-75

41 1-20

2-40

10-25

—

41 2-40

3-60

10-50

i 56

56 2-40

30-00

41 3-60

4-80

10-75

—

41 4-80

11-00

' 57

57 2-40

31-25

41 6

7-20

11-25

—

. —

41 7-20

8-40

11-50

58 2-40

32-50

41 8-40

9-60

11-75

—

41 9-60

10-80

12-00

59 2-40

33-75

41 10-80

12-25

—

2-40

12-50

. 60 2-40

35-00

42 2-40

4-80

12-75

And so on in either direction in the same ratio.

304 THE ADJUSTMENT OF WAGES

The first ascertainment of price shall be for the three
months of October, November, and December, 1897. Such
ascertainment to take place as early as possible in January,
1898, and to regulate wages for January, February, and
March, 1898. And so on every three months. The changes
in the wages shall take effect as soon in the month of January,
April, July, or October (as the case may be) as the time of
ascertaining the price will reasonably admit of, but not later
than the 7th of the month.

The net average selling price of No. 3 Cleveland pig-iron
shall be confidentially ascertained by two properly accredited
and certificated accountants, one chosen by the ironmasters
and the other by the blastfurnacemen and at their respective
charges, with whom there shall be associated any accountant
who may be appointed by the North-E astern Eailway Com-
pany. Such price shall be ascertained from the books of the
following firms : — Messrs. Bolckow, Vaughan, & Co., Limited ;
Messrs. Bell Brothers, Limited ; Messrs. Cochrane & Co.,
Limited ; Cargo Fleet Iron Co., Limited ; Messrs. Wilsons,
Pease, & Co. ; Sir B. Samuelson & Co., Limited ; and Edward
Williams. The price shall be the actual net average invoice
price at the works for each period of ascertainment.

Should any dispute arise as to the carrying out of any of
these arrangements or as to the rates of wages at particular
works, the question in difference shall be submitted to the
decision of a committee comprising not more than six iron-
masters, and not more than six blastfurnacemen, who, if
they cannot agree, shall appoint an umpire to settle the
matter ; but no alteration shall during the currency of this
agreement be made in the rates now prevailing at any of the
works of the ironmasters parties hereto, unless such alteration
is sought on the ground of the working conditions or the
working appliances having changed.

If for any reason either party to this agreement desire to
omit any of the firms above-named or to add thereto, the
matter shall in case of difference be referred to the said
committee.

It is agreed that 3s. per day shall be the minimum rate of
wages for any workman employed to take blastfurnace shifts,

SLIDING SCALES

305

and it is understood that this clause applies to spare furnace -
men only.

Works.

Ayresome

Aeklam

Cleveland

South Bank .

Steel Works Fiu-naees

Middlesbrovigh

Lackenby

Cargo Fleet

Clarence

Tees Bridge

Thornaby

Newport

Consett .

Tees .

Clay Lane

Kedcar .

Jarrow .

Skinningrove

Employers' Representatives.

J. V. Cooper
Hy. T. Allison .

David Evans

John G. Swan .
Hugh Bell
Jos. E. Brooks .
William Whitwell .
Francis A. E. Samublson
Geo. Ainsworth
John F. Wilson

E. Hamilton

W. Eden Walker

F. AV. Dick

T. C. Hutchinson

Workmen's
Kepreseutaiives.

. T. Lawrence.
. E. Eogers.

/E. Graham.
J. Conner.
.J J. Marney.
J. Fitch.

[John Hall.
. J. Sandell.
. Thos. McElhone.
. Geo. Dickinson.
. W. Cork.
. L. Fenwick.
• Hy. Jones.
. Geo. Hurst.
. J. Fowler.
. J. Hildrick.
. P. Treanor.
. W. Wallace.

7. The South Wales Tinplate and Sheet Mill Wokkers'
Wages and Disputes Board.

Bules of the Workmen's Section.

1. Name. — The name of this board shall be * The Tin-
plate and Sheet Mill Workers' Wages and Disputes Board.'

2. Bepresentatioji. — The representation shall be three
from each society affiliated with the board, the voting power
to be one for each delegate present. On all questions em-
bracing a vital principle of wages or altered conditions of
employment any society shall have the right of demanding a
vote of the members of the societies affiliated to the board.
When such a vote is taken, the ballot boxes must be sealed,
locked, or closed, and the unopened ballot boxes must be for-
warded to an independent person appointed by the board who
shall open and count the same on the date fixed, in the
presence of one delegate from each society affiliated.

3. Officers. — The officers shall consist of a president,
vice-president, secretary, and treasurer.

3o6 THE ADJUSTMENT OF WAGES

4. Disinites. — In any grievance arising out of any depart-
ment connected with the trade, no one society affiliated shall
be allowed to hand in notices or stop work before first
submitting such grievance for the consideration of the board.

5. Meetings. — The meetings of the board shall be held
quarterly on the first Thursday in February, May, August,
and November. The November meeting shall be the annual
meeting,

6. All business for the agenda to be in the hands of the
secretary of the board 14 days before the day of meeting.
The agenda to be in the hands of the general secretaries of
the unions affiliated 7 clear days before the date of meeting.

7. Emergency. — Any matter of importance, and not
appearing on the agenda, to be dealt with subject to the
decision of the meeting.

8. In cases of emergency the president and secretary shall
have power to convene a special meeting.

9. Financial. — The expenses of management of the board
shall be equally divided between the unions affiliated.

10. The minutes of all meetings shall be printed and sent
to the unions affiliated within 7 days from date of meeting,
not less than 60 copies to be printed.

11. The remuneration for services rendered by the secre-
tary shall be 121. per annum.

12. Election of Officers. — All officers shall be elected
every 12 months ; nominations to be sent in 14 days before
the annual meeting.

SLIDING SCALES

307

8. Conciliation Board for the Ironfounding Industry of the
North-East Coast.

Established October 22, 1894.

BOARD AND OFFICERS, 1902.

Mr. S. Hunter, Chairman.
Mr. J. Laidler, Vice-Chairman.

Employers'' Bepresentatwes :

*Mr. D. S. Marjoribanks,

Elswick Works, Newcastle.
*Mr. P. Blair, Stockton-on-Tees,
*Mr. Ford S. Jobling, Sunderland.

Mr. J. W. Reed, Jarrow.
*Mr. E. Roger, Stockton-on-Tees.
*Mr. C. W. Taylor, South Shields.

Mr. J. W. Thompson, Sunderland.

Mr. A. Laing, Wallsend.

Mr. J. Walker, Newcastle.

Mr. G. O. Wallis, Sunderland.

Emp)loyers' Secretary : Mr.
James Robinson, Clarendon House,
Clayton Street West, Newcastle.

Moulders' Bepresentatives :
Mr. E. Bishop, Gateshead,
Mr. J. Liddle, Hartlepool.
*Mr. James Clasper,

Stockton-on-Tees,
*Mr. Alf. Burn, DarHngton.
*Mr. T. E. Johnstone, Sunderland.
*Mr. R. Lawson, South Shields.

Mr, G. Noble, Jarrow.
*Mr. T. Eeid, Wallsend.
Mr. M. Waddington, Blaydon.
Mr. J. Laidler, Newcastle.
Mr. M. Stoves, Durham.
Moulders' Secretary : Mr.
Arthur Henderson, Windsor Ter-
race, Park Lane, Darlington.

* Members of Standing Committee,
CONSTITUTION AND RULES.

1. Title.— Hhe title of the board shall be ' The Board of
Conciliation for the Ironfounding Industry of the North-East
Coast.'

2. Parties. — The parties to the board are the Associated
Employers of the Tyne, Wear, and Tees and Hartlepool
districts, and the Friendly Society of Iron Founders of Eng-
land, Ireland, and Wales.

3. Constitution. — (a) The board shall consist of eleven
employers and an equal number of moulders' representatives.

(6) Each party shall elect its own representatives to act
on the board, and they shall be deemed to have power to bind
their respective constituents.

The representatives so elected shall from their own

X 2

3o8 THE ADJUSTMENT OF WAGES

number elect five representatives to act on the standing
committee named in Sub-section C.

(c) The standing committee shall consist of five employers
and an equal number of moulders annually elected as afore-
said.

(cZ) The board shall from their number annually elect a
chairman who shall be an employer, and a vice-chairman
who shall be a moulder.

(e) In addition to the standing committee provided by
Sub- section C, the chairman and vice-chairman of the board
shall be ex-officio members of the same, and when present at
any meeting of the standing committee shall occupy the
chair by virtue of their office.

(/) No matter or question before the board shall be sub-
mitted to vote unless by mutual agreement of both parties.

4. Objects.— The object of the board is to regulate general
advances or reductions in the wages of the moulders ; but any
other general question may by common consent be brought
before the board.

If any question arises which one of the parties considers
it desirable to submit to the board, although the question
may not be of a general nature, the same may be submitted
by the secretary of the one party to the secretary of the other
party to be considered ; and if both parties agree, it may
thereafter be brought before the board.

There shall be no stoppage of work in the nature of a
strike or lock-out ; and pending the decision of the board
upon any question, all working conditions shall be those
current at time of notice given.

5. Notice. — Four weeks' notice in writing, terminating on
a total time day, shall be given by the secretary of one party
to the secretary of the other party, of any question intended
to be dealt with by the board.

6. Treatment. — All questions shall in the first instance be
referred to the standing committee, who shall investigate
and endeavour to settle the same. In the event of the stand-
ing committee being unable to settle a question, it shall, as
early as possible, be referred to the entire board,

7. Meetings. — A meeting of the standing committee

SLIDING SCALES 309

shall be called, after notice in writing, stating the business to
be transacted thereat, given by the secretary or secretaries
of one party to the secretary or secretaries of the other
party. Such meeting shall be held not earlier than seven
days, nor later than fourteen days, after receipt of notice of a
question as provided in Eule 5. But the parties may mutu-
ally agree to alter time of meeting.

8. Quorum. — Not less than three representatives for each
party, inclusive of the chairman or vice-chairman of the
board, shall constitute a quorum for a meeting of the
standing committee ; not less than six representatives
for each party a quorum at any general meeting of the
board.

9. Workmg Expenses. — Each party shall bear costs and
expenses of its own representatives, and the other expenses
incidental to the ordinary working of the board shall be
borne equally by both parties.

10. First Board. — The first board shall be formed as
early as possible, and continue in office till December 3,
1895. On that day the board shall meet to pass the
accounts and close the business of the past year ; and the
new board shall then proceed to elect chairman and vice-
chairman for the next twelve months.

Names of representatives to act both on the board and
the standing committee, together with name and addresses
of secretaries, shall be handed in at the first and any
subsequent annual meeting of the board. Any change in the
rules or constitution of the board, of which at least four
weeks' previous notice in writing has been given by one party
to the other, may then be considered and disposed of as
deemed most expedient.

11. Death, dc. — If any representative die, resign, or
otherwise cease to be qualified, another shall be appointed
within four weeks, and should any representative be un-
able to attend a meeting, a substitute may attend in his
stead.

12. Beferences. — Failing settlement by the board of any
question referred to it by the standing committee, the same
may, by common consent, be submitted to three disinterested

3IO THE ADJUSTMENT OF WAGES

gentlemen mutually approved by the board, the decision of
whom, or of the majority of whom, shall be binding and con-
clusive. But if the board fail to agree in the choice of three
gentlemen willing to act, each party shall elect its own
referee, and the two referees so elected shall nominate a
third to sit with them, and their decision, or the decision of
the majority of them, shall in like manner be binding and
conclusive.

13. Proceedings on a 'Reference. — Upon any submission
or reference under the board, the referees shall arrange the
place, day, and hour of hearing, and may adjourn as to them
may seem most expedient. It shall be competent for either
side to present its case by a legal adviser, but notice of
intention so to do shall be given to the other party at least
seven days before the hearing. It shall, however, not be
obligatory upon the party receiving such notice to send the
like to the other party.

Both parties are to obey notices of meetings issued by the
referee, and to attend the same.

Any facts, considerations, or elements, may by mutual
consent be agreed upon or eliminated from any reference.

The referees may examine any witness or witnesses on
oath, or may allow any fact or facts to be proved by affidavit,
provided that a copy of or the substance of an affidavit to be
used at any reference shall be sent by the party intending to
use it to the other party at least five clear days before the
hearing day.

The cost and expenses of a reference shall be in the
discretion of the referees, who may order that the same be
paid equally by both parties, or that either party bear
the whole or any particular part or parts of the entire costs.

Overtime Begulations for Tyne, Wear, and Tees Foundries,
Agreed to on November 1, 1894.

The employers undertake to discountenance systematic
overtime as much as possible.

Overtime to be paid for at the same rates as at present,
but to be subject to the following restrictions : —

SLIDING SCALES 311

New Work. — No man to be required to work more than
sixty-five hours in any one week, nor more than 230 hours in
any four weeks calculated from total time to total time.

Commercial Bepairs. — No man to be required to work
more than sixty-five hours per week, but systematic overtime
to be avoided.

Break- downs in Blant or usual Shop Bepairs. — Accord-
ing to previous custom, and therefore exempt from above
restrictions, but overtime under this head to be discoun-
tenanced as much as possible.

Definitions.

For the purpose of computing overtime the following
definitions are adopted : —

Neio Work. — That all work required in the construction
of ships, engines, machinery, or other work appertaining to
the engineering trade, or work required for a complete renewal
of the same, shall be classed as new work. Converting old
engines and supplying new engines to old ships shall be
classed as new work.

Commercial Bepairs. — That all work required in the
repairs of ships, engines, machinery, or other work apper-
taining to the engineering trade that does not require a
complete renewal, shall be classed as commercial repairs.

It is agreed that the above overtime regulations do not
apply in case of emergency or necessity, such as the closing
of a mould or casting, or when the work is in such an
advanced state as to necessitate its completion without expos-
ing it to the danger of being spoiled.

(Signed) A. Noble, Chairiiian, Conciliation Board.
T. E. Johnstone, Vice- Chairman.

T. ScARTH J Delegates,

Arthur Henderson, )

Friendly Society of Iron Founders.

312 THE ADJUSTMENT OF WAGES

VI.— IRON AND STEEL IN THE UNITED STATES:
JOINT AGREEMENTS, &c.

1. Statement conceening the Sliding Scale in the Iron
AND Steel Industry and concerning Wages, 1837-97.

Presented by Mr. Garland, late President of the Amalga-
mated Association of Iron and Steel Workers of America,
to the United States Industrial Commission, March 6,
1899.

The diversities of wages and methods of payment to the
working classes for labour of the present century are so
complex that it would require much study of each trade and
calling in each part of the country to get at the origin of the
controlling cause of the present wages.

A part of the functions of organised labour is to arrange
a specific price for labour for each position and the material
or ware worked, and to curtail the supply of labour so far as
possible except at this specified price. The demand for labour
controls the employer to a large degree in the acceptance of
the price established by organised labour ; but if the trade or
locality be unorganised, the natural law of supply and demand
asserts full sway, and the necessities of starving humanity
during times of depression and a surplus of labour alone forms
the basis of minimum of wage, while in times of prosperity
the necessity of the employer fixes the maximum. The
simple idea of giving and getting employment at a stated sum
per day, without specific agreement as to time and continu-
ance, gives assurance to neither employer nor employee. The
employer may attempt to reduce wages at any time that
conditions or climatic changes are favourable, and may refuse
to advance the wages when prosperity warrants him in doing
so. On the other hand, the employee may demand better
pay when conditions may not warrant it, or on the eve of a
depression in prices. In fact, he is quite likely to do so, as
he judges of ability to get more by past prosperity rather
than by considering the future.

Fixing wages for a period of time by agreement, while

SLIDING SCALES 313

being in advance of the system just described, inasmuch as it
does not permit unwarrantable demands by either, does not
give the possibility of sharing in prosperity by the workmen
when the advanced price of the article warrants the payment
of a better wage ; and a system that does not give a share of
prosperity to those who create the wealth of the land as well
as those who hold the wealth, certainly cannot be recom-
mended as the means of harmony.

Sliding scales, as they have been termed, are, in our
estimation, a step in advance of any system now in use. The
wages of the iron and steel worker have been based on and
determined by this plan till 1866, and in fact the iron and
steel workers claim to be the pioneers of the sliding-scale
system. As a test of its efficiency, when fair employers are
concerned, we recall to mind some of the most successful
firms in the iron and steel trade that have been treating with
labour in this way during all that period and who partici-
pated in drawing up the conditions of the first sliding scale.

Since its first adoption by the iron and steel workers, new
features have been introduced from time to time, as it was
necessary to adjust the system to new conditions as they
arose. Under this system of sliding scale a rate of wages is
agreed upon for each position, to be governed by the scale,
and then a selling price for the material is selected as being a
fair minimum price while that particular rate of wages is
paid ; a percentage of advance in the selling price of material
is then listed as requiring a slight percentage of advance in
the wages of the men in the several positions. The ratio of
advance in wages is thus listed with the advance in material
until the probable highest figure the material will sell at has
been reached. A corresponding reduction of wages is agreed
to as the material recedes in price. But a minimum price is
agreed to as representing a stoppmg point in the decline in
wages ; and although the employer is free to sell his material
lower than the minimum, he is not permitted a further
reduction in wages. Certainly there can be no plan more
equitable than one under which, when the price of material or
goods goes up, the labourer's wages advance as well ; and if
prices fall, he shares in the decline. But to adopt this

314 THE ADJUSTMENT OF WAGES

system without establishing a minimum to its downward
tendency shifts the effect described in disorganised trades and
localities from advantage taken of necessity to advantage
taken because of competition in trade, or, in other words, from
wanton attack to competitive manipulation.

Experience in the sliding scale has taught that a cheapen-
ing in price may be the means of enhancing the profit of the
employer and reducing the wages of labourers at one and the
same time, unless proper safeguards are embodied. As an
instance of this, the discovery of the great steel ore mines in
the Masaba and other ranges of mountains in the North-west
has had a very decided effect in reducing the price of both
steel and iron. This is due to the fact that before these
discoveries were made steel ore was not found in plenty and
was expensive to mine and haul. These new mines were
easily operated, and created an abundance of ore in market,
introduced new and improved methods of handling, created
competition in the hauling lines and built new ones, and gave
to ore buyers a cheaper material. This enabled the manufac-
turers to convert this cheaper ore into pig iron and sell to the
steel or iron rolling mills and yet retain their former margin
or even a greater margin, as it suited them, to give to the
consumer or not the benefit of the difference in the cost of
ore. The same rule can be carried on by the manufacturer who
purchases the pig iron and transforms it into steel or iron, as
the case may be. The sliding scale, by reason of the cheap-
ening of the article, would of necessity reduce wages to the
minimum established. And were there none established, the
wage-earner would be reduced to the extreme limit governed
by the prosperity of the employer.

One of the advantages, and perhaps one of the chief
advantages, of the sliding- scale system is the bringing together
of employer and employee in conference and discussion of
trade, duties, conditions, prospects, and ability to pay a fair
wage. The intricacies and details of the sliding scale re-
quired full investigation into all these points and many
others. After all, it is the getting together of employer and
employee with fair intentions that cultivates reason on both
sides. . . .

SLIDING SCALES

315

Comparison of Scale, Selling Rate, and Material for
Past Years.

Year

Month

Selling
price
bar
iron

per ton

Pud-
dling
rates

Bar

mill
heating

and
rolling

Selling
price
24 G.
sheet

Rolling
price
24 G.
sheet

Tin
plate

box 10,
full

weight

Rolling
10,
full

weight

1837

—

7.00

—

1838

—

7.00

—

1839

—

6.50

—

1840

—

6.00

—

1841

—

5.50

—

1842

—

5.00

—

1844

—

89.92

5.00

—

1845

—

95.75

6.00

—

1846

—

91.66

6.00

—

1847

—

86.04

6.00

—

1848

—

79.33

6.00

—

1849

—

67.50

6.00

—

- —

—

1850

—

59.54

4.50

—

1851

—

54.66

4.50

—

1852

—

58.79

4.50

—

October

56.00

4.50

—

1853

March

100.80

4.50

.70

—

June .

100.80

4.50

.70 —

—

September .

78.40

5.00

.70 1 —

—

■ —

—

1854

78.40

5.00

.70 , —

—

1855

February

78.40

4.00

.75 1 —

—

March

67.20

4.00

.75 i -

—

May .

—

5.50

.75 1 -

—

1856

March

61.60

4.50

.621 —

—

1857

February

95.20

4.50

.75'! —

—

1858

)j •

95.20

3.50

.62^ —

—

Noveraber .

—

3.25

.62^ —

—

1859

March

95.20

3.75

.60

—

October

61.60

3.75

.60

—

1860

February .

50.40

3.75

.62i —

—

May .

95.20

3.75

.621 _

—

July . .

89.60

3.75

.62^

—

August

95.20

3.75

.621

—

September .

95.20

3.75

.62|

—

December .

—

4.00

.62^

—

1861

January

50.40

4.00

.60

—

February

—

3.75

.60

—

October

50.40

3.56

.60

—

1862

April .

100.80

4.00

.70

—

July .

61.60

4.50

.70

—

August

67.20

4.50

.70

—

September .

—

5.00

.70

—

October

72.80

5.00

.70

—

December .

89.60

5.00

.70

—

1863

February .

95.20

5.50

.70

—

April .

—

.70

—

3i6

THE ADJUSTMENT OF WAGES

Comparison of Scale, Selling Rate, &c. — continued.

Year

Mouth

Selling
price
bar
iron

per ton

Pud-
dling
rates

Bar
mill

heating

and
rolling

Selling
price
24 G.
sheet

Rolling
price
24 G.
sheet

Tin
plate
box 10,

full
weight

Rolling

10,

full
weight

1863

May .

—

6.00

.90

—

August

95.20

6.00

.90

—

September .

95.20

6.00

.90

—

— i —

—

December .

123.20

6.58

.90

—

— —

1864

January

134.40

6.50

.90

—

— ■ —

—

February

134.40

6.50

.90

—

— 1 —

—

March

145.60

6.50

1.25

—

— 1 —

—

May .

156.80

7.00

1.25

—

156.80

7.50

1.25

—

June .

156.80

8.00

1.25

—

September .

156.80

9.00

1.25

—

December .

168.00

9.00

1.20

—

— —

—

1866

January

—

8.00

1.20

—

March

123.20

7.00

1.00

—

. —

April .

—

1-00

—

May .

—

6.00

—

August

103.48

5.75

—

September .

123.20

8.00

—

1866

July . .

112.00

8.00

—

November .

112.00

9.00

—

1867

August

100.80

8.00

. — .

—

October

95.20

7.50

9 g

—

)> •

95.20

7.25

\Vi

—

1868

January

—

6.75

-2 5!

—

February

78.40

6.75

—

March

84.00

6.75

—

1869

—

78.40

6.75

—

— —

1870

June .

72.80

6.25

.80

—

— —

1871

July . .

72.80

6.25

.80

—

September .

78.40

6.50

.80

—

1872

January
February .

85.12
92.96

6.75
7.00

.80
.80

—

March

100.80

7.50

.80

— .

—

April .

107.52

7.75

.80

—

July .

112.00

8.00

.80

—

August

112.00

8.00

.80

—

September .

116.48

8.00

.80

—

December .

103.04

7.50

.80

—

1873

June .

85.12

6.75

.86

—

October

73.92

6.25

.86

—

— .

—

1874

March

67.20

6.00

.68

—

December .

56.00

6.00

.68

—

1875

January

56.00

6.00

.68

—

August

56.00

5.50

.68

—

November .

56.00

5.50

.68

—

1876

March

56.00

4.75

.70

. —

—

April .

56.00

4.75

.70

—

SLIDING SCALES

317

CoMPAEisoN OF ScALE, SELLING Eate, &c. — Continued.

Selling
price

Pad-

Bar

3eUing

Elolling

Tin

plate

Jelling

Year

Month

bar
iron
per ton

dling heating
rates and
rolling

price
24 G.

sheet

price
24 G.
sheet

DOX IC,

full
weight

IC,

fuU

weight

1876

June .

5.00

.70 —

1877

February

44.80 1

5.00

.65 —

—

April .

39.20 5.00

.65 —

—

» . . !

44.80 5.00

.65 —

—

October

44.80

5.00

.65

—

December .

44.80

5.00

.65

—

1878

January

44.80 !

5.00

.65

—

December .

44.80 1

5.00

.65 ]

—

1879

January

39.20

5.00

.65

—

35.84

5.00

.65

—

July . . 1

42.56 !

5.00

.65 ,

—

August

56.00

5.00

.65 !

—

September .

67.20

5.50

.65

—

December .

76.16

5.50

.65

—

1880

January

78.40

6.00

.721

—

February

89.60 :

7.00

.91

—

March

89.60

7.00

.91

—

April .

71.68

5.70

.68

—

May .

56.00

5.00

.65

4.30

8.00

August

50.40

5.50

.65

4.30

8.00

—

September .

50.40

5.50

•65

4.30

8.00

—

October

50.40

5.50

.65

4.30

8.00

November .

50.40

5.50

.65

4.30

8.00

December .

50.40

5.50

.65

4.30

8.00

1881

January

50.40

5.50

.65

4.00

8.00

47.04

5.50

.65 i 4.00

8.00

February .

47.04

5.50

.65

4.00

8.00

—

57.12

5.50

.65

3.90

8.00

March

47.04

5.50

.65

3.90

8.00

>) •

50.40

5.50

.65

3.65

8.00

April .

50.40

5.50

.65

3.75

8.00

48.16

5.50

.65

3.75

8.00

May

48.16

5.50

.65

3.75

8.00

—

50.40

5.50

.65

3.75

8.00

June

50.40

5.50

.70

3.75

8.00

July

50.40

5.50

.70

4.00

8.00

53.76

5-50

.70

4.00

8.00

—

August

53.76

5.50

.70

4.00

8.00

—

55 •

56.00

5.50

.70

4.20

8.00

September .

56.00

5.50

.70

4.30

8.00

October

56.00

5.50

.70

4.30

8.00

November .

56.00

5.50

.70

4.30

8.00

December .

56.00

5.50

.70

4.30

8.00

1882

January

56.00

5.50

.70

4.30

8.00

February .

56.00

5.50

.70

4.30

8.00

March

53.76

5.50

.70

4.30

8.00

April

•

53.76

5.50

.70

4.30

8.00

—

3i8

THE ADJUSTMENT OF WAGES

Comparison of Scale, Selling Bate, &c

— continued.

Year

Month

Selling
price
bar
iron

per ton

Pud-
dUug
rates

Bar

mill
heating

and
rolling

Selling
price
24 G.
sheet

Eolling
price
24 G.

sheet

Tin
plate

box IC,
full

weight

Eolling

10,

full
weight

1882

May .

\ 50.40

5.50

.70

4.30

8.00

—

June .

56.00

5.50

.70

4.30

8.00

—

July .

' 56.00

5.50

.70

4.30

8.00

—

August

56.00

5.50

.70

4.80

8.00

—

September .

! 56.00

5.50

.70

4.30

8.00

—

October

53.76

5.50

.70

4.30

8.00

—

November .

51.52

5.50

.70

4.30

8.00

—

December .

50.40

5.50

.70

4.30

8.00

—

)) •

48.16

Per

lOU lbs.

5.50

.70

4.30

8.00

1883

January

2.25

5..50

.70

4.03

8.00

—

February

2.20

5.50

.70

4.03

8.00

—

March

2.15

5.50

.70

4.03

8.00

—

April .

2-10

5.50

.70

3.70

8.00

—

May .

2.00

5.50

.70

3.70

8.00

—

June .

1.94

5.50

.70

3.60

8.00

—

July . .

1.90

5.50

.70

3.60

8.00

—

August

1.90

5.50

.70

3.60

8.00

—

September .

1.88

5.50

.70

3.40

8.00

—

October

1.90

5.50

.70

3.40

8.00

—

November .

1.85

5.50

.70

3.40

8.00

—

December .

1.85

5.50

.70

3.30

8.00

—

1884

January

1.85

5.50

.70

3.30

8.00

—

February .

1.85

5.50

.70

3.30

8.00

—

March

1.85

5.50

.70

3.30

8.00

—

April .

1.85

5.50

.70

3.25

8.00

—

May .

1.85

5.50

.70

3.25

8.00

—

June .

1.80

5.50

.70

3.06

H.OO

—

July .

1.80

5.50

.70

3.00

8.00

—

August

1.75

5.50

.70

2.90

8.00

—

September .

1.65

5.50

.70

2.90

8.00

—

October

1.65

5.50

.70

2.85

8.00

—

November .

1.65

5.50

.70

2.85

8.00

—

December .

1.65

5.50

.70

2.85

8.00

—

1885

January

1.65

5.50

.70

2.85

8.00

—

February .

1.65

5.50

.70

2.85

8.00

—

March

1.65

5.50

.70

2.85

8.00

—

April .

1.65

5.50

.70

2.85

8.00

—

May .

1.65

5.50

.70

2.85

8.00

—

June .

1.65

5.00

.63

2.85

8.00

—

July .

1.65 1

5.00

.63

2.85

8.00

—

August

1.65 !

5.00

.63

2.85

8.00

—

September .

1.65 1

5.00

.63

2.90

8.00

—

October

1.65 '

5.00

.63

2.90

8.00

—

November .

1.65 1

5.00

.63

2.90

8.00

—

December .

1.65 1

5.00

.63

2.90

8.00

—

SLIDING SCALES

319

COMPAKISON OF SCALE, SELLING RaTE, &C. — COIlHnUed.

Tear

Mouth

1886 January
February
March
April .
May ,
June .
July ,
August
September
October
November
December

1887 January
February
March
April .
May .
June .

! Jnly .

I Aiigust
I September
i October
] November
! December

1888 January
j February

March
April .
May .
June .
July .
August
September
October
November
December

1889 j January
February
March
April .
May ,
June .
July .
August
September
October
November

Selling
price

bar

iron

per
100 lbs.

1.70
1.70
1.70
1.70
1.70
1.70
1.70
1.70
1.70
1.75
1.80
1.85
2.00
2.00
2.00
2.00
2.00
2.00
2.00
1.90
1.90
1.90
1.90
1.90
1.90
1.85
1.80
1.80
1.80
1.75
1.75
1. 5
1.80
1.80
1.80
1.80
1.80
1.75
1.75
1.70
1.70
1.70
1.70
1.75
1.80
1.80
1.85

Pud-
dling
rates

Bar

miU
heating

and
rolling

Selling
price
24 G.

sheet

5.00

.63

2.90

5.00

.63

2.90

5.00

.63

2.90

5.00

.63

2.90 1

5.00

.63

2.90 i

5.00

.63

2.90 1

5.00

.63

2.85 j

5.00

.63

2.85 ;

5.00

.63

2.85 1

5.00

.63

2.85 1

5.00

.63

2.85 t

5.00

.63

2.95

5.00

.63

3.00

5.00

.63

3.00

5.00

.63

3.00

5.00

.63

3.00

5.00

.63

3.00 i

5.50

.70

2.80 i

5.50

.70

2.90

5.50

.70

2.90

5.50

.70

2.90

5.50

.70

2.90

5.50

.70

2.90

5.50

.70

2.90

5.50

.70

2.90

5.50

.70

2.90

5.50

.70

2.80

5.50

.70

2.75

5.50

.70

2.75

5.50

.70

2.70

5.50

.70

2.70 I

5.50

.70

2.70

5.50

.70

2.80

5.50

.70

2.85

5.50

.70

2.85

5.50

.70

2.85

5.50

.70

2.85

5.50

.70

2.80

5.50

.70

2.50

5.50

.70

2.70

5.50

.70

2.70

5.50

.70

2.70

5.50

.70

2.70

5.50

.70

2.70

5.50

.70

2.85 1

5.50

.70

2.90

5.50

.70

2.95

Rolling
price
34 G.
sheet

8.00

8.00 j

8.00 ,

8.00 i

8.00 !

8.00 j

8.00 I

8.U0 !

8.00

Tin

plate

box 10,

full

weight

Kolling
IC,
fnU

weight

320

THE ADJUSTMENT OF WAGES

Comparison of Scale, Selling Rate, &c. — continued.

1889
1890

1891

1892

1893

December

January

February'

March

April .

May .

June .

July .

August

September

October

November

December

January

February

March

April .

May .

June .

July .

August

September

October

November

December

January

February

March

April .

May .

Jime .

July .

August

September

October

November

December

January

February

March

April .

May .

June .

July .

August

September

October

Selling

price

bar

iron

per

lOU lbs.

1.90
1.90
1.90
1.85
1.85
1.80
1.85
1.85
1.85
1.85
1.85
1.85
1.85
1.80
1.80
1.75
1.70
1.70
1.70
1.70
1.65
1.65
1.65
1.65
1.65
1.65
1.65
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.60
1.55
1.55
1.55
1.55
1.50
1.50

Pud-
dling
rates

Bar
mill

heating

and
rolling

Selling
price
24 G.

sheet

Rolling
price
24 G.
sheet

Tin

plate
box 10,

full
weight

Rolling

10,

full
weight

5.50

.70

3.00

8.00

5.50

.70

3.00

8.00

4.72

5.30

5.50

.70

3.00

8.00

4.61

5.30

5.50

.70

2.90

8.00

4.46

5.30 :

5.50

.70

2.90

8.00

4.39

5.30

5.50

.70

2.85

8.00

4.35

5.30

5.50

.70

2.85

8.00

4.39

5.30 1

5.50

.70

2.85

8.00

4.45

5.30 i

5.50

.70

2.85

8.00

4.65

5.30

5.50

.70

2.85

8.00

5.17§

5.30

5.50

.70

2.85

8.00

5.41

5.30

5.50

.70

2.85

8.00

5.41

5.30

5.50

.70

2.85

8.00

5.25

5.30

5.50

.70

2.80

8.00

5.34

5.30

5.50

.70

2.80

8.00

5.41

5.30

5.50

.70

2.80

8.00

5.35

5.30

5.50

.70

2.80

8.00

5.23

5.30

5.50

.70

2.80

8.00

5.10

5.30

5.50

.70

2.80

8.00

5.30

5.50

.70

2.80

8.00

5.28

5.30

5.50

.70

2.75

8.00

5.35

5.30

5.50

.70

2.75

8.00

5.371

5.30

5.50

.70

2.75

8.00

5.32

5.30

5.50

.70

2.75

8.00

5.25

5.30

5.50

.70

2.60

8.00

5.25

5.30

5.50

.70

2.60

8.00

5.25

5.30

5.50

.70

2.60

8.00

5.25

5.30

5.50

.70

2.55

8.00

5.25

5.30

5.50

.70

2.55

8.00

5.25

5.30

5.50

.70

2.55

8.00

5.25

5.30

5.50

.70

2.55

8.00

5.25

5.30

5.50

.70

2.55

8.00

5.25

5.30

5.50

.63

2.55

8.00

5.20

5.30

5.50

,63

2.55

8.00

5.18

5.30

5.50

.63

2.70

8.00

5.20

5.30

5.50

.63

2.70

8.00

5.45

5.30

5.50

.63

2.75

8.00

5.50

5.30

1 5.50

.63

2.70

S.OO

5.35

5.30

5.50

.63

2.70

8.00

5.35

5.30

5.50

.63

2.70

8.00

5.35

5.30

5.50

.63

2.70

8.00

5.50

5.30

5.50

.63

2.65

8.00

5.50

5.30

5.50

.63

2.65

8.00

5.42

5.30

5.00

.63

2.65

8.00

5.30

5.00

.63

2.65

8.00

5.25

5.30

5.00

.56

2.60

8.00

5.20

5.30

5.00

.56

2.60

8.00

5.27i

5.30

SLIDING SCALES

321

COMPAEISON

OF Scale, Selling Rate, &c.-

—continued.

Selling
price

Pud-

Bar
mill

Selling

Rolling

Tin
plate

Eolling

Year

Month

bar
iron
per

100 lbs.

dling
rates

heating

and
rolling

price
24 G.

sheet

price
24 G.

sheet

box 10,

full
weight

10,

fuU

weight

November .

1.50

4.75

.56

2.57

7.20

5.32

5.30

December .

1.47

4.75

.56

2.52

7.20 1 5.30

5.30

1894 January

1.32

4.75

.56

2.37

7.20 ; 5.26

5.30

February

1.25

4.75

.56

2.30

7.20 1 5.26

5.30

March

1.25

4.75

.56

2.30

7.20 i 5.20

, 5.30

April .

1.25

4.00

.56

2.30

7.20 5.18

i 5.30

May .

1.17

4.00

.56

2.30

7.20 5.15

5.30

June .

1.10

4.00

.56

2.30

7.20 5.14

5.30

July .

1.10 .

4.00

.56

2.30

7.20 5.12^

5.30

August

1.10

4.00

.56

2.30

7.20 5.12

5.30

September .

1.07

4.00

.56

2.30

7.20

1 4.71i

5.30

October

1.01

4.00

.56

2.26

7.20

4.09^

5.30

November .

.96

4.00

.56

2.25

7.20

4.10

5.30

December .

.95

4.00

.56

2.25

7.20

4.00

5.30

1895

January

1.00

4.00

.56

2.25

7.20

3.96

4.50

February .

1.00

4.00

.56

2.25

7.20

3.87*

4.50

March

1.00

4.00

.56

2.25

7.20

3.8O"

4.50

April .

1.00

4.00

.56

2.15

7.20

3.80

4.50

May .

1.05

4.00

.56

2.07

7.20

3.80

4.50

June .

i.iej

4.00

.56

2.17

7.20

3.80

4.50

July .

1.16i

4.00

.56

2.27

7.20

3.821

4.50

August

1.22

4.25

.56

2.42

7.20

3.90

4.50

September .

1.33f

4.25

.593^^

2.50

7.20

3.95

4.50

October

1.35

4.25

.59^!

2.50

7.20

4.00

4.50

November ,

1.35

4.25

.59A

2.45

7.34

3.92*

4.50

December .

1.31i

4.25

.59A

2.45

7.34

3.80

4.50

1896

January

1.15

4.25

.59^

2.37

7.20

4.00

4.50

February .

1.15

4.25

.59tV

2.23

7.20

3.93

4.50

March

1.10

4.00

•56xV

2.13

7.20

3.80

4.50

April .

1.10

4.00

.561^1

2.06

7.20

3.70

4.50

May .

1.10

4.00

.56/^'

2.10

7.20

3.55

4.50

June .

1.10

4.00

•56tV:

2.15

7.20

3.55

4.50

July .

1.10

4.50

.56/^:

2.10

7.20

3.56

4.50

August

1.10

4.50

■56/o'

2.10

7.20

3.60

4.^0

September .

1.10

4.50

.56rV

2.10

7.20

3.58

4.50

October

1.10

4.50

.56tV'

2.10

7.20

3.56

4.50

November .

1.10

4.50

•56iV:

2.10

7.20

3.63

4.50

December .

1.15

4.50

.56/^

2.10

7.20

3.55

4.50

1897

January

1.13

4.50

.50,:V;

2.07

7.20

3.55

4.50

February .

1.10

4.50

.56/,,

2.05

7.20

3.23

4.50

March

1.10

4.50

.561^

1.95

7.20

3.17i

4.50

April .

1.01

4.50

•56iV

1.85

7.20

3.33"

4.50

May .

•93i

4.50

•56tV

1.80

7.20

3.34

4.50

June .

.90

4.50

.56,7^

1.75

7.20

3.55

4.50

The first general guide, hoop and cotton-tie mill scale for

322 THE ADJUSTMEI^T OF WAGES

the Pittsburg district, was made April 2, 1872, and the base
price was $4: per ton on a 4^ -cent card-rate, with a minimum
card-rate of 1\ cents. The rates were for working billets, and
50 cents per ton extra for working piles. This made a
complication in understanding the card, as the price of iron
was usually below the 4i rate, and a percentage taken from
the card was necessary to determine the rate ; for instance,
2^ card-rate was 40 per cent, less than the ^4 base. The
scale was placed on the regular bar-iron card in June, 1886.

First scales were made for the following departments in
Pittsburg : —

Muck rolling, December 7, 1880, 2^-cent card.

Bar and nail plate, rolling and h*eating, October 17, 1879,
2^-cent card.

Sheet and jobbing mill, rolling, &c., March 1, 1880, based
on 3^-cent card, minimum of 25-cent card.

Sheet mill, roughing and catching, May 15, 1880, same
card as sheet rolling.

Scrapping and busheling and heating in a scrap furnace,
February 23, 1880, 2i-cent card.

Knobbling, February 23, 1880, 2^cent card.

Heating and shingling, February 23, 1880, 2^-cent card.

Tin and black plate mills, March 15, 1880, 2^-cent card.

Puddling scale in 1866.

The above data have been secured only after a great deal
of research, and will probably never again be produced in this
concise form for so many past years, unless taken from this
list. It would, therefore, be well for all interested in the
history of these rates to lay this away in a safe place for
reference.

(Printed in the Beport of the Industrial Commission,
vol. vii. 1901.)

SLIDING SCALES

323

2. Agreements for 1900-1901 between the Manufacturers
AND the Amalgamated Association of Iron, Steel, and
Tin Workers.

As set forth in the Beport of the Industrial Commission,
xvii. 342.

The agreement of 1900-1901 provided that when the price
of bar iron should be 1-4 cents per pound, the rate for boiling
a ton of 2,240 pounds should be ^5.00. The changes in rates
as prices fall or advance are shown in the following table : —

Boiling.

Based on actual sales of bar iron,
as per conference agreement

Boiling per
ton (2,240
pounds) !

1 cent bar iron
1*1 cents bar iron
1"2 cents bar iron
1'3 cents bar iron
1*4 cents bar iron
1'5 cents bar iron
1-6 cents bar iron
1-7 cents bar iron
1*8 cents bar iron
1'9 cents bar iron

2 cents bar ii-on

4.75

4.87i

5.00

5.25

5.50

5.62J

5.75

5.87^

6.00

It will be observed that the rate of increase in wages is
less rapid when prices are above 1'7 cents than when they
are below that rate. It will also be observed that there is no
provision for lowering wages if prices fall below 1'2 cents.

In several of the scales fixing the rates for other classes
of work there is a minimum below which wages shall not fall.
Thus, in the case of the agreement regarding wages in tin-
plate mills, the basing rates are fixed on the price of $4 per
box of 100 pounds of coke tinplates. As prices rise 10 cents
per box (2^ per cent.) wages increase 2 per cent., but it is
stated in the agreement that the wage fixed on the basis of
$4: per box is the minimum for the year.

324

THE ADJUSTMENT OF WAGES

In the case of several classes of iron and steel manufacture,
the wage scales become highly elaborate. Not only are the
rates for three or four different classes of workmen prescribed,
but there are many different sizes and kinds of articles
manufactured for each of which the rates are fixed. All of
these rates then rise and fall in proportion to prices. As an
illustration of the complexity of these scales, a part of the
table for guide, 10-inch, hoop, and cotton-tie mills is inserted
below (scale of 1900-1901) :—

Guide, 10-Inch, Hoop, and Cotton-Tie Mills.

It is agreed that the base price at a one and four-tenths
{l^T)) cent card-rate based on actual sales of bar iro?i, as per
conference agreement, with extras, shall be the straight one
dollar and twenty-five cents (^1.25) per ton for rolling, sixty-
two and one-half (62^) cents for heating, thirty-four and
three-fourths (34^) cents for roughing, and thirty-four and
three-fourths (34 f) cents per ton for catching on guide,
10-inch, hoop, and cotton-tie mills, with two (2) per cent,
additional for each one-tenth (y^) advance or decline on said
card from one and four-tenths (lyV) ^o ^^'^ (2) cent card.

The rollers, heaters, roughers, and catchers shall each be
paid by the company. It is understood, however, that this
arrangement shall in no way detract from the authority of
the roller in controlling all hands on mill, including hiring
and discharging, and, as heretofore, the roller shall be held
responsible for the work done.

The following figures to be advanced ten (10) per cent.

Eougher

Sizes

Total

Roller

Heater

and

catcher,

each

^s ■

/8.35
/ 6.71

;^4.08

;^2.04

^l.lli

s'^ .

3.28

1.64

.sn

I .

5.19

2.54

1.27

.69

^1 .

•

4.52

2.21

i.ioj

.60J

T% ■

. Rounds and squares

-I 3.87

1.89

.94J

.51|

1 and ,7g

3.08

1.51

.75J

.40|

41 •

2.95

1.44

.72

.38J

i and ^%

2.81

1.38

.69

.37

1 and up

^ 2.55

1.25

.62J

.33|

SLIDING SCALES

325

Rougher

Sizes

Total

Eoller

Heater

and

catcher,

each

\ and A by t\

/^5.19

;^2.54

81.21

.69

I and ^^ .

4.66

2.28

1.14

.62

i and t\

3.61

1.76

.88

.48^

fbyi

7.47

3.66

1.83

.99

i by 5\
ibyj

•
./

^Oval

6.73

\ 8.26

—

iV by i

9.63

—

fbyi

11.00

—

1 •

3.08

1.51

.751

.401

f and up

\ 2.55

1.25

.62J

.33|

•'I

{ 7.83
1 4.66

3.83

1.91J

.04J

• 1

2.28

1.14

1.62

Half oval . . ,

- 3.61

1.76

.88

.48i

8.08

1.51

.75i

.40f

I 2.55

1,25

.621

.33|

/ 8.36

4.09

2.04*

l.lli

1
f

Half round .

7.83
• 3.61
, 3.08

3.83
1.76

1.911

.88

1.04J
.48J

1.51

.75i

.40|

The rates of progression in wages as compared with the
progression in prices differ considerably on different classes
of articles, depending, of course, largely on the proportion
which the labour cost of the articles bears to the entire cost.
The more common provision seems to be that wages shall
advance by 2 per cent, steps for increases of from 3 to 5 per
cent, in prices. Of course an advance in prices may be
accompanied by so great an advance in the cost of raw
materials that the working men gain more than the employer
by a rise in prices, while in other cases the employer may
get more advantage than the working men.

In the case of steel-rail mills and various other classes of
mills not covered by the uniform scale, the local agreements
establish sliding scales based either upon the general scales
above described, with allowances for local conditions and
peculiarities, or based upon the prices of steel rails and other
articles as published in some standard trade journal. The
methods are very similar to those already outlined.

It is customary in mills where the sliding-scale system

326 THE ADJUSTMENT OF WAGES

prevails to make changes of wages once in two months on the
basis of prices during the preceding two months.

3. Account of the System of Adjusting Scale of
Wages, &c., in certain Rolling Mills.

By Jmnes H. Nutt, Adjuster.

Having been employed in June, 1892, and continuously
since, by certain mills manufacturing bar-iron and steel as
an adjuster of wage scales and other differences that have
arisen between the manufacturers and the employees, it seems
probable that an account of the system under which my duties
have been performed and my experiences, together with some
expression of opinion as to the results and benefits of such
system, would be of interest to those whose attention has been
directed toward the conditions of the labour interests of the
country.

The concerns for which I have worked were all inde-
pendent until recently, when they formed what is known as
the 'Labour Bureau Association.' The mills contained therein
are all situated west of Pittsburg, Pa., and include nearly all
the bar-iron manufacturers doing business west and south of
Pittsburg. These mills all negotiate with the Amalgamated
Association of Iron, Steel, and Tin Workers.

The method by which differences between the parties are
settled and adjusted may be described as follows : In June of
each year the manufacturers meet in conference with a com-
mittee representing the workmen and make an agreement for
the year beginning on the first day of July following, concern-
ing the scale of wages, &c. The duties of the adjuster require
him to be present and assist in the making of the scale of
wages, which is based upon the sales and shipments of base
sizes of bar-iron. The price per pound received for material
shipped during May and June will fix the price per ton that
the workmen will receive for their labour during July and
August, and so on for every two months during the year.

At the end of each bi-monthly period the manufacturers
make sworn statements to the adjuster, and, together with a

SLIDING SCALES 327

committee of three, one of "whom must be an officer of the
National Lodge of the Amalgamated Association of Iron,
Steel, and Tin Workers, he goes over these sworn statements,
and, according to what the price at which the material was
sold is found to be, it is decided whether or not there shall be
an advance or reduction in the wages of the workmen.

Under the agreement made in the annual June conference,
if for any reason the committee of three are not satisfied with
the sworn reports, they have the right to examine the books and
accounts from which these reports are made. In case of any
disagreement in any of the mills as to the construction of the
agreement made in the annual June conference, the matter is
referred to the adjuster by the manufacturers, and it then
becomes his duty to visit the works and endeavour to make a
settlement with the parties interested. If a failure results
from this attempt at adjustment, the proper officer or officers
of the amalgamated association are brought in, and the ques-
tion is taken up and discussed from a national standpoint,
and, as a rule, a satisfactory adjustment is arrived at.

In addition to the question of the wage scale, the enforce-
ment of rules and cases where workmen are discharged form
the major part of the differences adjusted.

The contract with the amalgamated association under the
agreement made at the annual conference expires on the 30th
of June in each year, and sometimes it has proved impossible
to reach an agreement upon the terms for the coming year by
that date. In such a case the mills all close down pending
negotiations, but a strike is not declared until the representa-
tives of the manufacturers and of the workmen fail to agree
and adjourn without date. Sometimes the negotiations have
kept up for over a month after the mills have closed down,
and still no strike takes place. This method preserves the
funds of the union, as no strike benefits are paid until
negotiations are broken off.

During the time that this system of adjustment of differ-
ences has been in operation — since 1892 — in but one of the
many differences which have arisen has there been a failure
to arrive at an adjustment, and there has been but one strike
through a disagreement where the negotiations have been

328 THE ADJUSTMENT OF WAGES

conducted by the adjuster. He has been able to prevent
many troubles for the men and many petty strikes which
would otherwise have caused much annoyance to the manu-
facturers.

Being an ironworker himself, the adjuster knows the
difficulties with which the workmen have to contend, and
from his position in the employ and the confidence of the
manufacturers, he receives from them full explanations of
their side of the question in dispute. On this account he is
prepared to give the workmen the employers' side of the
question, and, as he discusses it with them from a practical
rather than a business standpoint, he can usually state it in a
way that appeals to them more than if the employer himself
were to lay it before them.

Many employers have not the patience to listen to and
argue a point with an employee. They firmly believe them-
selves to be in the right and cannot understand why the
employee does not grasp the situation and see it as they do.
The average workman only wants what is fair and right, but
often it requires time and patience to demonstrate the right
to him. In these adjustments the result of the deliberations
is generally in the nature of a compromise, as there is
almost always right on both sides which has to be respected.

Both the employers and the employees seem to be very
well satisfied with this method of adjustment of differences.
This is shown on the part of the employees by the fact that
the officers of the union have often notified the adjuster that
they have been called to a certain mill before he has been
notified by the firm, and by the further fact that in certain
instances the workmen have left it to his decision, in case of
disputes, thereby putting him on his honour to deal fairly
with both sides.

Experience in the methods employed to adjust disputes
between the ironworkers and the manufacturers has brought
me to the conclusion that this system, as here described, is by
no means perfect, but is, at the same time, a great improve-
ment upon the methods adopted by a good many labour
organisations. When once the scale of wages agreed on is
signed, it is quite certain that the mills will run for the year

SLIDING SCALES 329

without interruption, so far as labour difficulties are con-
cerned ; for if any difficulty arises the rules of the amalga-
mated association provide that work shall be continued pending
an investigation by both parties to the controversy, and for
this reason most of the disputes lose that bitterness which is
caused by the sudden stoppage of the works. Such a stoppage
seriously interferes with the plans of the employers, and
always causes more or less serious financial loss to both
parties to the controversy.

As has been stated, the contract between the manufacturers
and the workmen expires on June 30 of each year, and if an
agreement is not arrived at by that time, all mills controlled
by the Amalgamated Association stop work until an agree-
ment is reached. This plan has several faults, in that it
often interferes with the placing of contracts that run past
July 1, and in that way discriminates against the employer
who recognises organised labour and in favour of the one
who does not. Again, by stopping work a large body of men
who have no interest in the result of the negotiations, and
will not be benefited, no matter what the result may be, are
thrown out of work, and these very men are the poorest paid
of all labourers in the mill, and can ill afford to live in
enforced idleness.

It would be much better could work be continued until an
agreement was reached or negotiations broken off. If this
could be done, and then on the failure of negotiations the
matter in dispute referred to arbitration, both parties to
abide by the decision, it seems as though we should come
about as near to a solution of the labour problem as we can
expect to do so long as human beings are actuated by the
same selfish motives that they are to-day. — Bulletin of the
Department of Labour, No. 28, May, 1900.

4. Agreement for 1901-1902 between the American Tin
Plate Company and the Tin Plate Workers' Association.

Scale of Prices, 1901-1902.

We, the American Tin Plate Company, parties of the first
part, and the Tin Plate Workers' International Protective

330 THE ADJUSTMENT OF WAGES

Association of America, parties of the second part, do hereby
agree that in all mills recognised by the parties of the first
part as now organised, the following scale of prices shall
govern the wages of employees, commencing July 16, 1901,
and ending July 15, 1902.

Section 1. Tinners shall receive on Jumbo stacks 5^ cents
per box and risers 3^% cents per box for all plates occupying
over 36 inches of the rolls. For all plates occupying
36 inches and less of the rolls, tinners shall receive 6| cents
per box and risers 4f cents per box.

[Numerous details as to special classes of work omitted.]

Section 12. That all rates shall be advanced 5 per cent,
for the following employees : —

Plate wheelers earning less than 52.00 per day.

Assorters earning less than ,:^1.25 per day.

Boxers, shearmen, and pickling hands earning less than
^1.75 per day.

Scrapers, gatherers, branners, floor sweepers, janitors,
tin-house greasemen, palm oil, metal, storehouse, and lime
men, and all truckers in and around tin house and assorting
room earning less than ^1.45 per day.

Eeckoners earning ^1.15 per day and less.

It being understood that there shall be no advances on
1900-1901 scale rates for the following : cranemen, bosh
truckers, tin weighmen, cold-roll and annealing department
employees.

That men working on scruff furnaces at American and
Anderson works shall be paid ^1.52 per day.

Section 13. That, at the option of the American Tin Plate
Company, a box or tonnage rate not in excess of the adjusted
day rate may be fixed to govern all operatives named in
Clause 12.

This box or tonnage rate to be established locally by the
district manager representing the American Tin Plate Com-
pany, and the national president and district vice-president
representing the Tin Plate Workers' International Protective
Association.

Section 14. It is further agreed to that no tinner shall be

SLIDING SCALES 331

required to tin plates on Saturday later than 12 noon or
earlier than 5 o'clock on Monday morning.

Section 16. The American Tin Plate Company shall, in
such works as it deems expedient, arrange that eight hours
shall constitute a day's work on all tinning machines, it
being agreed, however, that where the eight-hour system
at present obtains it shall be continued, and that where two
turns of ten hours each are worked the turns shall not be
increased.

Where two turns exceeding ten hours are worked the day
turn shall be reduced to ten hours and the night turn to eleven
hours, and the turns shall alternate.

Section 17. The rates for openers shall be the same as
those in scale 1900-1901, it being agreed that the parties of
the first part shall handle all iron, both before and after being
opened in the Indiana and Muskegon mills.

Section 18. 2,240 pounds shall constitute a ton.

Section 19. That in case of disagreement between the
workmen and the foreman the appeal shall be to the mill
superintendent. In case of no agreement, the workmen shall
appeal to their committee, who shall submit the matter to the
local management. In case no local settlement can be effected,
the question shall be referred to the district executive committee
of the Tin Workers' Union, who shall confer with the district
manager. Should no settlement be reached and a strike be
deemed necessary by the party of the second part, before such
strike is declared the question shall be finally submitted by
the Tin Workers' national executive committee to the manu-
facturers' executive committee, and in case of disagreement
ten days' notice of intention to strike shall be given, and work
shall be continued in the interim, it being distinctly agreed
that no strike shall occur unless aforesaid mode of procedure
be followed. Should a strike occur, without such procedure
having been followed, this entire agreement shall be considered
null and void.

Section 20. That foremen and assistant foremen of all
departments governed by this contract, including head
annealers, pickers, and cold rollers, shall not be eligible as

332 THE ADJUSTMENT OF WAGES

members of the Tin Plate Workers' International Protective
Association of America.

Section 21. That the parties of the second part shall
appoint a mill committee on each turn, who, in connection
with the superintendent or manager, shall investigate all com-
plaints and will be allowed in all departments of the works for
such purpose.

Footnotes.

(a) That in all mills where tinners do not run their own
patches and same are collected and run on certain stacks the
rates shall be 27^ cents per hour for tinners and 20 cents per
hour for risers, the management of the works of the American
Tin Plate Company reserving the option of requiring the
tinners and risers to work all of their own patches on their
own thinning machines at the box rate as fixed and agreed in
the scale for year commencing July 16, 1901.

(h) In cases where the employees under the jurisdiction of
this association are required to stay in the mill longer than
two and one-half hours on account of breakage or shortage of
material they shall be paid 16| cents per hour after that time.

The American Tin Plate Company,
By Warner Arms, Second Vice-President.

Tin Plate Workers' International Protective Association,

By George Powell, President.

Appendix.

The following are the verbal agreements entered into by
and between the representatives of the American Tin Plate
Company and the representatives of the Tin Plate Workers'
International Protective Association of America.

It is understood by both parties to this contract that the
advances named in clause 12 are to apply to employees only
who are members of the Tin Plate Workers' International
Protective Association.

■-> -^ 5

VII. REPOKT AND AWARDS OF THE ANTHRACITE
COAL STRIKE COMMISSION.

Washington, D.C. : March 18, 1903.
To THE PeESIDBNT, —

The undersigned, constituting the Commission appointed
by you October 16, 1902, ' at the request of both the operators
and of the miners,' ' to inquire into, consider, and pass upon
the questions in controversy in connection with the strike in
the anthracite regions ' of Pennsylvania, ' and the causes out
of which the controversy arose,' have the honor to make to
you and, through you, to the parties to the submission the
following report, findings, and award :

The authority of the Commission ... to make a binding
award is found in the letter of certain of the anthracite coal
operators addressed to the public a few days prior to the said
16th of October, 1902 ; in your telegram of that date to
Mr. John Mitchell . . . and in his reply, with the subsequent
action of the employees of the various coal companies engaged
in operating mines in the anthracite coal fields of Pennsyl-
vania, as represented in a convention held at Wilkesbarre,
Pa., October 21, 1902, certified to you by the officers of said
convention.

In this respect the pertinent parts of the correspondence
aforesaid are as follows :

Extract from Goal Operators' Letter relative to Submission,

We suggest a Commission be appointed by the President
of the United States (if he is willing to perform that public
service) to whom shall be referred all questions at issue be-
tween the respective companies and their own employees,
whether they belong to a union or not, and the decision of
that Commission shall be accepted by us.

The Commission to be constituted as follows :

334 THE ADJUSTMENT OF WAGES

1. An officer of the engineer corps of either the military
or naval service of the United States.

2. An expert mining engineer, experienced in the mining
of coal and other minerals and not in any way connected
with coal mining properties, either anthracite or bituminous.

3. One of the judges of the United States courts of the
eastern district of Pennsylvania.

4. A man of prominence eminent as a sociologist.

5. A man who by active participation in mining and
selling coal is familiar with the physical and commercial
features of the business.

It being the understanding that immediately upon the
constitution of such Commission, in order that idleness and
non-production may cease instantly, the miners will return
to work, and cease all interference with or persecution of
any non-union men who are working or shall hereafter work.
The findings of this Commission shall fix the date when the
same shall be effective, and shall govern the conditions of
employment between the respective companies and their own
employees for a term of at least three years.

Geo. F. Baer,
President Pliiladelphia and Beading Coal

and Iron Company^

Lehigh and Wilkesbarre Coal Company,

Temple Iron Company.

E. B. Thomas,
Chairman Pennsylvania Coal Company,
Hillside Coal and Iron Company.

W. H. Truesdale,
President Delaware, Lackawanna and

Western Bailroad Company.
T. P. Fowler,
President Scraiiton Coal Company,
Elk Hill Coal and Iron Company.
Pi. M. Olyphant,
President Delatvare and Hudson Company.
Alfred Walter,
President Lehigh Valley Coal Company.

AWARDS OF THE ANTHRACITE COMMISSION 335

Telegram of the President to John Mitchell.

White House, Washington : October 16, 1902.

Mk. John Mitchell, President United Mine Workers
of America, Wilkesbarre, Pa, : —

I have appointed as commissioners Brig. Gen. John M.
Wilson, Mr. E. W. Parker, Judge George Gray, Mr. E. E.
Clark, Mr. Thomas H. Watkins, and Bishop John L. Spalding,
with Hon. Carroll D. Wright as recorder. These names are
accepted by the operators, and I now most earnestly ask and
urge that the miners likewise accept this Commission. It is
a matter of vital concern to all our people, and especially to
those in our great cities who are least well off, that the
mining of coal should be resumed without a day's unneces-
sary delay.

Theodoke Eoosevelt.

Extract from Letter of John Mitchell to the President.

Wilkesbarre, Pa. : October 16, 1902.

Hon. Theodore Roosevelt, President of the United States,
Washington, D.C.
Dear Sir, —

Replying thereto [to the above telegram], I beg to inform
you that your recommendations were submitted to the mem-
bers of the executive boards of districts 1, 7, and 9, United
Mine Workers of America, and they have unanimously
agreed to call a delegate convention, to be held next Monday,
and will recommend to the convention that all men now on
strike return to the positions and working places formerly
occupied by them, and submit to the Commission appointed
by you all questions at issue between the operators and mine
workers of the anthracite coal fields.

John Mitchell,
President United Mine Workers of America.

336 THE ADJUSTMENT OF WAGES

Action of the Mine Workers' Bepresentatives in Convention,
agreeing to the submission, as certified by the officers
of said Convention.

WiLKESBAREE, Pa. : Octohcr 21, 1902.

Hon. Theodore Eoosevelt, President of the United States,

Washington, D.C.
Dear Sir, —

We, the representatives of the employees of the various
coal companies engaged in operating mines in the anthracite
coal fields of Pennsylvania, in convention assembled, having
under consideration your telegram of October 16, 1902,
addressed to John Mitchell, President United Mine Workers
of America, have decided to accept the proposition therein
embodied and submit all the questions at issue between the
operators and mine workers of the anthracite coal region for
adjustment to the Commission which you have named. In
pursuance of that decision we shall report for work on
Thursday morning, October 23, in the positions and working
places occupied by us prior to the inauguration of the strike.
We have authorised John Mitchell, President of the United
Mine Workers of America, with such assistants as he may
select, to represent us in all hearings before the Commission.

John Mitchell, Chairman of Convention.
W. B. Wilson, Secretary of Convention.

It will thus be seen that the Commission is authorised by
two parties to a controversy to make, as to them, a binding
award. . . .

Mr. Carroll D. Wright having been, with the consent of
both sides, added to the Commission, the undersigned re-
ceived from you the following letter :

President's Appointment of the Commission.

White House, Washington : Ocitober 23, 1902.

To THE Antheacite Coal Strike Commission.

Gentlemen, —

At the request both of the operators and of the miners,
I have appointed you a Commission to inquire into, consider,

AWARDS OF THE ANTHRACITE COMMISSION 337

and pass upon the questions in controversy in connection
with the strike in the anthracite region, and the causes out
of which the controversy arose. By the action you recom-
mend, which the parties in interest have in advance con-
sented to abide by, you will endeavour to establish the rela-
tions between the employers and the wage workers in the
anthracite fields on a just and permanent basis, and, as far
as possible, to do away with any causes for the recurrence of
such difficulties as those which you have been called in to
settle. I submit to you herewith the published statement of
the operators, following which I named you as the members
of the Commission.

Theodore Roosevelt.

The Commission caused letters to be sent in its name
to all the coal companies and individual operators of the
anthracite region of Pennsylvania not already parties to the
submission, inviting them severally to become parties, by
intervention and agreement to be bound by the award to be
made, and by filing written notice to that effect v>'ith the
recorder of the Commission.

The following list comprises all the independent operators,
so called, known to the Commission, and to whom the letter
cited above was sent :

[74 names follow.]

From time to time during the progress of the hearings
interventions were made by the parties as named above, and
they were added to the original signatory companies pro-
posing the submission. The following independent or indi-
vidual operators, some of whom filed answers and all of whom
agreed to abide by the award of the Commission, were repre-
sented by counsel :

[41 names follow.]

The following companies stated their willingness to abide
by the award of the Commission, but were not represented
before it by counsel or otherwise :

[10 names follow.]

338 THE ADJUSTMENT OF WAGES

. z .

Upon the opening of the hearings an application to be
heard before the Commission was presented by Messrs.
Lenahan and O'Brien, as counsel for certain non-union mine
workers. ... It was ordered that the counsel aforesaid file
their authority for their appearance, together with an agreement
to be bound by the award of the Commission. In compliance
with this order, a power of attorney executed by more than
two thousand persons, representing themselves to be non-
union mine workers, was filed, with an agreement on their
part to be bound by the award ; and in the subsequent pro-
ceedings said counsel appeared and took part. . . .

The total number of witnesses examined before the Com-
mission was 558. . . . The record of testimony makes
10,047 pages, besides a vast quantity of exhibits, statistics,
and other pertinent matter.

Demands of the Mine Workers.

. . . For the purpose of securing an orderly procedure,
the Commission ordered that the mine workers should be
considered as the pursuing party, and they accordingly
opened and closed the case. It also required that their
statement of claims should be specific enough to give fair
notice to the other side of the grievances complained of, and
of the general contentions to be urged in the premises.

The statements so filed on behalf of the mine workers
disclosed four general demands, accompanied by specific
arguments in support of the same. All the original parties
and many of the intervening parties filed answers to this
statement of claim. . . .

The demands in the statement of claim made by the union
mine workers are as follows : —

First. An increase of 20 per cent, upon the prices paid
during the year 1901 to employees performing contract or
piece work.

This demand is made on account of the following
reasons : —

1. The present rate of wages is much lower than the rate

AWARDS OF THE ANTHRACITE COMMISSION 339

of wages paid in the bituminous coal fields for substantially
similar work.

2. The present rate of wages is lower than is paid in other
occupations requiring equal skill and training.

3. The average annual earnings in the anthracite coal
fields are much leas than the average annual earnings in the
bituminous coal fields for substantially similar work.

4. The average annual earnings in the anthracite coal
fields are much less than the average annual earnings for
occupations requiring equal skill and training.

5. The rate of wages in the anthracite coal fields is
insufficient to compensate the mine workers in view of the
dangerous character of the occupation, in relation to accidents,
the liability to serious and permanent disease, the high death
rate and the short trade life incident to this employment.

6. The annual earnings of the mine workers are insuffi-
cient to maintain the American standard of living,

7. The increased cost of living has made it impossible to
maintain a fair standard of life upon the basis of present
wages, and has not only prevented the mine workers from
securing any benefit from increased prosperity, but has made
their condition poorer on account of it.

8. The wages of the anthracite mine workers are so low
that their children are prematurely forced into the breakers
and mills instead of being supported and educated upon the
earnings of their parents.

9. Wages are below the fair and just earnings of mine
workers in this industry.

Second. A reduction of 20 per cent, in hours of labor
without any reduction of earnings for all employees paid by
the hour, day, or week.

The second demand is similar to the first in that it is
designed to increase the hourly rate of wages of mine workers
employed by the hour, day or week, and all the reasons
applicable to the first demand are asked to be applied to the
second without repetition.

In addition thereto we submit the following : —

10. The ten-hour day is detrimental to the health, life,
safety, and well-being of the mine workers.

z 2

340 THE ADJUSTMENT OF WAGES

11. Shorter hours improve the physical, mental, and
moral condition of the workers.

12. Shorter hours increase the intensity and efficiency of
labor.

13. The tendency of national and State governments, of
organised trades and of production generally, is towards
shorter hours.

14. A working day of eight hours is sufficiently long
for the best interests of the workingmen and of the com-
munity.

Third. The adoption of a system by which coal shall be
weighed and paid for by weight wherever practicable ; the
minimum rate per ton to be 60 cents for a legal ton of
2,240 pounds ; the differentials now existing at the various
mines to be maintained.

This demand is made on account of the following
reasons : —

1. Measurement by the legal ton wherever practicable is
the only honest and just system of measuring the earnings of
the mine workers.

2. When the operators sell or transport coal it is on the
basis of a legal ton of 2,240 pounds.

3. The excessive ton was originally intended to compen-
sate the operator for the weight of the small sizes of coal
which were then discarded, but which are now utilised and
sold, and therefore there is no present necessity for the use
of any other than the legal ton.

4. The adoption of this system would remove an incen-
tive, both to the operator and the worker, to cheating and
dishonesty, and would allay jealousy among the miners and
prevent unjust discrimination and favoritism.

(5) The change of the present system to the one asked
for would prove a strong factor in allaying suspicion and
discontent amongst the mine workers.

Fourth. The incorporation in an agreement between
the United Mine Workers of America and the anthracite coal
companies of the wages which shall be paid and the conditions
of employment which shall obtain, together with satisfactory
methods for the adjustment of grievances which may arise

AM^ARDS OF THE ANTHRACITE COMMISSION 341

from time to time, to the end that strikes and lockouts may
be unnecessary.

In support of this demand we submit the following
reasons :

(1) The anthracite mine workers should not be compelled
to make or sign individual agreements, but should have the
right to form such organisation and choose such agents and
officers as they desire to act collectively instead of individually
whenever they deem that their best interests are subserved
thereby.

(2) Agreements between employers and employees through
working-men's organisations are the ordinary method of re-
gulating production and wages in the bituminous coal fields
and in other large industries, and are beneficial, successful,
and in keeping with the spirit of the times.

(3) Unions of workingmen tend to better discipline of the
men and to the improvement of their physical, moral, and
mental condition, and to the preservation of friendly relations
between employer and employee.

(4) Experience shows that the trade agreement is the
only effective method by which it is possible to regulate
questions arising between employers and employed in large
industries, and that a trade agreement is the only possible
way 'to establish the relations between employers and the
wage workers in the anthracite fields on a just and permanent
basis, and as far as possible to do away with any causes for
the recurrence of such difficulties as those you (the Anthracite
Coal Strike Commission) have been called in to settle.'

Ansioers of Mine Operators.

To these demands and the reasons in support thereof the
several answers of the operators make general and specific
denial. No good purpose would be accomplished by here
reciting even a summary of these answers on this point,
even if their volume did not forbid. These answers all agree
in characterising the demands as unreasonable and unjust,
and unsupported by facts. . . .

These claims and contentions on the part of the mine
workers and the answers thereto, together with the testimony

342 THE ADJUSTMENT OF WAGES

in their support . . . have been considered by the Commis-
sion, with the following results : —

Findings of ths: Commission.

1. Demand for Higher Wages for Contract Miners.
The Commission finds that the conditions of the life of
mine workers outside the mines do not justify, to their full
extent, the adverse criticisms made by their representatives,
in their contentions at the hearings and in their arguments
before the Commission in support of the proposition ' that
the annual earnings of the mine workers are insufficient to
maintain the American standard of living.' . . .

The contention that the increased cost of living has made
it impossible to maintain a fair standard of life, . . . and has
not only prevented the mine workers from securing any benefit
from increased prosperity and from the increase in wages
made in 1900, but has rendered their condition poorer, cannot
be fully allowed in the terms in which it is made, although
the increased cost of living since 1900 is an element that has
been carefully considered. This increase for the past few
years, as ascertained by an investigation made by the United
States Department of Labor, . . . and taking into considera-
tion the leading articles of consumption for food, amounts to
9.8 per cent. A summary of this investigation . . . will be
found in the appendix. . . . From this it will be seen that,
taking the average quantity of articles consumed per family
and assuming prices for 1901 to be 100, in 1898 they were
96.5 ; in 1899, 94.5 ; in 1900, 96.7, and in 1902, 106.2, the
relative increase in cost between 1900 and 1902, therefore,
being as stated, 9.8 per cent. These conclusions are based
on retail prices secured by special agents of the Department
of Labor from fifty-eight establishments, representing thirteen
cities or towns in the anthracite regions, and are trustworthy
so far as they go. . . .

Statistics of this kind, however, are rather too inexact for
a satisfactory basis on which to make precise calculations
when considering the question of an increase of wages, for
there are some elements entering into the ascertainment of

AWARDS OF THE ANTHRACITE COMMISSION 343

an average rise of prices in such a period as that we are con-
sidering, which are temporary in their effect. . . . We may cite
the rise in price of one of the prime necessaries of life —
meat — during 1902, which was sudden and serious and which
had its effect on other prime necessaries, and yet recent
experience has demonstrated its temporary character.

Another contention of the miners, to wit, that the wages
of contract miners are necessarily so low that their children
are prematurely forced into breakers and mills, has not been
fully sustained, and the Commission does not think that the
testimony warrants it in finding as a fact the allegations so
made.

So much is said on these points, because a dispropor-
tionate length of time was occupied in giving testimony, and
in making arguments before the Commission in regard to
them, and it is desired to dispose of them here, that we may
consider more closely the more important factors that should
influence a proper judgment as to the merits of the demand
made for higher wages.

As to the general contention that the rates of compensa-
tion for contract miners in the anthracite region are lower
than those paid in the bituminous fields for work substantially
similar, or lower than are paid in other occupations requiring
equal skill and training, the Commission finds that there has
been a failure to produce testimony to sustain either of these
propositions.

As to the bituminous fields, we have no satisfactory
evidence upon which to base a comparison between the stan-
dard of earnings there and in the anthracite fields, neither
miners nor operators adducing evidence upon which an
intelligent judgment on that point might be formed. There
was, however, a good deal of testimony upon the second
proposition, that the present rates of compensation in the
anthracite region are lower than those in other occupations
requiring equal skill and training. It is difficult to institute
a comparison, owing to the fact that the contract miners, who
constitute approximately 26 per cent, and their laborers 18 per
cent, of the mine workers, are paid according to contract — so
much for a given amount of coal produced. As to this class.

344 THE ADJUSTMENT OF WAGES

of course, the conditions on which a rate of daily or monthly
earnings depends are so variant that a deduction of a uni-
form daily or monthly rate can not well be obtained or
expected.

To some extent the contract miner has within his own
control the number of hours he shall work each day, and
consequently the amount of work he shall perform. He is
paid by the mine car, yard, or ton for the coal he blows down,
the loading of which into the mine car is generally the work
of a laborer, who is paid by the contract miner, who also
pays for powder, oil, and tools, so that in many respects he
may be called an independent contractor. For our present
purpose it is important to ascertain, first, the net earnings he
is able to make for the day or the year, and, second, what he
actually does make. We find some, though not a great,
difference in the answers to these two inquiries. It is not
surprising to find that there is much difference in the annual
earnings of such miners. Experience, natural capacity,
aptitude for the work, individual industry, and habits of
sobriety materially affect the amomit that is earned.

In addition to these causes of difference, which are more
or less in the control of the miner, there are others inherent
in the nature of the work, which, though there is a tendency
to overcome them by differential rates of payment and by
allowances, still constitute serious obstacles to uniformity in
the miners' monthly or yearly earnings. Such are the varia-
tion in thickness and pitch of the coal seams, faults, and the
greater or less impurity of the coal owing to the presence of
rock, slate, and other foreign substances. Although there is
an endeavor, as has been said, to overcome these difficulties
by allowances, there still must remain, when the best has been
done, inequality arising from these causes in the aggregate
yearly earnings of the miner.

Compilations have been made, at the request of the Com-
mission, by the various operators, parties to the submission,
showing the gross and net earnings of the contract miners,
practically covering the year 1901. These compilations, with
the tables of wages paid all mine workers, have been prepared
at great expense, and have been accepted, for the most part,

AWARDS OF THE ANTHRACITE COMMISSION 345

by the representatives of the miners as showing truly what
they purport to show. . . .

It is readily seen from what has been said that the diffi-
culty of comparing the rate of earnings of contract miners with
the rate of 10 ages paid in other occupations requiring equal skill
and training is serious. ... In attempting a comparison with
other occupations, we are met at once with the embarrassing
condition that in such occupations the rate of wages paid by
the day or the month is uniform, and the labor is generally
continuous throughout the year, while in the work of contract
miners, who are paid by the yard, car, or ton, the number of
days or hours represented by the earnings is a varying
quantity, and the number of days in which he is actually
employed at all, may be much fewer than the average number
of days constituting a year's work in most other employments.

We have already said that the personal element constantly
enters into the case. The miner who by special aptitude or
training knows how to economise powder and other supplies,
and who is willing to devote two or three hours more a day
than the average to his work, can and does make a larger
income than his fellows who fail in these respects. Neverthe-
less, we have . . . made some comparison and have sought to
arrive at such general results as would fairly represent
the average earnings of the contract miner. We have en-
deavoured to base our judgment, not upon semi-monthly or
monthly returns, but upon the earnings of those who have
labored throughout the year, only a part of whom may have
availed themselves of all their opportunities.

It is impossible to be accurate in this matter. The condi-
tions that make accuracy impossible are inherent in the
nature of the subject with which we are dealing. Neither
contract miners nor mine workers can work the full number
of days in a year which it is possible to work in other callings ;
that is to say, owing to causes beyond the control of either
miner or operator — such as breakage of machinery inside
or outside the mine, disarrangement of pumps, storms,
repairs, &c. — opportunity to work in the mines, without fault
of either operator or miner, does not present itself on each
working day of the year. On the other hand, for causes

346 THE ADJUSTMENT OF WAGES

within the control of the operator or miner, the number of
idle days at the mines is, or may be, increased.

Take for example the year 1901, a year of more than
usual activity in mining operations, the average number of
days throughout the region on which work was started was
approximately 260. The number may have been less. So
that the yearly income of the contract miner, as well as that
of the others, is the product of work done in parts of days
fewer by fifty than the number of working days in the year ;
and for the contract miner the hours worked in each of the
days in which a start is made, are fewer than 10, and from
the evidence we feel warranted in saying that they certainly
do not exceed, on the average, eight hours, there being much
testimony to show that many of the miners go into the mines
between six and seven in the morning and come out before
two o'clock in the afternoon. This is a fact, of course, to be
taken into consideration in determining a fair rate of com-
pensation or a fair annual earning.

We find that the average daily rate of earnings, as nearly
as can be ascertained, does not compare unfavourably with
that in other industries requiring substantially equal skill
and training. It is more instructive, of course, to compare
annual earnings of the contract miner with the annual earn-
ings of those employed in other occupations. We find that
these annual earnings of contract miners, based upon returns
for the year 1901, range between ;^550 and ^600. Perhaps it
would be safe to put the average at ^1^560.

We have also considered the contention . . . that the
mining industry is perilous and extra hazardous, and find
that it should be classed as one of the dangerous industries
of the country, ranking with several of the most dangerous.
The statistics so far available do not show a greater hazard
than obtains in some other occupations, notably in the fisheries
and in those of switchmen and freight-train crews on our rail-
roads. Still, the requirements are exacting, and this fact has
been duly weighed by the Commission, in coming to a decision
upon the demand for an increase in the rate of compensation
of contract miners.

Eeviewing the whole case, and acting upon the conviction

AWARDS OF THE ANTHRACITE COMMISSION 347

produced by the hearing of testimony, and the examination
of statistics, the Commission is of the opinion that, in view of
the interruptions incident to mining operations, the increased
cost of living, the uncertainty as to the number of days during
the year presenting an opportunity for work, and the inequali-
ties of physical conditions affecting the ability to earn, and
not overlooking the hazardous nature of the employment,
some increase in the rate of compensation to contract miners
should be made.

The Commission, therefore, considers, and so adjudges
and awards :

[See No. 1 under ' Recapitulation of Awards ' below. The Report on
the next two demands is here omitted. The Awards relative to each wUl
be found below.]

4. Demand for an Agreement with United Mine Workers

of America.

The fourth and last demand of the miners is as follows :
The incorporation in an agreement between the United
Mine Workers of America and the anthracite coal companies
of the wages which shall be paid and the conditions of employ-
ment which shall obtain, together with satisfactory methods
for the adjustment of grievances which may arise from time
to time, to the end that strikes and lockouts may be un-
necessary.

The Commission is constrained to decline making an
award which would compel an agreement by the operators
with the United Mine Workers of America ; for however
importantly that order may have participated in the strike
which was inaugurated on May 12 last, and in its subsequent
conduct, it is not a party to this submission. It was distinctly
stated at the first meeting of the Commission, that the presi-
dent of the United Mine Workers of America appeared before
the Commission as the representative of the mine workers in
the anthracite region, on whose behalf had been made the
demands which have since been incorporated in the formal
statement of claim filed. It is the striking anthracite mine
workers, who appear before the Commission as the pursuing
party. It is true that they have been represented, and ably

348 THE ADJUSTMENT OF WAGES

represented, before the Commission by Mr. Mitchell, but in
so representing them he appeared * as the representative of
the anthracite coal mine workers,' and not in his official
character as president of the United Mine Workers of
America.'

Nor does the Commission consider that the question of
the recognition of the United Mine Workers of America is
within the scope of the jurisdiction conferred upon it by the
submission. ...

The Commission feels, however, that it is incumbent upon
it to give some expression to its views on the general question.
From the correspondence which passed between the coal
operators and the officers of the United Mine Workers prior
to the strike, . . . from the voluminous testimony presented
during the hearings, , . . and from the arguments of counsel
and others, . , . the Commission is led to the conviction,
that the question of the recognition of the union and of
dealing with the mine workers through their union, was
considered by both operators and miners to be one of the
most important involved in the controversy. . . .

The order, as its name implies, is an organisation to
membership in which all workers who ' produce or handle coal
or coke in or around the mines ' are eligible. It claims a

' At the hearing before the Commission on October 27, Mr. Baer, repre-
senting the Philadelphia and Beading Coal and Iron Company, made the
following statement : —

' I am anxious to have one thing clearly understood, because it may lead to
complications, and it might as well be stated now as at any other time. Wo
have no objection to Mr. Mitchell appearing here to represent miners in the
Schuylkill region ; but under the terms of the submission to you we have
expressly excluded the miners' organisation, because it is a bituminous organi-
sation partly, and we can not consent to Mr. Mitchell's appearing here as the
representative and as the president of that organisation. So far as he appears
here to represent any of the miners in the anthracite region that are in our
employ, we have no objection, and we raise no question about it ; but we do not
want him to appear on the record as president of the United Mine Workers,
because we have distinctly stated in the paper from which you have derived
your authority to the President that we will not deal with that organisation.'

In reply to the foregoing, Mr. Mitchell said :

' As to the matter of my status before the Commission, I desire to say that
the objections that have been filed are not involved. I appear here as the
representative of the anthracite coal mine workers.'

AWARDS OF THE ANTHRACITE COMMISSION 349

jurisdiction coextensive with the coal-producing industry in
America. Its purpose, as stated in its constitution, is to
unite the mine workers and ' ameliorate their condition by
methods of conciliation, arbitration, or strikes.' The members
of the union assert, that they have a right to form them-
selves into a union, choose their officers, and delegate to those
officers authority to represent and speak or bargain for them.
They contend that if a majority of the employees of a colliery,
or a mining company, are members of the union, the union
has a right to negotiate for the services of the employees of
that colliery or company, in their collective capacity.

The operators assert that they have no objection to their
employees joining a union or labor organisation. They say
their refusal to recognise and deal with the United Mine
Workers, as at present constituted, is based on the fact that
the majority of the members of the union are employed in
the bituminous coal fields ; that the officers are chiefly from
those fields and not well acquainted with the work of mining
anthracite coal ; that to deal with them would be dealing with
an organisation which is controlled by men engaged in a
rival industry, bituminous and anthracite coal mining being
considered by them as competitive or rival industries, so
far as the use of anthracite for steam -producing purposes is
concerned. The assertion is made that operators in bitu-
minous fields contributed liberally to the striking anthracite
miners, in order to continue the advantages which accrued to
the bituminous coal industry from the suspension of work in
the anthracite region ; and it is also alleged and proved, that
the local unions in the anthracite fields are, to some extent,
controlled by the votes of young boys, who are admitted to
membership and who are, through their youth and lack of
experience, wanting in judgment, and, so far, irresponsible.

Great stress is laid upon the accusation that the United
Mine Workers' union resorts to and encourages lawlessness
and violence in its efforts to accomplish its purposes or
desires.

The demands of the mine workers having been made
through their union, any adjustment which might have been
effected between the operators and the officers of the organisa-

350 THE ADJUSTMENT OF WAGES

tion would have carried with it more or less direct recognition
of the union. The agreement to submit the disputed points
to the decision of this Commission was subscribed to by the
presidents of the large anthracite mining and transportation
companies on the one side, and by a convention of anthracite
mine workers, members of the union, on the other. The
submission provides that this Commission shall determine
the questions at issue between the several operators and
* their respective employees, whether the latter belong to a
union or not,' and shall fix the rate of wages and hours and
conditions of labor for a period of not less than three years.

Whatever the jurisdiction of this Commission under the
submission may be, the suggestion of a working agreement
between employers and employees embodying the doctrine of
collective bargaining is one which the Commission believes
contains many hopeful elements for the adjustment of rela-
tions in the mining regions, but it does not see that, under
the terms of the submission from which the powers of the
Commission are derived, such an agreement can be made to
take the place of, or become part of, its award.

In the days when the employer had but few employees,
personal acquaintance and direct contact of the employer and
the employee resulted in mutual knowledge of the surround-
ing conditions and the desires of each. The development of
the employers into large corporations, has rendered such
personal contact and acquaintance between the responsible
employer and the individual employee no longer possible in
the old sense. The tendency towards peace and good-fellow-
ship which grows out of personal acquaintance or direct
contact should not, however, be lost through this evolution
to greater combinations. There seems to be no medium
through which to preserve it, so natural and efficient as that
of an organisation of employees governed by rules which
represent the rule of a properly constituted majority of its
members, and officered by members selected for that purpose,
and in whom authority to administer the rules and affairs
of the union and its members is vested.

The men employed in a certain line of work or branch of
industry have similar feelings, aspirations, and convictions,

AWARDS OF THE ANTHRACITE COMMISSION 351

the natural outgrowth of their common work and common
trend or application of mind. The union, representing their
community of interests, is the logical result of their com-
munity of thought. It encourages calm and intelligent
consideration of matters of common interest. In the absence
of a union, the extremist gets a ready hearing for incendiary
appeals to prejudice or passion, when a grievance, real or
fancied, of a general nature, presents itself for consideration.

The claim of the worker that he has the same right to
join with his fellows in forming an organisation, through
which to be represented, that the stockholder of the corpora-
tion has to join others in forming the corporation, and to be
represented by its directors and other officers, seems to be
thoroughly well founded, not only in ethics but under
economic considerations. Some employers say to their em-
ployees : * We do not object to your joining the union, but
we will not recognise your union nor deal with it as repre-
senting you.' If the union is to be rendered impotent, and its
usefulness to be nullified by refusing to permit it to perform
the functions for which it is created, and for which alone
it exists, permission to join it may well be considered as a
privilege of doubtful value.

Trades unionism is rapidly becoming a matter of busi-
ness, and that employer who fails to give the same careful
attention to the question of his relation to his labor or his
employees, which he gives to the other factors which enter
into the conduct of his business, makes a mistake, which
sooner or later he will be obliged to correct. . . . Experience
shows that the more full the recognition given to a trades
union, the more businesslike and responsible it becomes.
Through dealing with business men in business matters, its
more intelligent, conservative, and responsible members come
to the front and gain general control and direction of its
affairs. If the energy of the employer is directed to dis-
couragement and repression of the union, he need not be
surprised if the more radically inclined members are the ones
most frequently heard.

The Commission agrees that a plan, under which all
questions of difference between the employer and his

352 THE ADJUSTMENT OF WAGES

employees shall first be considered in conference between
the employer or his official representative and a committee,
chosen by his employees from their own ranks, is most likely
to produce satisfactory results and harmonious relations, and
at such conference the employees should have the right to
call to their assistance such representatives or agents as they
may choose, and to have them recognised as such.

In order to be entitled to such recognition, the labor
organisation or union must give the same recognition to the
rights of the employer and of others, which it demands for
itself and for its members. The worker has the right to quit
or to strike in conjunction with his fellows, when by so doing
he does not violate a contract made by or for him. He has
neither right nor license to destroy or to damage the property
of the employer ; neither has he any right or license to
intimidate or to use violence against the man who chooses to
exercise his right to work, nor to interfere with those who do
not feel that the union offers the best method for adjusting
grievances.

The union must not undertake to assume, or to interfere
with, the management of the business of the employer. It
should strive to make membership in it so valuable as to
attract all who are eligible ; but in its efforts to build itself up,
it must not lose sight of the fact that those who may think
differently have certain rights guaranteed them by our free
government. However irritating it may be to see a man
enjoy benefits to the securing of which he refuses to con-
tribute, either morally, or physically, or financially, the fact
that he has a right to dispose of his personal services as he
chooses cannot be ignored. The non-union man assumes the
whole responsibility which results from his being such, but
his right and privilege of being a non-union man are sanc-
tioned in law and morals. The rights and privileges of non-
union men are as sacred to them as the rights and privi-
leges of unionists. The contention that a majority of the
employees in an industry, by voluntarily associating them-
selves, in a union, acquire authority over those who do not so
associate themselves is untenable. , . .

We believe it is unwise and impolitic to permit boys of

AWARDS OF THE ANTHRACITE COMMISSION 353

immature age and judgment to participate in deciding the
policy and actions of a labor union. We think that no one
should have such voice in the affairs of a union until he has
reached his legal majority . . . This does not mean, of
course, that minors should not belong to the union, but
they should not act as, nor vote for, delegates to conventions
which consider or determine strikes.

The present constitution of the United Mine Workers of
America does not present the most inviting inducements to
the operators to enter into contractual relations with it.
Minors are represented in conventions called for the con-
sideration of strikes ; while boys do not go as delegates, only
one case having been noted, they send delegates to such con-
ventions ; and as the boys in the union in the anthracite
region constitute about 20 per cent, of the membership, it is
easily seen that their representatives, who may be obliged to
act on instructions, may have the balance of power, and thus
carry a vote for a strike when the more conservative and
experienced members might be opposed to it.
\Va Under the recently amended constitution of the United
Mine Workers of America, strikes must originate with the
locals or districts ; but before final action is taken by any
district upon questions that directly or indirectly affect the
interests of the mine workers of another district, or that
require a strike to determine such questions, the president
and secretary of the aggrieved district must jointly prepare,
sign, and forward to the national president, a written state-
ment setting forth the grievance complained of, the action
contemplated by the district, and the reasons therefor ; and
the national president must, within five days after the receipt
of such statement, either approve or disapprove of the action
contemplated by the aggrieved district, such approval or dis-
approval to be made in writing and a copy forwarded to the
secretary of the complaining district. If the national presi-
dent approve, the district is free to act ; but should he dis-
approve the contemplated strike, the district may appeal to
the national executive board, which must be convened to
consider such appeal within five days after its receipt. Until
the national president has approved or the national executive

A A

354 THE ADJUSTMENT OF WAGES

board has sustained the appeal, no district is free to enter
upon a strike, unless it be general or national, ordered by a
national convention.

These provisions give the districts in the anthracite
region quite independent powers relative to the initiation of a
strike, and their powers are in a measure safeguarded by the
necessity of first securing the approval of the national presi-
dent, or, in case of his disapproval, of the national executive
board. The difficulty does not lie so much in the method
now pursued as in the fact that a strike may be undertaken
by a majority vote of the members of a district convention
called for the purpose of considering the strike. This is con-
sidered a weakness in the present method. Instead of a
majority vote there should be at least a two-thirds vote of all
the delegates in the convention considering the question of a
strike. The vote should be by ballot, and not by voice, or
show of hands. An amendment to the constitution, making
such provisions as those just indicated, and creating a separate
anthracite department, so far as strikes are concerned, would
remove some of the serious objections that have been urged
by the operators.

An independent and autonomous organisation of the
anthracite mine workers of Pennsylvania, however affiliated,
in which the objectionable features above alluded to should be
absent, would deserve the recommendation of this Commis-
sion, and, were it within the scope of its jurisdiction, the
said fourth demand of the statement of claim, for collective
bargaining and a trade agreement, might then be reasonably
granted.

The Commission has carefully considered and has outlined
a plan for an organisation for the execution of trade agree-
ments in the anthracite region, . . . which is printed in full
as an appendix.'

' [Of this ' Plan recommended by the Commission ' the following are the
most important clauses : —

1. An organisation of anthracite mine workers, governed by the anthracite
mine workers and free from control or dictation of bituminous mine workers.

This can be effected by making the anthracite mine workers a separate
department of the union, or by such other modification of rules and laws as
will best effect the purpose.

AWARDS OF THE ANTHRACITE COMMISSION 355

When under the award the parties have faithfully obeyed
its terms and thus learned to deal with each other, a trade
agreement between operators and an anthracite mine workers'
organisation may commend itself to both sides. We believe
this, especially when it is considered that in other directions,
and in other industries, such agreements have been made

2. All workers in and about the anthracite mines, excepting foremen,
assistant foremen, and other bosses, clerks, and office employees, to be eligible to
membership in the organisation and entitled to its privileges and benefits ;
provided that boys under 21 years of age should not have voice or vote on
propositions pertaining to strikes.

3. A local body of the organisation for each colliery, composed of the
employees of that colliery and officered by officers chosen by them from their
own ranks.

4. A local committee in each local, composed of its own members,
employees of the colliery, whose duty it shall be to seek adjustment at the hands
of the local officials, of any local complaints which the local may refer to the
committee, and which the aggrieved member is unable to adjust with his
immediate superior officer.

5. A general committee for each company's employees composed of one
representative from each colliery, if there be three or more collieries. If less
than three collieries, the general committee to be composed of two or three
members from each colliery.

Complaints which local committees are unable to adjust to be referred to
the general committee, which should have authority to dismiss or settle the
complaint and have their decision binding upon the organisation and its
members.

General committees to seek adjustments of complaints at the hands of the
general officers of the employing company.

If the general officers of the company and the general committee are unable
to reach an agreement, the general committee should have the right to call
into the conference, to assist and advise them, such general officer of the
organisation as may be selected and to whom such duties are delegated,
regardless of whether or not such general officer is an employee of the company
interested.

6. Agreements between the organisation and the employei-s of its members,
governing terms or conditions of employment, should provide that any matter
in dispute which the general officers of the company and the general committee
of the organisation, accompanied by their general officer, are unable to reach
an adjustment of shall be submitted to fair arbitration, the award to be
accepted by both.

7. No strike to be inaugurated until the committees and officers of the
organisation have complied with all their rules and have exhausted all other
honorable efforts to reach an agreement and have failed ; nor then, until
proposal to strike has been submitted to all the members employed in that
colliery or by that company who are entitled to vote on strike questions, and
two-thirds of them have voted by ballot in favour of the proposal.]

A A 2

356 THE ADJUSTMENT OF WAGES

and adhered to for terms of years, completely avoiding strikes
and labor controversies generally. Of course, here and
there in the bituminous regions, these agreements may not
have worked with perfect satisfaction to both parties, and in
some districts they have been abandoned after a brief trial,
but on the whole the experience under them in this country,
and in England, testifies to their great usefulness in pre-
serving peace and harmony.

The Commission is of opinion, nevertheless, that some
satisfactory method for the adjustment of grievances which
may arise from time to "time, to the end that strikes and lock-
outs may be unnecessary, the demand for which as part of an
agreement with the United Mine Workers of America is made
in the fourth claim, just referred to, should be imposed by its
award upon the parties to this submission.

It, accordingly, hereby adjudges and awards :

[See No. 4 under ' Eecapitulation of Awards ' below.]

8. Sliding Scale.

The attention of the Commission during the argument
was called to a proposition for the establishment of the
sliding scale, as a basis of payment or as an adjunct to any
general system of payment adopted. It has many attractive
features and is, in its essence, a profit-sharing device. The
testimony shows that it was in operation for many years
in the Lehigh and Schuylkill regions. As it existed in the
latter it seems to have given measurable satisfaction. It
appears, however, to have had a confessed defect, in that
there was no minimum basis of earnings for the miner.

No sliding scale can be of permanent value, unless there
be established a minimum basis of earnings, and a minimum
price of the article on which the scale is constructed. The
statistics of the prices of coal, f.o.b. New York Harbor, have
enabled the Commission to arrive at what seems to be a just
basis, so far as price is concerned, while the minimum
basis of earnings must necessarily be that established in the
award.

The Commission has not thought it wise to adopt an
arrangement for a sliding scale as a substitute for an increase

AWARDS OF THE ANTHRACITE COMMISSION 357

in the compensation of mine workers, and has, accordingly,
in its preceding awards, provided for such direct increase as
in its judgment is fair to both operator and mine worker, for
the period of three years. Therefore, in prescribing the
following sliding scale, the Commission does not do so with
the expectation that it means any immediate addition to the
increases already provided for in the earnings and wages of
mine workers, or that it necessarily means an increase at all,
but with the thought that if in the future the price of coal
should become what might be called abnormally high, there
might be participation by miners and mine workers in the
profits derived from such increased price.

The Commission, therefore, adjudges and awards :

[See No. 8 under ' Eecapitulation of Awards ' below.]

Eecapitulation of Awards.

1. The Commission adjudges and awards : That an in-
crease of 10 per cent, over and above the rates paid in the
month of April, 1902, be paid to all contract miners for
cutting coal, yardage, and other work for which standard
rates or allowances existed at that time, from and after
November 1, 1902, and during the life of this award ; and
also to the legal representatives of such contract miners as
may have died since November 1, 1902. The amount of in-
crease under the award due for work done between November 1,
1902, and April 1, 1903, to be paid on or before June 1, 1903.

2. The Commission adjudges and awards : That engineers
who are employed in hoisting water shall have an increase of
10 per cent, on their earnings between November 1, 1902, and
April 1, 1903, to be paid on or before June 1, 1903 ; and a
like allowance shall be paid to the legal representatives of
such employees as may have died since November 1, 1902 ;
and from and after April 1, 1903, and during the life of the
award, they shall have eight-hour shifts, with the same pay
which was effective in April, 1902 ; and where they are now
working eight-hour shifts, the eight-hour shifts shall be
continued, and these engineers shall have an increase of 10
per cent, on the wages which were effective in the several
positions in April, 1902.

358 THE ADJUSTMENT OF WAGES

Hoisting engineers and other engineers and pumpmen,
other than those employed in hoisting water, who are em-
ployed in positions which are manned continuously, shall
have an increase of 10 per cent, on their earnings between
November 1, 1902, and April 1, 1903, to be paid on or before
June 1, 1903 ; and a like allowance shall be paid to the legal
representatives of such employees as may have died since
November 1, 1902 ; and from and after April 1, 1903, and
during the life of the award, they shall have an increase of
5 per cent, on the rate of wages which were effective in the
several positions in April, 1902 ; and in addition they shall
be relieved from duty on Sundays, without loss of pay, by a
man provided by the employer to relieve them during the
hours of the day shift.

The Commission adjudges and awards : That firemen
shall have an increase of 10 per cent, on their earnings
between November 1, 1902, and April 1, 1903, to be paid on
or before June 1, 1903 ; and a like allowance shall be paid to
the legal representatives of such employees as may have died
since November 1, 1902 ; and from and after April 1, 1903,
and during the life of the award, they shall have eight-hour
shifts, with the same wages per day, week, or month as were
paid in each position in April, 1902.

The Commission adjudges and awards : That all em-
ployees or company men, other than those for whom the
Commission makes special awards, be paid an increase of
10 per cent, on their earnings between November 1, 1902,
and April 1, 1903, to be paid on or before June 1, 1903 ; and
a like allowance shall be paid to the legal representatives of
such employees as may have died since November 1, 1902 ;
and that from and after April 1, 1903, and during the life of
this award, they shall be paid on the basis of a nine-hour
day, receiving therefor the same wages as were paid in
April, 1902, for a ten-hour day. Overtime in excess of nine
hours in any day to be paid at a proportional rate per hour.

3. The Commission adjudges and awards : That during
the life of this award the present methods of payment for coal
mined shall be adhered to, unless changed by mutual agree-
ment.

AWARDS OF THE ANTHRACITE COMMISSION 359

4. The Commission adjudges and awards : That any
difficulty or disagreement arising under this award, either as
to its interpretation or application, or in any way growing out
of the relations of the employers and employed, which can
not be settled or adjusted by consultation between the super-
intendent or manager of the mine or mines, and the miner or
miners directly interested, or is of a scope too large to be so
settled or adjusted, shall be referred to a permanent joint
committee, to be called a board of conciliation, to consist of
six persons, appointed as hereinafter provided. That is to
say, if there shall be a division of the whole region into three
districts, in each of which there shall exist an organisation
representing a majority of the mine workers of such district,
one of said board of conciliation shall be appointed by each of
said organisations, and three other persons shall be appointed
by the operators, the operators in each of said districts ap-
pointing one person.

The board of conciliation thus constituted, shall take up
and consider any question referred to it as aforesaid, hearing
both parties to the controversy, and such evidence as may be
laid before it by either party ; and any award made by a
majority of such board of conciliation shall be final and
binding on all parties. If, however, the said board is unable
to decide any questions submitted, or point related thereto,
that question or point shall be referred to an umpire, to be
appointed, at the request of said board, by one of the circuit
judges of the third judicial circuit of the United States, whose
decision shall be final and binding in the premises.

The membership of said board shall at all times be kept
complete, either the operators' or mmers' organisations having
the right, at any time when a controversy is not pending, to
change their representation thereon.

At all hearings before said board the parties may be
represented by such person or persons as they may respec-
tively select.

No suspension of work shall take place, by lockout or
strike, pending the adjudication of any matter so taken up
for adjustment.

5. The Commission adjudges and awards : That whenever

36o THE ADJUSTMENT OF WAGES

requested by a majority of the contract miners of any colliery,
check weighmen or check docking bosses, or both, shall be
employed. The wages of said check weighmen and check
docking bosses shall be fixed, collected, and paid by the
miners in such manner as the said mmers shall by a majority
vote elect ; and when requested by a majority of said miners,
the operators shall pay the wages fixed for check weighmen
and check docking bosses, out of deductions made proportion-
ately from the earnings of the said miners, on such basis as
the majority of said miners shall determine.

6. The Commission adjudges and awards : That mine
cars shall be distributed among miners, who are at work, as
uniformly and as equitably as possible, and that there shall
be no concerted effort on the part of the miners or mine
workers of any colliery or collieries, to limit the output of the
mines or to detract from the quality of the work performed,
imless such limitation of output be in conformity to an agree-
ment between an operator or operators, and an organisation
representing a majority of said miners in his or their
employ.

7. The Commission adjudges and awards : That in all
cases where miners are paid by the car, the increase awarded
to the contract miners is based upon the cars in use, the
topping required, and the rates paid per car which were in
force on April 1, 1902. Any increase in the size of car, or
in topping required, shall be accompanied by a proportionate
increase in the rate paid per car.

8. The Commission adjudges and awards : That the
following sliding scale of wages shall become effective April 1,
1903, and shall affect all miners and mine workers included
in the awards of the Commission :

The wages fixed in the awards shall be the basis of, and
the minimum under, the sliding scale.

For each increase of five cents in the average price of
white-ash coal of sizes above pea coal, sold at or near New
York, between Perth Amboy and Edge water, and reported to
the Bureau of Anthracite Coal Statistics, above *^4.50 per ton
f.o.b., the employees shall have an increase of 1 per cent.

AWARDS OF THE ANTHRACITE COMMISSION 361

in their compensation, which shall continue until a change in
the average price of said coal works a reduction or an increase
in said additional compensation hereunder ; but the rate of
compensation shall in no case be less than that fixed in the
award. That is, when the price of said coal reaches ,^4.55 per
ton, the compensation will be increased 1 per cent., to con-
tinue until the price falls below ^'4.55 per ton, when the 1 per
cent, increase will cease, or until the price reaches ^4.60 per
ton, when an additional 1 per cent, will be added, and so on.

These average prices shall be computed monthly, by an
accountant or commissioner, named by one of the circuit
judges of the third judicial circuit of the United States, and
paid by the coal operators such compensation as the appoint-
mg judge may fix, which compensation shall be distributed
among the operators in proportion to the tonnage of each
mine.

In order that the basis may be laid for the successful
working of the sliding scale provided herein, it is also adjudged
and awarded : That all coal-operating companies file at once
with the United States Commissioner of Labor, a certified
statement of the rates of compensation paid in each occupation
known in their companies, as they existed April 1, 1902.

9. The Commission adjudges and awards : That no person
shall be refused employment, or in any way discriminated
against, on account of membership or non-membership in
any labor organisation ; and that there shall be no discri-
mination against, or interference with, any employee who is
not a member of any labor organisation by members of such
organisation.

10. The Commission adjudges and awards : That all con-
tract miners be required to furnish within a reasonable time
before each pay day, a statement of the amount of money due
from them to their laborers, and such sums shall be deducted
frpm the amount due the contract miner, and paid directly to
each laborer by the company. All employees when paid shall
be furnished with an itemised statement of account.

11. The Commission adjudges and awards : That the
awards herein made shall continue in force until March 31,

362 THE ADJUSTMENT OF WAGES

1906 ; and that any employee, or group of employees, violat-
ing any of the provisions thereof, shall be subject to reasonable
discipline by the employer ; and, further, that the violation of
any provision of these awards, either by employer or em-
ployees, shall not invalidate any of the provisions thereof.

PRINTED BY

SPOTTISWOODE AND CO. LTD., NEW-STRKKT SQUARE

LONDON

POLITICAL ECONOMY & ECONOMICS.

oj^ic

ECONOMIC STUDIES. By Walter Bagehot.

Crown 8vo. 3s. 6d,

PRACTICAL SOCIALISM. Essays on Social

Keform. By Samuel A. and Hexbietta Barnett. Crown 8vo. Gs.

POLITICAL ECONOMY. By Chaeles S. Devas,

M.A. Crown 8vo. 7^. 6d.

LOCAL VARIATIONS IN WAGES. By F. W.

Lawrence, M.A. With Index and 18 Maps and Diagrams. Medium 4to. 8s. 6d.

ESSAYS ON POLITICAL ECONOMY. ByT.E.

Cliffe Leslie, Hon. LL.D. Dubl. 8vo. 10s. 6d.

POLITICAL ECONOMY. By John Stuart Mill.

Popular Edition. Crown 8vo. Zs. 6(7. | Library Edition. 2 vols. 8vo. 30s.

INDUSTRIES AND WEALTH OF NATIONS.

By Michael G. Mulhall, F.S.S. With 32 full-page Diagrams. Crown 8vo. 8*-. 6(/.

POLITICAL ECONOMY: a Short Text-book of

Political Economy. With Problems for Solution, Hints for Supplementary Reading, and a
Supplementary Chapter on Socialism. By J. E. Symes, M.A. Crown 8vo. 2s. 6d.

LECTURES ON THE INDUSTRIAL REVO-

LUTION OP THE 18TH CENTURY IN ENGLAND. Popular Addresses, Notes, and
other Fragments. By Arn'old Toyxbbe. With a Memoir of the Author by Benjamin
JOWETT, D.D. 8vo. 10s. Grf.

By W. J. ASHLEY.
ENGLISH ECONOMIC HISTORY and THEORY.

Crown 8vo. Part I., 5s. Part II., 10s. 6rf.

SURVEYS, HISTORIC AND ECONOMIC. Crown

Svo. 9s. net.

By HENRY DUNNING MACLEOD.
BIMETALISM. 8vo. 5s. net.

THE ELEMENTS OF BANKING. Cr. Svo. 3s. 6cl
THE THEORY AND PRACTICE OF BANKING.

Vol. I. Svo. 12s. Vol. II. 14s.

THE THEORY OF CREDIT. Svo. In 1 vol.

30s. net ; or separately. Vol. I., 10s. net. Vol. II., Part I., 10s. net. Vol. II., Part II., 10s. net.

INDIAN CURRENCY. Svo. 2s. 6d. net.

By SYDNEY and BEATRICE WEBB.
THE HISTORY OF TRADE UNIONISM. With

Map and full Bibliography of the Subject. 8vo. 7s. Gd. net.

INDUSTRIAL DEMOCRACY : a Study in Trade

Unionism. Svo. 12s. net.

PROBLEMS OF MODERN INDUSTRY: Essays.

8vo. 5s. net.

LONGMANS, GEEEN, & CO., 39 Paternoster Row, London,
New York, and Bombay.

UNIVERSITY OF CALIFORNIA, LOS ANGELES

THE UNIVERSITY LIBRARY

This book is DUE on the last date stamped below

Form L-3
2jw-10,'4l(24W)

UNIVERSITY of f^ALlFORNU

U)S A NGE JLES
UBKABY

UC SOUTHERN REGIONAL LIBRARY FACILITY

AA 000 906 133 4

PLEA^ DO NOT REMOVE
THIS BOOK CARD ,

University Research Library

—A

rzi

-J