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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..d7b82bc --- /dev/null +++ b/.gitattributes @@ -0,0 +1,4 @@ +*.txt text eol=lf +*.htm text eol=lf +*.html text eol=lf +*.md text eol=lf diff --git a/LICENSE.txt b/LICENSE.txt new file mode 100644 index 0000000..6312041 --- /dev/null +++ b/LICENSE.txt @@ -0,0 +1,11 @@ +This eBook, including all associated images, markup, improvements, +metadata, and any other content or labor, has been confirmed to be +in the PUBLIC DOMAIN IN THE UNITED STATES. + +Procedures for determining public domain status are described in +the "Copyright How-To" at https://www.gutenberg.org. + +No investigation has been made concerning possible copyrights in +jurisdictions other than the United States. Anyone seeking to utilize +this eBook outside of the United States should confirm copyright +status under the laws that apply to them. diff --git a/README.md b/README.md new file mode 100644 index 0000000..3494792 --- /dev/null +++ b/README.md @@ -0,0 +1,2 @@ +Project Gutenberg (https://www.gutenberg.org) public repository for +eBook #65336 (https://www.gutenberg.org/ebooks/65336) diff --git a/old/65336-0.txt b/old/65336-0.txt deleted file mode 100644 index 5663706..0000000 --- a/old/65336-0.txt +++ /dev/null @@ -1,3861 +0,0 @@ -The Project Gutenberg eBook, The Personal Relation in Industry, by John D. -(John Davison) Rockefeller, Jr. - - -This eBook is for the use of anyone anywhere in the United States and most -other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms of -the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll have -to check the laws of the country where you are located before using this ebook. - - - - -Title: The Personal Relation in Industry - - -Author: John D. (John Davison) Rockefeller, Jr. - - - -Release Date: May 14, 2021 [eBook #65336] - -Language: English - -Character set encoding: UTF-8 - - -***START OF THE PROJECT GUTENBERG EBOOK THE PERSONAL RELATION IN -INDUSTRY*** - - -E-text prepared by Tim Lindell, Martin Pettit, and the Online Distributed -Proofreading Team (http://www.pgdp.net) from page images generously made -available by Internet Archive (https://archive.org) - - - -Note: Images of the original pages are available through - Internet Archive. See - https://archive.org/details/personalrelation00rock_0 - - - - - -THE PERSONAL RELATION IN INDUSTRY - -by - -JOHN D. ROCKEFELLER, JR. - - -[Illustration: Logo] - - - - - - -Boni and Liveright -Publishers New York - -Copyright, 1923, by -Boni and Liveright, Inc. - -Printed in the United States of America - -First printing, December, 1923 -Second printing, January, 1924 - - - - -PUBLISHER’S NOTE - - -The following material by Mr. John D. Rockefeller, Jr., consists, with -one exception, of addresses delivered by him on various occasions and -amidst the demands of many varied interests. These addresses are left -practically as they were delivered, and no effort has been made to -change their form. Slight repetitions of certain points may be noted in -these addresses, a condition which is expected in arguments or subjects -of the character of those contained in this book. - -The publishers, in obtaining Mr. Rockefeller’s permission to publish -these addresses, believed that by presenting his views in this form -there would be made a substantial contribution to the ever-important -subject of industrial relationships. - - - - -CONTENTS - -CHAPTER PAGE - I. COÖPERATION IN INDUSTRY 9 - - II. LABOR AND CAPITAL--PARTNERS 38 - -III. THE PERSONAL RELATIONS IN INDUSTRY 63 - - IV. REPRESENTATION IN INDUSTRY 83 - - V. TO THE EMPLOYEES 90 - - VI. TO THE PEOPLE OF COLORADO 107 - - -APPENDIX - - I. REPRESENTATION OF EMPLOYEES 123 - - II. DISTRICT CONFERENCES, JOINT COMMITTEES - AND JOINT MEETINGS 129 - -III. THE PREVENTION AND ADJUSTMENT - OF INDUSTRIAL DISPUTES 136 - - IV. SOCIAL AND INDUSTRIAL BETTERMENT 145 - - - - -THE PERSONAL RELATION IN INDUSTRY - - - - -I - -COÖPERATION IN INDUSTRY - - -I - -To-day the world is passing through a period of reconstruction. - -As we address ourselves to the grave problems which confront us, -problems both national and international, we may look for success in -their solution just in so far as we continue to be animated by the -spirit of coöperation and brotherhood. The hope in the future lies in -the perpetuation of this spirit, and unless increasingly it is made the -foundation of the political, social, and industrial life of the world, -there will not be permanent peace and good will among men, either -nationally or internationally. - -In no one of these spheres of human relations is the spirit of -coöperation more essential than in industry, since industry touches -almost every department of life. Moreover, there is no problem -pressing more urgently upon the attention of the world to-day than -the industrial problem, none more important, none more difficult of -solution. There are pessimists who say that there is no solution short -of revolution and the overturn of the existing social order. - -Surely the nations which have shown themselves capable of such lofty -sacrifice, which have given themselves so freely, gladly, unreservedly, -during these past years of struggle, will bring to bear in the solution -of this great problem powers of head and heart, not less wise and -unselfish than those exhibited in dealing with the problems of the war; -surely a way out of the impenetrable maze will be found. - -Almost countless are the suggested solutions of the industrial problem, -which have been brought forth since industry first began to be a -problem. Most of these are impracticable; some are unjust; some are -selfish and therefore unworthy; some have merit and should be carefully -studied. None can be looked to as a panacea. - -There are those who believe that legislation is the cure-all for every -political, social, and industrial ill. Much can be done by legislation -to prevent injustice and encourage right tendencies, but legislation -of itself will never solve the industrial problem. Its solution can -be brought about only by the introduction of a new spirit into the -relationship between the parties to industry--the spirit of coöperation -and brotherhood. - -It is this theme, _coöperation in industry_, that I desire to develop. - -We must ask ourselves at the outset certain fundamental questions: - -First, what is the purpose of industry? Shall we cling to the -conception of industry as an institution, primarily of private -interest, which enables certain individuals to accumulate wealth, too -often irrespective of the well-being, the health, and the happiness of -those engaged in its production? Or shall we adopt the modern viewpoint -and regard industry as being a form of social service, quite as much as -a revenue-producing process? - -Is it not true that any industry, to be permanently successful, must -insure to labor adequately remunerative employment under proper -working and living conditions, to capital a fair return upon the money -invested, and to the community a useful service? - -The soundest industrial policy is that which has constantly in mind -the welfare of the employees as well as the making of profits, and -which, when human considerations demand it, subordinates profits to -welfare. Industrial relations are essentially human relations. It is -therefore the duty of everyone entrusted with industrial leadership to -do all in his power to improve the conditions under which men work and -live. The day has passed when the conception of industry as chiefly -a revenue-producing process can be maintained. To cling to such a -conception is only to arouse antagonisms and to court trouble. In the -light of the present every thoughtful man must concede that the purpose -of industry is quite as much the advancement of social well-being as -the production of wealth. It remains none the less true, however, that -to be successful, industry must not only serve the community and the -workers adequately, but must also realize a just return on capital -invested. - -Next we must ask ourselves, who are the parties to industry: The -parties to industry are four in number: capital, management, labor, and -the community. - -I am, of course, well aware of the social theories and experiments that -seek to merge capital and labor, either through ownership of capital -by the state or by the workers themselves. But the difficulties that -confront the realization of these plans are vast and the objection to -many of them fundamental. - -Under our present system, capital is represented by the stockholders, -and is usually regarded as embracing management. Management is, -however, an entirely separate and distinct party to industry; its -function is essentially administrative. It comprises the executive -officers who bring to industry technical skill and managerial -experience. Labor consists of the employees. Labor, like capital, is an -investor in industry, but labor’s contribution, unlike that of capital, -is not detachable from the one who makes it, since it is in the nature -of physical effort and is a part of the worker’s strength and life. -Here the list usually ends. - -The fourth party, namely, the community, whose interest is vital and in -the last analysis controlling, is too often ignored. The community’s -right to representation in the control of industry and in the shaping -of industrial policies is similar to that of the other parties. Were it -not for the community’s contribution, in maintaining law and order, in -providing agencies of transportation and communication, in furnishing -systems of money and credit and in rendering other services, all -involving continuous outlays, the operation of capital, management, -and labor would be enormously hampered, if not rendered wellnigh -impossible. The community, furthermore, is the consumer of the product -of industry, and the money which it pays for the product reimburses -capital for its advances and ultimately provides the wages, salaries, -and profits that are distributed among the other parties. - -Finally we must inquire: what are the relations between the parties to -industry? It is frequently maintained that the parties to industry must -necessarily be hostile and antagonistic; that each must arm itself to -wrest from the others its share of the product of their common toil. -This is unthinkable; it is not true; the parties to industry are in -reality not enemies, but partners; they have a common interest; no one -can get on without the others. Labor must look to capital to supply the -tools, machinery, and working capital, without which it cannot make -its vital contribution to industry; and capital is equally powerless -to turn a wheel in industry without labor. Management is essential -to supply the directing force, while without the community as the -consumer, the services of the other three parties would have no outlet. -Just what the relative importance of the contribution made to the -success of industry by the several factors is, and what their relative -rewards should be, are debatable questions. - -But, however views may differ on these questions, it is clear that the -common interest cannot be advanced by the effort of any one party to -dominate the others, arbitrarily to dictate the terms on which alone -it will coöperate, or to threaten to withdraw if any attempt is made -to thwart the enforcement of its will. Success is dependent upon the -coöperation of all four. Partnership, not enmity, is the watchword. - - -II - -If coöperation between the parties to industry is sound business -and good social economics, why then is antagonism so often found in -its stead? The answer is revealed in a survey of the development of -industry. In the early days of industry, as we know, the functions -of capital and management were not infrequently combined in the one -individual, who was the employer. He in turn was in constant touch with -his employees. Together they formed a vital part of the community. -Personal relations were frequent and mutual confidence existed. When -differences arose they were quickly adjusted. As industry developed, -aggregations of capital larger than a single individual could provide -were required. In answer to this demand, the corporation with its many -stockholders was evolved. Countless workers took the place of the -handful of employees of earlier days. Plants under a single management -scattered all over the country superseded the single plant in a given -community. Obviously, this development rendered impossible the personal -relations which had existed in industry, and lessened the spirit -of common interest and understanding. Thus the door was opened to -suspicion and distrust; enmity crept in; antagonisms developed. Capital -not infrequently used its power to enforce long hours and low wages; -labor likewise retaliated with such strength as it had, and gradually -the parties to industry came to view each other as enemies instead of -as friends and to think of their interests as antagonistic rather than -common. - -Where men are strangers and have no contact, misunderstanding is apt to -arise. On the other hand, where men meet frequently about a table, rub -elbows, exchange views, and discuss matters of common interest, almost -invariably it happens that the vast majority of their differences -quickly disappear and friendly relations are established. - -Several years ago I was one of a number of men who were asked two -questions by a Commission appointed by the President of the United -States to deal with certain labor difficulties. - -The first was: “What do you regard as the underlying cause of -industrial unrest?” The second: “What remedy do you suggest?” - -I stated that in my judgment the chief cause of industrial unrest is -that capital does not strive to look at questions at issue from labor’s -point of view, and labor does not seek to get capital’s angle of -vision. My answer to the second question was that when employers put -themselves in the employee’s place and the employees put themselves in -the employer’s place, the remedy for industrial unrest will have been -found. In other words, when the principle adopted by both parties in -interest is: “Do as you would be done by,” there will be no industrial -unrest, no industrial problem. - -It is to be regretted that there are capitalists who regard labor as -their legitimate prey, from whom they are justified in getting all -they can for as little as may be. It is equally to be deplored that -on the part of labor there is often a feeling that it is justified in -wresting everything possible from capital. Where such attitudes have -been assumed, a gulf has been opened between capital and labor which -has continually widened. Thus the two forces have come to work against -each other, each seeking solely to promote its own selfish ends. As a -consequence have come all too frequently the strike, the lockout, and -other incidents of industrial warfare. - -A man, who recently devoted some months to studying the industrial -problem and who came into contact with thousands in various industries -throughout the United States, has said that it was obvious to him from -the outset that the working men were seeking for something, which at -first he thought to be higher wages. As his touch with them extended, -he came to the conclusion, however, that not higher wages, but -recognition as men, was what they really sought. What joy can there -be in life, what interest can a man take in his work, what enthusiasm -can he be expected to develop on behalf of his employer, when he is -regarded as a number on a pay-roll, a cog in a wheel, a mere “hand”? -Who would not earnestly seek to gain recognition of his manhood and the -right to be heard and treated as a human being, not as a machine? - -Then, too, as industry has become increasingly specialized, the workman -of to-day, instead of following the product through from start to -finish and being stimulated by the feeling that he is the sole creator -of a useful article, as was more or less the case in early days, now -devotes his energies for the most part to countless repetitions of a -single act or process, which is but one of perhaps a hundred operations -necessary to transform the raw material into the finished product. Thus -the worker loses sight of the significance of the part he plays in -industry and feels himself to be merely one of many cogs in a wheel. -All the more, therefore, is it necessary that he should have contact -with men engaged in other processes and fulfilling other functions in -industry, that he may still realize he is a part, and a necessary, -though it may be an inconspicuous, part of a great enterprise. In -modern warfare, those who man the large guns find the range, not by -training the gun on the object which they are seeking to reach, but -in obedience to a mechanical formula which is worked out for them. -Stationed behind a hill or mound, they seldom see the object at which -their deadly fire is directed. One can readily imagine the sense of -detachment and ineffectiveness which must come over these men. But -when the airplane, circling overhead, gets into communication with -the gunner beneath and describes the thing to be accomplished and -the effectiveness of the shot, a new meaning comes into his life. In -a second he has become a part of the great struggle. He knows that -his efforts are counting, that he is helping to bring success to his -comrades. There comes to him a new enthusiasm and interest in his -work. The sense of isolation and detachment from the accomplishments -of industry, which too often comes to the workers of to-day, can be -overcome only by contact with the other contributing parties. In -this way only can common purpose be kept alive, individual interests -safeguarded, and the general welfare promoted. - -While obviously under present conditions those who invest their -capital in an industry, often numbered by the thousand, cannot have -personal acquaintance with the thousands and tens of thousands of -those who invest their labor, contact between those two parties in -interest can and must be established, if not directly, then through -their respective representatives. The resumption of such personal -relations through frequent conferences and current meetings, held for -the consideration of matters of common interest, such as terms of -employment and working and living conditions, is essential in order -to restore a spirit of mutual confidence, good will, and coöperation. -Personal relations can be revived under modern conditions only through -the adequate representation of the employees. Representation is a -principle which is fundamentally just and vital to the successful -conduct of industry. It means, broadly speaking, democracy through -coöperation, as contrasted with autocracy. - -It is not for me or anyone else to undertake to determine for industry -at large what specific form representation shall take. Once having -adopted the principle, it is obviously wise that the method to be -employed should be left, in each specific instance, to be determined by -the parties interested. If there is to be peace and good-will between -the several parties in industry, it will surely not be brought about -by the enforcement upon unwilling groups of a method which in their -judgment is not adapted to their peculiar needs. In this, as in all -else, persuasion is an essential element in bringing about conviction. - -With the developments in industry what they are to-day, there is sure -to come a progressive evolution from the autocratic single control, -whether by capital, management, labor, or the community, to some form -of democratic coöperative control participated in by all four. The -whole movement is evolutionary. That which is fundamental is the idea -of coöperation, and that idea must find expression in those forms which -will serve it best, with conditions, forces and times what they are. - -In the United States, the coöperation in war service of labor, capital, -management, and Government afforded a striking and most gratifying -illustration of this tendency. - -After all, the basic principles governing the relations between the -parties to industry are as applicable in the successful conduct of -industry to-day as in earlier times. The question which now confronts -us is how to reëstablish personal relations and coöperation in spite -of changed conditions. The answer is not doubtful or questionable, -but absolutely clear and unmistakable: it is, through adequate -representation of the four parties in the councils of industry. - - -III - -Various methods of representation in industry have been developed, -conspicuous among which are those of labor unions and employers’ -associations. As regards the organization of labor, it is just as -proper and advantageous for labor to associate itself into organized -groups for the advancement of its legitimate interests as for capital -to combine for the same object. - -Such associations of labor manifest themselves in collective -bargaining, in an effort to secure better working and living -conditions, in providing machinery whereby grievances may easily and -without prejudice to the individual be taken up with the management. -Sometimes they provide benefit features, sometimes they seek to -increase wages, but whatever their specific purpose, so long as it -is to promote the well-being of the employees, having always due -regard for the just interests of the employer and the public, leaving -every worker free to associate himself with such groups or to work -independently, as he may choose, they are to be encouraged. - -But organization is not without its dangers. Organized capital -sometimes conducts itself in an unworthy manner, contrary to law -and in disregard of the interest of both labor and the public. Such -organizations cannot be too strongly condemned or too vigorously dealt -with. Although they are the exception, such publicity is generally -given to their unsocial acts that all organizations of capital, however -rightly managed or broadly beneficent, are thereby brought under -suspicion. - -Likewise it sometimes happens that organizations of labor are -conducted without just regard for the rights of the employer or of -the public; methods and practices are adopted which, because unworthy -or unlawful, are deserving of public censure. Such organizations -of labor bring discredit and suspicion upon other organizations -which are legitimate and useful, just as is the case with improper -organizations of capital, and they should be similarly dealt with. We -ought not, however, to allow the occasional failure in the working of -the principle of the organization of labor to prejudice us against the -principle itself, for the principle is fundamentally sound. - -In the further development of the organization of labor and of large -business, the public interest as well as the interest of labor and of -capital will be furthest advanced by whatever stimulates every man to -do the best work of which he is capable and to render useful service, -by a fuller recognition of the common interests of employers and -employed, and by an earnest effort to dispel distrust and hatred and to -promote good-will. - -Labor unions have secured for labor in general many advantages -in hours, wages, and standards of working conditions. A large -proportion of the workers of the world, however, are outside of these -organizations, and unless somehow represented are not in a position -to bargain collectively. Therefore, representation of labor to be -adequate must be more comprehensive and all inclusive than anything -thus far attained. - -Representation on the employers’ side has been developed through -the establishment of trade associations, the purpose of which is to -discuss matters of common interest and to act, in so far as is legally -permissible and to the common advantage, along lines that are generally -similar. But here also representation is inadequate. Many employers do -not belong to employers’ associations. - -In the United States during the war, the representation of both labor -and capital in common councils was brought about through the War Labor -Board, composed equally of men from the ranks of labor and capital, -together with representatives of the public. When differences arose in -industries where there was no machinery to deal with such matters, the -War Labor Board stepped in and made its findings and recommendations. -In this way, relatively continuous operation was made possible and the -resort to the strike and lockout was less frequent. - -In England there have been made during the past years various important -Government investigations and reports, looking toward a more complete -program of representation and coöperation on the part of labor -and capital. One is the well-known Whitley Report, which owes its -distinction to a single outstanding feature, namely, that it applies -to the whole of industry, the principle of representative government. - -The Whitley Plan seeks to unite the organizations of labor and capital -by a bond of common interest in a common venture; it changes at a -single stroke the attitude of these powerful aggregations of class -interest from one of militancy to one of social service; it establishes -a new relation in industry. - -“Problems old and new,” says the report, “will find their solution in a -frank partnership of knowledge, experience, and good-will.” - -Another investigation and report was made by a Commission on Industrial -Unrest, appointed by the Prime Minister. This Commission made, among -others, the following interesting recommendations:-- - -(1) that the principle of the Whitley Report as regards industrial -councils be adopted; - -(2) that each trade should have a constitution; - -(3) that labor should take part in the affairs of industry as partners -rather than as employees in the narrow sense of the term; - -(4) that closer contact should be set up between employers and employed. - -A third report was prepared by the Ministry of Labor. This report deals -with the constitution and operation of works committees in a number of -industries. It is a valuable treatise on the objects, functions, and -methods of procedure of joint committees. - -Light has been thrown on the general questions treated by these -inquiries in an able report by the Garton Foundation on _The Industrial -Situation after the War_. This report is a study of the more permanent -causes of industrial friction and inefficiency, and of the means by -which they may be removed or their action circumscribed. - -Mention of these several reports, taken at random, is made simply as -indicative of the extent and variety of the study which has been given -to the great problem of industrial reconstruction in England. All point -toward the need of more adequate representation of labor in the conduct -of industry and the importance of closer relations between labor and -capital. - - -IV - -A method of representation similar to the Whitley Plan, though less -comprehensive, and which is constructed from the bottom up, has been -in operation for varying periods of time in an ever increasing number -of industries in the United States. This plan of representation -is worthy of serious consideration. It begins with the election -of representatives in a single plant and is capable of indefinite -development, to meet the complex needs of any industry, and of wide -extension, so as to include all industries. Equally applicable in -industries where union or non-union labor or both are employed, it -seeks to provide full and fair representation to labor, capital, and -management, also taking cognizance of the community. Thus far it has -developed a spirit of coöperation and goodwill which commends it to -both employer and employee. - -The outstanding features of this plan of industrial representation, -varied to meet the special needs of each plant or company in which it -has been adopted, are as follows: - -Representatives chosen by the employees in proportion to their number, -from their fellow workers in each plant, form the basis of the plan. - -Joint committees, composed of equal numbers of employees or their -representatives and of officers of the company, are found in each plant -or district. - -These committees deal with all matters pertaining to employment and -working and living conditions, including questions of coöperation and -conciliation, safety and accident, sanitation, health and housing, -recreation and education. Joint conferences of representatives of -employees and officers of the company are held in the various districts -several times each year. - -There is also an annual joint conference, at which reports from all -districts are received and considered. - -Another important feature of the plan is an officer known as the -President’s Industrial Representative, whose duty it is to visit the -plants currently and confer with the employees’ representatives, as -well as to be available always for conference at the request of the -representatives. - -Thus the employees, through their representatives chosen from among -themselves, are in constant touch and conference with management and -representatives of the stockholders in regard to matters pertaining to -their common interest. - -The employees’ right of appeal is the third outstanding feature of the -plan. - -Any employee with a grievance, real or imaginary, may go with it at -once to his representative. The representatives not infrequently find -there is no ground for the grievance and are able so to convince the -employee. - -But if a grievance does exist, or dissatisfaction on the part of the -employee continues, the matter is carried to the local boss, foreman, -or superintendent, with whom in the majority of cases it is amicably -and satisfactorily settled. Further appeal is open to the aggrieved -employee, either in person or through his representative, to the higher -officers and to the president. - -If satisfaction is not to be had from the company, the court of last -appeal may be the Industrial Commission of the State, the State Labor -Board, or a committee of arbitration. - -Experience shows that the vast majority of difficulties which occur in -an industry arise between the workmen and the foremen who are in daily -contact with them. Foremen are sometimes arbitrary, and it is by their -attitude and action that the higher officers and the stockholders are -judged. Obviously the right of appeal from the decisions of foremen and -superintendents is important, even if seldom availed of, because it -tends of itself to modify their attitude. - -A further feature of the plan is what may be termed the employee’s Bill -of Rights. - -This covers such matters as the right to caution and suspension before -discharge, except for such serious offenses as are posted; the right to -hold meetings at appropriate places outside of working hours; the right -without discrimination to membership or non-membership in any society, -fraternity, or union; and the right of appeal. - -Where this plan has been in operation for a considerable length of -time, some of the results obtained are:-- - -First, more continuous operation of the plants and less interruption -in the employment of the workers, resulting in larger returns for both -capital and labor; - -Second, improved working and living conditions; - -Third, frequent and close contact between employees and officers; - -Fourth, the elimination of grievances as disturbing factors; - -Fifth, goodwill developed to a high degree; - -Sixth, the creation of a community spirit. - -Furthermore, the plan has proved an effective means of enlisting the -interest of all parties to industry, of reproducing the contacts -of earlier days between employer and employee, of lessening -misunderstanding, distrust, and enmity, and securing coöperation in -the spirit of brotherhood. Under its operation, the participants in -industry are being convinced of the soundness of the proposition that -they are fundamentally friends and not enemies, that their interests -are common, not opposed. Based as the plan is upon principles of -justice to all, its success can be counted on so long as it is carried -out in a spirit of sincerity and fair play. - -Here, then, would seem to be a method of providing representation -which is just, which is effective, which is applicable to all -employees whether organized or unorganized, to all employers whether -in associations or not, which does not interfere with existing -organizations or associations, and which, while developed in a single -industrial corporation as a unit, may be expanded to include all -corporations in the same industry and ultimately all industries. - -Just what part labor organizations and employers’ associations can best -take in such a plan remains to be worked out, but certain it is that -some method should be devised which will profit to the fullest extent -by the experience, the strength, and the leadership of these groups. -While, doubtless, defects will appear in this plan and other methods -more successfully accomplishing the same end may be developed, at least -it is proving that in unity there is strength and that coöperation in -industry is not only idealistically right, but practically workable. - -If the points which I have endeavored to make are sound, might not the -four parties to industry subscribe to an Industrial Creed somewhat as -follows:-- - -(1) I believe that labor and capital are partners, not enemies; and -that their interests are common, not opposed; and that neither can -attain the fullest measure of prosperity at the expense of the other, -but only in association with the other. - -(2) I believe that the community is an essential party to industry and -that it should have adequate representation with the other parties. - -(3) I believe that the purpose of industry is quite as much to advance -social well-being as material prosperity; that in the pursuit of that -purpose, the interests of the community should be carefully considered, -the well-being of employees fully guarded, management adequately -recognized, and capital justly compensated, and that failure in any of -these particulars means loss to all four parties. - -(4) I believe that every man is entitled to an opportunity to earn a -living, to fair wages, to reasonable hours of work and proper working -conditions, to a decent home, to the opportunity to play, to learn, to -worship and to love, as well as to toil, and that the responsibility -rests as heavily upon industry as upon government or society, to see -that these conditions and opportunities prevail. - -(5) I believe that diligence, initiative, and efficiency, wherever -found, should be encouraged and adequately rewarded; that indolence, -indifference, and restriction of production should be discountenanced; -and that service is the only justification for the possession of power. - -(6) I believe that the provision of adequate means of uncovering -grievances and promptly adjusting them is of fundamental importance to -the successful conduct of industry. - -(7) I believe that the most potent measure in bringing about industrial -harmony and prosperity is adequate representation of the parties in -interest; that existing forms of representation should be carefully -studied and availed of, in so far as they may be found to have merit -and are adaptable to conditions peculiar to the various industries. - -(8) I believe that the most effective structure of representation is -that which is built from the bottom up, which includes all employees, -which starts with the election of representatives and the formation of -joint committees in each industrial plant, proceeds to the formation -of joint district councils and annual joint conferences in a single -industrial corporation, and admits of extension to all corporations in -the same industry, as well as to all industries in a community, in a -nation, and in the various nations. - -(9) I believe that to “do unto others as you would that they should -do unto you” is as sound business as it is good religion; that the -application of right principles never fails to effect right relations; -that “the letter killeth, but the spirit giveth life”; that forms are -wholly secondary, while attitude and spirit are all important; and that -only as the parties in industry are animated by the spirit of fair -play, justice to all, and brotherhood, will any plan which they may -mutually work out succeed. - -(10) I believe that that man renders the greatest social service who so -coöperates in the organization of industry as to afford to the largest -number of men the greatest opportunity for self-development and the -enjoyment of those benefits which their united efforts add to the -wealth of civilization. - - -V - -In these days the selfish pursuit of personal ends at the expense -of the group can and will no longer be tolerated. The reign of -autocracy has passed. Men are rapidly coming to see that human life -is of infinitely greater value than material wealth; that the health, -happiness, and well-being of the individual, however humble, is not -to be sacrificed to the selfish aggrandizement of the more fortunate -or more powerful. Modern thought is placing less emphasis on material -considerations. It is recognizing that the basis of national progress, -whether industrial or social, is the health, efficiency, and spiritual -development of the people. Never was there a more profound belief in -human life than to-day. Whether men work with brain or brawn, they are -human beings, and are much alike in their cravings, their aspirations, -their hatreds, and their capacity for suffering and for enjoyment. - -What is the attitude of the leaders in industry as they face this -critical period of reconstruction? Is it that of the standpatters, who -ignore the extraordinary changes which have come over the face of the -civilized world and have taken place in the minds of men; who, arming -themselves to the teeth, attempt stubbornly to resist the inevitable -and invite open warfare with the other parties in industry, and who say: - -“What has been and is, must continue to be; with our backs to the wall -we will fight it out along the old lines or go down in defeat!” - -Those who take such an attitude are wilfully heedless of the fact that -its certain outcome will be financial loss, general inconvenience -and suffering, the development of bitterness and hatred, and in the -end submission to far more drastic and radical conditions imposed by -legislation, if not by force, than could now be amicably arrived at -through mutual concession in friendly conference. - -Or is their attitude one in which I myself profoundly believe, which -takes cognizance of the inherent right and justice of the coöperative -principle underlying the new order, which recognizes that mighty -changes are inevitable, many of them desirable, and which does not -wait until forced to adopt new methods, but takes the lead in calling -together the parties to industry for a round-table conference to be -held in a spirit of justice, fair play, and brotherhood, with a view to -working out some plan of coöperation, which will insure to all those -concerned adequate representation, will afford to labor a voice in -the forming of industrial policy, and an opportunity to earn a fair -wage under such conditions as shall leave time, not alone for food and -sleep, but also for recreation and the development of the higher things -of life? - -Never was there such an opportunity as exists to-day for the industrial -leader with clear vision and broad sympathy permanently to bridge the -chasm that is daily gaping wider between the parties to industry, and -to establish a solid foundation for industrial prosperity, social -improvement, and national solidarity. Future generations will rise up -and call those men blessed who have the courage of their convictions, -a proper appreciation of the value of human life as contrasted with -material gain, and who, imbued with the spirit of coöperation, will -lay hold of the great opportunity for leadership which is open to them -to-day. - -In conclusion, let it be said that upon the heads of those leaders--it -matters not to which of the four parties they belong--who refuse to -reorganize their industrial households in the light of the modern -spirit, will rest the responsibility for such radical and drastic -measures as may later be forced upon industry, if the highest interests -of all are not shortly considered and dealt with in a spirit of -fairness. - -Who, then, will dare to block the wheels of progress and to let pass -the present opportunity of helping to usher in a new era of peace and -prosperity throughout the world, brought about through coöperation in -industry? - - - - -II - -LABOR AND CAPITAL--PARTNERS[1] - - -I - -Labor and Capital are rather abstract words with which to describe -those vital forces which working together become productively useful -to mankind. Reduced to their simplest terms, Labor and Capital are men -with muscle and men with money--human beings, imbued with the same -weaknesses and virtues, the same cravings and aspirations. - -It follows, therefore, that the relations of men engaged in industry -are human relations. Men do not live merely to toil; they also live to -play, to mingle with their fellows, to love, to worship. The test of -the success of our social organization is the extent to which every -man is free to realize his highest and best self; and in considering -any economic or political problem, that fundamental fact should be -recognized. - -If in the conduct of industry, therefore, the manager ever keeps in -mind that in dealing with employees he is dealing with human beings, -with flesh and blood, with hearts and souls; and if, likewise, the -workmen realize that managers and investors are themselves also human -beings, how much bitterness will be avoided! - -Are the interests of these human beings with labor to sell and with -capital to employ necessarily antagonistic or necessarily mutual? Must -the advance of one retard the progress of the other? Should their -attitude toward each other be that of enemies or of partners? The -answer one makes to these fundamental questions must constitute the -basis for any consideration of the relationship of Labor and Capital. - -Our difficulty in dealing with the industrial problem is due too often -to a failure to understand the true interests of Labor and Capital. -And I suspect this lack of understanding is just as prevalent among -representatives of Capital as among representatives of Labor. In -any event the conception one has of the fundamental nature of these -interests will naturally determine one’s attitude toward every phase of -their relationship. - -Much of the reasoning on this subject proceeds upon the theory that the -wealth of the world is absolutely limited, and that if one man gets -more, another necessarily gets less. Hence there are those who hold -that if Labor’s wages are increased or its working conditions improved, -Capital suffers because it must deprive itself of the money needed -to pay the bill. Some employers go so far as to justify themselves in -appropriating from the product of industry all that remains after Labor -has received the smallest amount which it can be induced or forced to -accept; while on the other hand there are men who hold that Labor is -the producer of all wealth, hence is entitled to the entire product, -and that whatever is taken by Capital is stolen from Labor. - -If this theory is sound, it might be maintained that the relation -between Labor and Capital is fundamentally one of antagonism, and that -each should consolidate and arm its forces, dividing the products of -industry between them in proportion as their selfishness is enforced by -their power. - -But all such counsel loses sight of the fact that the riches available -to man are practically without limit, that the world’s wealth is -constantly being developed and undergoing mutation, and that to promote -this process both Labor and Capital are indispensable. If these great -forces coöperate, the products of industry are steadily increased; -whereas, if they fight, the production of wealth is certain to be -either retarded or stopped altogether, and the well-springs of material -progress choked. - -The problem of promoting the coöperation of Labor and Capital may -well be regarded, therefore, as the most vital problem of modern -civilization. Peace may be established among the nations of the world; -but if the underlying factors of material growth within each nation are -themselves at war, the foundations of all progress are undermined. - - -II - -Capital cannot move a wheel without Labor, nor Labor advance beyond a -mere primitive existence without Capital. But with Labor and Capital -as partners, wealth is created and ever greater productivity made -possible. In the development of this partnership, the greatest social -service is rendered by that man who so coöperates in the organization -of industry as to afford to the largest number of men the greatest -opportunity for self-development, and the enjoyment by every man of -those benefits which his own work adds to the wealth of civilization. -This is better than charity or philanthropy; it helps men to help -themselves and widens the horizon of life. - -Through such a process the laborer is constantly becoming the -capitalist, and the accumulated fruits of present industry are made the -basis of further progress. The world puts its richest prizes at the -feet of great organizing ability, enterprise, and foresight, because -such qualities are rare and yet indispensable to the development of -the vast natural resources which otherwise would lie useless on the -earth’s surface or in its hidden depths. - -It is one of the noteworthy facts of industrial history that the -most successful enterprises have been those which have been so well -organized and so efficient in eliminating waste, that the laborers were -paid high wages, the consuming public--upon whose patronage the success -of every enterprise depends--enjoyed declining prices, and the owners -realized large profits. - -The development of industry on a large scale brought the corporation -into being, a natural outgrowth of which has been the further -development of organized Labor in its various forms. The right of -men to associate themselves together for their mutual advancement is -incontestable; and under our modern conditions, the organization of -Labor is necessary just as is the organization of Capital; both should -make their contribution toward the creation of wealth and the promotion -of human welfare. - -The labor union, among its other achievements, has undoubtedly forced -public attention upon wrongs which employers of to-day would blush -to practice. But employers as well as workers are more and more -appreciating the human equation, and realizing that mutual respect -and fairness produce larger and better results than suspicion and -selfishness. - -We are all coming to see that there should be no stifling of Labor by -Capital, or of Capital by Labor; and also that there should be no -stifling of Labor by Labor, or of Capital by Capital. - -While it is true that the organization of Labor has quite as important -a function to perform as the organization of Capital, it cannot be -gainsaid that evils are liable to develop in either of these forms of -association. - -Because evils have developed and may develop as a result of these -increasing complexities in industrial conditions, shall we deny -ourselves the maximum benefit which may be derived from using the new -devices of progress? We cannot give up the corporation and industry on -a large scale; no more can we give up the organization of labor; human -progress depends too much upon them. Surely there must be some avenue -of approach to the solution of a problem on the ultimate working out of -which depends the very existence of industrial society. - -To say that there is no way out except through constant warfare between -Labor and Capital is an unthinkable counsel of despair; to say that -progress lies in eventual surrender of everything by one factor or the -other, is contrary, not only to the teachings of economic history, but -also to our knowledge of human nature. - - -III - -Most of the misunderstanding between men is due to a lack of knowledge -of each other. When men get together and talk over their differences -candidly, much of the ground for dispute vanishes. - -In the days when industry was on a small scale, the employer came -into direct contact with his employees, and the personal sympathy and -understanding which grew out of that contact made the rough places -smooth. - -However, the use of steam and electricity, resulting in the development -of large-scale industry with its attendant economies and benefits, has -of necessity erected barriers to personal contact between employers and -men, thus making it more difficult for them to understand each other. - -In spite of the modern development of Big Business, human nature has -remained the same, with all its cravings, and all its tendencies toward -sympathy when it has knowledge and toward prejudice when it does not -understand. The fact is that the growth of the organization of industry -has proceeded faster than the adjustment of the interrelations of men -engaged in industry. - -Must it not be, then, that an age which can bridge the Atlantic with -the wireless telephone, can devise some sort of social X-ray which -shall enable the vision of men to penetrate the barriers which have -grown up between men in our machine-burdened civilization? - - -IV - -Assuming that Labor and Capital are partners, and that the fruits -of industry are their joint product, to be divided fairly, there -remains the question: What is a fair division? The answer is not -simple--the division can never be absolutely just; and if it were -just to-day, changed conditions would make it unjust to-morrow; but -certain it is that the injustice of that division will always be -greater in proportion as it is made in a spirit of selfishness and -shortsightedness. - -Indeed, because of the kaleidoscopic changes which the factors entering -into the production of wealth are always undergoing, it is unlikely -that any final solution of the problem of the fair distribution of -wealth will ever be reached. But the effort to devise a continually -more perfect medium of approach toward an ever fairer distribution must -be no less energetic and unceasing. - -For many years my father and his advisers had been increasingly -impressed with the importance of these and other economic problems, and -with a view to making a contribution toward their solution, had had -under consideration the development of an institution for social and -economic research. - -While this general subject was being studied, the industrial -disturbances in Colorado became acute. Their many distressing features -gave me the deepest concern. I frankly confess that I felt there was -something fundamentally wrong in a condition of affairs which made -possible the loss of human lives, engendered hatred and bitterness, -and brought suffering and privation upon hundreds of human beings. -I determined, therefore, that in so far as it lay within my power I -would seek some means of avoiding the possibility of similar conflicts -arising elsewhere or in the same industry in the future. It was in -this way that I came to recommend to my colleagues in the Rockefeller -Foundation the instituting of a series of studies into the fundamental -problems arising out of industrial relations. Many others were -exploring the same field, but it was felt that these were problems -affecting human welfare so vitally than an institution such as the -Rockefeller Foundation, whose purpose, as stated in its charter, is -“to promote the well-being of mankind throughout the world,” could not -neglect either its duty or its opportunity. - -This resulted in securing the services of Mr. W. L. Mackenzie King, -formerly Minister of Labor in Canada, to conduct an investigation “with -a special view,” to quote the language of an official letter, “to the -discovery of some mutual relationship between Labor and Capital which -would afford to Labor the protection it needs against oppression and -exploitation, while at the same time promoting its efficiency as an -instrument of economic production.” - -In no sense was this inquiry to be local or restricted; the problem -was recognized to be a world-problem, and in the study of it the -experience of the several countries of the world was to be drawn -upon. The purpose was neither to apportion blame in existing or past -misunderstandings, nor to justify any particular point of view; but -solely to be constructively helpful, the final and only test of success -to be the degree to which the practical suggestions growing out of the -investigation actually improved the relations between Labor and Capital. - - -V - -With reference to the situation which had unfortunately developed in -Colorado, it became evident to those responsible for the management -of one of the large coal companies there--the Colorado Fuel and Iron -Company, in which my father and I are interested--that matters could -not be allowed to remain as they were. Any situation, no matter what -its cause, out of which so much bitterness could grow, clearly -required amelioration. - -It has always been the desire and purpose of the management of the -Colorado Fuel and Iron Company that its employees should be treated -liberally and fairly. - -However, it became clear that there was need of some more efficient -method whereby the petty frictions of daily work might be dealt with -promptly and justly, and of some machinery which, without imposing -financial burdens upon the workers, would protect the rights, and -encourage the expression of the wants and aspirations of the men--not -merely of those men who were members of some organization, but of every -man on the company’s payroll. - -The problem was how to promote the well-being of each employee; more -than that, how to foster at the same time the interest of both the -stockholders and the employees through bringing them to realize the -fact of their real partnership. - -Long before the Colorado strike ended, I sought advice with respect to -possible methods of preventing and adjusting such a situation as that -which had arisen; and in December, 1914, as soon as the strike was -terminated and normal conditions were restored, the officers of the -Colorado Fuel and Iron Company undertook the practical development of -plans which had been under consideration. - -The men in each mining camp were invited to choose, by secret ballot, -representatives to meet with the executive officers of the company to -discuss matters of mutual concern and consider means of more effective -coöperation in maintaining fair and friendly relations. - -That was the beginning, merely the germ, of a plan which has now been -developed into a comprehensive “Industrial Constitution.” The scheme -embodies practical operating experience, the advice and study of -experts, and an earnest effort to provide a workable method of friendly -consideration, by all concerned, of the daily problems which arise in -the mutual relations between employer and employees. - -The plan was submitted to a referendum of the employees in all -the company’s coal and iron mines, and adopted by an overwhelming -vote. Before this general vote was taken, it had been considered -and unanimously approved by a meeting of the employees’ elected -representatives. At that meeting I outlined the plan, which is -described below, as well as the theory underlying it, which theory is -in brief as follows: - -Every corporation is composed of four parties: the stockholders, -who supply the money with which to build the plant, pay the wages, -and operate the business; the directors, whose duty it is to select -executive officers carefully and wisely, plan the larger and -more important policies, and generally see to it that the company -is prudently administered; the officers, who conduct the current -operations; and the employees, who contribute their skill and their -work. - -The interest of these four parties is a common interest, although -perhaps not an equal one; and if the result of their combined work is -to be most successful, each must do its share. An effort on the part of -any one to advance its own interest without regard to the rights of the -others, means, eventually, loss to all. - -The problem which confronts every company is so to interrelate its -different elements that the best interests of all will be conserved. - - -VI - -The industrial machinery which has been adopted by the Colorado -Fuel and Iron Company and its employees is embodied in two written -documents, which have been printed and placed in the hands of each -employee. One of these documents is a trade agreement signed by the -representatives of the men and the officers of the company, setting -forth the conditions and terms under which the men agree to work until -January 1, 1918, and thereafter, subject to revision upon ninety days’ -notice by either side. - -This agreement guarantees to the men that for more than two years, no -matter what reductions in wages others may make, there shall be no -reduction of wages by this company; furthermore, that in the event of -an increase in wages in any competitive field, this company will make a -proportional increase. - -The agreement provides for an eight-hour day for all employees working -underground and in coke ovens; it insures the semi-monthly payment of -wages; it fixes charges for such dwellings, light, and water, as are -provided by the company; it stipulates that the rates to be charged for -powder and coal used by the men shall be substantially their cost to -the company. - -To encourage employees to cultivate flower and vegetable gardens, the -company agrees to fence free of cost each house-lot owned by it. The -company also engages to provide suitable bath houses and club houses -for the use of employees at the several mining camps. - -The other document is an “Industrial Constitution,” setting forth the -relations of the company and its men. The Constitution stipulates, -among other things, that “there shall be a strict observance by -management and men of the Federal and State laws respecting mining -and labor,” and that “the scale of wages and the rules in regard to -working conditions shall be posted in a conspicuous place at or near -every mine.” - -Every employee is protected against discharge without notice, except -for such offenses as are posted at each mine. For all other misconduct -the delinquent is entitled to receive warning in writing that a second -offense will cause discharge, and a copy of this written notice must -be forwarded to the office of the president of the company at the same -time it is sent to the employee. - -The constitution specifically states that “there shall be no -discrimination by the company or any of its employees on account of -membership or non-membership in any society, fraternity, or union.” -The employees are guaranteed the right to hold meetings on company -property, to purchase where they choose, and to employ check-weighmen, -who, on behalf of the men, shall see to it that each gets proper credit -for his work. - -Besides setting forth these fundamental rights of the men, the -Industrial Constitution seeks to establish a recognized means for -bringing the management and the men into closer contact for two general -purposes: - -First, to promote increased efficiency and production, to improve -working conditions and to further the friendly and cordial relations -between the company’s officers and employees; and, - -Second, to facilitate the adjustment of disputes and the redress of -grievances. - -In carrying out this plan, the wage-earners at each camp are to be -represented by two or more of their own number chosen by secret -ballot, at meetings especially called for the purpose, which none but -wage-earners in the employ of the company shall be allowed to attend. -The men thus chosen are to be recognized by the company as authorized -to represent the employees for one year, or until their successors -are elected, with respect to terms of employment, working and living -conditions, adjustment of differences, and such other matters as may -come up. - -A meeting of all the men’s representatives and the general officers of -the company will be held once a year to consider questions of general -importance. - -The Industrial Constitution provides that the territory in which the -company operates shall be divided into a number of districts based -on the geographical distribution of the mines. To facilitate full -and frequent consultation between representatives of the men and the -management in regard to all matters of mutual interest and concern, the -representatives from each district are to meet at least three times a -year--oftener if need be--with the president of the company, or his -representative, and such other officers as the president may designate. - -The district conferences will each appoint from their number certain -joint committees on industrial relations, and it is expected that -these committees will give prompt and continuous attention to the -many questions which affect the daily life and happiness of the men -as well as the prosperity of the company. Each of these committees -will be composed of six members, three designated by the employees’ -representatives and three by the president of the company. - -A joint committee on industrial coöperation and conciliation will -consider matters pertaining to the prevention and settlement of -industrial disputes, terms and conditions of employment, maintenance -of order and discipline in the several camps, policy of the company -stores, and so forth. Joint committees on safety and accidents, on -sanitation, health and housing, on recreation and education, will -likewise deal with the great variety of topics included within these -general designations. - -Prevention of friction is an underlying purpose of the plan. The aim is -to anticipate and remove in advance all sources of possible irritation. -With this in view a special officer, known as the President’s -Industrial Representative, is added to the personnel of the staff as -a further link between the president of the corporation and every -workman in his employ. This officer’s duty is to respond promptly to -requests from employees’ representatives for his presence at any of -the camps, to visit all of them as often as possible, to familiarize -himself with conditions, and generally to look after the well-being of -the workers. - -It is a fundamental feature of the plan, as stated in the document -itself, that “every employee shall have the right of ultimate appeal -to the president of the company concerning any condition or treatment -to which he may be subjected and which he may deem unfair.” For the -adjustment of all disputes, therefore, the plan provides carefully -balanced machinery. - -If any miner has a grievance, he may himself, or preferably through one -of the elected representatives in his camp, seek satisfaction from the -foreman or mine superintendent. If those officials do not adjust the -matter, appeal may be had to the president’s industrial representative. -Failing there, the employee may appeal to the division superintendent, -assistant manager, or general manager, or the president of the company, -in consecutive order. - -Yet another alternative is that, after having made the initial -complaint to the foreman or mine superintendent, the workman may -appeal directly to the joint committee on industrial coöperation and -conciliation in his district, which, itself failing to agree, may -select one or three umpires whose decision shall be binding upon both -parties to the dispute. - -If all these methods of mediation fail the employee may appeal to the -Colorado State Industrial Commission, which is empowered by law to -investigate industrial disputes and publish its findings. - -So as adequately to protect the independence and freedom of the men’s -representatives, the Constitution provides that in case any one of them -should be discharged or disciplined, or should allege discrimination, -he may resort to the various methods of appeal open to the other -employees, or he may appeal directly to the Colorado State Industrial -Commission, with whose findings in any such case the company agrees to -comply. - -The company is to pay all expenses incident to the administration of -the plan, and to reimburse the miners’ representatives for loss of time -from their work in the mines. - - -VII - -Such in outline is this Industrial Constitution. Some have spoken of it -as establishing a Republic of Labor. Certain it is that the plan gives -every employee opportunity to voice his complaints and aspirations, and -it neglects no occasion to bring the men and the managers together to -talk over their common interests. - -Much unrest among employees is due to the nursing of real or fancied -grievances arising out of the daily relations between the workmen and -the petty boss. Such grievances should receive attention at once, and -this plan provides that they shall. - -Just as in the case of bodily wounds, so with industrial wounds, it is -of prime importance to establish a method of prompt disinfection, lest -the germs of distrust and hatred have opportunity to multiply. - -This plan is not hostile to labor organizations; there is nothing in -it, either expressed or implied, which can rightly be so construed; -neither membership in a union nor independence of a union will bring -a man either preference or reproach, so far as the attitude of the -company is concerned. - -The fact is that the Colorado Fuel and Iron Company Constitution does -not restrict in any way the right of the employees to regulate their -own lives, nor does it abridge their right to join any organization -they please. At the same time it does insure the men fair treatment and -an opportunity to make their voice heard in determining the conditions -under which they shall work and live. - -The plan does not deny to the representatives the right to act in -concert; it does not deny to the men the right to employ counselors -or advisers to assist them in formulating their views as to any -situation. Indeed, the door is left wide open for the natural exercise -of any right or privilege to which the men are entitled. - -There is nothing in the plan to prevent the men holding open or secret -meetings as often as they like, either in the separate camps, the -districts, or as representing the whole industry. Such meetings are not -specifically provided for because all those who are connected with the -corporation are considered to be partners in the enterprise, and their -interests common interests. - -The plan provides a channel through which not only may the men confer -with the management, but through which also the officers may lay their -purposes, problems, and difficulties before the employees. - -It provides a medium of adjustment, as between employer and employees, -of the problems which constantly arise in the conduct of business, -while in regard to the relations of both it recognizes that the voice -of public opinion is entitled to be heard. - -The acts of bodies of men in their relations with other men should -always be illuminated by publicity, for when the people see clearly -what the facts are, they will, in the long run, encourage what is good -and condemn what is selfish. - -Some may think that the form which the organization of labor takes -must necessarily be originated and developed by Labor. If, however, a -workable method of coöperation between managers and men is actually -developed, which is satisfactory to both, is its authorship of -consequence, provided only its provisions are adequate and just and it -proves to be an effective instrument through which real democracy may -have free play? - -The Colorado Plan has been devised for the employees of the Colorado -Fuel and Iron Company, and without reference to the employees, or -organizations of employees, in other companies. Some people will -maintain that the men’s interests cannot be adequately protected or -their rights at all times enforced without the support of their fellows -in similar industries. - -This may be true where Labor and Capital do not generally recognize -that their interests are one. But when men and managers grasp that -vital point, as I believe this plan will help them to do, and are -really awake to the fact that when either takes an unfair advantage of -the other the ultimate interests of both are bound to suffer, they will -have an incentive to fair dealing of the most compelling kind. - -It is clear that a plan of this kind must not overlook the interests -of the stockholders, for no plan which disregards their rights can -be permanently successful. The interests of Capital can no more be -neglected than those of Labor. - -At the same time I feel that a prime consideration in the carrying -on of industry should be the well-being of the men and women engaged -in it, and that the soundest industrial policy is that which has -constantly in mind the welfare of the employees as well as the making -of profits, and which, when the necessity arises, subordinates profits -to welfare. - -In order to live, the wage-earner must sell his labor from day to -day. Unless he can do this, the earnings of that day’s labor are gone -forever. - -Capital can defer its returns temporarily in the expectation of future -profits, but Labor cannot. If, therefore, fair wages and reasonable -living conditions cannot otherwise be provided, dividends must be -deferred or the industry abandoned. - -On the other hand, a business, to be successful, must not only provide -for Labor remunerative employment under proper working conditions, but -it must also render useful service to the community and earn a fair -return on the money invested. - -The adoption of any policy toward Labor, however favorable it may -seem, which results in the bankruptcy of the corporation and the -discontinuance of its work, is as injurious to Labor which is thrown -out of employment, as it is to the public, which loses the services of -the enterprise, and to the stockholders whose capital is impaired. - -This plan is not a panacea; it is necessarily far from perfect, and yet -I believe it to be a step in the right direction. Carefully as it has -been worked out, experience will undoubtedly develop ways of improving -it. - -While the plan provides elaborate machinery which of itself ought to -make impossible many abuses and introduce much that is constructively -helpful, too strong emphasis cannot be put upon the fact that its -success or failure will be largely determined by the spirit in which it -is carried out. - -The problem of the equitable division of the fruits of industry will be -always with us. The nature of the problem changes and will continue to -change with the development of transportation, of invention, and the -organization of commerce. - -The ultimate test of the rightness of any particular method of division -must be the extent to which it stimulates initiative, encourages the -further production of wealth, and promotes the spiritual development of -men. - -The Colorado Plan is of possible value in that State, and may prove -useful elsewhere, because it seeks to serve continually as a means -of adjusting the daily difficulties incident to the industrial -relationship. It brings men and managers together, it facilitates the -study of their common problems, and it should promote an understanding -of their mutual interests. - -Assuming, as we must, the fundamental fairness of men’s purposes, -we have here possibly a medium through which the always changing -conditions of industry may be from time to time more closely adapted to -the needs, the desires, and the aspirations of men. - -FOOTNOTE: - -[1] NOTE.--This article, “Labor and Capital--Partners,” originally -appeared in the _Atlantic Monthly_, January, 1916. - - - - -III - -THE PERSONAL RELATION IN INDUSTRY[2] - - -Heretofore the Chief Executives of important industrial corporations -have been selected largely because of their capacity as organizers or -financiers. - -The time is rapidly coming, however, when the important qualification -for such positions will be a man’s ability to deal successfully and -amicably with labor. Yet how to do this is a subject which, I fancy, is -never taught or referred to in the classroom. - -Like knowledge of the problems of sex, than which no department of life -is more sacred, vital or deserving of full and ennobling instruction, -an understanding of this subject is left to be acquired by experience, -often costly or bitter, or through chance information, gleaned too -frequently from ignorant and unreliable sources. - -Just as the first of these two themes is coming to be taught -sympathetically and helpfully in our schools and colleges, so I believe -the second, the personal relation in industry, will eventually be -regarded as an important part of those college courses which aim to fit -men for business life. - -After all, is it not the personal relations with one’s fellows which, -when rightly entered into, bring joy and inspiration into our lives -and lead to success, and which, on the other hand, if disregarded or -wrongly interpreted, bring equally sorrow and discouragement and lead -to failure? - -Think what the ideal personal relation between a father and son may -mean to both. Some of us have known such contact. Our lives have been -fuller and richer as a result, freer from sin and sorrow. Others of us -know from bitter experience what the absence of this relationship has -involved. - -How helpful to a student is such a friendly association with some -professor who commands his confidence, respect and regard, and who is -interested in his college work, not for itself alone, but quite as much -because of its bearing on his future life’s usefulness. - -What would college life be without the personal relationships which are -formed during its happy days and often continued close and intimate -through life? - -Can you imagine a successful football team composed of strangers, -having no points of contact, no sympathy with each other, no common -cause inspiring them to strive for victory? Team play, the support of -one player by another, would be well nigh impossible. - -Even in the army, where formerly the man who had become the most -perfect machine was regarded as the best soldier, it is coming to be -accepted that in addition to being obedient and subject to discipline, -the man who thinks, who is capable of acting on his judgment when -occasion arises, who is bound to his fellow soldiers and his officers -by personal friendliness, admiration and respect, is a far more -efficient soldier. - -And whereas formerly, particularly in the armies of Europe, privates -were not allowed to have any personal association or contact with -their officers, we learn that in the World War a spirit of comradeship -was developed by the officers with their men off duty, which personal -relationship was building up rather than weakening the morale of the -armies. - -What is true as to the relationships which I have mentioned is equally -true in industrial relations, and personal contact is as vital and as -necessary there as in any other department of life. - -Let us trace briefly the history of the development of industry, that -we may see where this personal relationship is present, where absent, -and what is the effect of its presence or absence. - -Industry in its earliest forms was as simple as it is complex to-day. - -The man who provided the capital was frequently the director, -president, general manager and superintendent of the enterprise, and -in some instances actually worked with his employees. These latter -were few in number. They were usually born and brought up in the same -community with their employer, his companion in school days, his -friends and neighbors, often calling him as he did them by their first -names. - -There was daily contact between employer and employee, and naturally if -any questions or causes for complaint arose on either side, they were -taken up at the next chance meeting and adjusted. - -Next came the partnership, a development necessary because more capital -was required than a single individual cared to or was able to provide. -Two or more partners were thus associated together, but otherwise the -situation was not materially different from that just described, except -that more employees were required. - -With the invention of the steam engine and its application to -railroads, which quickly began to make their way over the face of the -earth; with the development of the steamboat, replacing to so large -an extent the old sailing vessels and making possible the regular and -frequent transportation of the products of the soil and of industry -from one part of the world to another; with the perfecting of the -telegraph, cable and telephone, there came the need for larger -aggregations of capital in order to carry on the ever expanding -industries that were required to keep pace with this growth. - -This led to the development of the corporation, the capital for which -was supplied in larger or smaller amounts by few or many individuals, -thus making possible almost indefinite financial expansion. And this -form of business has continued to grow, as commerce and industry have -become not only national but international and world wide in their -extent, until we have to-day the United States Steel Corporation, with -its 120,000 stockholders and its 260,000 employees. - -It stands to reason that corporations of such magnitude have -necessarily become highly specialized. - -The responsibility of an individual stockholder in a corporation is -of course in proportion to his interest, but the function of the -stockholders in general consists in casting their votes each year for -the election of directors to represent their interests. - -The directors in turn are charged with the general responsibility of -developing the policies of the corporation, some of which are matured -by the officers, of selecting its officers and of seeing to it that the -corporation is properly managed. - -The officers as the executives of the company carry out the company’s -policies and are charged with the actual operation of the company and -the employment of labor. - -As we contrast this gigantic organization with the simple form of -industrial organization first described, it is at once apparent that in -the very nature of the case the man who supplies the money seldom if -ever comes in contact with the man who supplies the labor. - -Here we note a marked and serious change. While deplorable, this -situation is practically inevitable. Frequently the industry in which a -stockholder has invested his capital is located in a far distant city. -Not only this, but often investments are made in corporations which -conduct business in other countries almost at the ends of the earth. - -As a result of this lack of contact between Labor and Capital, the -personal relationship has disappeared, and gradually a great gulf -has grown up between the two, which is ever widening, so these two -great forces have come too often to think that their interests are -antagonistic, and have worked against each other, each alone seeking -to promote its own selfish ends. This has resulted in the strike, the -lockout and the various incidents of industrial warfare so regrettably -common in this day and apparently on the increase. - -Reports of the United States Bureau of Labor Statistics show that for -the first eleven months of 1916 there were 3,134 strikes and lockouts -in the industries of this country, as against only 1,147 for the -corresponding period of 1915. - -These industrial conflicts have in some instances come to be little -short of civil war; vast sums of money have been lost by both sides, -untold hardship and misery have followed in their wake. - -The New York City street railroad strike of last summer (1916) is -estimated to have cost the companies some four millions of dollars, -not to mention the loss in wages borne by the employees or the losses -sustained by the public. - -Last summer[3] four hundred thousand railroad men, constituting -the four brotherhoods, voted in favor of a strike on 225 American -railroads. If the average pay of these men had been only $2.50 a -day, which is considerably lower than the fact, such a strike would -have meant a daily loss in wages of a million dollars, not taking -into account the far greater loss to business and the inevitable -inconvenience and distress which would have been brought, directly or -indirectly, to the doors of the entire population. - -I have not had access to data showing the cost to this country of -strikes and lockouts. However, the following quotation from a recent -address made by Mr. Frank A. Vanderlip, President of the National City -Bank of New York, throws light on the subject. Mr. Vanderlip said: - - - The cost of the recent garment workers’ strike in New York City - has been estimated to be in the neighborhood of fifty million - dollars. - - The last anthracite coal strike in the short course of five - months caused a loss of one hundred and twenty million dollars to - employers and employees in the community. - - I have seen the statement that in a single year the losses that - could be attributed to labor disturbances in this country total - more than a billion dollars. - - -These are extraordinary figures, and though some of them are doubtless -merely estimates, they serve to show what enormous proportions the -industrial problem has assumed and how serious and vital a question it -has become. - -May I add that almost beyond belief as these figures are, they do not -include those terrible mental and moral losses growing out of struggle -and conflict, nor do they take account of the depleted bank balances -of the workers, and the hunger, suffering and distress which extend -into the homes and which touch the lives not only of those immediately -concerned, but of tens of thousands of innocent women and children. - -What I have said leads me to advance two ideas, both of which I -believe to be profoundly true, but which have received far too limited -consideration. - - - The first is that Labor and Capital are naturally partners, not - enemies. - - The second, that the personal relation in industry, entered into - in the right spirit, gives the greatest promise of bridging the - yawning chasm which has opened up between employer and employee. - - -The mistaken point of view in regard to the relation between Labor and -Capital exists on the part of both Labor and Capital, as well as among -the interested and disinterested public. - -Too often Capital regards Labor merely as a commodity to be bought and -sold, while Labor not infrequently regards Capital as money personified -in the soulless corporation. - -It might seem that technically speaking both of these definitions could -be justified, but they are far from being comprehensive and adequate. -For both Labor and Capital are men--men with muscle and men with money. -Both are human beings and the industrial problem is a great human -problem. - -This is one of the first things we need to recognize, and it is -just because human nature is involved in this problem that it is so -intricate and difficult to solve. - -The popular impression that from the very nature of the case Labor and -Capital are two great contending forces arrayed against each other, -each striving to gain the upper hand through force, each feeling that -it must arm itself in order to secure from the other its rights and its -just dues, is even more unfortunate than it is untrue. - -I cannot believe that Labor and Capital are necessarily enemies. I -cannot believe that the success of one must depend upon the failure or -lack of success of the other. Far from being enemies, these two factors -must necessarily be partners. - -Surely, their interests are common interests, the permanent well being -of neither can be secured unless the other also is considered, nor can -either attain the fullest possibilities of development which lie before -both unless they go hand in hand. - -Only when the industrial problem is approached from the point of view -of a firm belief in this doctrine is there any hope of bringing about -closer, more healthful and mutually advantageous relations between -these two forces. - -If, therefore, my first statement is true, namely that Labor and -Capital are partners, then certain things must follow. They must have -contact. This standing aloof one from the other must end. - -Respect grows in the heart of each for the other, confidence is -developed, and they come to realize that they are working with a common -interest for a common result. - -But this attitude, this relationship, is the personal relation in -industry. Nothing else will take its place, nothing else will bridge -the chasm of distrust and hatred. - -It is the recognition of the brotherhood of man, of the principle of -trying to put yourself in the other man’s place, of endeavoring to see -things from his point of view. The old saying that honesty is the best -policy is often scoffed at and pronounced unpractical, but there never -was a truer saying. Honesty _is_ the best policy. - -You may be able to deceive a man once or twice, or, if he is -exceptionally gullible, half a dozen times, but you cannot deceive him -indefinitely. You may be able to deceive a number of people sometimes, -but you cannot deceive all of the people with whom you have business -dealings all of the time. You may be able to make a contract which -gives you an unfair advantage of the other man, but the chances are -that you cannot do it twice. - -From a purely cold-blooded business point of view, honesty _is_ the -best policy. Likewise do I say that to treat the other man as you would -have him treat you is an equally fundamental business principle. - -This does not mean that you should surrender your rights or neglect -to avail of your opportunities. It simply means that in the game of -business, the same rules of sportsmanship should prevail as in a -boxing bout, in a match of golf, or a football game. - -Play fair and observe the rules. Let the contest be clean, gentlemanly, -sportsmanlike, a contest always having regard for the rights of the -other man. - -Assuming, then, that the personal relation is a vital factor in -successful industrial life, but recognizing the impossibility in this -day of big business of reproducing it as it existed between employer -and employee in the early days of industrial development, how can a -like result be brought about, how can personal contact be established? - -Granting that it is impossible for the stockholders of a great -corporation, because of their number, because of their geographic -relations, to come into frequent or even semi-occasional contact with -their partners, the employees of a company; and that the situation -is much the same with the directors--at least it is possible, and -must be made increasingly so, for the leading representatives of the -stockholders and directors, namely the officers of a corporation, to -have such contact with the employees, special officers being appointed -for that purpose alone if necessary. Because of the vast numbers of -employees in many a company, even this is difficult and altogether too -infrequent to-day. - -As the officers of our great corporations come to see more and more -that the problem of understanding their employees and being understood -by them is a vital problem, one of the most important with which the -management is confronted, they will be convinced not only of the wisdom -of devoting far more time to such contact, but of the desirability and -the advantage to themselves, and to the employees as well as to the -company, of such closer relation and intimate conference in regard to -matters of common interest and concern. - -If we look into our own experience, we find that the misunderstandings -which we have had with other men have been largely the result of lack -of contact. We have not seen eye to eye. - -Men cannot sit around a table together for a few hours or several days -perhaps and talk about matters of common interest, with points of -view however diverse, with whatever of misunderstanding and distrust, -without coming to see that after all there is much of good in the worst -of us and not so much of bad in most of us as the rest of us have -sometimes assumed. - -But someone says, “We grant the desirability of the personal relation -in industry. Theoretically we accept your suggestion as to how this -theory can be put into practice in the industrial life of to-day, but -practically, will it work?” - -I can best answer this question by saying that such a program has been -put into operation in a certain coal company in Colorado, in which my -father and I are interested and of which I am a director. - -If you will pardon a personal reference, may I say that when I visited -Colorado some eighteen months ago, I had the opportunity of talking -personally with hundreds, if not thousands, of the employees of that -company. These men and many of the people of Colorado had formed their -opinion of anyone bearing the name of Rockefeller from what they had -read and heard. Because of certain industrial disturbances which had -developed in the State, bitterness and hatred had existed to a high -degree. - -As I went from camp to camp I talked with the representatives of the -men individually and privately, I went into the men’s homes, talked -with their wives and children, visited their schools, their places of -amusement, their bathhouses, and had just such friendly relations with -them as any man going among them would have had. - -Frequently I found points of difference between the men and the -officers, but in no single instance were the men as I met them other -than friendly, frank and perfectly willing to discuss with me, as I was -glad to discuss with them, any matters they chose to bring up. - -It often occurred that there was justice in the points which they -raised and their requests were acted upon favorably by the officers. -Also frequently situations were presented in which it was impossible -for the company to meet the views of the employees. But never was a -subject dismissed until, if unable myself to make the situation clear, -the highest officials of the company were called in to explain to the -employee with the utmost fulness and detail the reasons why the thing -suggested was impossible. - -No matter presented was left without having been settled in accordance -with the request of the employee, or, in the event of that being -impossible, without his having been fully convinced that the position -of the company was just and right and in the common interest. - -This personal contact with the employees of the company led to the -establishment of mutual confidence and trust and to the acceptance on -their part of the premise that they and we were partners. - -The men generally came to see that the man about whom they had heard -was very different from the man whom they had met in their homes and -at their work. While they distrusted the former, they believed in the -latter. Before I left Colorado, a plan of industrial representation, -providing for close personal contact between the duly elected -representatives of the men and officers of the company, was worked out -and adopted by a large majority vote of the employees. - -This plan in substance aims to provide a means whereby the employees -of the company should appoint from their own number as their -representatives men who are working side by side with them, to meet -as often as may be with the officers of the corporation, sometimes in -general assembly, where open discussions are participated in and any -matters of mutual interest suggested and discussed; more frequently in -committees composed of an equal number of employees and officers, which -committees deal with every phase of the men’s lives--their working and -living conditions, their homes, their recreation, their religion and -the education and well-being of their children. - -In brief, the plan embodies an effort to reproduce in so far as is -possible the earlier contact between owner and employee. - -I do not venture to make any prediction as to the ultimate success of -the plan. Two interesting side lights, however, may be mentioned. - -The first is that whereas the plan itself and an agreement covering -working and living conditions was adopted by the coal miners employed -by this company some fifteen months ago--since that time the same plan -and agreement, adapted to the particular requirements of the steel -workers, and also of the iron miners employed by the company, has been -adopted by both. - -The second, while the company has reopened a number of mines formerly -idle and is now working quite to the limit of its capacity in the -production of coal, it has all the labor at its various mines which -it requires, and that too without having made any special effort to -attract labor to its recently reopened mining camps. - -But there is a further reason why the personal relation in industry -is of such vital importance, and that is in order that the attitude -and purpose of the owners and directors of a company may be rightly -understood by and interpreted to their partners, the employees, and -vice versa; also that all grievances may be taken up and adjusted as -they arise. - -How true it is that when some petty representative of a great -corporation makes a sharp trade with a customer, the customer at once -says, “Obviously, the president of this corporation is a dishonest and -unscrupulous man. It must be that he has directed his agents to pursue -these sharp and crooked practices.” - -However high-minded the owners or directors of a company may be, it is -of the utmost difficulty to guard against such practices on the part -of an occasional representative. But it is obviously just as unfair on -such grounds to maintain that the owners and managers are unjust and -crooked in their business methods, as it would be to say that the whole -tree was bad simply because one apple on it had spots or imperfections. - -The employee in any corporation must form his opinion of the owners and -directors of the corporation from the petty officer or foreman with -whom he has personal contact. Too often these men, not infrequently -promoted from the ranks, become overbearing and arrogant in their -treatment of those under them. - -This very naturally is as irritating and unjust to the employee as it -is distressing to the company, and it is at this point in ninety-nine -cases out of a hundred where grievances arise. - -The Colorado Industrial Plan to which I have referred has been so -drawn as to guard against the exercise of arrogance or oppression, by -providing various channels through which the employee with a grievance -can at once secure a sympathetic and friendly hearing, carrying his -difficulty to the president’s ear, if necessary. - -The foreman who knows that any arbitrary or unjust action on his part -may be reviewed by his superior officers is very much more careful in -his treatment of his men, always wanting to avoid having his decisions -reversed. - -If a slight scratch made on the finger with a rusty nail is -immediately cleansed with an antiseptic wash, it heals at once. On -the other hand, if the poison which has been introduced is allowed to -remain, soon inflammation sets in, the disorder spreads, and serious -menace to life may result. - -And so it is with the petty grievance. If it is dealt with -sympathetically and justly, immediately it is made known, peace, -harmony and good-will are readily maintained. On the other hand, if -indifference is shown and lack of sympathy, the grievance is nursed and -from it grows the industrial disorders which later become so acute and -difficult to heal. - -An ounce of prevention is worth much more than a pound of cure. In no -place is this saying truer than in dealing with human nature. - -If I were to sum up in a few words what I have been endeavoring to say -to you in regard to the personal relation in industry, I should say, -apply the Golden Rule. - -Every human being responds more quickly to love and sympathy than to -the exercise of authority and the display of distrust. - -If in the days to come, as you have to do with labor, you will put -yourself in the other man’s place and govern your actions by what you -would wish done to you, were you the employee instead of the employer, -the problem of the establishment of the personal relation in industry -will be largely solved, strife and discord as between labor and capital -will give place to coöperation and harmony, the interests of both will -be greatly furthered, the public will be better served, and through the -establishment of industrial peace, a great stride will have been taken -toward the establishment of peace among nations. - -FOOTNOTES: - -[2] An address delivered at Cornell University on the occasion of -Founder’s Day, January 11, 1917. - -[3] 1916. - - - - -IV - -REPRESENTATION IN INDUSTRY[4] - - -I speak as a member of the Public Group. I hold no executive position -in any business corporation, and am not here representing any business -interest. - -I have come in response to the request of the President to accept -appointment as one of the representatives of the general public in -this Conference and am considering the questions which come before the -Conference from that standpoint. - -The resolution before the Conference is predicated upon the principle -of representation in industry, which includes the right to organize and -the right to bargain collectively. In supporting this resolution I beg -leave to present the following statement which, for the sake of brevity -and clearness, I have reduced to writing. - -The experience through which our country passed in the months of -war, exhibiting as it did the willingness of all Americans without -distinction of race, creed or class to sacrifice personal ends for -a great ideal and to work together in a spirit of brotherhood and -coöperation, has been a revelation to our own people, and a cause for -congratulations to us all. Now that the stimulus of the war is over, -the question which confronts our nation is how can these high levels of -unselfish devotion to the common good be maintained and extended to the -civic life of the nation in times of peace. - -We have been called together to consider the industrial problem. Only -as each of us discharges his duties as a member of this Conference in -the same high spirit of patriotism, of unselfish allegiance to right -and justice, of devotion to the principles of democracy and brotherhood -with which we approached the problems of the war, can we hope for -success in the solution of the industrial problem which is no less -vital to the life of the nation. Surely the men and women will stand -together as unselfishly in solving this great industrial problem as -they did in dealing with the problems of the war if only right is made -clear and the way to a solution pointed out. - -The world position which our country holds to-day is due to the wide -vision of the statesmen who founded these United States and to the -daring and indomitable persistence of the great industrial leaders, -together with the myriads of men who with faith in their leadership -have coöperated to rear the marvelous industrial structure of which our -country is justly so proud. - -This result has been produced by the coöperation of the four factors -in industry: labor, capital, management and the public, the last -represented by the consumer and by organized government. - -No one of these groups can alone claim credit for what has been -accomplished. Just what is the relative importance of the contribution -made to the success of industry by these several factors and what -their relative rewards should be are debatable questions. But however -views may differ on these questions it is clear that the common -interest cannot be advanced by the effort of any one party to dominate -the other, to arbitrarily dictate the terms on which alone it will -coöperate, to threaten to withdraw if any attempt is made to thwart the -enforcement of its will. Such a position is as un-American as it is -intolerable. - -The personal relationship which existed in bygone days is essential to -the development of this new spirit. It must be reëstablished; if not in -its original form at least as nearly so as possible. - -In the early days of the development of industry, the employer and -capital investor were frequently one. Daily contact was had between him -and his employees, who were his friends and neighbors. Any questions -which arose on either side were taken up at once and readily adjusted. -A feeling of genuine friendliness, mutual confidence and stimulating -interest in the common enterprise was the result. - -How different is the situation to-day! Because of the proportions -which modern industry has attained, employers and employees are too -often strangers to each other. Personal contact, so vital to the -success of any enterprise, is practically unknown, and naturally, -misunderstanding, suspicion, distrust and too often hatred have -developed, bringing in their train all the industrial ills which have -become far too common. Where men are strangers and have no points of -contact, this is the usual outcome. Much of the strife and bitterness -in industrial relations result from lack of ability or willingness on -the part of both Labor and Capital to view their common problems each -from the other’s point of view. - -Representation is the principle upon which the democratic government -of our country is founded. On the battlefields of France this nation -poured out its blood freely in order that democracy might be maintained -at home and that its beneficient institutions might become available in -other lands as well. - -Surely it is not consistent for us as Americans to demand democracy in -government and practice autocracy in industry. - -What can this Conference do to further the establishment of democracy -in industry and lay a sure and solid foundation for the permanent -development of coöperation, good-will and industrial well-being? To -undertake to agree on the details of plans and methods is apt to lead -to endless controversy without constructive result. - -Can we not, however, unite in the adoption of the principle of -representation, and the agreement to make every effort to secure -the endorsement and acceptance of this principle by all chambers of -commerce, industrial and commercial bodies and all organizations of -labor? - -Such action I feel confident would be overwhelmingly backed by public -opinion and cordially approved by the Federal Government. The assurance -thus given of a closer relationship between the parties to industry -would further justice, promote good-will and help to bridge the gulf -between Capital and Labor. - - - (_Resolution introduced by John D. Rockefeller, Jr., earlier in - the session, which was not debated or acted upon but superseded by - the resolution to which the foregoing remarks were addressed._) - - -WHEREAS, the common ground of agreement and action with regard to the -future conduct of industry, with the development of a new relationship -between Capital and Labor which the President sought in calling this -Conference can only be discovered as we approach the problem in the -spirit of justice, brotherhood, and of willingness to put one’s self in -the other man’s place, the coming of which means the substitution of -confidence for distrust, of good will for enmity, of coöperation for -antagonism; and - -WHEREAS, this spirit can be developed only by the resumption of -personal relations between employer and employee or the nearest -possible approach thereto; and - -WHEREAS, some form of representation in industry is essential in order -to make personal relations possible under modern industrial conditions; - -Now Therefore be it - -RESOLVED, that this Conference recognizes and approves the principle -of representation in industry under which the employees shall have an -effective voice in determining their terms of employment and their -working and living conditions; and be it further - -RESOLVED, that just what form representation shall take in each -individual plant or corporation, so long as it be a method which is -effective and just, is a question to be determined by the parties -concerned in the light of the facts in each particular instance; and be -it further - -RESOLVED, that any form of representation to be adequate must include: - -1. Ample provision whereby the stockholders and the employees through -their respective representatives, shall give current consideration to -matters of common interest such as terms of employment and working and -living conditions; - -2. Any such further provisions, if any, as may be necessary to insure -the prompt uncovering of grievances, real or alleged, and their speedy -adjustment. - -FOOTNOTE: - -[4] Remarks at National Industrial Conference, Washington, D. C., -October 16, 1919. - - - - -V - -TO THE EMPLOYEES[5] - - -This is a red-letter day in my life. - -It is the first time I have ever had the good fortune to meet the -representatives of the employees of this great company, its officers -and mine superintendents, together, and I can assure you that I am -proud to be here, and that I shall remember this gathering as long as I -live. - -Had this meeting been held two weeks ago, I should have stood here -as a stranger to many of you, recognizing few faces. Having had the -opportunity last week of visiting all of the camps in the southern -coal fields and of talking individually with practically all of the -representatives, except those who were away; having visited your homes, -met many of your wives and children, we meet here not as strangers -but as friends, and it is in that spirit of mutual friendship that I -am glad to have this opportunity to discuss with you men our common -interests. - -Since this is a meeting of the officers of the company and the -representatives of the employees, it is only by your courtesy that I am -here, for I am not so fortunate as to be either one or the other; and -yet I feel that I am intimately associated with you men, for in a sense -I represent both the stockholders and the directors. - -Before speaking of the plan of industrial representation to which -our president has referred, I want to say just a few words outlining -my views as to what different interests constitute a company or -corporation. - -Every corporation is made up of four parties: Stockholders, directors, -officers and employees. - -This little table (_exhibiting a square table with four legs_) -illustrates my conception of a corporation; and there are several -points in regard to the table to which I want to call your attention. - -First, you see that it would not be complete unless it had all four -sides. Each side is necessary; each side has its own part to play. - -Now, if you imagine this table cut into quarters, and each quarter -separated from the others, what would happen? All of them would fall -down, for no one could stand alone, and you would have no table. But -when you put the four sides together, you have a useful piece of -furniture; you have a table. - -Then, secondly, I call your attention to the fact that these four sides -are all perfectly joined together; that is why we have a perfect table. -Likewise, if the parties interested in a corporation are not perfectly -joined together, harmoniously working together, you have a discordant -and unsuccessful corporation. - -Again, you will notice that this table is square. And every corporation -to be successful must be on the square--absolutely a square deal for -every one of the four parties, and for every man in each of the four -parties. - -I call your attention to one more thing--the table is level. Each part -supported by its leg is holding up its own side, hence you have a level -table. So, equal responsibility rests on each one of the four parties -united in a corporation. - -When you have a level table, or a corporation that is on the level, you -can pile up earnings on it (_piling coins on the table_). Now, who gets -the first crack at the earnings? You know that we in New York don’t. - -Here come along the employees, and first of all they get their wages -(_removing some of the coins_), every two weeks like clockwork, just -what has been agreed on; they get the first chance at the pile. - -You men come ahead of the president, the officers, the stockholders and -directors. You are the first to put a hand into the pile and take out -what is agreed shall belong to you. - -You don’t have to wait for your share; you don’t have to take any -chances about getting it. You know that there has never been a -two-weeks’ period that you have worked when you have not been able -to get your pay from this company; whatever happens, so long as the -company is running, you get your pay. - -And then the officers and superintendents come along, and they get -theirs; they don’t get it until after you have gotten yours (_removing -more coins_). - -Then come the directors, and they get their directors’ fees (_removing -the balance of the coins_) for doing their work in the company. - -And, hello! There is nothing left! This must be the Colorado Fuel and -Iron Company! For never, men, since my father and I became interested -in this company as stockholders, some fourteen years ago--never has -there been one cent for the common stock. - -For fourteen years the common stockholder has seen your wages paid to -you workers; has seen your salaries paid to you officers; has seen the -directors draw their fees, and has not had one cent of return for the -money that he has put into this company in order that you men might -work and get your wages and salaries. - -How many men in this room ever heard that fact stated before? Is there -a man among you? Well, there are mighty few among the workers who have -heard it. - -What you have been told, what has been heralded from the Atlantic to -the Pacific, is that those Rockefeller men in New York, the biggest -scoundrels that ever lived, have taken millions of dollars out of this -company on account of their stock ownership, have oppressed you men, -have cheated you out of your wages, and “done” you in every way they -could. - -That is the kind of “dope” you have been getting, and that is what -has been spread all over the country. And when that kind of talk was -going on, there were disturbances in this part of the country because -the four sides of this table were not square and the table was not -level, there were those who in the streets of New York and in public -gatherings, were inciting the crowd to “shoot John D. Rockefeller, Jr., -down like a dog.” That is the way they talked. - -The common stockholders have put $34,000,000 into this company in order -to make it go, so that you men will get your wages, you officers have -your salaries, and the directors get their fees, while not one cent has -ever come back to them in these fourteen years. - -If there is anyone who questions that statement, let him speak. Now, -let me put it to you men, is it fair, in this corporation where we -are all partners, that three of the partners should get all of the -earnings, be they large or small--all of them--and the fourth nothing? - -Is there a man of you who would put his money in the savings bank and -leave it there for one year even, unless he was sure to get at least -four per cent. interest? Otherwise you would say that the savings bank -was trying to cheat you out of a proper return on your money. - -But for fourteen years, to my knowledge--how much longer I do not -know--the common stockholders have gotten not one cent out of this -company. I just want you to put that in your pipes and smoke it, and -see if it tallies with what you have heard about the stockholders -oppressing you and trying to get the better of you. That does not sound -like oppression, like trying to get the best of the bargain! - -And you cannot expect that any one of the partners will remain -indefinitely in this or any other corporation if he does not get a fair -share of the earnings, with the others. Capital is entitled to a fair -return, just the same as labor is. - -Would you continue working in some mining camp for even a week, much -less a month, a year, or fourteen years, without pay? Of course you -would not. You would go to Pennsylvania, Indiana, Ohio--anywhere else -on God’s earth where you could get a fair return for your work. - -Now, the stockholders have been pretty patient all this time; they have -taken a lot of abuse because people have not told the truth. - -I think if we had all gotten together, as we have to-day, months and -years ago, and discussed these questions, and the facts had been fairly -presented, that there is not a man in this room but who would have said: - -“That is not a square deal, and in so far as I have anything to do with -this company, whether I am digging coal, driving mules, or sitting in -an office directing operations--whatever my position, I will do what -I can to see to it that every last man in this big family here gets a -square deal.” - -Now, I am not here to seek sympathy for the common stockholders, but I -just want to point out to you what you ought to know: that capital will -not stay indefinitely where it does not get proper recognition and a -reasonable return. - -And not one man in this room can afford to have the capital invested -in the mines of the Colorado Fuel and Iron Company become discouraged -and withdraw, because as capital gets discouraged and withdraws, -work falls off, mines are closed, wages go down, men are thrown out -of employment, and the whole enterprise is endangered, and all of -these things may result because only three of the four sides in the -corporation have received consideration. - -(_Interruption by Mr. Ben Beach, superintendent of Coal Creek mine_:) - -“Mr. Rockefeller, I wonder whether I may say a word right here? - -“Mr. Rockefeller and Fellow Workmen: What Mr. Rockefeller has stated in -regard to the common stock I can vouch for, for about eight years ago I -bought some common stock in the C. F. & I. Co. and I have been one of -those sorry men because I never got any returns for it.” - -Mr. Rockefeller: That is testimony that comes directly home. I have -been expecting to hear such expressions from the stockholders. I have -been expecting that there would be criticism, and just criticism, from -men, like our friend here, who have had no dividends on their stock all -these years. They may well say: - -“What right have you to go on spending money for club houses, bath -houses and fences, for this improvement in the camps, or that, simply -to add to the comfort of the men, when we common stockholders have -never gotten a cent?” That is just the way the stockholders may well -feel. I am glad you brought up that point, Mr. Beach. - -I want to show you another thing in connection with this table, this -corporation with its four sides, working harmoniously, and with -earnings piling up. When any one side says to itself: - -“I am not satisfied with my fair portion; I am going to grab all I can -and let the others take care of themselves,” and thereupon commences to -reach up and lay hold of more than its fair share of the earnings, then -it happens that the earnings commence to fall off, there is trouble and -nothing is left to divide. - -(_At this point, Mr. Rockefeller raised one of the legs of the table, -thereby tilting it and causing the coins piled upon it to slip off._) - -There is still another thing I want to speak of in regard to this -table. Here is one of the four parties in the corporation who says: - -“I am tired of doing my share, holding up my end of the game. We -wage-earners are tired of this thing, we don’t like to carry our fair -share of the burden, let us try to get all we can out of the company -and put in just as little as we can. Let us do each day just as little -work as we can and hold the job down.” - -Now, you know there are men going over this country from one end to -the other who are saying to the workmen of the country: - -“Your game is to get the shortest possible working day you can, to do -the least possible work that you can get away with and not lose your -job, and to get just as much as you can for what little you do.” - -Any man who preaches that doctrine, instead of being your friend, is -your deadliest enemy, because see what happens. Here is the side of -Labor; it says: - -“We will get out from underneath, we won’t work so hard; we will do -just as little as we can.” - -And Labor’s corner begins to drop down (_lowering the corner of the -table_), the earnings fall off (_coins slip off_) and there is nothing -left for anyone (_the table is bare_). - -Men, only when every man connected with that square corporation which -is on the level, is interested, unselfishly, not in what he can get -out of the corporation, but what he can put into it for the benefit of -every man in the concern, will that man himself get the most out of it. - -And I think there is no one thing that threatens greater harm to the -interests of the workingmen of this country than that pernicious, that -wicked, that false doctrine, that a man should do just as little work -in a day as he possibly can, and just as poor work as he possibly can, -and hold on to his job. - -We see, then, what this company ought to be, what any corporation ought -to be: a concern that is square, and always on the level, with every -man doing his part. You do not need to take my word for it, you see -from the illustration of the table that the interest of every man is -sacrificed when any other principle governs. - -Now--the problem which lies before the Colorado Fuel and Iron Company -is to so interrelate the different elements in the company that -the best interests of all will constantly be conserved, and the -wage-earners, seeing the situation as it is here shown, must say and -will say--because they are square men: - -“We only want a square deal; we only want what is our fair proportion -of return from this corporation; we will do our best to make it a -success because we know that our success is dependent upon the success -of all our partners.” - -The officers must say: - -“Our interest is to have every man that works with us realize that we -are his friends, not his enemies; that there is no reasonable thing -that he may want to talk about which we will not gladly discuss with -him and explain.” - -The directors must, on their part, give their best energies and efforts -to the devising of policies which will be in the interest of all. -The common stockholders must be patient yet awhile as they look at -that empty table from which the rest of you have rightly taken your -earnings, and they will be patient, I am sure, if they feel that all of -the other elements in the company are earnestly coöperating to bring -about the highest success of each and to secure a fair deal all around. - -This meeting has been called to-day for the purpose of seeing whether -we can work out and agree upon, among ourselves here, some plan which -will accomplish what I feel sure we all want to accomplish. I have been -asked to explain the plan which is up for our consideration. - -I may say, men, that for years this great problem of Labor and Capital -and of corporate relationships has engaged my earnest attention and -study, while for the last eighteen months I have spent more of my time -on the particular problems which confront this company than I have put -on any other one interest with which I am related. - -I have talked with all of the men whom I could get in touch with who -have had experience with or have studied these vital questions. I have -conferred with experts, and I have tried in every way to get the best -information I could, looking toward the working out of some plan which -would accomplish the result we are all striving to attain. - -Nearly a year ago the officers of the company, after having studied -this question with us in New York, introduced, as you know, the -beginning of such a plan, namely, the selection by the men at each camp -of duly chosen representatives, to confer with the officers of the -company in regard to matters of common interest. - -That was the beginning, and Mr. Welborn, in discussing the plan with -you men, told you that it was only the beginning, that as rapidly -as it became clear what further steps should be taken in order to -conserve the common interest, those steps would be jointly discussed -and introduced as soon as agreed upon. And so, in conjunction with -Mr. Welborn and other able advisers, we have worked out a further -development of the plan adopted last fall. - -Then I said to myself: nothing shall be said about this plan, nor will -we undertake to complete it until I have myself seen every mining camp -operated by the company. - -And now I have visited every camp, with the exception of those on the -western slope, and lack of time alone has prevented my getting over -there to see you men. - -I have gone, as you know, to every camp in the southern fields, have -talked privately with every superintendent, except one who was away, -and with all of the representatives at each camp with the exception of -some two or three who were not available at the time; I have gone into -scores of your homes and I met your wives and children, and have seen -how you live; I have looked at your gardens, and in camps where fences -were only recently built have seen how eagerly you have planted gardens -the moment opportunity was afforded, and how quickly you have gotten -the grass to grow, also flowers and vegetables, and how the interest in -your homes has thereby been increased. - -I inquired specifically about the water supply at each camp; I went -down into several of the mines and talked with hundreds of the miners; -I looked into the schools, talked with the teachers, inquired what -educational advantages your children were getting. - -I asked what opportunities you men, my partners, had for getting -together socially, and I visited some of your club houses and saw plans -for others. I went into your wash houses and talked with the men before -and after bathing. - -As you know, we have pretty nearly slept together--it has been reported -that I slept in one of your nightshirts--I would have been proud had -the report been true. - -If any man could have gone more carefully, more thoroughly, into the -working and living conditions that affect you, my partners, I should -be glad to have had him make me suggestions as to what further I might -have done. - -Now, it was only after that careful and exhaustive personal study that -I was willing to go on with the plan of representation and undertake to -complete it for presentation to you. And, frankly, every waking moment -since I left you men in the Fremont district last Saturday, practically -every daylight hour of this last week has been spent with the officers -of this company in constant, careful, earnest thought looking toward -the development of such a plan as would serve our common interest in -the best possible way. - -I have made a very lengthy introduction, and will now proceed to the -explanation of the plan. I shall be glad if Mr. Welborn, Mr. Weitzel, -Mr. Matteson, or Mr. King, whose assistance has been of the greatest -value in working out this plan, will correct me as I go along in case I -make any mistake or omit any features. - -(_Mr. Rockefeller then explained the plan in detail, calling attention -to the fact that if it met with the approval of the representatives and -officers in the meeting, together with an agreement respecting wages, -working and living conditions, both would be submitted on the one hand -to a vote of the men in the camps, and on the other to the directors of -the company, and if then approved, the agreement would be signed and -become binding until January 1, 1918. Mr. Rockefeller went on to say:_) - -I want to stay in Colorado until we have worked out some plan that we -all agree is the best thing for us all, because there is just one thing -that no man in this company can ever afford to have happen again, be he -stockholder, officer, or employee, or whatever his position, and that -is, another strike. - -I know we are all agreed about that, every last man of us, and I -propose to stay here if it takes a year, until we have worked out among -ourselves, right in our own family, some plan that we all believe -is going to prevent any more disturbances, any more interruption of -the successful operation of this great company in which we are all -interested. - -I have been hoping that the votes in all the camps could be taken early -next week, so that we would know without delay what the spirit and -wish of the men and the directors is. I speak of this point so that in -explaining the matter to the men in your camps you representatives will -make it clear to them why we are proceeding a little more rapidly than -we would if I lived here all the time, and if I was not so desirous of -seeing some agreement reached before I go away. - -There will be a meeting of the Board of Directors on Monday next, and -if this meeting should accept this plan and recommend its adoption, the -Board will act on that day. I should hope that meetings could be held -in the various camps on Monday, Tuesday and Wednesday. You men can -explain the plan to the men in the camps privately and in little groups -so that they will be ready to consider it fully and then vote on it by -the middle or toward the latter part of next week. - -FOOTNOTE: - -[5] Address at the joint meeting of the officers and representatives of -the employees of the Colorado Fuel and Iron Company, Pueblo, October 2, -1915. - - - - -VI - -TO THE PEOPLE OF COLORADO[6] - - -Of all the many cordial receptions which have been accorded me since I -was so fortunate as to enter your hospitable State, none has been more -gratifying or more deeply appreciated than the one which you citizens -of Denver have to-day tendered me. And I count it a most gratifying -climax to my visit to Colorado that I should have this opportunity of -meeting so splendid a gathering of the representative business men and -citizens of this fair State. - -As I have traveled about Colorado the past three weeks I have been -charmed with the beauty and grandeur of the scenery; I have been -inspired by the invigorating climate, the clear air, the blue sky. I -have been impressed with the fertility of your soil, with the vast -extent and richness of your mineral wealth. But above all, I have been -captivated by the cordiality of your people. - -And so I am very happy to have this opportunity to-day of expressing -to you, and through you to the people of Colorado, my deep appreciation -of the many kindnesses and courtesies which have been shown me during -my stay among you. - -These I have accepted as intended partially for myself, but largely for -my father, whose representative I am, and in whose name as well as my -own I thank you. - -My father has been for many years a good friend of the people and State -of Colorado. His friendship for you, his belief in you, his confidence -in the future of this State, have been clearly shown by his having put -considerable sums of money into the steel and coal industries of the -State through his investments in the Colorado Fuel and Iron Company; -and, as many of you know, during the fourteen years since he made his -first investment in that company, except for one payment made on the -preferred stock on account of an accumulation of dividends, there has -not come back to him or the common stockholders one single cent of -return. - -And yet my father has not lost his faith in the State of Colorado nor -in the people of Colorado; he believes in you, and the fact that his -interest in this company continues to be a very substantial one is a -sure proof of his attitude. - -I wish very much that he were here to-day himself. I have often had -that wish as I have gone among you during these weeks. - -Some of the papers have mentioned my democratic spirit. If my father -had been among you as I have been, no comment in regard to my attitude -would have been made, for of all men he is most democratic and -approachable, as hundreds of those who know him will testify, and in -that atmosphere of democracy I have been reared. Born and brought up in -the country, at an early age he learned what hard work meant. - -When his period of schooling had been completed he went into active -business for himself, and during the many years following, when he was -actively engaged in business, he was constantly in close personal touch -with the working classes, among whom he found many of his best and -truest friends. - -At his country place on the Hudson there are constantly employed -several hundred men of different nationalities; many of these employees -he knows by name; he is constantly mingling with them in their work, -interested in their progress and in their home life, and it is not an -infrequent sight, at the close of the day’s work, to see him returning -home in his automobile with half a dozen or a dozen Italian and -Hungarian workingmen crowded about him on the seats and standing on the -running board as he gives them a lift on their way home. - -When motoring about the country he may frequently be found talking with -a group of men at the country store in a little village, and when he -comes upon school children returning from their school he delights to -load as many of them into his automobile as possible and give them a -ride on their way. - -I recall not long since the death of a colored teamster who had for -some years been in my father’s employ. My father was among the first to -visit the bereaved family in their humble home above the work stable, -that he might express his sympathy with them in their sorrow, and as he -stood at the grave his tears were mingled with the tears of the other -mourners as he paid his last tribute of respect to a faithful employee -and a true friend. - -When called as a witness in New York by the Industrial Relations -Commission last winter, my father stated very clearly his attitude -toward workingmen. - -Briefly, these were the three points that he made: - -That he believed that Labor and Capital were partners, not enemies. - -That in any industry with which he was connected he would gladly -welcome the workers as stockholders, and further: - -That it would be his wish that those who work with their hands be given -representation upon the Board of Directors, so that they might come to -have a closer knowledge of the problems with which the management of -the corporation is confronted. - -The word “fear” is not found in my father’s vocabulary, nor does he -know what the sensation is, and yet he has the gentleness and the -tenderness of a woman. - -Although he has been accustomed to think in world terms in the -development of the business and philanthropic enterprises to which his -life has been devoted, there is no person in his household too humble -to receive his frequent kindly and personal thought. - -Criticized, maligned, and condemned these many years, not only for his -business success achieved through his ability to gain the confidence -and coöperation of men, to bring all parties into harmony and to effect -economies in every possible way, but also because of his philanthropic -endeavors, there is still not the slightest trace of bitterness in his -character and he holds in his heart nothing but good-will toward every -man. - -And if, in their kindness of heart, the people of Colorado have found -in me anything that may have seemed admirable, that, and whatever else -I am or may be, I owe to my sainted mother and my honored father, -whose training and example I regard as a priceless heritage. And so -again I say I wish that my father were here that he might meet you men -personally and be confirmed in the view which he has held during past -months of unrest and conflict, to the effect that many of the evil and -censorious reports which have been spread about the country in regard -to this great State and its people are untrue; that you, on the other -hand, coming to know him, might realize the injustice and the cruelty -of the things that have been said and written about him during these -many years. - -And again, in his absence, on his behalf, as well as for myself, I -thank you for your kindness and the evidences of your friendship to -him and to me, which have been countless during these days of my happy -residence among you. - -There has been so much said with regard to the views which my father -and I have held and do hold in regard to the organization of labor, and -also in regard to the relations which should exist between the various -parties in any company or corporation, that it is perhaps not unfitting -for me to state in a few words just what those views are. - -The position I took when called before the Subcommittee of Mines and -Mining of the House of Representatives in Washington two years ago, -in regard to the right of every American workingman to work for whom -he pleased and upon such terms as he pleased, has been frequently -misunderstood and misrepresented. - -It has been construed as indicating that my father and I were not only -opposed to the organization of labor, but that we were persistently and -continually fighting it. No such inference is correct, for absolutely -the contrary is the fact. - -I can, perhaps, present in the briefest and clearest way the views -which we hold on these two subjects by referring to several paragraphs -from a statement which I read before the Industrial Relations -Commission in New York last January: - -“First, with reference to my attitude toward labor unions: I believe -it to be just as proper and advantageous for labor to associate itself -into organized groups for the advancement of its legitimate interests, -as for capital to combine for the same object. - -“Such associations of labor manifest themselves in promoting -collective bargaining, in an effort to secure better working and -living conditions, in providing machinery whereby grievances may -easily and without prejudice to the individual be taken up with the -management. Sometimes they provide benefit features, sometimes they -seek to increase wages; but whatever their specific purpose, so long -as it is to promote the well-being of the employees, having always due -regard for the just interests of the employer and the public, leaving -every worker free to associate himself with such groups or to work -independently, as he may choose--I favor them most heartily. - -“Combinations of capital are sometimes conducted in an unworthy manner -contrary to law and in disregard of the interest both of labor and the -public. Such combinations cannot be too strongly condemned nor too -vigorously dealt with. - -“Although combinations of this kind are the exception, such publicity -is generally given to their unsocial acts that all combinations of -capital, however rightly managed or broadly beneficent, are thereby -brought under suspicion. - -“Likewise, it sometimes happens that combinations of labor are -conducted without just regard for the rights of the employer or the -public, and methods and practices adopted which, because unworthy -or unlawful, are deserving of public censure. Such organizations of -labor bring discredit and suspicion upon other organizations which are -legitimate and useful, just as is the case with improper combinations -of capital, and they should be similarly dealt with. - -“I should be the last, however, to allow the occasional failure in the -working of the principle of the organization of labor to prejudice me -against the principle itself, for in that principle I strongly believe. - -“In the further development of the organization of labor and of large -business, the public interest, as well as the interest of Labor and -Capital alike, will, it seems to me, be best advanced by whatever -stimulates every man to do the best work of which he is capable; by a -fuller recognition of the common interest of employers and employed; -and by an earnest effort to dispel distrust and hatred and to promote -good-will. - -“I believe that the ultimate object of all activities in a republic -should be the development of the manhood of its citizens; that such -manhood can be developed to the fullest degree only under conditions -of freedom for the individual, and that industrial enterprises can and -should be conducted in accordance with these principles. - -“I believe that a prime consideration in the carrying on of industry -should be the well-being of the men and women engaged in it, and that -the soundest industrial policy is that which has constantly in mind the -welfare of the employees as well as the making of profits, and which, -when the necessity arises, subordinates profits to welfare. - -“A business to be successful must not only provide to labor -remunerative employment under proper working conditions, but it must -also render useful service to the community and earn a fair return on -the money invested. - -“The adoption of any policy toward labor, however favorable it may -seem, which results in the bankruptcy of the corporation and the -discontinuance of its work, is as injurious to labor which is thrown -out of employment, as it is to the public which loses the services of -the enterprise, and to the stockholders whose capital is impaired. - -“I believe it to be the duty of every citizen to do all within his -power to improve the conditions under which men work and live. I -believe that that man renders the greatest social service who so -coöperates in the organization of industry as to afford to the largest -number of men the greatest opportunity for self-development, and the -enjoyment by every man of those benefits which his own work adds to the -wealth of civilization. - -“In order to live, the wage-earner must sell his labor from day to day. -Unless he can do this, the earnings from that day’s labor are gone -forever. Capital can defer its returns temporarily in the expectation -of future profits, but labor cannot. If, therefore, fair wages and -reasonable living conditions cannot otherwise be provided, dividends -must be deferred or the industry abandoned. - -“I believe that a corporation should be deemed to consist of its -stockholders, directors, officers and employees; that the real -interests of all are one, and that neither Labor nor Capital can -permanently prosper unless the just rights of both are conserved.” - -It was in line with these views that the plan of industrial -representation recently proposed by the Colorado Fuel and Iron Company, -and already adopted by the directors and by a majority vote of the -employees of the different camps, was developed. - -The underlying principle is that of coöperation, the theory being that -the interests are common interests, and this leads to the development -of the committees called for in the plan, as joint committees, on each -of which the representatives of the workers have equal place with the -representatives of the officers of the company. - -In contrast with this spirit of coöperation is the spirit which too -often has been in evidence in some organizations of labor. There, -seemingly, labor is arrayed against capital. It is war! And apparently -success cannot come to either party except failure or harm comes to the -other. - -I need not point out to you men the fact that in this day and -generation we cannot hope for industrial peace, we cannot hope for -prosperity in this fair land, until labor and capital join hands and -recognize that their interest is a common interest, that what hurts one -hurts the other, that what develops the well-being and the prosperity -of one must of necessity develop the well-being and prosperity of the -other. - -May I also point out the spirit of democracy which underlies this -plan? All of the employees in the corporation are entitled to join in -it, regardless of whether they are or are not members of any society, -fraternity or union, as contrasted with any plan, where only those who -elect to join an organization are eligible to the benefits which come -from it. - -Every man in the camps of the Colorado Fuel and Iron Company is -considered in this industrial plan, is represented and can be heard, -and his complaint, be it great or small, can be carried from one -officer to another until it reaches the ear of the president of the -company. - -Those who have coöperated in the development of this plan recognize -that it is far from perfect, that it will have to be changed and -adapted to the requirements of the company in which it has been adopted. - -On the other hand, it is the earnest hope of all who are associated in -the plan that it may point the way toward a closer coöperation between -the employees and the other parties in interest in this company, that -it may so establish relations of friendship and of mutual confidence, -that it may so benefit the workers, the officers and the stockholders -of the company, that there may never come a day when there will be -repeated the industrial disorders which have occurred in the past in -this company and in other companies in this State. - -And it is our hope that toward that end all of the citizens of the -State will coöperate, for, as I have said to the representatives of -the workers of the Colorado Fuel and Iron Company, to many of the men -themselves, as well as to the officers and directors of the company, -there is one thing which must never happen again in that company, and -that is a strike. Wantonly wasteful of human life and human property, -no parties in interest are benefited thereby, but all seriously and -permanently harmed as well as the public and the citizens of the State. - -The way to prevent war is to cultivate and develop those qualities of -head and heart which promote happiness and peace, and it is with that -purpose in mind that this plan, to which I have referred, has been -developed. - -The time has come when the business man of this State and county must -think in terms of the laboring man, and the laboring man must think in -terms of the business man; when each must strive to imagine himself in -the other’s place; when the teaching that every man is his brother’s -keeper should no longer be a dead letter but a living reality; when -coöperation and not conflict should be the watchword. - -The opportunity to lead the nation in the permanent establishment of -industrial peace is yours; if you will lay hold upon it, the name of -this fair State will be written large in the history of the nation; if -you let it pass, you and your children and your children’s children, -will never cease to regret this day. - -And if in any smallest way my coming to Colorado may prove to have been -of service to you in approaching the solution of this world problem -of industrial relations, I shall feel a sense of satisfaction and -gratitude beyond expression. - -FOOTNOTE: - -[6] Address at the Chamber of Commerce Luncheon, Denver, October 8, -1915. - - - - -APPENDIX - - - - -THE INDUSTRIAL CONSTITUTION - -PLAN OF REPRESENTATION OF EMPLOYEES IN THE COAL AND IRON MINES OF THE -COLORADO FUEL AND IRON COMPANY OF COLORADO AND WYOMING - - - - -I - -REPRESENTATION OF EMPLOYEES - - - _1. Annual meetings for election of employee’s representatives._ - -Employees at each of the mining camps shall annually elect from among -their number representatives to act on their behalf with respect to -matters pertaining to their employment, working and living conditions, -the adjustment of differences, and such other matters of mutual concern -and interest as relations within the industry may determine. - - - _2. Time, place and method of calling annual meetings, and - persons entitled to be present and participate in the election of - representatives._ - -The annual meetings of employees for the election of their -representatives shall be held simultaneously at the several mining -camps on the second Saturday in January. The meetings shall be -called by direction of the president of the company. Notices of the -meetings, indicating their time and place, as well as the number of -representatives to be elected, shall be publicly posted at each camp a -week in advance, and shall state that employees being wage-earners in -the employ of the company at the time of the meeting and for at least -three months immediately preceding, but not salaried employees, shall -be entitled to be present and vote. Special meetings shall be similarly -called when removal, resignations, or other circumstance occasions a -vacancy in representation. - - - _3. Method of conducting meetings, and reporting election of - representatives._ - -Each meeting for the election of employees’ representatives shall -choose its own chairman and secretary. At the appointed hour, -the meeting shall be called to order by one of the employees’ -representatives, or, in the absence of a representative, any employee -present, and shall proceed to the election of a chairman and secretary. -The chairman shall conduct, and the secretary record, the proceedings. -They shall certify in writing to the president of the company the -names of the persons elected as the employees’ representatives for the -ensuing year. - - - _4. Basis and term of representation._ - -Representatives of employees in each camp shall be on the basis of one -representative to every one hundred and fifty wage-earners, but each -camp, whatever its number of employees, shall be entitled to at least -two representatives. Where the number of employees in any one camp -exceeds one hundred and fifty, or any multiple thereof, by seventy-five -or more, an additional representative shall be elected. The persons -elected shall act as the employees’ representatives from the time of -their election until the next annual meeting, unless in the interval -other representatives may, as above provided, have been elected to take -their places. - - - _5. Nomination and election of representatives._ - -To facilitate the nomination and election of employees’ -representatives, and to insure freedom of choice, both nomination -and election shall be by secret ballot, under conditions calculated -to insure an impartial count. The company shall provide ballot boxes -and blank ballots, differing in form, for purposes of nomination and -election. Upon entering the meeting, each employee entitled to be -present shall be given a nomination ballot on which he shall write the -names of the persons whom he desires to nominate as representatives, -and deposit the nomination ballot in the ballot box. Each employee may -nominate representatives to the number to which the camp is entitled, -and of which public notice has been given. Employees unable to write -may ask any of their fellow employees to write for them on their -ballots the names of the persons whom they desire to nominate; but in -the event of any nomination paper containing more names than the number -of representatives to which the camp is entitled, the paper shall not -be counted. The persons--to the number of twice as many representatives -as the camp is entitled to--receiving the highest number of nomination -votes shall be regarded as the duly nominated candidates for employees’ -representatives, and shall be voted upon as hereinafter provided. (For -example: If a camp is entitled to two representatives, the four persons -receiving the largest number of nominating votes shall be regarded -as the duly nominated candidates. If the camp is entitled to three -representatives, then the six persons receiving the largest number, -etc.) - - - _6. Counting of nomination and election ballots._ - -The chairman shall appoint three tellers, who shall take charge of -the ballot box containing the nomination votes, and, with the aid of -the secretary, they shall make out the list of the duly nominated -candidates, which shall be announced by the chairman. The meeting shall -then proceed to elect representatives by secret ballot, from among -the number of candidates announced, the same tellers having charge of -the balloting. If dissatisfied with the count, either as respects the -nomination or election, any twenty-five employees present may demand a -recount, and for the purposes of the recount the chairman shall select -as tellers three from the number of those demanding a recount, and -himself assist in the counting, and these four shall act, in making the -recount, in place of the secretary and the tellers previously chosen. -There shall be no appeal from this recount, except to the president of -the company, and such appeal may be taken as hereinafter provided, at -the request of any twenty-five employees present and entitled to vote. - - - _7. Appeal in regard to nomination or election._ - -The chairman of the meeting shall preserve for a period of one week -both the nomination and election ballots. Should an appeal be made -to the president within seven days in regard to the validity of the -nomination or election, upon request in writing signed by twenty-five -employees present at the meeting, the chairman shall deliver the -ballots to the president of the company for recount. Should no such -request be received within that time, the chairman shall destroy the -ballots. If after considering the appeal the president is of the -opinion that the nomination or election has not been fairly conducted, -he shall order a new election at a time and place to be designated by -him. - - - _8. General proceedings at meetings._ - -At annual meetings for the election of representatives, employees may -consider and make recommendations concerning any matters pertaining -to their employment, working or living conditions, or arising out of -existing industrial relations, including such as they may desire to -have their representatives discuss with the president and officers of -the company at the Annual Joint Conference of the company’s officers -and employees, also any matters referred to them by the president, -other officers of the company, the Advisory Board or Social Joint -Committee appointed at the preceding annual joint conferences of -officials and employees of the company. A record of the proceedings -shall be made by the secretary of the meeting and certified to by the -chairman, and copies delivered to each of the representatives, to be -retained by them for purposes of future reference. - - - - -II - -DISTRICT CONFERENCES, JOINT COMMITTEES AND JOINT MEETINGS - - - _1. District divisions._ - -To facilitate the purposes herein set forth, the camps of the company -shall be divided into five or more districts, as follows: the Trinidad -District, comprising all mines and coke oven plants in Las Animas -County; the Walsenburg District, comprising all mines in Huerfano -County; the Cañon District, comprising all mines in Fremont County; the -Western District, comprising all mines and coke oven plants located -on the Western Slope; the Sunrise District, comprising the iron mines -located in Wyoming. - - - _2. Time, place and purpose of district conferences._ - -District conferences shall be held in each of the several districts -above mentioned at the call of the president, at places to be -designated by him, not later than two weeks following the annual -election of representatives, and at intervals of not more than four -months thereafter, as the operating officers of the company, or a -majority of the representatives of the employees in each of the -several districts, may find desirable. The purpose of these district -conferences shall be to discuss freely matters of mutual interest and -concern to the company and its employees, embracing a consideration of -suggestions to promote increased efficiency and production, to improve -working and living conditions, to enforce discipline, avoid friction, -and to further friendly and cordial relations between the company’s -officers and employees. - - - _3. Representation at district conferences._ - -At the district conferences the company shall be represented by its -president or his representative and such other officials as the -president may designate. The employees shall be represented by their -elected representatives. The company’s representatives shall not -exceed in number the representatives of the employees. The company -shall provide at its own expense appropriate places of meeting for the -conferences. - - - _4. Proceedings of district conferences._ - -The district conferences shall be presided over by the president of -the company, or such executive officer as he may designate. Each -conference shall select a secretary who shall record its proceedings. -The record of proceedings shall be certified to by the presiding -officer. - - - _5. Joint committees on industrial relations._ - -The first district conferences held in each year shall select the -following joint committees on industrial relations for each district, -which joint committees shall be regarded as permanent committees to -be intrusted with such duties as are herein set forth, or as may -be assigned by the conferences. These joint committees shall be -available for consultation at any time throughout the year with the -Advisory Board on Social and Industrial Betterment, the president, -the president’s executive assistant, or any officer of the operating -department of the company. - -(a) Joint Committee on Industrial Coöperation and Conciliation: to be -composed of six members. - -(b) Joint Committee on Safety and Accidents: to be composed of six -members. - -(c) Joint Committee on Sanitation, Health and Housing: to be composed -of six members. - -(d) Joint Committee on Recreation and Education: to be composed of six -members. - - - _6. Selection and composition of joint committees._ - -In selecting the members of the several joint committees on industrial -relations, the employees’ representatives shall, as respects each -committee, designate three members and the president of the company or -his representative, three members. - - - _7. Duties of Joint Committee on Industrial Coöperation and - Conciliation._ - -The Joint Committee on Industrial Coöperation and Conciliation may, of -their own initiative, bring up for discussion at the joint conferences, -or have referred to them for consideration and report to the president -or other proper officer of the company at any time throughout the year, -any matter pertaining to the prevention and settlement of industrial -disputes, terms and conditions of employment, maintenance of order and -discipline in the several camps, company stores, etc. - - - _8. Duties of Joint Committee on Safety and Accidents._ - -The Joint Committee on Safety and Accidents may, of their own -initiative, bring up for discussion at the joint conferences, or have -referred to them for consideration and report to the president or -other proper officer of the company at any time throughout the year, -any matter pertaining to the inspection of mines, the prevention of -accidents, the safeguarding of machinery and dangerous working places, -the use of explosives, fire protection, first aid, etc. - - - _9. Duties of Joint Committee on Sanitation, Health and Housing._ - -The Joint Committee on Sanitation, Health and Housing may, of their -own initiative, bring up for discussion at the joint conferences, or -have referred to them for consideration and report to the president -or other proper officer of the company at any time throughout the -year, any matter pertaining to health, hospitals, physicians, nurses, -occupational disease, tuberculosis, sanitation, water supply, sewage -system, garbage disposal, street cleaning, wash and locker rooms, -housing, homes, rents, gardens, fencing, etc. - - - _10. Duties of Joint Committee on Recreation and Education._ - -The Joint Committee on Recreation and Education may, of their own -initiative, bring up for discussion at the joint conferences, or -have referred to them for consideration and report to the president -or other proper officer of the company, at any time throughout the -year, any matter pertaining to social centers, club houses, halls, -playgrounds, entertainments, moving pictures, athletics, competitions, -field days, holidays, schools, libraries, classes for those who speak -only foreign languages, technical education, manual training, health -lectures, classes in first aid, religious exercises, churches and -Sunday schools, Y. M. C. A. organizations, etc. - - - _11. Annual and special joint meetings._ - -In addition to the district conferences in each of the several -districts, there shall be held in the month of December an annual -joint meeting, at a time and place to be designated by the president -of the company, to be attended by the president and such officers of -the company as he may select and by all the employees’ representatives -of the several districts. At this meeting reports covering the work of -the year shall be made by the several joint committees and matters of -common interest requiring collective action considered. A special joint -meeting of any two or more districts may be called at any time upon the -written request to the president of a majority of the representatives -in such districts or upon the president’s own initiative, for the -consideration of such matters of common interest as cannot be dealt -with satisfactorily at district conferences. Notice of such special -joint meetings shall be given at least two weeks in advance. - - - - -III - -THE PREVENTION AND ADJUSTMENT OF INDUSTRIAL DISPUTES - - - _1. Observance of laws, rides and regulations._ - -There shall be on the part of the company and its employees, a strict -observance of the Federal and State laws respecting mining and labor -and of the company’s rules and regulations supplementing the same. - - - _2. Posting of wages and rules._ - -The scale of wages and the rules in regard to working conditions shall -be posted in a conspicuous place at or near every mine. - - - _3. No discrimination on account of membership or non-membership - in labor or other organizations._ - -There shall be no discrimination by the company or by any of its -employees on account of membership or non-membership in any society, -fraternity or union. - - - _4. The right to hire and discharge, and the management of the - properties._ - -The right to hire and discharge, the management of the properties, and -the direction of the working forces, shall be vested exclusively in the -company, and, except as expressly restricted, this right shall not be -abridged by anything contained herein. - - - _5. Employees’ right to caution or suspension before discharge._ - -There shall be posted at each property a list of offenses for -commission of which by an employee dismissal may result without notice. -For other offenses, employees shall not be discharged without first -having been notified that a repetition of the offense will be cause -for dismissal. A copy of this notification shall, at the time of its -being given to an employee, be sent also to the president’s industrial -representative and retained by him for purposes of future reference. -Nothing herein shall abridge the right of the company to relieve -employees from duty because of lack of work. Where relief from duty -through lack of work becomes necessary, men with families shall, all -things being equal, be given preference. - - - _6. Employees’ right to hold meetings._ - -Employees shall have the right to hold meetings at appropriate places -on company property or elsewhere as they may desire outside of working -hours or on idle days. - - - _7. Employees’ right to purchase where they please._ - -Employees shall not be obliged to trade at the company stores, but -shall be at perfect liberty to purchase goods wherever they may choose -to do so. - - - _8. Employees’ right to employ checkweighmen._ - -As provided by statute, miners have the right to employ checkweighmen, -and the company shall grant the said checkweighmen every facility to -enable them to render a correct account of all coal weighed. - - - _9. Employees’ right of appeal to president of company against - unfair conditions or treatment._ - -Subject to the provisions hereinafter mentioned, every employee shall -have the right of ultimate appeal to the president of the company -concerning any condition or treatment to which he may be subjected and -which he may deem unfair. - - - _10. Duty of president’s industrial representative._ - -It shall be the duty of the president’s industrial representative -to respond promptly to any request from employees’ representatives -for his presence at any of the camps and to visit all of them as -often as possible, but not less frequently than once every three -months, to confer with the employees or their representatives and -the superintendents respecting working and living conditions, the -observance of Federal and State laws, the carrying out of company -regulations, and to report the result of such conferences to the -president. - - - _11. Complaints and grievances to be taken up first with foremen - and superintendents._ - -Before presenting any grievance to the president, the president’s -industrial representative, or other of the higher officers of the -company, employees shall first seek to have differences or the -conditions complained about adjusted by conference, in person or -through their representatives, with the mine superintendent. - - - _12. Investigation of grievances by president’s industrial - representative._ - -Employees believing themselves to be subjected to unfair conditions -or treatment and having failed to secure satisfactory adjustment of -the same through the mine superintendent may present their grievances -to the president’s industrial representative, either in person or -through their regularly elected representatives, and it shall be the -duty of the president’s industrial representative to look into the same -immediately and seek to adjust the grievance. - - - _13. The right of appeal to the superior officers of the company - against unfair treatment, conditions, suspensions or dismissals._ - -Should the president’s industrial representative fail to satisfactorily -conciliate any difference, with respect to any grievance, suspension -or dismissal, the aggrieved employee, either himself or through his -representative--and in either case in person or by letter--may appeal -for the consideration and adjustment of his grievance to the division -superintendent, assistant manager or manager, general manager or the -president of the company, in consecutive order. To entitle an employee -to the consideration of his appeal by any of the higher officers herein -mentioned, the right to appeal must be exercised within a period of two -weeks after the same has been referred to the president’s industrial -representative without satisfactory redress. - - - _14. Reference of differences in certain cases to Joint Committees - on Industrial Coöperation and Conciliation._ - -Where the president’s industrial representative or one of the higher -officials of the company fails to adjust a difference satisfactorily, -upon request to the president by the employees’ representatives or -upon the initiative of the president himself, the difference shall -be referred to the Joint Committee on Industrial Coöperation and -Conciliation of the district and the decision of the majority of such -joint committee shall be binding upon all parties. - - - _15. Representation on joint committees to be equal when - considering adjustment of differences._ - -Whenever a Joint Committee on Industrial Coöperation and Conciliation -is called upon to act with reference to any difference, except by the -consent of all present the joint committee shall not proceed with any -important part of its duties unless both sides are equally represented. -Where agreeable, equal representation may be effected by the withdrawal -of one or more members from the side of the joint committee having the -majority. - - - _16. Umpire to act with joint committees in certain cases._ - -Should the Joint Committee on Industrial Coöperation and Conciliation -to which a difference may have been referred fail to reach a majority -decision in respect thereto, if a majority of its members so agree, the -joint committee may select as umpire a third person who shall sit in -conference with the committee and whose decision shall be binding upon -all parties. - - - _17. Arbitration or investigation in certain cases._ - -In the event of the Joint Committee on Industrial Coöperation and -Conciliation failing satisfactorily to adjust a difference by a -majority decision or by agreement on the selection of an umpire, as -aforementioned, within ten days of a report to the president of the -failure of the joint committee to adjust the difference, if the parties -so agree, the matter shall be referred to arbitration, otherwise it -shall be made the subject of investigation by the State of Colorado -Industrial Commission, in accordance with the provisions of the statute -regulating the powers of the commission in this particular. Where a -difference is referred to arbitration, one person shall be selected -as arbitrator if the parties can agree upon his selection. Otherwise -there shall be a board of three arbitrators, one to be selected by -the employees’ representatives on the Joint Committee of Industrial -Coöperation and Conciliation in the district in which the dispute -arises, one by the company’s representatives on this committee, and a -third by the two arbitrators thus selected. - -By consent of the members of the Joint Committee on Industrial -Coöperation and Conciliation to which a difference has been referred, -the Industrial Commission of the State of Colorado may be asked to -appoint all of the arbitrators or itself arbitrate the difference. -The decision of the sole arbitrator or of the majority of the Board -of Arbitration or of the members of the State of Colorado Industrial -Commission when acting as arbitrators, as the case may be, shall be -final and shall be binding upon the parties. - - - _18. Protection of employees’ representatives against - discrimination._ - -To protect against the possibility of unjust treatment because of any -action taken or to be taken by them on behalf of one or more of the -company’s employees, any employees’ representative believing himself -to be discriminated against for such a cause shall have the same right -of appeal to the officers of the company or to the Joint Committee on -Industrial Coöperation and Conciliation in his district as is accorded -every other employee of the company. Having exercised this right in -the consecutive order indicated without obtaining satisfaction, for -thirty days thereafter he shall have the further right of appeal to -the Industrial Commission of the State of Colorado, which body shall -determine whether or not discrimination has been shown, and as respects -any representative deemed by the Commission to have been unfairly dealt -with, the company shall make such reparation as the State of Colorado -Industrial Commission may deem just. - - - - -IV - -SOCIAL AND INDUSTRIAL BETTERMENT - - - _1. Executive supervision._ - -The president’s executive assistant, in addition to other duties, -shall, on behalf of the president, supervise the administration of the -company’s policies respecting social and industrial betterment. - - - _2. Coöperation of president’s executive assistant with joint - committees in carrying out policies of social and industrial - betterment._ - -In the discharge of his duties, the president’s executive assistant -shall from time to time confer with the several Joint Committees, on -Industrial Coöperation and Conciliation, on Safety and Accidents, -on Sanitation, Health and Housing, and on Recreation and Education, -appointed at the annual joint conferences, as to improvements or -changes likely to be of mutual advantage to the company and its -employees. Members of the several joint committees shall be at liberty -to communicate at any time with the president’s executive assistant -with respect to any matters under their observation or brought to their -attention by employees or officials of the company, which they believe -should be looked into or changed. As far as may be possible, employees -should be made to feel that the president’s executive assistant will -welcome conferences with members of the several joint committees on -matters of concern to the employees, whenever such matters have a -direct bearing on the industrial, social, and moral well-being of -employees and their families or the communities in which they reside. - - - _3. Advisory Board on Social and Industrial Betterment._ - -In addition to consulting, from time to time, the several joint -committees or their individual members, the president’s executive -assistant shall be the chairman of a permanent Advisory Board on Social -and Industrial Betterment, to which may be referred questions of -policy respecting social and industrial betterment and related matters -requiring executive action. - - - _4. Members of Advisory Board._ - -The Advisory Board on Social and Industrial Betterment shall be -composed of such of the company’s officers as the president may -designate. - - - _5. Regular and special meetings of Advisory Board._ - -The Advisory Board shall meet at least once in every six months, and -may convene for special meetings upon the call of the chairman whenever -he may deem a special meeting advisable. - - - _6. Powers and duties of the Advisory Board._ - -The Advisory Board shall have power to consider all matters referred -to it by the chairman, or any of its members, or by any committee or -organization directly or indirectly connected with the company, and may -make such recommendations to the president as in its opinion seem to be -expedient and in the interest of the company and its employees. - - - _7. Supervision of community needs by president’s executive - assistant._ - -The president’s executive assistant shall also exercise a general -supervision over the sanitary, medical, educational, religious, social -and other like needs of the different industrial communities, with a -view of seeing that such needs are suitably and adequately provided -for, and the several activities pertaining thereto harmoniously -conducted. - - - _8. Method of carrying out improvements._ - -Improvements respecting social and industrial betterment shall, after -approval by the president, be carried out through the regular company -organization. - - - _9. Hospitals and doctors._ - -In camps where arrangements for doctors and hospitals have already been -made and are satisfactory, such arrangements shall continue. - -In making any new arrangement for a doctor, the employees’ -representatives in the camps concerned, the president’s executive -assistant, and the chief medical officer shall select a doctor, and -enter into an agreement with him which shall be signed by all four -parties. - - - _10. Company periodical._ - -The company shall publish, under the direction of the president’s -executive assistant, a periodical which shall be a means of -communication between the management, the employees and the public, -concerning the policies and activities of the company. This periodical -shall be used as a means of coördinating, harmonizing, and furthering -the social and industrial betterment work, and of informing employees -of the personnel and proceedings of conferences, boards and committees -in which they are interested. It shall record events pertaining -to social and industrial activities, and be a medium for making -announcements with reference to the same, and for diffusing information -of mutual interest to the company and its employees. - - - _11. Cost of administering plan of representation and of - furthering social and industrial betterment policies._ - -The promotion of harmony and good-will between the company and its -employees and the furtherance of the well-being of employees and their -families and the communities in which they reside being essential to -the successful operation of the company’s industries in an enlightened -and profitable manner, the expenses necessarily incident to the -carrying out of the social and industrial betterment policies herein -described, and the plan of representation, joint conferences and -joint meetings, herein set forth, including the payment of traveling -expenses of employees’ representatives when attending joint conferences -and annual joint meetings, and their reimbursement for the working -time necessarily lost in so doing, shall be borne by the company. But -nothing herein shall preclude employees of the company from making such -payment to their representatives in consideration of services rendered -on their behalf as they themselves may voluntarily desire and agree to -make. - - - -***END OF THE PROJECT GUTENBERG EBOOK THE PERSONAL RELATION IN INDUSTRY*** - - -******* This file should be named 65336-0.txt or 65336-0.zip ******* - - -This and all associated files of various formats will be found in: -http://www.gutenberg.org/dirs/6/5/3/3/65336 - - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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(John Davison) Rockefeller, Jr.</title> - <link rel="coverpage" href="images/cover.jpg" /> - <style type="text/css"> - - p { margin-top: .75em; - text-align: justify; - margin-bottom: .75em; - } - - p.bold {text-align: center; font-weight: bold;} - p.bold2 {text-align: center; font-weight: bold; font-size: 150%;} - - h1,h2,h3,h4,h5,h6 { - text-align: center; /* all headings centered */ - clear: both; - } - h1 span, h2 span { display: block; text-align: center; } - #id1 { font-size: smaller } - - - hr { - width: 33%; - margin-top: 2em; - margin-bottom: 2em; - margin-left: 33.5%; - margin-right: 33.5%; - clear: both; - } - - body{margin-left: 10%; - margin-right: 10%; - } - - table {margin-left: auto; margin-right: auto; padding: 5px; border-collapse: collapse; border: none; text-align: right;} - - .pagenum { /* uncomment the next line for invisible page numbers */ - /* visibility: hidden; */ - position: absolute; - left: 92%; - font-size: smaller; - text-align: right; - text-indent: 0px; - } /* page numbers */ - - .center {text-align: center;} - .smaller {font-size: smaller;} - .smcap {font-variant: small-caps;} - .space-above {margin-top: 3em;} - .left {text-align: left;} - .s3 {display: inline; margin-left: 3em;} - - - h1.pgx { text-align: center; - clear: both; - font-weight: bold; - font-size: 190%; - margin-top: 0em; - margin-bottom: 1em; - word-spacing: 0em; - letter-spacing: 0em; - line-height: 1; } - h2.pgx { text-align: center; - clear: both; - font-weight: bold; - font-size: 135%; - margin-top: 2em; - margin-bottom: 1em; - word-spacing: 0em; - letter-spacing: 0em; - page-break-before: avoid; - line-height: 1; } - h3.pgx { text-align: center; - clear: both; - font-weight: bold; - font-size: 110%; - margin-top: 2em; - margin-bottom: 1em; - word-spacing: 0em; - letter-spacing: 0em; - line-height: 1; } - h4.pgx { text-align: center; - clear: both; - font-weight: bold; - font-size: 100%; - margin-top: 2em; - margin-bottom: 1em; - word-spacing: 0em; - letter-spacing: 0em; - line-height: 1; } - hr.pgx { width: 100%; - margin-top: 3em; - margin-bottom: 0em; - margin-left: auto; - margin-right: auto; - height: 4px; - border-width: 4px 0 0 0; /* remove all borders except the top one */ - border-style: solid; - border-color: #000000; - clear: both; } - </style> -</head> -<body> -<h1 class="pgx" title="">The Project Gutenberg eBook, The Personal Relation in Industry, by John D. -(John Davison) Rockefeller, Jr.</h1> -<p>This eBook is for the use of anyone anywhere in the United States -and most other parts of the world at no cost and with almost no -restrictions whatsoever. You may copy it, give it away or re-use it -under the terms of the Project Gutenberg License included with this -eBook or online at <a -href="https://www.gutenberg.org">www.gutenberg.org</a>. If you are not -located in the United States, you'll have to check the laws of the -country where you are located before using this ebook.</p> -<p>Title: The Personal Relation in Industry</p> -<p>Author: John D. (John Davison) Rockefeller, Jr.</p> -<p>Release Date: May 14, 2021 [eBook #65336]</p> -<p>Language: English</p> -<p>Character set encoding: UTF-8</p> -<p>***START OF THE PROJECT GUTENBERG EBOOK THE PERSONAL RELATION IN INDUSTRY***</p> -<p> </p> -<h4 class="pgx" title="">E-text prepared by Tim Lindell, Martin Pettit,<br /> - and the Online Distributed Proofreading Team<br /> - (https://www.pgdp.net)<br /> - from page images generously made available by<br /> - Internet Archive<br /> - (https://archive.org)</h4> -<p> </p> -<table border="0" style="background-color: #ccccff;margin: 0 auto;" cellpadding="10"> - <tr> - <td valign="top"> - Note: - </td> - <td> - Images of the original pages are available through - Internet Archive. See - https://archive.org/details/personalrelation00rock_0 - </td> - </tr> -</table> -<p> </p> -<hr class="pgx" /> -<p> </p> -<p> </p> -<p> </p> - -<div class="center"><img src="images/front.jpg" alt="front" /></div> - -<hr /> - -<p><span class="pagenum"><a name="Page_1" id="Page_1">[Pg 1]</a></span></p> - -<h1>THE PERSONAL RELATION IN INDUSTRY</h1> - -<hr /> - -<p class="bold2">THE<br />PERSONAL RELATION<br />IN<br />INDUSTRY</p> - -<p class="bold space-above">BY</p> - -<p class="bold2">JOHN D. ROCKEFELLER, <span class="smcap">Jr.</span></p> - -<div class="center space-above"><img src="images/logo.jpg" alt="Logo" /></div> - -<p class="bold space-above">BONI <span class="smaller">AND</span> LIVERIGHT<br /> -<span class="smcap">Publishers</span> <span class="s3"> </span> <span class="smcap">New York</span></p> - -<hr /> - -<p><span class="pagenum"><a name="Page_3" id="Page_3">[Pg 3]</a></span></p> - -<p class="center"><i>Copyright, 1923, by</i><br /> -<span class="smcap">Boni and Liveright, Inc.</span><br />———<br />PRINTED IN THE UNITED STATES OF AMERICA</p> - -<p class="center"><i>First printing, December, 1923</i><br /><i>Second printing, January, 1924</i></p> - -<hr /> - -<p><span class="pagenum"><a name="Page_4" id="Page_4">[Pg 4]</a></span></p> - -<h2>PUBLISHER’S NOTE</h2> - - -<p>The following material by Mr. John D. Rockefeller, Jr., consists, with -one exception, of addresses delivered by him on various occasions and -amidst the demands of many varied interests. These addresses are left -practically as they were delivered, and no effort has been made to -change their form. Slight repetitions of certain points may be noted in -these addresses, a condition which is expected in arguments or subjects -of the character of those contained in this book.</p> - -<p>The publishers, in obtaining Mr. Rockefeller’s permission to publish -these addresses, believed that by presenting his views in this form -there would be made a substantial contribution to the ever-important -subject of industrial relationships.</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_5" id="Page_5">[Pg 5]</a></span></p> - -<h2>CONTENTS</h2> - -<table summary="CONTENTS"> - <tr> - <td colspan="2" class="left"><span class="smaller">CHAPTER</span></td> - <td><span class="smaller">PAGE</span></td> - </tr> - <tr> - <td>I. </td> - <td class="left"><span class="smcap">Coöperation in Industry</span></td> - <td><a href="#Page_9">9</a></td> - </tr> - <tr> - <td>II. </td> - <td class="left"><span class="smcap">Labor and Capital—Partners</span></td> - <td><a href="#Page_38">38</a></td> - </tr> - <tr> - <td>III. </td> - <td class="left"><span class="smcap">The Personal Relations in Industry</span></td> - <td><a href="#Page_63">63</a></td> - </tr> - <tr> - <td>IV. </td> - <td class="left"><span class="smcap">Representation in Industry</span></td> - <td><a href="#Page_83">83</a></td> - </tr> - <tr> - <td>V. </td> - <td class="left"><span class="smcap">To the Employees</span></td> - <td><a href="#Page_90">90</a></td> - </tr> - <tr> - <td>VI. </td> - <td class="left"><span class="smcap">To the People of Colorado</span></td> - <td><a href="#Page_107">107</a></td> - </tr> - <tr> - <td colspan="3"> </td> - </tr> - <tr> - <td colspan="3" class="left">APPENDIX</td> - </tr> - <tr> - <td>I. </td> - <td class="left"><span class="smcap">Representation of Employees</span></td> - <td><a href="#Page_123">123</a></td> - </tr> - <tr> - <td>II. </td> - <td class="left"><span class="smcap">District Conferences, Joint Committees and Joint Meetings</span></td> - <td><a href="#Page_129">129</a></td> - </tr> - <tr> - <td>III. </td> - <td class="left"><span class="smcap">The Prevention and Adjustment of Industrial Disputes</span></td> - <td><a href="#Page_136">136</a></td> - </tr> - <tr> - <td>IV. </td> - <td class="left"><span class="smcap">Social and Industrial Betterment</span></td> - <td><a href="#Page_145">145</a></td> - </tr> -</table> - -<hr /> - -<p><span class="pagenum"><a name="Page_7" id="Page_7">[Pg 7]</a></span></p> - -<p class="bold2">THE PERSONAL RELATION IN INDUSTRY </p> - -<hr /> - -<p><span class="pagenum"><a name="Page_9" id="Page_9">[Pg 9]</a></span></p> - -<p class="bold2">THE PERSONAL RELATION IN INDUSTRY</p> - -<h2><span>I</span> <span class="smaller"><span class="smcap">Coöperation in Industry</span></span></h2> - -<h3>I</h3> - -<p>To-day the world is passing through a period of reconstruction.</p> - -<p>As we address ourselves to the grave problems which confront us, -problems both national and international, we may look for success in -their solution just in so far as we continue to be animated by the -spirit of coöperation and brotherhood. The hope in the future lies in -the perpetuation of this spirit, and unless increasingly it is made the -foundation of the political, social, and industrial life of the world, -there will not be permanent peace and good will among men, either -nationally or internationally.</p> - -<p>In no one of these spheres of human relations is<span class="pagenum"><a name="Page_10" id="Page_10">[Pg 10]</a></span> the spirit of -coöperation more essential than in industry, since industry touches -almost every department of life. Moreover, there is no problem -pressing more urgently upon the attention of the world to-day than -the industrial problem, none more important, none more difficult of -solution. There are pessimists who say that there is no solution short -of revolution and the overturn of the existing social order.</p> - -<p>Surely the nations which have shown themselves capable of such lofty -sacrifice, which have given themselves so freely, gladly, unreservedly, -during these past years of struggle, will bring to bear in the solution -of this great problem powers of head and heart, not less wise and -unselfish than those exhibited in dealing with the problems of the war; -surely a way out of the impenetrable maze will be found.</p> - -<p>Almost countless are the suggested solutions of the industrial problem, -which have been brought forth since industry first began to be a -problem. Most of these are impracticable; some are unjust; some are -selfish and therefore unworthy; some have merit and should be carefully -studied. None can be looked to as a panacea.</p> - -<p>There are those who believe that legislation is the cure-all for every -political, social, and industrial ill. Much can be done by legislation -to prevent injustice and encourage right tendencies, but legislation -of itself<span class="pagenum"><a name="Page_11" id="Page_11">[Pg 11]</a></span> will never solve the industrial problem. Its solution can -be brought about only by the introduction of a new spirit into the -relationship between the parties to industry—the spirit of coöperation -and brotherhood.</p> - -<p>It is this theme, <i>coöperation in industry</i>, that I desire to develop.</p> - -<p>We must ask ourselves at the outset certain fundamental questions:</p> - -<p>First, what is the purpose of industry? Shall we cling to the -conception of industry as an institution, primarily of private -interest, which enables certain individuals to accumulate wealth, too -often irrespective of the well-being, the health, and the happiness of -those engaged in its production? Or shall we adopt the modern viewpoint -and regard industry as being a form of social service, quite as much as -a revenue-producing process?</p> - -<p>Is it not true that any industry, to be permanently successful, must -insure to labor adequately remunerative employment under proper -working and living conditions, to capital a fair return upon the money -invested, and to the community a useful service?</p> - -<p>The soundest industrial policy is that which has constantly in mind -the welfare of the employees as well as the making of profits, and -which, when human considerations demand it, subordinates profits to -welfare. Industrial relations are essentially human<span class="pagenum"><a name="Page_12" id="Page_12">[Pg 12]</a></span> relations. It is -therefore the duty of everyone entrusted with industrial leadership to -do all in his power to improve the conditions under which men work and -live. The day has passed when the conception of industry as chiefly -a revenue-producing process can be maintained. To cling to such a -conception is only to arouse antagonisms and to court trouble. In the -light of the present every thoughtful man must concede that the purpose -of industry is quite as much the advancement of social well-being as -the production of wealth. It remains none the less true, however, that -to be successful, industry must not only serve the community and the -workers adequately, but must also realize a just return on capital -invested.</p> - -<p>Next we must ask ourselves, who are the parties to industry: The -parties to industry are four in number: capital, management, labor, and -the community.</p> - -<p>I am, of course, well aware of the social theories and experiments that -seek to merge capital and labor, either through ownership of capital -by the state or by the workers themselves. But the difficulties that -confront the realization of these plans are vast and the objection to -many of them fundamental.</p> - -<p>Under our present system, capital is represented by the stockholders, -and is usually regarded as embracing management. Management is, -however, an entirely separate and distinct party to industry;<span class="pagenum"><a name="Page_13" id="Page_13">[Pg 13]</a></span> its -function is essentially administrative. It comprises the executive -officers who bring to industry technical skill and managerial -experience. Labor consists of the employees. Labor, like capital, is an -investor in industry, but labor’s contribution, unlike that of capital, -is not detachable from the one who makes it, since it is in the nature -of physical effort and is a part of the worker’s strength and life. -Here the list usually ends.</p> - -<p>The fourth party, namely, the community, whose interest is vital and in -the last analysis controlling, is too often ignored. The community’s -right to representation in the control of industry and in the shaping -of industrial policies is similar to that of the other parties. Were it -not for the community’s contribution, in maintaining law and order, in -providing agencies of transportation and communication, in furnishing -systems of money and credit and in rendering other services, all -involving continuous outlays, the operation of capital, management, -and labor would be enormously hampered, if not rendered wellnigh -impossible. The community, furthermore, is the consumer of the product -of industry, and the money which it pays for the product reimburses -capital for its advances and ultimately provides the wages, salaries, -and profits that are distributed among the other parties. </p> - -<p><span class="pagenum"><a name="Page_14" id="Page_14">[Pg 14]</a></span></p> - -<p>Finally we must inquire: what are the relations between the parties to -industry? It is frequently maintained that the parties to industry must -necessarily be hostile and antagonistic; that each must arm itself to -wrest from the others its share of the product of their common toil. -This is unthinkable; it is not true; the parties to industry are in -reality not enemies, but partners; they have a common interest; no one -can get on without the others. Labor must look to capital to supply the -tools, machinery, and working capital, without which it cannot make -its vital contribution to industry; and capital is equally powerless -to turn a wheel in industry without labor. Management is essential -to supply the directing force, while without the community as the -consumer, the services of the other three parties would have no outlet. -Just what the relative importance of the contribution made to the -success of industry by the several factors is, and what their relative -rewards should be, are debatable questions.</p> - -<p>But, however views may differ on these questions, it is clear that the -common interest cannot be advanced by the effort of any one party to -dominate the others, arbitrarily to dictate the terms on which alone -it will coöperate, or to threaten to withdraw if any attempt is made -to thwart the enforcement of its will.<span class="pagenum"><a name="Page_15" id="Page_15">[Pg 15]</a></span> Success is dependent upon the -coöperation of all four. Partnership, not enmity, is the watchword.</p> - -<h3>II</h3> - -<p>If coöperation between the parties to industry is sound business -and good social economics, why then is antagonism so often found in -its stead? The answer is revealed in a survey of the development of -industry. In the early days of industry, as we know, the functions -of capital and management were not infrequently combined in the one -individual, who was the employer. He in turn was in constant touch with -his employees. Together they formed a vital part of the community. -Personal relations were frequent and mutual confidence existed. When -differences arose they were quickly adjusted. As industry developed, -aggregations of capital larger than a single individual could provide -were required. In answer to this demand, the corporation with its many -stockholders was evolved. Countless workers took the place of the -handful of employees of earlier days. Plants under a single management -scattered all over the country superseded the single plant in a given -community. Obviously, this development rendered impossible the personal -relations which had existed in industry, and lessened the spirit -of common interest and <span class="pagenum"><a name="Page_16" id="Page_16">[Pg 16]</a></span>understanding. Thus the door was opened to -suspicion and distrust; enmity crept in; antagonisms developed. Capital -not infrequently used its power to enforce long hours and low wages; -labor likewise retaliated with such strength as it had, and gradually -the parties to industry came to view each other as enemies instead of -as friends and to think of their interests as antagonistic rather than -common.</p> - -<p>Where men are strangers and have no contact, misunderstanding is apt to -arise. On the other hand, where men meet frequently about a table, rub -elbows, exchange views, and discuss matters of common interest, almost -invariably it happens that the vast majority of their differences -quickly disappear and friendly relations are established.</p> - -<p>Several years ago I was one of a number of men who were asked two -questions by a Commission appointed by the President of the United -States to deal with certain labor difficulties.</p> - -<p>The first was: “What do you regard as the underlying cause of -industrial unrest?” The second: “What remedy do you suggest?”</p> - -<p>I stated that in my judgment the chief cause of industrial unrest is -that capital does not strive to look at questions at issue from labor’s -point of view, and labor does not seek to get capital’s angle of -vision. My answer to the second question was that when<span class="pagenum"><a name="Page_17" id="Page_17">[Pg 17]</a></span> employers put -themselves in the employee’s place and the employees put themselves in -the employer’s place, the remedy for industrial unrest will have been -found. In other words, when the principle adopted by both parties in -interest is: “Do as you would be done by,” there will be no industrial -unrest, no industrial problem.</p> - -<p>It is to be regretted that there are capitalists who regard labor as -their legitimate prey, from whom they are justified in getting all -they can for as little as may be. It is equally to be deplored that -on the part of labor there is often a feeling that it is justified in -wresting everything possible from capital. Where such attitudes have -been assumed, a gulf has been opened between capital and labor which -has continually widened. Thus the two forces have come to work against -each other, each seeking solely to promote its own selfish ends. As a -consequence have come all too frequently the strike, the lockout, and -other incidents of industrial warfare.</p> - -<p>A man, who recently devoted some months to studying the industrial -problem and who came into contact with thousands in various industries -throughout the United States, has said that it was obvious to him from -the outset that the working men were seeking for something, which at -first he thought to be higher wages. As his touch with them extended, -he came to the <span class="pagenum"><a name="Page_18" id="Page_18">[Pg 18]</a></span>conclusion, however, that not higher wages, but -recognition as men, was what they really sought. What joy can there -be in life, what interest can a man take in his work, what enthusiasm -can he be expected to develop on behalf of his employer, when he is -regarded as a number on a pay-roll, a cog in a wheel, a mere “hand”? -Who would not earnestly seek to gain recognition of his manhood and the -right to be heard and treated as a human being, not as a machine?</p> - -<p>Then, too, as industry has become increasingly specialized, the workman -of to-day, instead of following the product through from start to -finish and being stimulated by the feeling that he is the sole creator -of a useful article, as was more or less the case in early days, now -devotes his energies for the most part to countless repetitions of a -single act or process, which is but one of perhaps a hundred operations -necessary to transform the raw material into the finished product. Thus -the worker loses sight of the significance of the part he plays in -industry and feels himself to be merely one of many cogs in a wheel. -All the more, therefore, is it necessary that he should have contact -with men engaged in other processes and fulfilling other functions in -industry, that he may still realize he is a part, and a necessary, -though it may be an inconspicuous, part of a great enterprise. In -modern warfare, those who man the large guns find<span class="pagenum"><a name="Page_19" id="Page_19">[Pg 19]</a></span> the range, not by -training the gun on the object which they are seeking to reach, but -in obedience to a mechanical formula which is worked out for them. -Stationed behind a hill or mound, they seldom see the object at which -their deadly fire is directed. One can readily imagine the sense of -detachment and ineffectiveness which must come over these men. But -when the airplane, circling overhead, gets into communication with -the gunner beneath and describes the thing to be accomplished and -the effectiveness of the shot, a new meaning comes into his life. In -a second he has become a part of the great struggle. He knows that -his efforts are counting, that he is helping to bring success to his -comrades. There comes to him a new enthusiasm and interest in his -work. The sense of isolation and detachment from the accomplishments -of industry, which too often comes to the workers of to-day, can be -overcome only by contact with the other contributing parties. In -this way only can common purpose be kept alive, individual interests -safeguarded, and the general welfare promoted.</p> - -<p>While obviously under present conditions those who invest their -capital in an industry, often numbered by the thousand, cannot have -personal acquaintance with the thousands and tens of thousands of -those who invest their labor, contact between those two parties in -interest can and must be established, if not directly,<span class="pagenum"><a name="Page_20" id="Page_20">[Pg 20]</a></span> then through -their respective representatives. The resumption of such personal -relations through frequent conferences and current meetings, held for -the consideration of matters of common interest, such as terms of -employment and working and living conditions, is essential in order -to restore a spirit of mutual confidence, good will, and coöperation. -Personal relations can be revived under modern conditions only through -the adequate representation of the employees. Representation is a -principle which is fundamentally just and vital to the successful -conduct of industry. It means, broadly speaking, democracy through -coöperation, as contrasted with autocracy.</p> - -<p>It is not for me or anyone else to undertake to determine for industry -at large what specific form representation shall take. Once having -adopted the principle, it is obviously wise that the method to be -employed should be left, in each specific instance, to be determined by -the parties interested. If there is to be peace and good-will between -the several parties in industry, it will surely not be brought about -by the enforcement upon unwilling groups of a method which in their -judgment is not adapted to their peculiar needs. In this, as in all -else, persuasion is an essential element in bringing about conviction.</p> - -<p>With the developments in industry what they are to-day, there is sure -to come a progressive evolution<span class="pagenum"><a name="Page_21" id="Page_21">[Pg 21]</a></span> from the autocratic single control, -whether by capital, management, labor, or the community, to some form -of democratic coöperative control participated in by all four. The -whole movement is evolutionary. That which is fundamental is the idea -of coöperation, and that idea must find expression in those forms which -will serve it best, with conditions, forces and times what they are.</p> - -<p>In the United States, the coöperation in war service of labor, capital, -management, and Government afforded a striking and most gratifying -illustration of this tendency.</p> - -<p>After all, the basic principles governing the relations between the -parties to industry are as applicable in the successful conduct of -industry to-day as in earlier times. The question which now confronts -us is how to reëstablish personal relations and coöperation in spite -of changed conditions. The answer is not doubtful or questionable, -but absolutely clear and unmistakable: it is, through adequate -representation of the four parties in the councils of industry.</p> - -<h3>III</h3> - -<p>Various methods of representation in industry have been developed, -conspicuous among which are those of labor unions and employers’ -associations. As regards the organization of labor, it is just as -proper<span class="pagenum"><a name="Page_22" id="Page_22">[Pg 22]</a></span> and advantageous for labor to associate itself into organized -groups for the advancement of its legitimate interests as for capital -to combine for the same object.</p> - -<p>Such associations of labor manifest themselves in collective -bargaining, in an effort to secure better working and living -conditions, in providing machinery whereby grievances may easily and -without prejudice to the individual be taken up with the management. -Sometimes they provide benefit features, sometimes they seek to -increase wages, but whatever their specific purpose, so long as it -is to promote the well-being of the employees, having always due -regard for the just interests of the employer and the public, leaving -every worker free to associate himself with such groups or to work -independently, as he may choose, they are to be encouraged.</p> - -<p>But organization is not without its dangers. Organized capital -sometimes conducts itself in an unworthy manner, contrary to law -and in disregard of the interest of both labor and the public. Such -organizations cannot be too strongly condemned or too vigorously dealt -with. Although they are the exception, such publicity is generally -given to their unsocial acts that all organizations of capital, however -rightly managed or broadly beneficent, are thereby brought under -suspicion.</p> - -<p>Likewise it sometimes happens that organizations<span class="pagenum"><a name="Page_23" id="Page_23">[Pg 23]</a></span> of labor are -conducted without just regard for the rights of the employer or of -the public; methods and practices are adopted which, because unworthy -or unlawful, are deserving of public censure. Such organizations -of labor bring discredit and suspicion upon other organizations -which are legitimate and useful, just as is the case with improper -organizations of capital, and they should be similarly dealt with. We -ought not, however, to allow the occasional failure in the working of -the principle of the organization of labor to prejudice us against the -principle itself, for the principle is fundamentally sound.</p> - -<p>In the further development of the organization of labor and of large -business, the public interest as well as the interest of labor and of -capital will be furthest advanced by whatever stimulates every man to -do the best work of which he is capable and to render useful service, -by a fuller recognition of the common interests of employers and -employed, and by an earnest effort to dispel distrust and hatred and to -promote good-will.</p> - -<p>Labor unions have secured for labor in general many advantages -in hours, wages, and standards of working conditions. A large -proportion of the workers of the world, however, are outside of these -organizations, and unless somehow represented are not in a position -to bargain collectively. Therefore, representation of<span class="pagenum"><a name="Page_24" id="Page_24">[Pg 24]</a></span> labor to be -adequate must be more comprehensive and all inclusive than anything -thus far attained.</p> - -<p>Representation on the employers’ side has been developed through -the establishment of trade associations, the purpose of which is to -discuss matters of common interest and to act, in so far as is legally -permissible and to the common advantage, along lines that are generally -similar. But here also representation is inadequate. Many employers do -not belong to employers’ associations.</p> - -<p>In the United States during the war, the representation of both labor -and capital in common councils was brought about through the War Labor -Board, composed equally of men from the ranks of labor and capital, -together with representatives of the public. When differences arose in -industries where there was no machinery to deal with such matters, the -War Labor Board stepped in and made its findings and recommendations. -In this way, relatively continuous operation was made possible and the -resort to the strike and lockout was less frequent.</p> - -<p>In England there have been made during the past years various important -Government investigations and reports, looking toward a more complete -program of representation and coöperation on the part of labor -and capital. One is the well-known Whitley Report, which owes its -distinction to a single outstanding<span class="pagenum"><a name="Page_25" id="Page_25">[Pg 25]</a></span> feature, namely, that it applies -to the whole of industry, the principle of representative government.</p> - -<p>The Whitley Plan seeks to unite the organizations of labor and capital -by a bond of common interest in a common venture; it changes at a -single stroke the attitude of these powerful aggregations of class -interest from one of militancy to one of social service; it establishes -a new relation in industry.</p> - -<p>“Problems old and new,” says the report, “will find their solution in a -frank partnership of knowledge, experience, and good-will.”</p> - -<p>Another investigation and report was made by a Commission on Industrial -Unrest, appointed by the Prime Minister. This Commission made, among -others, the following interesting recommendations:—</p> - -<p>(1) that the principle of the Whitley Report as regards industrial -councils be adopted;</p> - -<p>(2) that each trade should have a constitution;</p> - -<p>(3) that labor should take part in the affairs of industry as partners -rather than as employees in the narrow sense of the term;</p> - -<p>(4) that closer contact should be set up between employers and employed.</p> - -<p>A third report was prepared by the Ministry of Labor. This report deals -with the constitution and operation of works committees in a number of -industries. It is a valuable treatise on the objects, <span class="pagenum"><a name="Page_26" id="Page_26">[Pg 26]</a></span>functions, and -methods of procedure of joint committees.</p> - -<p>Light has been thrown on the general questions treated by these -inquiries in an able report by the Garton Foundation on <i>The Industrial -Situation after the War</i>. This report is a study of the more permanent -causes of industrial friction and inefficiency, and of the means by -which they may be removed or their action circumscribed.</p> - -<p>Mention of these several reports, taken at random, is made simply as -indicative of the extent and variety of the study which has been given -to the great problem of industrial reconstruction in England. All point -toward the need of more adequate representation of labor in the conduct -of industry and the importance of closer relations between labor and capital.</p> - -<h3>IV</h3> - -<p>A method of representation similar to the Whitley Plan, though less -comprehensive, and which is constructed from the bottom up, has been -in operation for varying periods of time in an ever increasing number -of industries in the United States. This plan of representation -is worthy of serious consideration. It begins with the election -of representatives in a single plant and is capable of indefinite -development, to meet the complex needs of any industry, and of wide -extension, so as to include all industries.<span class="pagenum"><a name="Page_27" id="Page_27">[Pg 27]</a></span> Equally applicable in -industries where union or non-union labor or both are employed, it -seeks to provide full and fair representation to labor, capital, and -management, also taking cognizance of the community. Thus far it has -developed a spirit of coöperation and goodwill which commends it to -both employer and employee.</p> - -<p>The outstanding features of this plan of industrial representation, -varied to meet the special needs of each plant or company in which it -has been adopted, are as follows:</p> - -<p>Representatives chosen by the employees in proportion to their number, -from their fellow workers in each plant, form the basis of the plan.</p> - -<p>Joint committees, composed of equal numbers of employees or their -representatives and of officers of the company, are found in each plant -or district.</p> - -<p>These committees deal with all matters pertaining to employment and -working and living conditions, including questions of coöperation and -conciliation, safety and accident, sanitation, health and housing, -recreation and education. Joint conferences of representatives of -employees and officers of the company are held in the various districts -several times each year.</p> - -<p>There is also an annual joint conference, at which reports from all -districts are received and considered. </p> - -<p><span class="pagenum"><a name="Page_28" id="Page_28">[Pg 28]</a></span></p> - -<p>Another important feature of the plan is an officer known as the -President’s Industrial Representative, whose duty it is to visit the -plants currently and confer with the employees’ representatives, as -well as to be available always for conference at the request of the -representatives.</p> - -<p>Thus the employees, through their representatives chosen from among -themselves, are in constant touch and conference with management and -representatives of the stockholders in regard to matters pertaining to -their common interest.</p> - -<p>The employees’ right of appeal is the third outstanding feature of the -plan.</p> - -<p>Any employee with a grievance, real or imaginary, may go with it at -once to his representative. The representatives not infrequently find -there is no ground for the grievance and are able so to convince the -employee.</p> - -<p>But if a grievance does exist, or dissatisfaction on the part of the -employee continues, the matter is carried to the local boss, foreman, -or superintendent, with whom in the majority of cases it is amicably -and satisfactorily settled. Further appeal is open to the aggrieved -employee, either in person or through his representative, to the higher -officers and to the president.</p> - -<p>If satisfaction is not to be had from the company,<span class="pagenum"><a name="Page_29" id="Page_29">[Pg 29]</a></span> the court of last -appeal may be the Industrial Commission of the State, the State Labor -Board, or a committee of arbitration.</p> - -<p>Experience shows that the vast majority of difficulties which occur in -an industry arise between the workmen and the foremen who are in daily -contact with them. Foremen are sometimes arbitrary, and it is by their -attitude and action that the higher officers and the stockholders are -judged. Obviously the right of appeal from the decisions of foremen and -superintendents is important, even if seldom availed of, because it -tends of itself to modify their attitude.</p> - -<p>A further feature of the plan is what may be termed the employee’s Bill -of Rights.</p> - -<p>This covers such matters as the right to caution and suspension before -discharge, except for such serious offenses as are posted; the right to -hold meetings at appropriate places outside of working hours; the right -without discrimination to membership or non-membership in any society, -fraternity, or union; and the right of appeal.</p> - -<p>Where this plan has been in operation for a considerable length of -time, some of the results obtained are:—</p> - -<p>First, more continuous operation of the plants and less interruption -in the employment of the workers, resulting in larger returns for both -capital and labor; </p> - -<p><span class="pagenum"><a name="Page_30" id="Page_30">[Pg 30]</a></span></p> - -<p>Second, improved working and living conditions;</p> - -<p>Third, frequent and close contact between employees and officers;</p> - -<p>Fourth, the elimination of grievances as disturbing factors;</p> - -<p>Fifth, goodwill developed to a high degree;</p> - -<p>Sixth, the creation of a community spirit.</p> - -<p>Furthermore, the plan has proved an effective means of enlisting the -interest of all parties to industry, of reproducing the contacts -of earlier days between employer and employee, of lessening -misunderstanding, distrust, and enmity, and securing coöperation in -the spirit of brotherhood. Under its operation, the participants in -industry are being convinced of the soundness of the proposition that -they are fundamentally friends and not enemies, that their interests -are common, not opposed. Based as the plan is upon principles of -justice to all, its success can be counted on so long as it is carried -out in a spirit of sincerity and fair play.</p> - -<p>Here, then, would seem to be a method of providing representation -which is just, which is effective, which is applicable to all -employees whether organized or unorganized, to all employers whether -in associations or not, which does not interfere with existing -organizations or associations, and which, while developed in a<span class="pagenum"><a name="Page_31" id="Page_31">[Pg 31]</a></span> single -industrial corporation as a unit, may be expanded to include all -corporations in the same industry and ultimately all industries.</p> - -<p>Just what part labor organizations and employers’ associations can best -take in such a plan remains to be worked out, but certain it is that -some method should be devised which will profit to the fullest extent -by the experience, the strength, and the leadership of these groups. -While, doubtless, defects will appear in this plan and other methods -more successfully accomplishing the same end may be developed, at least -it is proving that in unity there is strength and that coöperation in -industry is not only idealistically right, but practically workable.</p> - -<p>If the points which I have endeavored to make are sound, might not the -four parties to industry subscribe to an Industrial Creed somewhat as -follows:—</p> - -<p>(1) I believe that labor and capital are partners, not enemies; and -that their interests are common, not opposed; and that neither can -attain the fullest measure of prosperity at the expense of the other, -but only in association with the other.</p> - -<p>(2) I believe that the community is an essential party to industry and -that it should have adequate representation with the other parties.</p> - -<p>(3) I believe that the purpose of industry is quite as much to advance -social well-being as material <span class="pagenum"><a name="Page_32" id="Page_32">[Pg 32]</a></span>prosperity; that in the pursuit of that -purpose, the interests of the community should be carefully considered, -the well-being of employees fully guarded, management adequately -recognized, and capital justly compensated, and that failure in any of -these particulars means loss to all four parties.</p> - -<p>(4) I believe that every man is entitled to an opportunity to earn a -living, to fair wages, to reasonable hours of work and proper working -conditions, to a decent home, to the opportunity to play, to learn, to -worship and to love, as well as to toil, and that the responsibility -rests as heavily upon industry as upon government or society, to see -that these conditions and opportunities prevail.</p> - -<p>(5) I believe that diligence, initiative, and efficiency, wherever -found, should be encouraged and adequately rewarded; that indolence, -indifference, and restriction of production should be discountenanced; -and that service is the only justification for the possession of power.</p> - -<p>(6) I believe that the provision of adequate means of uncovering -grievances and promptly adjusting them is of fundamental importance to -the successful conduct of industry.</p> - -<p>(7) I believe that the most potent measure in bringing about industrial -harmony and prosperity is adequate representation of the parties in -interest;<span class="pagenum"><a name="Page_33" id="Page_33">[Pg 33]</a></span> that existing forms of representation should be carefully -studied and availed of, in so far as they may be found to have merit -and are adaptable to conditions peculiar to the various industries.</p> - -<p>(8) I believe that the most effective structure of representation is -that which is built from the bottom up, which includes all employees, -which starts with the election of representatives and the formation of -joint committees in each industrial plant, proceeds to the formation -of joint district councils and annual joint conferences in a single -industrial corporation, and admits of extension to all corporations in -the same industry, as well as to all industries in a community, in a -nation, and in the various nations.</p> - -<p>(9) I believe that to “do unto others as you would that they should -do unto you” is as sound business as it is good religion; that the -application of right principles never fails to effect right relations; -that “the letter killeth, but the spirit giveth life”; that forms are -wholly secondary, while attitude and spirit are all important; and that -only as the parties in industry are animated by the spirit of fair -play, justice to all, and brotherhood, will any plan which they may -mutually work out succeed.</p> - -<p>(10) I believe that that man renders the greatest social service who so -coöperates in the organization of industry as to afford to the largest -number of men<span class="pagenum"><a name="Page_34" id="Page_34">[Pg 34]</a></span> the greatest opportunity for self-development and the -enjoyment of those benefits which their united efforts add to the -wealth of civilization.</p> - -<h3>V</h3> - -<p>In these days the selfish pursuit of personal ends at the expense -of the group can and will no longer be tolerated. The reign of -autocracy has passed. Men are rapidly coming to see that human life -is of infinitely greater value than material wealth; that the health, -happiness, and well-being of the individual, however humble, is not -to be sacrificed to the selfish aggrandizement of the more fortunate -or more powerful. Modern thought is placing less emphasis on material -considerations. It is recognizing that the basis of national progress, -whether industrial or social, is the health, efficiency, and spiritual -development of the people. Never was there a more profound belief in -human life than to-day. Whether men work with brain or brawn, they are -human beings, and are much alike in their cravings, their aspirations, -their hatreds, and their capacity for suffering and for enjoyment.</p> - -<p>What is the attitude of the leaders in industry as they face this -critical period of reconstruction? Is it that of the standpatters, who -ignore the extraordinary changes which have come over the face of the -civilized world and have taken place in the minds of<span class="pagenum"><a name="Page_35" id="Page_35">[Pg 35]</a></span> men; who, arming -themselves to the teeth, attempt stubbornly to resist the inevitable -and invite open warfare with the other parties in industry, and who say:</p> - -<p>“What has been and is, must continue to be; with our backs to the wall -we will fight it out along the old lines or go down in defeat!”</p> - -<p>Those who take such an attitude are wilfully heedless of the fact that -its certain outcome will be financial loss, general inconvenience -and suffering, the development of bitterness and hatred, and in the -end submission to far more drastic and radical conditions imposed by -legislation, if not by force, than could now be amicably arrived at -through mutual concession in friendly conference.</p> - -<p>Or is their attitude one in which I myself profoundly believe, which -takes cognizance of the inherent right and justice of the coöperative -principle underlying the new order, which recognizes that mighty -changes are inevitable, many of them desirable, and which does not -wait until forced to adopt new methods, but takes the lead in calling -together the parties to industry for a round-table conference to be -held in a spirit of justice, fair play, and brotherhood, with a view to -working out some plan of coöperation, which will insure to all those -concerned adequate representation, will<span class="pagenum"><a name="Page_36" id="Page_36">[Pg 36]</a></span> afford to labor a voice in -the forming of industrial policy, and an opportunity to earn a fair -wage under such conditions as shall leave time, not alone for food and -sleep, but also for recreation and the development of the higher things -of life?</p> - -<p>Never was there such an opportunity as exists to-day for the industrial -leader with clear vision and broad sympathy permanently to bridge the -chasm that is daily gaping wider between the parties to industry, and -to establish a solid foundation for industrial prosperity, social -improvement, and national solidarity. Future generations will rise up -and call those men blessed who have the courage of their convictions, -a proper appreciation of the value of human life as contrasted with -material gain, and who, imbued with the spirit of coöperation, will -lay hold of the great opportunity for leadership which is open to them -to-day.</p> - -<p>In conclusion, let it be said that upon the heads of those leaders—it -matters not to which of the four parties they belong—who refuse to -reorganize their industrial households in the light of the modern -spirit, will rest the responsibility for such radical and drastic -measures as may later be forced upon industry, if the highest interests -of all are not shortly considered and dealt with in a spirit of -fairness. </p> - -<p><span class="pagenum"><a name="Page_37" id="Page_37">[Pg 37]</a></span></p> - -<p>Who, then, will dare to block the wheels of progress and to let pass -the present opportunity of helping to usher in a new era of peace and -prosperity throughout the world, brought about through coöperation in industry?</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_38" id="Page_38">[Pg 38]</a></span></p> - -<h2><span>II</span> <span class="smaller"><span class="smcap">Labor and Capital—Partners<a name="FNanchor_1_1" id="FNanchor_1_1"></a><a href="#Footnote_1_1" >[1]</a></span></span></h2> - -<h3>I</h3> - -<p>Labor and Capital are rather abstract words with which to describe -those vital forces which working together become productively useful -to mankind. Reduced to their simplest terms, Labor and Capital are men -with muscle and men with money—human beings, imbued with the same -weaknesses and virtues, the same cravings and aspirations.</p> - -<p>It follows, therefore, that the relations of men engaged in industry -are human relations. Men do not live merely to toil; they also live to -play, to mingle with their fellows, to love, to worship. The test of -the success of our social organization is the extent to which every -man is free to realize his highest and best self; and in considering -any economic or political problem, that fundamental fact should be -recognized.</p> - -<p>If in the conduct of industry, therefore, the manager ever keeps in -mind that in dealing with employees he is dealing with human beings, -with flesh and blood,<span class="pagenum"><a name="Page_39" id="Page_39">[Pg 39]</a></span> with hearts and souls; and if, likewise, the -workmen realize that managers and investors are themselves also human -beings, how much bitterness will be avoided!</p> - -<p>Are the interests of these human beings with labor to sell and with -capital to employ necessarily antagonistic or necessarily mutual? Must -the advance of one retard the progress of the other? Should their -attitude toward each other be that of enemies or of partners? The -answer one makes to these fundamental questions must constitute the -basis for any consideration of the relationship of Labor and Capital.</p> - -<p>Our difficulty in dealing with the industrial problem is due too often -to a failure to understand the true interests of Labor and Capital. -And I suspect this lack of understanding is just as prevalent among -representatives of Capital as among representatives of Labor. In -any event the conception one has of the fundamental nature of these -interests will naturally determine one’s attitude toward every phase of -their relationship.</p> - -<p>Much of the reasoning on this subject proceeds upon the theory that the -wealth of the world is absolutely limited, and that if one man gets -more, another necessarily gets less. Hence there are those who hold -that if Labor’s wages are increased or its working conditions improved, -Capital suffers because it must deprive<span class="pagenum"><a name="Page_40" id="Page_40">[Pg 40]</a></span> itself of the money needed -to pay the bill. Some employers go so far as to justify themselves in -appropriating from the product of industry all that remains after Labor -has received the smallest amount which it can be induced or forced to -accept; while on the other hand there are men who hold that Labor is -the producer of all wealth, hence is entitled to the entire product, -and that whatever is taken by Capital is stolen from Labor.</p> - -<p>If this theory is sound, it might be maintained that the relation -between Labor and Capital is fundamentally one of antagonism, and that -each should consolidate and arm its forces, dividing the products of -industry between them in proportion as their selfishness is enforced by -their power.</p> - -<p>But all such counsel loses sight of the fact that the riches available -to man are practically without limit, that the world’s wealth is -constantly being developed and undergoing mutation, and that to promote -this process both Labor and Capital are indispensable. If these great -forces coöperate, the products of industry are steadily increased; -whereas, if they fight, the production of wealth is certain to be -either retarded or stopped altogether, and the well-springs of material -progress choked.</p> - -<p>The problem of promoting the coöperation of Labor and Capital may -well be regarded, therefore, as the<span class="pagenum"><a name="Page_41" id="Page_41">[Pg 41]</a></span> most vital problem of modern -civilization. Peace may be established among the nations of the world; -but if the underlying factors of material growth within each nation are -themselves at war, the foundations of all progress are undermined.</p> - -<h3>II</h3> - -<p>Capital cannot move a wheel without Labor, nor Labor advance beyond a -mere primitive existence without Capital. But with Labor and Capital -as partners, wealth is created and ever greater productivity made -possible. In the development of this partnership, the greatest social -service is rendered by that man who so coöperates in the organization -of industry as to afford to the largest number of men the greatest -opportunity for self-development, and the enjoyment by every man of -those benefits which his own work adds to the wealth of civilization. -This is better than charity or philanthropy; it helps men to help -themselves and widens the horizon of life.</p> - -<p>Through such a process the laborer is constantly becoming the -capitalist, and the accumulated fruits of present industry are made the -basis of further progress. The world puts its richest prizes at the -feet of great organizing ability, enterprise, and foresight, because -such qualities are rare and yet indispensable to the development of -the vast natural resources which<span class="pagenum"><a name="Page_42" id="Page_42">[Pg 42]</a></span> otherwise would lie useless on the -earth’s surface or in its hidden depths.</p> - -<p>It is one of the noteworthy facts of industrial history that the -most successful enterprises have been those which have been so well -organized and so efficient in eliminating waste, that the laborers were -paid high wages, the consuming public—upon whose patronage the success -of every enterprise depends—enjoyed declining prices, and the owners -realized large profits.</p> - -<p>The development of industry on a large scale brought the corporation -into being, a natural outgrowth of which has been the further -development of organized Labor in its various forms. The right of -men to associate themselves together for their mutual advancement is -incontestable; and under our modern conditions, the organization of -Labor is necessary just as is the organization of Capital; both should -make their contribution toward the creation of wealth and the promotion -of human welfare.</p> - -<p>The labor union, among its other achievements, has undoubtedly forced -public attention upon wrongs which employers of to-day would blush -to practice. But employers as well as workers are more and more -appreciating the human equation, and realizing that mutual respect -and fairness produce larger and better results than suspicion and -selfishness.</p> - -<p>We are all coming to see that there should be no stifling of Labor by -Capital, or of Capital by Labor;<span class="pagenum"><a name="Page_43" id="Page_43">[Pg 43]</a></span> and also that there should be no -stifling of Labor by Labor, or of Capital by Capital.</p> - -<p>While it is true that the organization of Labor has quite as important -a function to perform as the organization of Capital, it cannot be -gainsaid that evils are liable to develop in either of these forms of -association.</p> - -<p>Because evils have developed and may develop as a result of these -increasing complexities in industrial conditions, shall we deny -ourselves the maximum benefit which may be derived from using the new -devices of progress? We cannot give up the corporation and industry on -a large scale; no more can we give up the organization of labor; human -progress depends too much upon them. Surely there must be some avenue -of approach to the solution of a problem on the ultimate working out of -which depends the very existence of industrial society.</p> - -<p>To say that there is no way out except through constant warfare between -Labor and Capital is an unthinkable counsel of despair; to say that -progress lies in eventual surrender of everything by one factor or the -other, is contrary, not only to the teachings of economic history, but -also to our knowledge of human nature. </p> - -<p><span class="pagenum"><a name="Page_44" id="Page_44">[Pg 44]</a></span></p> - -<h3>III</h3> - -<p>Most of the misunderstanding between men is due to a lack of knowledge -of each other. When men get together and talk over their differences -candidly, much of the ground for dispute vanishes.</p> - -<p>In the days when industry was on a small scale, the employer came -into direct contact with his employees, and the personal sympathy and -understanding which grew out of that contact made the rough places -smooth.</p> - -<p>However, the use of steam and electricity, resulting in the development -of large-scale industry with its attendant economies and benefits, has -of necessity erected barriers to personal contact between employers and -men, thus making it more difficult for them to understand each other.</p> - -<p>In spite of the modern development of Big Business, human nature has -remained the same, with all its cravings, and all its tendencies toward -sympathy when it has knowledge and toward prejudice when it does not -understand. The fact is that the growth of the organization of industry -has proceeded faster than the adjustment of the interrelations of men -engaged in industry.</p> - -<p>Must it not be, then, that an age which can bridge the Atlantic with -the wireless telephone, can devise<span class="pagenum"><a name="Page_45" id="Page_45">[Pg 45]</a></span> some sort of social X-ray which -shall enable the vision of men to penetrate the barriers which have -grown up between men in our machine-burdened civilization?</p> - -<h3>IV</h3> - -<p>Assuming that Labor and Capital are partners, and that the fruits -of industry are their joint product, to be divided fairly, there -remains the question: What is a fair division? The answer is not -simple—the division can never be absolutely just; and if it were -just to-day, changed conditions would make it unjust to-morrow; but -certain it is that the injustice of that division will always be -greater in proportion as it is made in a spirit of selfishness and -shortsightedness.</p> - -<p>Indeed, because of the kaleidoscopic changes which the factors entering -into the production of wealth are always undergoing, it is unlikely -that any final solution of the problem of the fair distribution of -wealth will ever be reached. But the effort to devise a continually -more perfect medium of approach toward an ever fairer distribution must -be no less energetic and unceasing.</p> - -<p>For many years my father and his advisers had been increasingly -impressed with the importance of these and other economic problems, and -with a view to making a contribution toward their solution, had<span class="pagenum"><a name="Page_46" id="Page_46">[Pg 46]</a></span> had -under consideration the development of an institution for social and -economic research.</p> - -<p>While this general subject was being studied, the industrial -disturbances in Colorado became acute. Their many distressing features -gave me the deepest concern. I frankly confess that I felt there was -something fundamentally wrong in a condition of affairs which made -possible the loss of human lives, engendered hatred and bitterness, -and brought suffering and privation upon hundreds of human beings. -I determined, therefore, that in so far as it lay within my power I -would seek some means of avoiding the possibility of similar conflicts -arising elsewhere or in the same industry in the future. It was in -this way that I came to recommend to my colleagues in the Rockefeller -Foundation the instituting of a series of studies into the fundamental -problems arising out of industrial relations. Many others were -exploring the same field, but it was felt that these were problems -affecting human welfare so vitally than an institution such as the -Rockefeller Foundation, whose purpose, as stated in its charter, is -“to promote the well-being of mankind throughout the world,” could not -neglect either its duty or its opportunity.</p> - -<p>This resulted in securing the services of Mr. W. L. Mackenzie King, -formerly Minister of Labor in Canada, to conduct an investigation “with -a special view,”<span class="pagenum"><a name="Page_47" id="Page_47">[Pg 47]</a></span> to quote the language of an official letter, “to the -discovery of some mutual relationship between Labor and Capital which -would afford to Labor the protection it needs against oppression and -exploitation, while at the same time promoting its efficiency as an -instrument of economic production.”</p> - -<p>In no sense was this inquiry to be local or restricted; the problem -was recognized to be a world-problem, and in the study of it the -experience of the several countries of the world was to be drawn -upon. The purpose was neither to apportion blame in existing or past -misunderstandings, nor to justify any particular point of view; but -solely to be constructively helpful, the final and only test of success -to be the degree to which the practical suggestions growing out of the -investigation actually improved the relations between Labor and Capital.</p> - -<h3>V</h3> - -<p>With reference to the situation which had unfortunately developed in -Colorado, it became evident to those responsible for the management -of one of the large coal companies there—the Colorado Fuel and Iron -Company, in which my father and I are interested—that matters could -not be allowed to remain as they were. Any situation, no matter what -its cause,<span class="pagenum"><a name="Page_48" id="Page_48">[Pg 48]</a></span> out of which so much bitterness could grow, clearly -required amelioration.</p> - -<p>It has always been the desire and purpose of the management of the -Colorado Fuel and Iron Company that its employees should be treated -liberally and fairly.</p> - -<p>However, it became clear that there was need of some more efficient -method whereby the petty frictions of daily work might be dealt with -promptly and justly, and of some machinery which, without imposing -financial burdens upon the workers, would protect the rights, and -encourage the expression of the wants and aspirations of the men—not -merely of those men who were members of some organization, but of every -man on the company’s payroll.</p> - -<p>The problem was how to promote the well-being of each employee; more -than that, how to foster at the same time the interest of both the -stockholders and the employees through bringing them to realize the -fact of their real partnership.</p> - -<p>Long before the Colorado strike ended, I sought advice with respect to -possible methods of preventing and adjusting such a situation as that -which had arisen; and in December, 1914, as soon as the strike was -terminated and normal conditions were restored, the officers of the -Colorado Fuel and Iron Company<span class="pagenum"><a name="Page_49" id="Page_49">[Pg 49]</a></span> undertook the practical development of -plans which had been under consideration.</p> - -<p>The men in each mining camp were invited to choose, by secret ballot, -representatives to meet with the executive officers of the company to -discuss matters of mutual concern and consider means of more effective -coöperation in maintaining fair and friendly relations.</p> - -<p>That was the beginning, merely the germ, of a plan which has now been -developed into a comprehensive “Industrial Constitution.” The scheme -embodies practical operating experience, the advice and study of -experts, and an earnest effort to provide a workable method of friendly -consideration, by all concerned, of the daily problems which arise in -the mutual relations between employer and employees.</p> - -<p>The plan was submitted to a referendum of the employees in all -the company’s coal and iron mines, and adopted by an overwhelming -vote. Before this general vote was taken, it had been considered -and unanimously approved by a meeting of the employees’ elected -representatives. At that meeting I outlined the plan, which is -described below, as well as the theory underlying it, which theory is -in brief as follows:</p> - -<p>Every corporation is composed of four parties: the stockholders, -who supply the money with which to build the plant, pay the wages, -and operate the business; the directors, whose duty it is to select -executive<span class="pagenum"><a name="Page_50" id="Page_50">[Pg 50]</a></span> officers carefully and wisely, plan the larger and -more important policies, and generally see to it that the company -is prudently administered; the officers, who conduct the current -operations; and the employees, who contribute their skill and their -work.</p> - -<p>The interest of these four parties is a common interest, although -perhaps not an equal one; and if the result of their combined work is -to be most successful, each must do its share. An effort on the part of -any one to advance its own interest without regard to the rights of the -others, means, eventually, loss to all.</p> - -<p>The problem which confronts every company is so to interrelate its -different elements that the best interests of all will be conserved.</p> - -<h3>VI</h3> - -<p>The industrial machinery which has been adopted by the Colorado -Fuel and Iron Company and its employees is embodied in two written -documents, which have been printed and placed in the hands of each -employee. One of these documents is a trade agreement signed by the -representatives of the men and the officers of the company, setting -forth the conditions and terms under which the men agree to work until<span class="pagenum"><a name="Page_51" id="Page_51">[Pg 51]</a></span> -January 1, 1918, and thereafter, subject to revision upon ninety days’ -notice by either side.</p> - -<p>This agreement guarantees to the men that for more than two years, no -matter what reductions in wages others may make, there shall be no -reduction of wages by this company; furthermore, that in the event of -an increase in wages in any competitive field, this company will make a -proportional increase.</p> - -<p>The agreement provides for an eight-hour day for all employees working -underground and in coke ovens; it insures the semi-monthly payment of -wages; it fixes charges for such dwellings, light, and water, as are -provided by the company; it stipulates that the rates to be charged for -powder and coal used by the men shall be substantially their cost to -the company.</p> - -<p>To encourage employees to cultivate flower and vegetable gardens, the -company agrees to fence free of cost each house-lot owned by it. The -company also engages to provide suitable bath houses and club houses -for the use of employees at the several mining camps.</p> - -<p>The other document is an “Industrial Constitution,” setting forth the -relations of the company and its men. The Constitution stipulates, -among other things, that “there shall be a strict observance by -management and men of the Federal and State laws respecting mining -and labor,” and that “the scale of<span class="pagenum"><a name="Page_52" id="Page_52">[Pg 52]</a></span> wages and the rules in regard to -working conditions shall be posted in a conspicuous place at or near -every mine.”</p> - -<p>Every employee is protected against discharge without notice, except -for such offenses as are posted at each mine. For all other misconduct -the delinquent is entitled to receive warning in writing that a second -offense will cause discharge, and a copy of this written notice must -be forwarded to the office of the president of the company at the same -time it is sent to the employee.</p> - -<p>The constitution specifically states that “there shall be no -discrimination by the company or any of its employees on account of -membership or non-membership in any society, fraternity, or union.” -The employees are guaranteed the right to hold meetings on company -property, to purchase where they choose, and to employ check-weighmen, -who, on behalf of the men, shall see to it that each gets proper credit -for his work.</p> - -<p>Besides setting forth these fundamental rights of the men, the -Industrial Constitution seeks to establish a recognized means for -bringing the management and the men into closer contact for two general -purposes:</p> - -<p>First, to promote increased efficiency and production, to improve -working conditions and to further<span class="pagenum"><a name="Page_53" id="Page_53">[Pg 53]</a></span> the friendly and cordial relations -between the company’s officers and employees; and,</p> - -<p>Second, to facilitate the adjustment of disputes and the redress of -grievances.</p> - -<p>In carrying out this plan, the wage-earners at each camp are to be -represented by two or more of their own number chosen by secret -ballot, at meetings especially called for the purpose, which none but -wage-earners in the employ of the company shall be allowed to attend. -The men thus chosen are to be recognized by the company as authorized -to represent the employees for one year, or until their successors -are elected, with respect to terms of employment, working and living -conditions, adjustment of differences, and such other matters as may -come up.</p> - -<p>A meeting of all the men’s representatives and the general officers of -the company will be held once a year to consider questions of general -importance.</p> - -<p>The Industrial Constitution provides that the territory in which the -company operates shall be divided into a number of districts based -on the geographical distribution of the mines. To facilitate full -and frequent consultation between representatives of the men and the -management in regard to all matters of mutual interest and concern, the -representatives from each district are to meet at least three times a -year—oftener if need be—with the president of the company,<span class="pagenum"><a name="Page_54" id="Page_54">[Pg 54]</a></span> or his -representative, and such other officers as the president may designate.</p> - -<p>The district conferences will each appoint from their number certain -joint committees on industrial relations, and it is expected that -these committees will give prompt and continuous attention to the -many questions which affect the daily life and happiness of the men -as well as the prosperity of the company. Each of these committees -will be composed of six members, three designated by the employees’ -representatives and three by the president of the company.</p> - -<p>A joint committee on industrial coöperation and conciliation will -consider matters pertaining to the prevention and settlement of -industrial disputes, terms and conditions of employment, maintenance -of order and discipline in the several camps, policy of the company -stores, and so forth. Joint committees on safety and accidents, on -sanitation, health and housing, on recreation and education, will -likewise deal with the great variety of topics included within these -general designations.</p> - -<p>Prevention of friction is an underlying purpose of the plan. The aim is -to anticipate and remove in advance all sources of possible irritation. -With this in view a special officer, known as the President’s -Industrial Representative, is added to the personnel of the staff as -a further link between the president of<span class="pagenum"><a name="Page_55" id="Page_55">[Pg 55]</a></span> the corporation and every -workman in his employ. This officer’s duty is to respond promptly to -requests from employees’ representatives for his presence at any of -the camps, to visit all of them as often as possible, to familiarize -himself with conditions, and generally to look after the well-being of -the workers.</p> - -<p>It is a fundamental feature of the plan, as stated in the document -itself, that “every employee shall have the right of ultimate appeal -to the president of the company concerning any condition or treatment -to which he may be subjected and which he may deem unfair.” For the -adjustment of all disputes, therefore, the plan provides carefully -balanced machinery.</p> - -<p>If any miner has a grievance, he may himself, or preferably through one -of the elected representatives in his camp, seek satisfaction from the -foreman or mine superintendent. If those officials do not adjust the -matter, appeal may be had to the president’s industrial representative. -Failing there, the employee may appeal to the division superintendent, -assistant manager, or general manager, or the president of the company, -in consecutive order.</p> - -<p>Yet another alternative is that, after having made the initial -complaint to the foreman or mine superintendent, the workman may -appeal directly to the joint committee on industrial coöperation and -conciliation in his district, which, itself failing to agree, may<span class="pagenum"><a name="Page_56" id="Page_56">[Pg 56]</a></span> -select one or three umpires whose decision shall be binding upon both -parties to the dispute.</p> - -<p>If all these methods of mediation fail the employee may appeal to the -Colorado State Industrial Commission, which is empowered by law to -investigate industrial disputes and publish its findings.</p> - -<p>So as adequately to protect the independence and freedom of the men’s -representatives, the Constitution provides that in case any one of them -should be discharged or disciplined, or should allege discrimination, -he may resort to the various methods of appeal open to the other -employees, or he may appeal directly to the Colorado State Industrial -Commission, with whose findings in any such case the company agrees to -comply.</p> - -<p>The company is to pay all expenses incident to the administration of -the plan, and to reimburse the miners’ representatives for loss of time -from their work in the mines.</p> - -<h3>VII</h3> - -<p>Such in outline is this Industrial Constitution. Some have spoken of it -as establishing a Republic of Labor. Certain it is that the plan gives -every employee opportunity to voice his complaints and aspirations, and -it neglects no occasion to bring the men and the<span class="pagenum"><a name="Page_57" id="Page_57">[Pg 57]</a></span> managers together to -talk over their common interests.</p> - -<p>Much unrest among employees is due to the nursing of real or fancied -grievances arising out of the daily relations between the workmen and -the petty boss. Such grievances should receive attention at once, and -this plan provides that they shall.</p> - -<p>Just as in the case of bodily wounds, so with industrial wounds, it is -of prime importance to establish a method of prompt disinfection, lest -the germs of distrust and hatred have opportunity to multiply.</p> - -<p>This plan is not hostile to labor organizations; there is nothing in -it, either expressed or implied, which can rightly be so construed; -neither membership in a union nor independence of a union will bring -a man either preference or reproach, so far as the attitude of the -company is concerned.</p> - -<p>The fact is that the Colorado Fuel and Iron Company Constitution does -not restrict in any way the right of the employees to regulate their -own lives, nor does it abridge their right to join any organization -they please. At the same time it does insure the men fair treatment and -an opportunity to make their voice heard in determining the conditions -under which they shall work and live.</p> - -<p>The plan does not deny to the representatives the right to act in -concert; it does not deny to the men the right to employ counselors -or advisers to assist<span class="pagenum"><a name="Page_58" id="Page_58">[Pg 58]</a></span> them in formulating their views as to any -situation. Indeed, the door is left wide open for the natural exercise -of any right or privilege to which the men are entitled.</p> - -<p>There is nothing in the plan to prevent the men holding open or secret -meetings as often as they like, either in the separate camps, the -districts, or as representing the whole industry. Such meetings are not -specifically provided for because all those who are connected with the -corporation are considered to be partners in the enterprise, and their -interests common interests.</p> - -<p>The plan provides a channel through which not only may the men confer -with the management, but through which also the officers may lay their -purposes, problems, and difficulties before the employees.</p> - -<p>It provides a medium of adjustment, as between employer and employees, -of the problems which constantly arise in the conduct of business, -while in regard to the relations of both it recognizes that the voice -of public opinion is entitled to be heard.</p> - -<p>The acts of bodies of men in their relations with other men should -always be illuminated by publicity, for when the people see clearly -what the facts are, they will, in the long run, encourage what is good -and condemn what is selfish.</p> - -<p>Some may think that the form which the <span class="pagenum"><a name="Page_59" id="Page_59">[Pg 59]</a></span>organization of labor takes -must necessarily be originated and developed by Labor. If, however, a -workable method of coöperation between managers and men is actually -developed, which is satisfactory to both, is its authorship of -consequence, provided only its provisions are adequate and just and it -proves to be an effective instrument through which real democracy may -have free play?</p> - -<p>The Colorado Plan has been devised for the employees of the Colorado -Fuel and Iron Company, and without reference to the employees, or -organizations of employees, in other companies. Some people will -maintain that the men’s interests cannot be adequately protected or -their rights at all times enforced without the support of their fellows -in similar industries.</p> - -<p>This may be true where Labor and Capital do not generally recognize -that their interests are one. But when men and managers grasp that -vital point, as I believe this plan will help them to do, and are -really awake to the fact that when either takes an unfair advantage of -the other the ultimate interests of both are bound to suffer, they will -have an incentive to fair dealing of the most compelling kind.</p> - -<p>It is clear that a plan of this kind must not overlook the interests -of the stockholders, for no plan which disregards their rights can -be permanently <span class="pagenum"><a name="Page_60" id="Page_60">[Pg 60]</a></span>successful. The interests of Capital can no more be -neglected than those of Labor.</p> - -<p>At the same time I feel that a prime consideration in the carrying -on of industry should be the well-being of the men and women engaged -in it, and that the soundest industrial policy is that which has -constantly in mind the welfare of the employees as well as the making -of profits, and which, when the necessity arises, subordinates profits -to welfare.</p> - -<p>In order to live, the wage-earner must sell his labor from day to -day. Unless he can do this, the earnings of that day’s labor are gone -forever.</p> - -<p>Capital can defer its returns temporarily in the expectation of future -profits, but Labor cannot. If, therefore, fair wages and reasonable -living conditions cannot otherwise be provided, dividends must be -deferred or the industry abandoned.</p> - -<p>On the other hand, a business, to be successful, must not only provide -for Labor remunerative employment under proper working conditions, but -it must also render useful service to the community and earn a fair -return on the money invested.</p> - -<p>The adoption of any policy toward Labor, however favorable it may -seem, which results in the bankruptcy of the corporation and the -discontinuance of its work, is as injurious to Labor which is thrown -out of employment, as it is to the public, which loses<span class="pagenum"><a name="Page_61" id="Page_61">[Pg 61]</a></span> the services of -the enterprise, and to the stockholders whose capital is impaired.</p> - -<p>This plan is not a panacea; it is necessarily far from perfect, and yet -I believe it to be a step in the right direction. Carefully as it has -been worked out, experience will undoubtedly develop ways of improving -it.</p> - -<p>While the plan provides elaborate machinery which of itself ought to -make impossible many abuses and introduce much that is constructively -helpful, too strong emphasis cannot be put upon the fact that its -success or failure will be largely determined by the spirit in which it -is carried out.</p> - -<p>The problem of the equitable division of the fruits of industry will be -always with us. The nature of the problem changes and will continue to -change with the development of transportation, of invention, and the -organization of commerce.</p> - -<p>The ultimate test of the rightness of any particular method of division -must be the extent to which it stimulates initiative, encourages the -further production of wealth, and promotes the spiritual development of -men.</p> - -<p>The Colorado Plan is of possible value in that State, and may prove -useful elsewhere, because it seeks to serve continually as a means -of adjusting the daily difficulties incident to the industrial -relationship. It<span class="pagenum"><a name="Page_62" id="Page_62">[Pg 62]</a></span> brings men and managers together, it facilitates the -study of their common problems, and it should promote an understanding -of their mutual interests.</p> - -<p>Assuming, as we must, the fundamental fairness of men’s purposes, -we have here possibly a medium through which the always changing -conditions of industry may be from time to time more closely adapted to -the needs, the desires, and the aspirations of men.</p> - -<h3>FOOTNOTE:</h3> - -<p><a name="Footnote_1_1" id="Footnote_1_1"></a><a href="#FNanchor_1_1">[1]</a> <span class="smcap">Note.</span>—This article, “Labor and -Capital—Partners,” originally appeared in the <i>Atlantic Monthly</i>, January, 1916.</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_63" id="Page_63">[Pg 63]</a></span></p> - -<h2><span>III</span> <span class="smaller"><span class="smcap">The Personal Relation in Industry<a name="FNanchor_2_2" id="FNanchor_2_2"></a><a href="#Footnote_2_2" >[2]</a></span></span></h2> - -<p>Heretofore the Chief Executives of important industrial corporations -have been selected largely because of their capacity as organizers or -financiers.</p> - -<p>The time is rapidly coming, however, when the important qualification -for such positions will be a man’s ability to deal successfully and -amicably with labor. Yet how to do this is a subject which, I fancy, is -never taught or referred to in the classroom.</p> - -<p>Like knowledge of the problems of sex, than which no department of life -is more sacred, vital or deserving of full and ennobling instruction, -an understanding of this subject is left to be acquired by experience, -often costly or bitter, or through chance information, gleaned too -frequently from ignorant and unreliable sources.</p> - -<p>Just as the first of these two themes is coming to be taught -sympathetically and helpfully in our schools and colleges, so I believe -the second, the personal <span class="pagenum"><a name="Page_64" id="Page_64">[Pg 64]</a></span>relation in industry, will eventually be -regarded as an important part of those college courses which aim to fit -men for business life.</p> - -<p>After all, is it not the personal relations with one’s fellows which, -when rightly entered into, bring joy and inspiration into our lives -and lead to success, and which, on the other hand, if disregarded or -wrongly interpreted, bring equally sorrow and discouragement and lead -to failure?</p> - -<p>Think what the ideal personal relation between a father and son may -mean to both. Some of us have known such contact. Our lives have been -fuller and richer as a result, freer from sin and sorrow. Others of us -know from bitter experience what the absence of this relationship has -involved.</p> - -<p>How helpful to a student is such a friendly association with some -professor who commands his confidence, respect and regard, and who is -interested in his college work, not for itself alone, but quite as much -because of its bearing on his future life’s usefulness.</p> - -<p>What would college life be without the personal relationships which are -formed during its happy days and often continued close and intimate -through life?</p> - -<p>Can you imagine a successful football team composed of strangers, -having no points of contact, no sympathy with each other, no common -cause inspiring them to strive for victory? Team play, the support<span class="pagenum"><a name="Page_65" id="Page_65">[Pg 65]</a></span> of -one player by another, would be well nigh impossible.</p> - -<p>Even in the army, where formerly the man who had become the most -perfect machine was regarded as the best soldier, it is coming to be -accepted that in addition to being obedient and subject to discipline, -the man who thinks, who is capable of acting on his judgment when -occasion arises, who is bound to his fellow soldiers and his officers -by personal friendliness, admiration and respect, is a far more -efficient soldier.</p> - -<p>And whereas formerly, particularly in the armies of Europe, privates -were not allowed to have any personal association or contact with -their officers, we learn that in the World War a spirit of comradeship -was developed by the officers with their men off duty, which personal -relationship was building up rather than weakening the morale of the -armies.</p> - -<p>What is true as to the relationships which I have mentioned is equally -true in industrial relations, and personal contact is as vital and as -necessary there as in any other department of life.</p> - -<p>Let us trace briefly the history of the development of industry, that -we may see where this personal relationship is present, where absent, -and what is the effect of its presence or absence.</p> - -<p>Industry in its earliest forms was as simple as it is complex to-day. </p> - -<p><span class="pagenum"><a name="Page_66" id="Page_66">[Pg 66]</a></span></p> - -<p>The man who provided the capital was frequently the director, -president, general manager and superintendent of the enterprise, and -in some instances actually worked with his employees. These latter -were few in number. They were usually born and brought up in the same -community with their employer, his companion in school days, his -friends and neighbors, often calling him as he did them by their first -names.</p> - -<p>There was daily contact between employer and employee, and naturally if -any questions or causes for complaint arose on either side, they were -taken up at the next chance meeting and adjusted.</p> - -<p>Next came the partnership, a development necessary because more capital -was required than a single individual cared to or was able to provide. -Two or more partners were thus associated together, but otherwise the -situation was not materially different from that just described, except -that more employees were required.</p> - -<p>With the invention of the steam engine and its application to -railroads, which quickly began to make their way over the face of the -earth; with the development of the steamboat, replacing to so large -an extent the old sailing vessels and making possible the regular and -frequent transportation of the products of the soil and of industry -from one part of the world to another;<span class="pagenum"><a name="Page_67" id="Page_67">[Pg 67]</a></span> with the perfecting of the -telegraph, cable and telephone, there came the need for larger -aggregations of capital in order to carry on the ever expanding -industries that were required to keep pace with this growth.</p> - -<p>This led to the development of the corporation, the capital for which -was supplied in larger or smaller amounts by few or many individuals, -thus making possible almost indefinite financial expansion. And this -form of business has continued to grow, as commerce and industry have -become not only national but international and world wide in their -extent, until we have to-day the United States Steel Corporation, with -its 120,000 stockholders and its 260,000 employees.</p> - -<p>It stands to reason that corporations of such magnitude have -necessarily become highly specialized.</p> - -<p>The responsibility of an individual stockholder in a corporation is -of course in proportion to his interest, but the function of the -stockholders in general consists in casting their votes each year for -the election of directors to represent their interests.</p> - -<p>The directors in turn are charged with the general responsibility of -developing the policies of the corporation, some of which are matured -by the officers, of selecting its officers and of seeing to it that the -corporation is properly managed.</p> - -<p>The officers as the executives of the company carry<span class="pagenum"><a name="Page_68" id="Page_68">[Pg 68]</a></span> out the company’s -policies and are charged with the actual operation of the company and -the employment of labor.</p> - -<p>As we contrast this gigantic organization with the simple form of -industrial organization first described, it is at once apparent that in -the very nature of the case the man who supplies the money seldom if -ever comes in contact with the man who supplies the labor.</p> - -<p>Here we note a marked and serious change. While deplorable, this -situation is practically inevitable. Frequently the industry in which a -stockholder has invested his capital is located in a far distant city. -Not only this, but often investments are made in corporations which -conduct business in other countries almost at the ends of the earth.</p> - -<p>As a result of this lack of contact between Labor and Capital, the -personal relationship has disappeared, and gradually a great gulf -has grown up between the two, which is ever widening, so these two -great forces have come too often to think that their interests are -antagonistic, and have worked against each other, each alone seeking -to promote its own selfish ends. This has resulted in the strike, the -lockout and the various incidents of industrial warfare so regrettably -common in this day and apparently on the increase.</p> - -<p>Reports of the United States Bureau of Labor<span class="pagenum"><a name="Page_69" id="Page_69">[Pg 69]</a></span> Statistics show that for -the first eleven months of 1916 there were 3,134 strikes and lockouts -in the industries of this country, as against only 1,147 for the -corresponding period of 1915.</p> - -<p>These industrial conflicts have in some instances come to be little -short of civil war; vast sums of money have been lost by both sides, -untold hardship and misery have followed in their wake.</p> - -<p>The New York City street railroad strike of last summer (1916) is -estimated to have cost the companies some four millions of dollars, -not to mention the loss in wages borne by the employees or the losses -sustained by the public.</p> - -<p>Last summer<a name="FNanchor_3_3" id="FNanchor_3_3"></a><a href="#Footnote_3_3" >[3]</a> four hundred thousand railroad men, constituting -the four brotherhoods, voted in favor of a strike on 225 American -railroads. If the average pay of these men had been only $2.50 a -day, which is considerably lower than the fact, such a strike would -have meant a daily loss in wages of a million dollars, not taking -into account the far greater loss to business and the inevitable -inconvenience and distress which would have been brought, directly or -indirectly, to the doors of the entire population.</p> - -<p>I have not had access to data showing the cost to this country of -strikes and lockouts. However, the following quotation from a recent -address made by<span class="pagenum"><a name="Page_70" id="Page_70">[Pg 70]</a></span> Mr. Frank A. Vanderlip, President of the National City -Bank of New York, throws light on the subject. Mr. Vanderlip said:</p> - -<blockquote> - -<p>The cost of the recent garment workers’ strike in New York City -has been estimated to be in the neighborhood of fifty million -dollars.</p> - -<p>The last anthracite coal strike in the short course of five -months caused a loss of one hundred and twenty million dollars to -employers and employees in the community.</p> - -<p>I have seen the statement that in a single year the losses that -could be attributed to labor disturbances in this country total -more than a billion dollars.</p></blockquote> - -<p>These are extraordinary figures, and though some of them are doubtless -merely estimates, they serve to show what enormous proportions the -industrial problem has assumed and how serious and vital a question it -has become.</p> - -<p>May I add that almost beyond belief as these figures are, they do not -include those terrible mental and moral losses growing out of struggle -and conflict, nor do they take account of the depleted bank balances -of the workers, and the hunger, suffering and distress which extend -into the homes and which touch the lives not only of those immediately -concerned, but of tens of thousands of innocent women and children.</p> - -<p>What I have said leads me to advance two ideas, both of which I -believe to be profoundly true, but which have received far too limited -consideration. </p> - -<p><span class="pagenum"><a name="Page_71" id="Page_71">[Pg 71]</a></span></p> - -<blockquote> - -<p>The first is that Labor and Capital are naturally partners, not -enemies.</p> - -<p>The second, that the personal relation in industry, entered into -in the right spirit, gives the greatest promise of bridging the -yawning chasm which has opened up between employer and employee.</p></blockquote> - -<p>The mistaken point of view in regard to the relation between Labor and -Capital exists on the part of both Labor and Capital, as well as among -the interested and disinterested public.</p> - -<p>Too often Capital regards Labor merely as a commodity to be bought and -sold, while Labor not infrequently regards Capital as money personified -in the soulless corporation.</p> - -<p>It might seem that technically speaking both of these definitions could -be justified, but they are far from being comprehensive and adequate. -For both Labor and Capital are men—men with muscle and men with money. -Both are human beings and the industrial problem is a great human -problem.</p> - -<p>This is one of the first things we need to recognize, and it is -just because human nature is involved in this problem that it is so -intricate and difficult to solve.</p> - -<p>The popular impression that from the very nature of the case Labor and -Capital are two great contending forces arrayed against each other, -each striving to gain the upper hand through force, each feeling that<span class="pagenum"><a name="Page_72" id="Page_72">[Pg 72]</a></span> -it must arm itself in order to secure from the other its rights and its -just dues, is even more unfortunate than it is untrue.</p> - -<p>I cannot believe that Labor and Capital are necessarily enemies. I -cannot believe that the success of one must depend upon the failure or -lack of success of the other. Far from being enemies, these two factors -must necessarily be partners.</p> - -<p>Surely, their interests are common interests, the permanent well being -of neither can be secured unless the other also is considered, nor can -either attain the fullest possibilities of development which lie before -both unless they go hand in hand.</p> - -<p>Only when the industrial problem is approached from the point of view -of a firm belief in this doctrine is there any hope of bringing about -closer, more healthful and mutually advantageous relations between -these two forces.</p> - -<p>If, therefore, my first statement is true, namely that Labor and -Capital are partners, then certain things must follow. They must have -contact. This standing aloof one from the other must end.</p> - -<p>Respect grows in the heart of each for the other, confidence is -developed, and they come to realize that they are working with a common -interest for a common result.</p> - -<p>But this attitude, this relationship, is the personal<span class="pagenum"><a name="Page_73" id="Page_73">[Pg 73]</a></span> relation in -industry. Nothing else will take its place, nothing else will bridge -the chasm of distrust and hatred.</p> - -<p>It is the recognition of the brotherhood of man, of the principle of -trying to put yourself in the other man’s place, of endeavoring to see -things from his point of view. The old saying that honesty is the best -policy is often scoffed at and pronounced unpractical, but there never -was a truer saying. Honesty <i>is</i> the best policy.</p> - -<p>You may be able to deceive a man once or twice, or, if he is -exceptionally gullible, half a dozen times, but you cannot deceive him -indefinitely. You may be able to deceive a number of people sometimes, -but you cannot deceive all of the people with whom you have business -dealings all of the time. You may be able to make a contract which -gives you an unfair advantage of the other man, but the chances are -that you cannot do it twice.</p> - -<p>From a purely cold-blooded business point of view, honesty <i>is</i> the -best policy. Likewise do I say that to treat the other man as you would -have him treat you is an equally fundamental business principle.</p> - -<p>This does not mean that you should surrender your rights or neglect -to avail of your opportunities. It simply means that in the game of -business, the same rules of sportsmanship should prevail as in a<span class="pagenum"><a name="Page_74" id="Page_74">[Pg 74]</a></span> -boxing bout, in a match of golf, or a football game.</p> - -<p>Play fair and observe the rules. Let the contest be clean, gentlemanly, -sportsmanlike, a contest always having regard for the rights of the -other man.</p> - -<p>Assuming, then, that the personal relation is a vital factor in -successful industrial life, but recognizing the impossibility in this -day of big business of reproducing it as it existed between employer -and employee in the early days of industrial development, how can a -like result be brought about, how can personal contact be established?</p> - -<p>Granting that it is impossible for the stockholders of a great -corporation, because of their number, because of their geographic -relations, to come into frequent or even semi-occasional contact with -their partners, the employees of a company; and that the situation -is much the same with the directors—at least it is possible, and -must be made increasingly so, for the leading representatives of the -stockholders and directors, namely the officers of a corporation, to -have such contact with the employees, special officers being appointed -for that purpose alone if necessary. Because of the vast numbers of -employees in many a company, even this is difficult and altogether too -infrequent to-day.</p> - -<p>As the officers of our great corporations come to see more and more -that the problem of understanding<span class="pagenum"><a name="Page_75" id="Page_75">[Pg 75]</a></span> their employees and being understood -by them is a vital problem, one of the most important with which the -management is confronted, they will be convinced not only of the wisdom -of devoting far more time to such contact, but of the desirability and -the advantage to themselves, and to the employees as well as to the -company, of such closer relation and intimate conference in regard to -matters of common interest and concern.</p> - -<p>If we look into our own experience, we find that the misunderstandings -which we have had with other men have been largely the result of lack -of contact. We have not seen eye to eye.</p> - -<p>Men cannot sit around a table together for a few hours or several days -perhaps and talk about matters of common interest, with points of -view however diverse, with whatever of misunderstanding and distrust, -without coming to see that after all there is much of good in the worst -of us and not so much of bad in most of us as the rest of us have -sometimes assumed.</p> - -<p>But someone says, “We grant the desirability of the personal relation -in industry. Theoretically we accept your suggestion as to how this -theory can be put into practice in the industrial life of to-day, but -practically, will it work?”</p> - -<p>I can best answer this question by saying that such a program has been -put into operation in a certain<span class="pagenum"><a name="Page_76" id="Page_76">[Pg 76]</a></span> coal company in Colorado, in which my -father and I are interested and of which I am a director.</p> - -<p>If you will pardon a personal reference, may I say that when I visited -Colorado some eighteen months ago, I had the opportunity of talking -personally with hundreds, if not thousands, of the employees of that -company. These men and many of the people of Colorado had formed their -opinion of anyone bearing the name of Rockefeller from what they had -read and heard. Because of certain industrial disturbances which had -developed in the State, bitterness and hatred had existed to a high -degree.</p> - -<p>As I went from camp to camp I talked with the representatives of the -men individually and privately, I went into the men’s homes, talked -with their wives and children, visited their schools, their places of -amusement, their bathhouses, and had just such friendly relations with -them as any man going among them would have had.</p> - -<p>Frequently I found points of difference between the men and the -officers, but in no single instance were the men as I met them other -than friendly, frank and perfectly willing to discuss with me, as I was -glad to discuss with them, any matters they chose to bring up.</p> - -<p>It often occurred that there was justice in the points which they -raised and their requests were acted upon<span class="pagenum"><a name="Page_77" id="Page_77">[Pg 77]</a></span> favorably by the officers. -Also frequently situations were presented in which it was impossible -for the company to meet the views of the employees. But never was a -subject dismissed until, if unable myself to make the situation clear, -the highest officials of the company were called in to explain to the -employee with the utmost fulness and detail the reasons why the thing -suggested was impossible.</p> - -<p>No matter presented was left without having been settled in accordance -with the request of the employee, or, in the event of that being -impossible, without his having been fully convinced that the position -of the company was just and right and in the common interest.</p> - -<p>This personal contact with the employees of the company led to the -establishment of mutual confidence and trust and to the acceptance on -their part of the premise that they and we were partners.</p> - -<p>The men generally came to see that the man about whom they had heard -was very different from the man whom they had met in their homes and -at their work. While they distrusted the former, they believed in the -latter. Before I left Colorado, a plan of industrial representation, -providing for close personal contact between the duly elected -representatives of the men and officers of the company, was worked out -and adopted by a large majority vote of the employees. </p> - -<p><span class="pagenum"><a name="Page_78" id="Page_78">[Pg 78]</a></span></p> - -<p>This plan in substance aims to provide a means whereby the employees -of the company should appoint from their own number as their -representatives men who are working side by side with them, to meet -as often as may be with the officers of the corporation, sometimes in -general assembly, where open discussions are participated in and any -matters of mutual interest suggested and discussed; more frequently in -committees composed of an equal number of employees and officers, which -committees deal with every phase of the men’s lives—their working and -living conditions, their homes, their recreation, their religion and -the education and well-being of their children.</p> - -<p>In brief, the plan embodies an effort to reproduce in so far as is -possible the earlier contact between owner and employee.</p> - -<p>I do not venture to make any prediction as to the ultimate success of -the plan. Two interesting side lights, however, may be mentioned.</p> - -<p>The first is that whereas the plan itself and an agreement covering -working and living conditions was adopted by the coal miners employed -by this company some fifteen months ago—since that time the same plan -and agreement, adapted to the particular requirements of the steel -workers, and also of the iron<span class="pagenum"><a name="Page_79" id="Page_79">[Pg 79]</a></span> miners employed by the company, has been -adopted by both.</p> - -<p>The second, while the company has reopened a number of mines formerly -idle and is now working quite to the limit of its capacity in the -production of coal, it has all the labor at its various mines which -it requires, and that too without having made any special effort to -attract labor to its recently reopened mining camps.</p> - -<p>But there is a further reason why the personal relation in industry -is of such vital importance, and that is in order that the attitude -and purpose of the owners and directors of a company may be rightly -understood by and interpreted to their partners, the employees, and -vice versa; also that all grievances may be taken up and adjusted as -they arise.</p> - -<p>How true it is that when some petty representative of a great -corporation makes a sharp trade with a customer, the customer at once -says, “Obviously, the president of this corporation is a dishonest and -unscrupulous man. It must be that he has directed his agents to pursue -these sharp and crooked practices.”</p> - -<p>However high-minded the owners or directors of a company may be, it is -of the utmost difficulty to guard against such practices on the part -of an occasional representative. But it is obviously just as unfair on -such grounds to maintain that the owners and<span class="pagenum"><a name="Page_80" id="Page_80">[Pg 80]</a></span> managers are unjust and -crooked in their business methods, as it would be to say that the whole -tree was bad simply because one apple on it had spots or imperfections.</p> - -<p>The employee in any corporation must form his opinion of the owners and -directors of the corporation from the petty officer or foreman with -whom he has personal contact. Too often these men, not infrequently -promoted from the ranks, become overbearing and arrogant in their -treatment of those under them.</p> - -<p>This very naturally is as irritating and unjust to the employee as it -is distressing to the company, and it is at this point in ninety-nine -cases out of a hundred where grievances arise.</p> - -<p>The Colorado Industrial Plan to which I have referred has been so -drawn as to guard against the exercise of arrogance or oppression, by -providing various channels through which the employee with a grievance -can at once secure a sympathetic and friendly hearing, carrying his -difficulty to the president’s ear, if necessary.</p> - -<p>The foreman who knows that any arbitrary or unjust action on his part -may be reviewed by his superior officers is very much more careful in -his treatment of his men, always wanting to avoid having his decisions -reversed.</p> - -<p>If a slight scratch made on the finger with a rusty<span class="pagenum"><a name="Page_81" id="Page_81">[Pg 81]</a></span> nail is -immediately cleansed with an antiseptic wash, it heals at once. On -the other hand, if the poison which has been introduced is allowed to -remain, soon inflammation sets in, the disorder spreads, and serious -menace to life may result.</p> - -<p>And so it is with the petty grievance. If it is dealt with -sympathetically and justly, immediately it is made known, peace, -harmony and good-will are readily maintained. On the other hand, if -indifference is shown and lack of sympathy, the grievance is nursed and -from it grows the industrial disorders which later become so acute and -difficult to heal.</p> - -<p>An ounce of prevention is worth much more than a pound of cure. In no -place is this saying truer than in dealing with human nature.</p> - -<p>If I were to sum up in a few words what I have been endeavoring to say -to you in regard to the personal relation in industry, I should say, -apply the Golden Rule.</p> - -<p>Every human being responds more quickly to love and sympathy than to -the exercise of authority and the display of distrust.</p> - -<p>If in the days to come, as you have to do with labor, you will put -yourself in the other man’s place and govern your actions by what you -would wish done to you, were you the employee instead of the employer, -the problem of the establishment of the personal <span class="pagenum"><a name="Page_82" id="Page_82">[Pg 82]</a></span>relation in industry -will be largely solved, strife and discord as between labor and capital -will give place to coöperation and harmony, the interests of both will -be greatly furthered, the public will be better served, and through the -establishment of industrial peace, a great stride will have been taken -toward the establishment of peace among nations.</p> - -<h3>FOOTNOTES:</h3> - -<p><a name="Footnote_2_2" id="Footnote_2_2"></a><a href="#FNanchor_2_2">[2]</a> An address delivered at Cornell University on the occasion -of Founder’s Day, January 11, 1917.</p> - -<p><a name="Footnote_3_3" id="Footnote_3_3"></a><a href="#FNanchor_3_3">[3]</a> 1916.</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_83" id="Page_83">[Pg 83]</a></span></p> - -<h2><span>IV</span> <span class="smaller"><span class="smcap">Representation in Industry<a name="FNanchor_4_4" id="FNanchor_4_4"></a><a href="#Footnote_4_4" >[4]</a></span></span></h2> - -<p>I speak as a member of the Public Group. I hold no executive position -in any business corporation, and am not here representing any business -interest.</p> - -<p>I have come in response to the request of the President to accept -appointment as one of the representatives of the general public in -this Conference and am considering the questions which come before the -Conference from that standpoint.</p> - -<p>The resolution before the Conference is predicated upon the principle -of representation in industry, which includes the right to organize and -the right to bargain collectively. In supporting this resolution I beg -leave to present the following statement which, for the sake of brevity -and clearness, I have reduced to writing.</p> - -<p>The experience through which our country passed in the months of -war, exhibiting as it did the willingness of all Americans without -distinction of race, creed or class to sacrifice personal ends for -a great ideal and to work together in a spirit of brotherhood<span class="pagenum"><a name="Page_84" id="Page_84">[Pg 84]</a></span> and -coöperation, has been a revelation to our own people, and a cause for -congratulations to us all. Now that the stimulus of the war is over, -the question which confronts our nation is how can these high levels of -unselfish devotion to the common good be maintained and extended to the -civic life of the nation in times of peace.</p> - -<p>We have been called together to consider the industrial problem. Only -as each of us discharges his duties as a member of this Conference in -the same high spirit of patriotism, of unselfish allegiance to right -and justice, of devotion to the principles of democracy and brotherhood -with which we approached the problems of the war, can we hope for -success in the solution of the industrial problem which is no less -vital to the life of the nation. Surely the men and women will stand -together as unselfishly in solving this great industrial problem as -they did in dealing with the problems of the war if only right is made -clear and the way to a solution pointed out.</p> - -<p>The world position which our country holds to-day is due to the wide -vision of the statesmen who founded these United States and to the -daring and indomitable persistence of the great industrial leaders, -together with the myriads of men who with faith in their leadership -have coöperated to rear the marvelous industrial structure of which our -country is justly so proud. </p> - -<p><span class="pagenum"><a name="Page_85" id="Page_85">[Pg 85]</a></span></p> - -<p>This result has been produced by the coöperation of the four factors -in industry: labor, capital, management and the public, the last -represented by the consumer and by organized government.</p> - -<p>No one of these groups can alone claim credit for what has been -accomplished. Just what is the relative importance of the contribution -made to the success of industry by these several factors and what -their relative rewards should be are debatable questions. But however -views may differ on these questions it is clear that the common -interest cannot be advanced by the effort of any one party to dominate -the other, to arbitrarily dictate the terms on which alone it will -coöperate, to threaten to withdraw if any attempt is made to thwart the -enforcement of its will. Such a position is as un-American as it is -intolerable.</p> - -<p>The personal relationship which existed in bygone days is essential to -the development of this new spirit. It must be reëstablished; if not in -its original form at least as nearly so as possible.</p> - -<p>In the early days of the development of industry, the employer and -capital investor were frequently one. Daily contact was had between him -and his employees, who were his friends and neighbors. Any questions -which arose on either side were taken up at once and readily adjusted. -A feeling of genuine friendliness,<span class="pagenum"><a name="Page_86" id="Page_86">[Pg 86]</a></span> mutual confidence and stimulating -interest in the common enterprise was the result.</p> - -<p>How different is the situation to-day! Because of the proportions -which modern industry has attained, employers and employees are too -often strangers to each other. Personal contact, so vital to the -success of any enterprise, is practically unknown, and naturally, -misunderstanding, suspicion, distrust and too often hatred have -developed, bringing in their train all the industrial ills which have -become far too common. Where men are strangers and have no points of -contact, this is the usual outcome. Much of the strife and bitterness -in industrial relations result from lack of ability or willingness on -the part of both Labor and Capital to view their common problems each -from the other’s point of view.</p> - -<p>Representation is the principle upon which the democratic government -of our country is founded. On the battlefields of France this nation -poured out its blood freely in order that democracy might be maintained -at home and that its beneficient institutions might become available in -other lands as well.</p> - -<p>Surely it is not consistent for us as Americans to demand democracy in -government and practice autocracy in industry.</p> - -<p>What can this Conference do to further the establishment of democracy -in industry and lay a sure<span class="pagenum"><a name="Page_87" id="Page_87">[Pg 87]</a></span> and solid foundation for the permanent -development of coöperation, good-will and industrial well-being? To -undertake to agree on the details of plans and methods is apt to lead -to endless controversy without constructive result.</p> - -<p>Can we not, however, unite in the adoption of the principle of -representation, and the agreement to make every effort to secure -the endorsement and acceptance of this principle by all chambers of -commerce, industrial and commercial bodies and all organizations of -labor?</p> - -<p>Such action I feel confident would be overwhelmingly backed by public -opinion and cordially approved by the Federal Government. The assurance -thus given of a closer relationship between the parties to industry -would further justice, promote good-will and help to bridge the gulf -between Capital and Labor.</p> - -<blockquote><p>(<i>Resolution introduced by John D. Rockefeller, Jr., earlier in -the session, which was not debated or acted upon but superseded by -the resolution to which the foregoing remarks were addressed.</i>)</p></blockquote> - -<p><span class="smcap">Whereas</span>, the common ground of agreement and action with -regard to the future conduct of industry, with the development of a -new relationship between Capital and Labor which the President sought -in calling this Conference can only be discovered as we<span class="pagenum"><a name="Page_88" id="Page_88">[Pg 88]</a></span> approach the -problem in the spirit of justice, brotherhood, and of willingness to -put one’s self in the other man’s place, the coming of which means the -substitution of confidence for distrust, of good will for enmity, of -coöperation for antagonism; and</p> - -<p><span class="smcap">Whereas</span>, this spirit can be developed only by the resumption -of personal relations between employer and employee or the nearest -possible approach thereto; and</p> - -<p><span class="smcap">Whereas</span>, some form of representation in industry is essential -in order to make personal relations possible under modern industrial -conditions;</p> - -<p>Now Therefore be it</p> - -<p><span class="smcap">Resolved</span>, that this Conference recognizes and approves the -principle of representation in industry under which the employees shall -have an effective voice in determining their terms of employment and -their working and living conditions; and be it further</p> - -<p><span class="smcap">Resolved</span>, that just what form representation shall take in -each individual plant or corporation, so long as it be a method which -is effective and just, is a question to be determined by the parties -concerned in the light of the facts in each particular instance; and be -it further</p> - -<p><span class="smcap">Resolved</span>, that any form of representation to be adequate must -include:</p> - -<p>1. Ample provision whereby the stockholders and<span class="pagenum"><a name="Page_89" id="Page_89">[Pg 89]</a></span> the employees through -their respective representatives, shall give current consideration to -matters of common interest such as terms of employment and working and -living conditions;</p> - -<p>2. Any such further provisions, if any, as may be necessary to insure -the prompt uncovering of grievances, real or alleged, and their speedy -adjustment.</p> - -<h3>FOOTNOTE:</h3> - -<p><a name="Footnote_4_4" id="Footnote_4_4"></a><a href="#FNanchor_4_4">[4]</a> Remarks at National Industrial Conference, Washington, D. -C., October 16, 1919.</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_90" id="Page_90">[Pg 90]</a></span></p> - -<h2><span>V</span> <span class="smaller"><span class="smcap">To the Employees<a name="FNanchor_5_5" id="FNanchor_5_5"></a><a href="#Footnote_5_5" >[5]</a></span></span></h2> - -<p>This is a red-letter day in my life.</p> - -<p>It is the first time I have ever had the good fortune to meet the -representatives of the employees of this great company, its officers -and mine superintendents, together, and I can assure you that I am -proud to be here, and that I shall remember this gathering as long as I -live.</p> - -<p>Had this meeting been held two weeks ago, I should have stood here -as a stranger to many of you, recognizing few faces. Having had the -opportunity last week of visiting all of the camps in the southern -coal fields and of talking individually with practically all of the -representatives, except those who were away; having visited your homes, -met many of your wives and children, we meet here not as strangers -but as friends, and it is in that spirit of mutual friendship that I -am glad to have this opportunity to discuss with you men our common -interests. </p> - -<p><span class="pagenum"><a name="Page_91" id="Page_91">[Pg 91]</a></span></p> - -<p>Since this is a meeting of the officers of the company and the -representatives of the employees, it is only by your courtesy that I am -here, for I am not so fortunate as to be either one or the other; and -yet I feel that I am intimately associated with you men, for in a sense -I represent both the stockholders and the directors.</p> - -<p>Before speaking of the plan of industrial representation to which -our president has referred, I want to say just a few words outlining -my views as to what different interests constitute a company or -corporation.</p> - -<p>Every corporation is made up of four parties: Stockholders, directors, -officers and employees.</p> - -<p>This little table (<i>exhibiting a square table with four legs</i>) -illustrates my conception of a corporation; and there are several -points in regard to the table to which I want to call your attention.</p> - -<p>First, you see that it would not be complete unless it had all four -sides. Each side is necessary; each side has its own part to play.</p> - -<p>Now, if you imagine this table cut into quarters, and each quarter -separated from the others, what would happen? All of them would fall -down, for no one could stand alone, and you would have no table. But -when you put the four sides together, you have a useful piece of -furniture; you have a table. </p> - -<p><span class="pagenum"><a name="Page_92" id="Page_92">[Pg 92]</a></span></p> - -<p>Then, secondly, I call your attention to the fact that these four sides -are all perfectly joined together; that is why we have a perfect table. -Likewise, if the parties interested in a corporation are not perfectly -joined together, harmoniously working together, you have a discordant -and unsuccessful corporation.</p> - -<p>Again, you will notice that this table is square. And every corporation -to be successful must be on the square—absolutely a square deal for -every one of the four parties, and for every man in each of the four -parties.</p> - -<p>I call your attention to one more thing—the table is level. Each part -supported by its leg is holding up its own side, hence you have a level -table. So, equal responsibility rests on each one of the four parties -united in a corporation.</p> - -<p>When you have a level table, or a corporation that is on the level, you -can pile up earnings on it (<i>piling coins on the table</i>). Now, who gets -the first crack at the earnings? You know that we in New York don’t.</p> - -<p>Here come along the employees, and first of all they get their wages -(<i>removing some of the coins</i>), every two weeks like clockwork, just -what has been agreed on; they get the first chance at the pile.</p> - -<p>You men come ahead of the president, the officers, the stockholders and -directors. You are the first to<span class="pagenum"><a name="Page_93" id="Page_93">[Pg 93]</a></span> put a hand into the pile and take out -what is agreed shall belong to you.</p> - -<p>You don’t have to wait for your share; you don’t have to take any -chances about getting it. You know that there has never been a -two-weeks’ period that you have worked when you have not been able -to get your pay from this company; whatever happens, so long as the -company is running, you get your pay.</p> - -<p>And then the officers and superintendents come along, and they get -theirs; they don’t get it until after you have gotten yours (<i>removing -more coins</i>).</p> - -<p>Then come the directors, and they get their directors’ fees (<i>removing -the balance of the coins</i>) for doing their work in the company.</p> - -<p>And, hello! There is nothing left! This must be the Colorado Fuel and -Iron Company! For never, men, since my father and I became interested -in this company as stockholders, some fourteen years ago—never has -there been one cent for the common stock.</p> - -<p>For fourteen years the common stockholder has seen your wages paid to -you workers; has seen your salaries paid to you officers; has seen the -directors draw their fees, and has not had one cent of return for the -money that he has put into this company in order that you men might -work and get your wages and salaries. </p> - -<p><span class="pagenum"><a name="Page_94" id="Page_94">[Pg 94]</a></span></p> - -<p>How many men in this room ever heard that fact stated before? Is there -a man among you? Well, there are mighty few among the workers who have -heard it.</p> - -<p>What you have been told, what has been heralded from the Atlantic to -the Pacific, is that those Rockefeller men in New York, the biggest -scoundrels that ever lived, have taken millions of dollars out of this -company on account of their stock ownership, have oppressed you men, -have cheated you out of your wages, and “done” you in every way they -could.</p> - -<p>That is the kind of “dope” you have been getting, and that is what -has been spread all over the country. And when that kind of talk was -going on, there were disturbances in this part of the country because -the four sides of this table were not square and the table was not -level, there were those who in the streets of New York and in public -gatherings, were inciting the crowd to “shoot John D. Rockefeller, Jr., -down like a dog.” That is the way they talked.</p> - -<p>The common stockholders have put $34,000,000 into this company in order -to make it go, so that you men will get your wages, you officers have -your salaries, and the directors get their fees, while not one cent has -ever come back to them in these fourteen years. </p> - -<p><span class="pagenum"><a name="Page_95" id="Page_95">[Pg 95]</a></span></p> - -<p>If there is anyone who questions that statement, let him speak. Now, -let me put it to you men, is it fair, in this corporation where we -are all partners, that three of the partners should get all of the -earnings, be they large or small—all of them—and the fourth nothing?</p> - -<p>Is there a man of you who would put his money in the savings bank and -leave it there for one year even, unless he was sure to get at least -four per cent. interest? Otherwise you would say that the savings bank -was trying to cheat you out of a proper return on your money.</p> - -<p>But for fourteen years, to my knowledge—how much longer I do not -know—the common stockholders have gotten not one cent out of this -company. I just want you to put that in your pipes and smoke it, and -see if it tallies with what you have heard about the stockholders -oppressing you and trying to get the better of you. That does not sound -like oppression, like trying to get the best of the bargain!</p> - -<p>And you cannot expect that any one of the partners will remain -indefinitely in this or any other corporation if he does not get a fair -share of the earnings, with the others. Capital is entitled to a fair -return, just the same as labor is.</p> - -<p>Would you continue working in some mining camp for even a week, much -less a month, a year, or fourteen<span class="pagenum"><a name="Page_96" id="Page_96">[Pg 96]</a></span> years, without pay? Of course you -would not. You would go to Pennsylvania, Indiana, Ohio—anywhere else -on God’s earth where you could get a fair return for your work.</p> - -<p>Now, the stockholders have been pretty patient all this time; they have -taken a lot of abuse because people have not told the truth.</p> - -<p>I think if we had all gotten together, as we have to-day, months and -years ago, and discussed these questions, and the facts had been fairly -presented, that there is not a man in this room but who would have said:</p> - -<p>“That is not a square deal, and in so far as I have anything to do with -this company, whether I am digging coal, driving mules, or sitting in -an office directing operations—whatever my position, I will do what -I can to see to it that every last man in this big family here gets a -square deal.”</p> - -<p>Now, I am not here to seek sympathy for the common stockholders, but I -just want to point out to you what you ought to know: that capital will -not stay indefinitely where it does not get proper recognition and a -reasonable return.</p> - -<p>And not one man in this room can afford to have the capital invested -in the mines of the Colorado Fuel and Iron Company become discouraged -and withdraw, because as capital gets discouraged and <span class="pagenum"><a name="Page_97" id="Page_97">[Pg 97]</a></span>withdraws, -work falls off, mines are closed, wages go down, men are thrown out -of employment, and the whole enterprise is endangered, and all of -these things may result because only three of the four sides in the -corporation have received consideration.</p> - -<p>(<i>Interruption by Mr. Ben Beach, superintendent of Coal Creek mine</i>:)</p> - -<p>“Mr. Rockefeller, I wonder whether I may say a word right here?</p> - -<p>“Mr. Rockefeller and Fellow Workmen: What Mr. Rockefeller has stated in -regard to the common stock I can vouch for, for about eight years ago I -bought some common stock in the C. F. & I. Co. and I have been one of -those sorry men because I never got any returns for it.”</p> - -<p>Mr. Rockefeller: That is testimony that comes directly home. I have -been expecting to hear such expressions from the stockholders. I have -been expecting that there would be criticism, and just criticism, from -men, like our friend here, who have had no dividends on their stock all -these years. They may well say:</p> - -<p>“What right have you to go on spending money for club houses, bath -houses and fences, for this improvement in the camps, or that, simply -to add to the comfort of the men, when we common stockholders have -never gotten a cent?” That is just the way the<span class="pagenum"><a name="Page_98" id="Page_98">[Pg 98]</a></span> stockholders may well -feel. I am glad you brought up that point, Mr. Beach.</p> - -<p>I want to show you another thing in connection with this table, this -corporation with its four sides, working harmoniously, and with -earnings piling up. When any one side says to itself:</p> - -<p>“I am not satisfied with my fair portion; I am going to grab all I can -and let the others take care of themselves,” and thereupon commences to -reach up and lay hold of more than its fair share of the earnings, then -it happens that the earnings commence to fall off, there is trouble and -nothing is left to divide.</p> - -<p>(<i>At this point, Mr. Rockefeller raised one of the legs of the table, -thereby tilting it and causing the coins piled upon it to slip off.</i>)</p> - -<p>There is still another thing I want to speak of in regard to this -table. Here is one of the four parties in the corporation who says:</p> - -<p>“I am tired of doing my share, holding up my end of the game. We -wage-earners are tired of this thing, we don’t like to carry our fair -share of the burden, let us try to get all we can out of the company -and put in just as little as we can. Let us do each day just as little -work as we can and hold the job down.”</p> - -<p>Now, you know there are men going over this <span class="pagenum"><a name="Page_99" id="Page_99">[Pg 99]</a></span>country from one end to -the other who are saying to the workmen of the country:</p> - -<p>“Your game is to get the shortest possible working day you can, to do -the least possible work that you can get away with and not lose your -job, and to get just as much as you can for what little you do.”</p> - -<p>Any man who preaches that doctrine, instead of being your friend, is -your deadliest enemy, because see what happens. Here is the side of -Labor; it says:</p> - -<p>“We will get out from underneath, we won’t work so hard; we will do -just as little as we can.”</p> - -<p>And Labor’s corner begins to drop down (<i>lowering the corner of the -table</i>), the earnings fall off (<i>coins slip off</i>) and there is nothing -left for anyone (<i>the table is bare</i>).</p> - -<p>Men, only when every man connected with that square corporation which -is on the level, is interested, unselfishly, not in what he can get -out of the corporation, but what he can put into it for the benefit of -every man in the concern, will that man himself get the most out of it.</p> - -<p>And I think there is no one thing that threatens greater harm to the -interests of the workingmen of this country than that pernicious, that -wicked, that false doctrine, that a man should do just as little work -in a day as he possibly can, and just as poor work as he possibly can, -and hold on to his job. </p> - -<p><span class="pagenum"><a name="Page_100" id="Page_100">[Pg 100]</a></span></p> - -<p>We see, then, what this company ought to be, what any corporation ought -to be: a concern that is square, and always on the level, with every -man doing his part. You do not need to take my word for it, you see -from the illustration of the table that the interest of every man is -sacrificed when any other principle governs.</p> - -<p>Now—the problem which lies before the Colorado Fuel and Iron Company -is to so interrelate the different elements in the company that -the best interests of all will constantly be conserved, and the -wage-earners, seeing the situation as it is here shown, must say and -will say—because they are square men:</p> - -<p>“We only want a square deal; we only want what is our fair proportion -of return from this corporation; we will do our best to make it a -success because we know that our success is dependent upon the success -of all our partners.”</p> - -<p>The officers must say:</p> - -<p>“Our interest is to have every man that works with us realize that we -are his friends, not his enemies; that there is no reasonable thing -that he may want to talk about which we will not gladly discuss with -him and explain.”</p> - -<p>The directors must, on their part, give their best energies and efforts -to the devising of policies which will be in the interest of all. -The common stockholders must be patient yet awhile as they look at -that empty<span class="pagenum"><a name="Page_101" id="Page_101">[Pg 101]</a></span> table from which the rest of you have rightly taken your -earnings, and they will be patient, I am sure, if they feel that all of -the other elements in the company are earnestly coöperating to bring -about the highest success of each and to secure a fair deal all around.</p> - -<p>This meeting has been called to-day for the purpose of seeing whether -we can work out and agree upon, among ourselves here, some plan which -will accomplish what I feel sure we all want to accomplish. I have been -asked to explain the plan which is up for our consideration.</p> - -<p>I may say, men, that for years this great problem of Labor and Capital -and of corporate relationships has engaged my earnest attention and -study, while for the last eighteen months I have spent more of my time -on the particular problems which confront this company than I have put -on any other one interest with which I am related.</p> - -<p>I have talked with all of the men whom I could get in touch with who -have had experience with or have studied these vital questions. I have -conferred with experts, and I have tried in every way to get the best -information I could, looking toward the working out of some plan which -would accomplish the result we are all striving to attain.</p> - -<p>Nearly a year ago the officers of the company, after having studied -this question with us in New<span class="pagenum"><a name="Page_102" id="Page_102">[Pg 102]</a></span> York, introduced, as you know, the -beginning of such a plan, namely, the selection by the men at each camp -of duly chosen representatives, to confer with the officers of the -company in regard to matters of common interest.</p> - -<p>That was the beginning, and Mr. Welborn, in discussing the plan with -you men, told you that it was only the beginning, that as rapidly -as it became clear what further steps should be taken in order to -conserve the common interest, those steps would be jointly discussed -and introduced as soon as agreed upon. And so, in conjunction with -Mr. Welborn and other able advisers, we have worked out a further -development of the plan adopted last fall.</p> - -<p>Then I said to myself: nothing shall be said about this plan, nor will -we undertake to complete it until I have myself seen every mining camp -operated by the company.</p> - -<p>And now I have visited every camp, with the exception of those on the -western slope, and lack of time alone has prevented my getting over -there to see you men.</p> - -<p>I have gone, as you know, to every camp in the southern fields, have -talked privately with every superintendent, except one who was away, -and with all of the representatives at each camp with the exception of -some two or three who were not available at the time;<span class="pagenum"><a name="Page_103" id="Page_103">[Pg 103]</a></span> I have gone into -scores of your homes and I met your wives and children, and have seen -how you live; I have looked at your gardens, and in camps where fences -were only recently built have seen how eagerly you have planted gardens -the moment opportunity was afforded, and how quickly you have gotten -the grass to grow, also flowers and vegetables, and how the interest in -your homes has thereby been increased.</p> - -<p>I inquired specifically about the water supply at each camp; I went -down into several of the mines and talked with hundreds of the miners; -I looked into the schools, talked with the teachers, inquired what -educational advantages your children were getting.</p> - -<p>I asked what opportunities you men, my partners, had for getting -together socially, and I visited some of your club houses and saw plans -for others. I went into your wash houses and talked with the men before -and after bathing.</p> - -<p>As you know, we have pretty nearly slept together—it has been reported -that I slept in one of your nightshirts—I would have been proud had -the report been true.</p> - -<p>If any man could have gone more carefully, more thoroughly, into the -working and living conditions that affect you, my partners, I should -be glad to have had him make me suggestions as to what further I might -have done. </p> - -<p><span class="pagenum"><a name="Page_104" id="Page_104">[Pg 104]</a></span></p> - -<p>Now, it was only after that careful and exhaustive personal study that -I was willing to go on with the plan of representation and undertake to -complete it for presentation to you. And, frankly, every waking moment -since I left you men in the Fremont district last Saturday, practically -every daylight hour of this last week has been spent with the officers -of this company in constant, careful, earnest thought looking toward -the development of such a plan as would serve our common interest in -the best possible way.</p> - -<p>I have made a very lengthy introduction, and will now proceed to the -explanation of the plan. I shall be glad if Mr. Welborn, Mr. Weitzel, -Mr. Matteson, or Mr. King, whose assistance has been of the greatest -value in working out this plan, will correct me as I go along in case I -make any mistake or omit any features.</p> - -<p>(<i>Mr. Rockefeller then explained the plan in detail, calling attention -to the fact that if it met with the approval of the representatives and -officers in the meeting, together with an agreement respecting wages, -working and living conditions, both would be submitted on the one hand -to a vote of the men in the camps, and on the other to the directors of -the company, and if then approved, the agreement would be signed and -become binding until January 1, 1918. Mr. Rockefeller went on to say:</i>)</p> -<p><span class="pagenum"><a name="Page_105" id="Page_105">[Pg 105]</a></span></p> - -<p>I want to stay in Colorado until we have worked out some plan that we -all agree is the best thing for us all, because there is just one thing -that no man in this company can ever afford to have happen again, be he -stockholder, officer, or employee, or whatever his position, and that -is, another strike.</p> - -<p>I know we are all agreed about that, every last man of us, and I -propose to stay here if it takes a year, until we have worked out among -ourselves, right in our own family, some plan that we all believe -is going to prevent any more disturbances, any more interruption of -the successful operation of this great company in which we are all -interested.</p> - -<p>I have been hoping that the votes in all the camps could be taken early -next week, so that we would know without delay what the spirit and -wish of the men and the directors is. I speak of this point so that in -explaining the matter to the men in your camps you representatives will -make it clear to them why we are proceeding a little more rapidly than -we would if I lived here all the time, and if I was not so desirous of -seeing some agreement reached before I go away.</p> - -<p>There will be a meeting of the Board of Directors on Monday next, and -if this meeting should accept this plan and recommend its adoption, the -Board will act on that day. I should hope that meetings could be held -in the various camps on Monday, Tuesday<span class="pagenum"><a name="Page_106" id="Page_106">[Pg 106]</a></span> and Wednesday. You men can -explain the plan to the men in the camps privately and in little groups -so that they will be ready to consider it fully and then vote on it by -the middle or toward the latter part of next week.</p> - -<h3>FOOTNOTE:</h3> - -<p><a name="Footnote_5_5" id="Footnote_5_5"></a><a href="#FNanchor_5_5">[5]</a> Address at the joint meeting of the officers and -representatives of the employees of the Colorado Fuel and Iron Company, -Pueblo, October 2, 1915.</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_107" id="Page_107">[Pg 107]</a></span></p> - -<h2><span>VI</span> <span class="smaller"><span class="smcap">To the People of Colorado<a name="FNanchor_6_6" id="FNanchor_6_6"></a><a href="#Footnote_6_6" >[6]</a></span></span></h2> - -<p>Of all the many cordial receptions which have been accorded me since I -was so fortunate as to enter your hospitable State, none has been more -gratifying or more deeply appreciated than the one which you citizens -of Denver have to-day tendered me. And I count it a most gratifying -climax to my visit to Colorado that I should have this opportunity of -meeting so splendid a gathering of the representative business men and -citizens of this fair State.</p> - -<p>As I have traveled about Colorado the past three weeks I have been -charmed with the beauty and grandeur of the scenery; I have been -inspired by the invigorating climate, the clear air, the blue sky. I -have been impressed with the fertility of your soil, with the vast -extent and richness of your mineral wealth. But above all, I have been -captivated by the cordiality of your people.</p> - -<p>And so I am very happy to have this opportunity<span class="pagenum"><a name="Page_108" id="Page_108">[Pg 108]</a></span> to-day of expressing -to you, and through you to the people of Colorado, my deep appreciation -of the many kindnesses and courtesies which have been shown me during -my stay among you.</p> - -<p>These I have accepted as intended partially for myself, but largely for -my father, whose representative I am, and in whose name as well as my -own I thank you.</p> - -<p>My father has been for many years a good friend of the people and State -of Colorado. His friendship for you, his belief in you, his confidence -in the future of this State, have been clearly shown by his having put -considerable sums of money into the steel and coal industries of the -State through his investments in the Colorado Fuel and Iron Company; -and, as many of you know, during the fourteen years since he made his -first investment in that company, except for one payment made on the -preferred stock on account of an accumulation of dividends, there has -not come back to him or the common stockholders one single cent of -return.</p> - -<p>And yet my father has not lost his faith in the State of Colorado nor -in the people of Colorado; he believes in you, and the fact that his -interest in this company continues to be a very substantial one is a -sure proof of his attitude.</p> - -<p>I wish very much that he were here to-day himself.<span class="pagenum"><a name="Page_109" id="Page_109">[Pg 109]</a></span> I have often had -that wish as I have gone among you during these weeks.</p> - -<p>Some of the papers have mentioned my democratic spirit. If my father -had been among you as I have been, no comment in regard to my attitude -would have been made, for of all men he is most democratic and -approachable, as hundreds of those who know him will testify, and in -that atmosphere of democracy I have been reared. Born and brought up in -the country, at an early age he learned what hard work meant.</p> - -<p>When his period of schooling had been completed he went into active -business for himself, and during the many years following, when he was -actively engaged in business, he was constantly in close personal touch -with the working classes, among whom he found many of his best and -truest friends.</p> - -<p>At his country place on the Hudson there are constantly employed -several hundred men of different nationalities; many of these employees -he knows by name; he is constantly mingling with them in their work, -interested in their progress and in their home life, and it is not an -infrequent sight, at the close of the day’s work, to see him returning -home in his automobile with half a dozen or a dozen Italian and -Hungarian workingmen crowded about him on the seats and standing on the -running board as he gives them a lift on their way home. </p> - -<p><span class="pagenum"><a name="Page_110" id="Page_110">[Pg 110]</a></span></p> - -<p>When motoring about the country he may frequently be found talking with -a group of men at the country store in a little village, and when he -comes upon school children returning from their school he delights to -load as many of them into his automobile as possible and give them a -ride on their way.</p> - -<p>I recall not long since the death of a colored teamster who had for -some years been in my father’s employ. My father was among the first to -visit the bereaved family in their humble home above the work stable, -that he might express his sympathy with them in their sorrow, and as he -stood at the grave his tears were mingled with the tears of the other -mourners as he paid his last tribute of respect to a faithful employee -and a true friend.</p> - -<p>When called as a witness in New York by the Industrial Relations -Commission last winter, my father stated very clearly his attitude -toward workingmen.</p> - -<p>Briefly, these were the three points that he made:</p> - -<p>That he believed that Labor and Capital were partners, not enemies.</p> - -<p>That in any industry with which he was connected he would gladly -welcome the workers as stockholders, and further:</p> - -<p>That it would be his wish that those who work with their hands be given -representation upon the Board of Directors, so that they might come to -have a closer<span class="pagenum"><a name="Page_111" id="Page_111">[Pg 111]</a></span> knowledge of the problems with which the management of -the corporation is confronted.</p> - -<p>The word “fear” is not found in my father’s vocabulary, nor does he -know what the sensation is, and yet he has the gentleness and the -tenderness of a woman.</p> - -<p>Although he has been accustomed to think in world terms in the -development of the business and philanthropic enterprises to which his -life has been devoted, there is no person in his household too humble -to receive his frequent kindly and personal thought.</p> - -<p>Criticized, maligned, and condemned these many years, not only for his -business success achieved through his ability to gain the confidence -and coöperation of men, to bring all parties into harmony and to effect -economies in every possible way, but also because of his philanthropic -endeavors, there is still not the slightest trace of bitterness in his -character and he holds in his heart nothing but good-will toward every -man.</p> - -<p>And if, in their kindness of heart, the people of Colorado have found -in me anything that may have seemed admirable, that, and whatever else -I am or may be, I owe to my sainted mother and my honored father, -whose training and example I regard as a priceless heritage. And so -again I say I wish that my father were here that he might meet you men -personally and be confirmed in the view which he has<span class="pagenum"><a name="Page_112" id="Page_112">[Pg 112]</a></span> held during past -months of unrest and conflict, to the effect that many of the evil and -censorious reports which have been spread about the country in regard -to this great State and its people are untrue; that you, on the other -hand, coming to know him, might realize the injustice and the cruelty -of the things that have been said and written about him during these -many years.</p> - -<p>And again, in his absence, on his behalf, as well as for myself, I -thank you for your kindness and the evidences of your friendship to -him and to me, which have been countless during these days of my happy -residence among you.</p> - -<p>There has been so much said with regard to the views which my father -and I have held and do hold in regard to the organization of labor, and -also in regard to the relations which should exist between the various -parties in any company or corporation, that it is perhaps not unfitting -for me to state in a few words just what those views are.</p> - -<p>The position I took when called before the Subcommittee of Mines and -Mining of the House of Representatives in Washington two years ago, -in regard to the right of every American workingman to work for whom -he pleased and upon such terms as he pleased, has been frequently -misunderstood and misrepresented. </p> - -<p><span class="pagenum"><a name="Page_113" id="Page_113">[Pg 113]</a></span></p> - -<p>It has been construed as indicating that my father and I were not only -opposed to the organization of labor, but that we were persistently and -continually fighting it. No such inference is correct, for absolutely -the contrary is the fact.</p> - -<p>I can, perhaps, present in the briefest and clearest way the views -which we hold on these two subjects by referring to several paragraphs -from a statement which I read before the Industrial Relations -Commission in New York last January:</p> - -<p>“First, with reference to my attitude toward labor unions: I believe -it to be just as proper and advantageous for labor to associate itself -into organized groups for the advancement of its legitimate interests, -as for capital to combine for the same object.</p> - -<p>“Such associations of labor manifest themselves in promoting -collective bargaining, in an effort to secure better working and -living conditions, in providing machinery whereby grievances may -easily and without prejudice to the individual be taken up with the -management. Sometimes they provide benefit features, sometimes they -seek to increase wages; but whatever their specific purpose, so long -as it is to promote the well-being of the employees, having always due -regard for the just interests of the employer and the public, leaving -every worker free to associate himself with<span class="pagenum"><a name="Page_114" id="Page_114">[Pg 114]</a></span> such groups or to work -independently, as he may choose—I favor them most heartily.</p> - -<p>“Combinations of capital are sometimes conducted in an unworthy manner -contrary to law and in disregard of the interest both of labor and the -public. Such combinations cannot be too strongly condemned nor too -vigorously dealt with.</p> - -<p>“Although combinations of this kind are the exception, such publicity -is generally given to their unsocial acts that all combinations of -capital, however rightly managed or broadly beneficent, are thereby -brought under suspicion.</p> - -<p>“Likewise, it sometimes happens that combinations of labor are -conducted without just regard for the rights of the employer or the -public, and methods and practices adopted which, because unworthy -or unlawful, are deserving of public censure. Such organizations of -labor bring discredit and suspicion upon other organizations which are -legitimate and useful, just as is the case with improper combinations -of capital, and they should be similarly dealt with.</p> - -<p>“I should be the last, however, to allow the occasional failure in the -working of the principle of the organization of labor to prejudice me -against the principle itself, for in that principle I strongly believe.</p> - -<p>“In the further development of the organization of labor and of large -business, the public interest, as well<span class="pagenum"><a name="Page_115" id="Page_115">[Pg 115]</a></span> as the interest of Labor and -Capital alike, will, it seems to me, be best advanced by whatever -stimulates every man to do the best work of which he is capable; by a -fuller recognition of the common interest of employers and employed; -and by an earnest effort to dispel distrust and hatred and to promote -good-will.</p> - -<p>“I believe that the ultimate object of all activities in a republic -should be the development of the manhood of its citizens; that such -manhood can be developed to the fullest degree only under conditions -of freedom for the individual, and that industrial enterprises can and -should be conducted in accordance with these principles.</p> - -<p>“I believe that a prime consideration in the carrying on of industry -should be the well-being of the men and women engaged in it, and that -the soundest industrial policy is that which has constantly in mind the -welfare of the employees as well as the making of profits, and which, -when the necessity arises, subordinates profits to welfare.</p> - -<p>“A business to be successful must not only provide to labor -remunerative employment under proper working conditions, but it must -also render useful service to the community and earn a fair return on -the money invested.</p> - -<p>“The adoption of any policy toward labor, however favorable it may -seem, which results in the bankruptcy<span class="pagenum"><a name="Page_116" id="Page_116">[Pg 116]</a></span> of the corporation and the -discontinuance of its work, is as injurious to labor which is thrown -out of employment, as it is to the public which loses the services of -the enterprise, and to the stockholders whose capital is impaired.</p> - -<p>“I believe it to be the duty of every citizen to do all within his -power to improve the conditions under which men work and live. I -believe that that man renders the greatest social service who so -coöperates in the organization of industry as to afford to the largest -number of men the greatest opportunity for self-development, and the -enjoyment by every man of those benefits which his own work adds to the -wealth of civilization.</p> - -<p>“In order to live, the wage-earner must sell his labor from day to day. -Unless he can do this, the earnings from that day’s labor are gone -forever. Capital can defer its returns temporarily in the expectation -of future profits, but labor cannot. If, therefore, fair wages and -reasonable living conditions cannot otherwise be provided, dividends -must be deferred or the industry abandoned.</p> - -<p>“I believe that a corporation should be deemed to consist of its -stockholders, directors, officers and employees; that the real -interests of all are one, and that neither Labor nor Capital can -permanently prosper unless the just rights of both are conserved.” </p> - -<p><span class="pagenum"><a name="Page_117" id="Page_117">[Pg 117]</a></span></p> - -<p>It was in line with these views that the plan of industrial -representation recently proposed by the Colorado Fuel and Iron Company, -and already adopted by the directors and by a majority vote of the -employees of the different camps, was developed.</p> - -<p>The underlying principle is that of coöperation, the theory being that -the interests are common interests, and this leads to the development -of the committees called for in the plan, as joint committees, on each -of which the representatives of the workers have equal place with the -representatives of the officers of the company.</p> - -<p>In contrast with this spirit of coöperation is the spirit which too -often has been in evidence in some organizations of labor. There, -seemingly, labor is arrayed against capital. It is war! And apparently -success cannot come to either party except failure or harm comes to the -other.</p> - -<p>I need not point out to you men the fact that in this day and -generation we cannot hope for industrial peace, we cannot hope for -prosperity in this fair land, until labor and capital join hands and -recognize that their interest is a common interest, that what hurts one -hurts the other, that what develops the well-being and the prosperity -of one must of necessity develop the well-being and prosperity of the -other.</p> - -<p>May I also point out the spirit of democracy which<span class="pagenum"><a name="Page_118" id="Page_118">[Pg 118]</a></span> underlies this -plan? All of the employees in the corporation are entitled to join in -it, regardless of whether they are or are not members of any society, -fraternity or union, as contrasted with any plan, where only those who -elect to join an organization are eligible to the benefits which come -from it.</p> - -<p>Every man in the camps of the Colorado Fuel and Iron Company is -considered in this industrial plan, is represented and can be heard, -and his complaint, be it great or small, can be carried from one -officer to another until it reaches the ear of the president of the -company.</p> - -<p>Those who have coöperated in the development of this plan recognize -that it is far from perfect, that it will have to be changed and -adapted to the requirements of the company in which it has been adopted.</p> - -<p>On the other hand, it is the earnest hope of all who are associated in -the plan that it may point the way toward a closer coöperation between -the employees and the other parties in interest in this company, that -it may so establish relations of friendship and of mutual confidence, -that it may so benefit the workers, the officers and the stockholders -of the company, that there may never come a day when there will be -repeated the industrial disorders which have occurred in the past in -this company and in other companies in this State. </p> - -<p><span class="pagenum"><a name="Page_119" id="Page_119">[Pg 119]</a></span></p> - -<p>And it is our hope that toward that end all of the citizens of the -State will coöperate, for, as I have said to the representatives of -the workers of the Colorado Fuel and Iron Company, to many of the men -themselves, as well as to the officers and directors of the company, -there is one thing which must never happen again in that company, and -that is a strike. Wantonly wasteful of human life and human property, -no parties in interest are benefited thereby, but all seriously and -permanently harmed as well as the public and the citizens of the State.</p> - -<p>The way to prevent war is to cultivate and develop those qualities of -head and heart which promote happiness and peace, and it is with that -purpose in mind that this plan, to which I have referred, has been -developed.</p> - -<p>The time has come when the business man of this State and county must -think in terms of the laboring man, and the laboring man must think in -terms of the business man; when each must strive to imagine himself in -the other’s place; when the teaching that every man is his brother’s -keeper should no longer be a dead letter but a living reality; when -coöperation and not conflict should be the watchword.</p> - -<p>The opportunity to lead the nation in the permanent establishment of -industrial peace is yours; if you will lay hold upon it, the name of -this fair State will be written large in the history of the nation; if -you<span class="pagenum"><a name="Page_120" id="Page_120">[Pg 120]</a></span> let it pass, you and your children and your children’s children, -will never cease to regret this day.</p> - -<p>And if in any smallest way my coming to Colorado may prove to have been -of service to you in approaching the solution of this world problem -of industrial relations, I shall feel a sense of satisfaction and -gratitude beyond expression.</p> - -<h3>FOOTNOTE:</h3> - -<p><a name="Footnote_6_6" id="Footnote_6_6"></a><a href="#FNanchor_6_6">[6]</a> Address at the Chamber of Commerce Luncheon, Denver, -October 8, 1915.</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_121" id="Page_121">[Pg 121]</a></span></p> - -<h2>APPENDIX</h2> - -<h2>THE INDUSTRIAL CONSTITUTION</h2> - -<p class="center"><span class="smcap">Plan of Representation of Employees in the coal and iron mines of -the colorado fuel and iron company of colorado and wyoming</span> </p> - -<hr /> - -<p><span class="pagenum"><a name="Page_123" id="Page_123">[Pg 123]</a></span></p> - -<h2><span>I</span> <span class="smaller"><span class="smcap">Representation of Employees</span></span></h2> - -<blockquote><p><i>1. Annual meetings for election of employee’s representatives.</i></p></blockquote> - -<p>Employees at each of the mining camps shall annually elect from among -their number representatives to act on their behalf with respect to -matters pertaining to their employment, working and living conditions, -the adjustment of differences, and such other matters of mutual concern -and interest as relations within the industry may determine.</p> - -<blockquote><p><i>2. Time, place and method of calling annual meetings, and -persons entitled to be present and participate in the election of -representatives.</i></p></blockquote> - -<p>The annual meetings of employees for the election of their -representatives shall be held simultaneously at the several mining -camps on the second Saturday in January. The meetings shall be -called by direction of the president of the company. Notices of the -meetings, indicating their time and place, as well as the number of -representatives to be elected, shall be <span class="pagenum"><a name="Page_124" id="Page_124">[Pg 124]</a></span>publicly posted at each camp a -week in advance, and shall state that employees being wage-earners in -the employ of the company at the time of the meeting and for at least -three months immediately preceding, but not salaried employees, shall -be entitled to be present and vote. Special meetings shall be similarly -called when removal, resignations, or other circumstance occasions a -vacancy in representation.</p> - -<blockquote><p><i>3. Method of conducting meetings, and reporting election of -representatives.</i></p></blockquote> - -<p>Each meeting for the election of employees’ representatives shall -choose its own chairman and secretary. At the appointed hour, -the meeting shall be called to order by one of the employees’ -representatives, or, in the absence of a representative, any employee -present, and shall proceed to the election of a chairman and secretary. -The chairman shall conduct, and the secretary record, the proceedings. -They shall certify in writing to the president of the company the -names of the persons elected as the employees’ representatives for the -ensuing year.</p> - -<blockquote><p><i>4. Basis and term of representation.</i></p></blockquote> - -<p>Representatives of employees in each camp shall be on the basis of one -representative to every one hundred and fifty wage-earners, but each -camp, whatever<span class="pagenum"><a name="Page_125" id="Page_125">[Pg 125]</a></span> its number of employees, shall be entitled to at least -two representatives. Where the number of employees in any one camp -exceeds one hundred and fifty, or any multiple thereof, by seventy-five -or more, an additional representative shall be elected. The persons -elected shall act as the employees’ representatives from the time of -their election until the next annual meeting, unless in the interval -other representatives may, as above provided, have been elected to take -their places.</p> - -<blockquote><p><i>5. Nomination and election of representatives.</i></p></blockquote> - -<p>To facilitate the nomination and election of employees’ -representatives, and to insure freedom of choice, both nomination -and election shall be by secret ballot, under conditions calculated -to insure an impartial count. The company shall provide ballot boxes -and blank ballots, differing in form, for purposes of nomination and -election. Upon entering the meeting, each employee entitled to be -present shall be given a nomination ballot on which he shall write the -names of the persons whom he desires to nominate as representatives, -and deposit the nomination ballot in the ballot box. Each employee may -nominate representatives to the number to which the camp is entitled, -and of which public notice has been given. Employees unable to write -may ask any of their fellow employees to write for them on their -ballots the names of the<span class="pagenum"><a name="Page_126" id="Page_126">[Pg 126]</a></span> persons whom they desire to nominate; but in -the event of any nomination paper containing more names than the number -of representatives to which the camp is entitled, the paper shall not -be counted. The persons—to the number of twice as many representatives -as the camp is entitled to—receiving the highest number of nomination -votes shall be regarded as the duly nominated candidates for employees’ -representatives, and shall be voted upon as hereinafter provided. (For -example: If a camp is entitled to two representatives, the four persons -receiving the largest number of nominating votes shall be regarded -as the duly nominated candidates. If the camp is entitled to three -representatives, then the six persons receiving the largest number, etc.)</p> - -<blockquote><p><i>6. Counting of nomination and election ballots.</i></p></blockquote> - -<p>The chairman shall appoint three tellers, who shall take charge of -the ballot box containing the nomination votes, and, with the aid of -the secretary, they shall make out the list of the duly nominated -candidates, which shall be announced by the chairman. The meeting shall -then proceed to elect representatives by secret ballot, from among -the number of candidates announced, the same tellers having charge of -the balloting. If dissatisfied with the count, either as respects the -nomination or election, any twenty-five <span class="pagenum"><a name="Page_127" id="Page_127">[Pg 127]</a></span>employees present may demand a -recount, and for the purposes of the recount the chairman shall select -as tellers three from the number of those demanding a recount, and -himself assist in the counting, and these four shall act, in making the -recount, in place of the secretary and the tellers previously chosen. -There shall be no appeal from this recount, except to the president of -the company, and such appeal may be taken as hereinafter provided, at -the request of any twenty-five employees present and entitled to vote.</p> - -<blockquote><p><i>7. Appeal in regard to nomination or election.</i></p></blockquote> - -<p>The chairman of the meeting shall preserve for a period of one week -both the nomination and election ballots. Should an appeal be made -to the president within seven days in regard to the validity of the -nomination or election, upon request in writing signed by twenty-five -employees present at the meeting, the chairman shall deliver the -ballots to the president of the company for recount. Should no such -request be received within that time, the chairman shall destroy the -ballots. If after considering the appeal the president is of the -opinion that the nomination or election has not been fairly conducted, -he shall order a new election at a time and place to be designated by him. </p> - -<p><span class="pagenum"><a name="Page_128" id="Page_128">[Pg 128]</a></span></p> - -<blockquote><p><i>8. General proceedings at meetings.</i></p></blockquote> - -<p>At annual meetings for the election of representatives, employees may -consider and make recommendations concerning any matters pertaining -to their employment, working or living conditions, or arising out of -existing industrial relations, including such as they may desire to -have their representatives discuss with the president and officers of -the company at the Annual Joint Conference of the company’s officers -and employees, also any matters referred to them by the president, -other officers of the company, the Advisory Board or Social Joint -Committee appointed at the preceding annual joint conferences of -officials and employees of the company. A record of the proceedings -shall be made by the secretary of the meeting and certified to by the -chairman, and copies delivered to each of the representatives, to be -retained by them for purposes of future reference.</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_129" id="Page_129">[Pg 129]</a></span></p> - -<h2><span>II</span> <span class="smaller"><span class="smcap">District Conferences, Joint Committees and Joint Meetings</span></span></h2> - -<blockquote><p><i>1. District divisions.</i></p></blockquote> - -<p>To facilitate the purposes herein set forth, the camps of the company -shall be divided into five or more districts, as follows: the Trinidad -District, comprising all mines and coke oven plants in Las Animas -County; the Walsenburg District, comprising all mines in Huerfano -County; the Cañon District, comprising all mines in Fremont County; the -Western District, comprising all mines and coke oven plants located -on the Western Slope; the Sunrise District, comprising the iron mines -located in Wyoming.</p> - -<blockquote><p><i>2. Time, place and purpose of district conferences.</i></p></blockquote> - -<p>District conferences shall be held in each of the several districts -above mentioned at the call of the president, at places to be -designated by him, not later than two weeks following the annual -election of representatives, and at intervals of not more than four<span class="pagenum"><a name="Page_130" id="Page_130">[Pg 130]</a></span> -months thereafter, as the operating officers of the company, or a -majority of the representatives of the employees in each of the -several districts, may find desirable. The purpose of these district -conferences shall be to discuss freely matters of mutual interest and -concern to the company and its employees, embracing a consideration of -suggestions to promote increased efficiency and production, to improve -working and living conditions, to enforce discipline, avoid friction, -and to further friendly and cordial relations between the company’s -officers and employees.</p> - -<blockquote><p><i>3. Representation at district conferences.</i></p></blockquote> - -<p>At the district conferences the company shall be represented by its -president or his representative and such other officials as the -president may designate. The employees shall be represented by their -elected representatives. The company’s representatives shall not -exceed in number the representatives of the employees. The company -shall provide at its own expense appropriate places of meeting for the -conferences.</p> - -<blockquote><p><i>4. Proceedings of district conferences.</i></p></blockquote> - -<p>The district conferences shall be presided over by the president of -the company, or such executive officer<span class="pagenum"><a name="Page_131" id="Page_131">[Pg 131]</a></span> as he may designate. Each -conference shall select a secretary who shall record its proceedings. -The record of proceedings shall be certified to by the presiding officer.</p> - -<blockquote><p><i>5. Joint committees on industrial relations.</i></p></blockquote> - -<p>The first district conferences held in each year shall select the -following joint committees on industrial relations for each district, -which joint committees shall be regarded as permanent committees to -be intrusted with such duties as are herein set forth, or as may -be assigned by the conferences. These joint committees shall be -available for consultation at any time throughout the year with the -Advisory Board on Social and Industrial Betterment, the president, -the president’s executive assistant, or any officer of the operating -department of the company.</p> - -<p>(a) Joint Committee on Industrial Coöperation and Conciliation: to be -composed of six members.</p> - -<p>(b) Joint Committee on Safety and Accidents: to be composed of six -members.</p> - -<p>(c) Joint Committee on Sanitation, Health and Housing: to be composed -of six members.</p> - -<p>(d) Joint Committee on Recreation and Education: to be composed of six -members. </p> - -<p><span class="pagenum"><a name="Page_132" id="Page_132">[Pg 132]</a></span></p> - -<blockquote> - -<p><i>6. Selection and composition of joint committees.</i></p></blockquote> - -<p>In selecting the members of the several joint committees on industrial -relations, the employees’ representatives shall, as respects each -committee, designate three members and the president of the company or -his representative, three members.</p> - -<blockquote><p><i>7. Duties of Joint Committee on Industrial Coöperation and -Conciliation.</i></p></blockquote> - -<p>The Joint Committee on Industrial Coöperation and Conciliation may, of -their own initiative, bring up for discussion at the joint conferences, -or have referred to them for consideration and report to the president -or other proper officer of the company at any time throughout the year, -any matter pertaining to the prevention and settlement of industrial -disputes, terms and conditions of employment, maintenance of order and -discipline in the several camps, company stores, etc.</p> - -<blockquote><p><i>8. Duties of Joint Committee on Safety and Accidents.</i></p></blockquote> - -<p>The Joint Committee on Safety and Accidents may, of their own -initiative, bring up for discussion at the joint conferences, or have -referred to them for consideration and report to the president or -other proper<span class="pagenum"><a name="Page_133" id="Page_133">[Pg 133]</a></span> officer of the company at any time throughout the year, -any matter pertaining to the inspection of mines, the prevention of -accidents, the safeguarding of machinery and dangerous working places, -the use of explosives, fire protection, first aid, etc.</p> - -<blockquote><p><i>9. Duties of Joint Committee on Sanitation, Health and Housing.</i></p></blockquote> - -<p>The Joint Committee on Sanitation, Health and Housing may, of their -own initiative, bring up for discussion at the joint conferences, or -have referred to them for consideration and report to the president -or other proper officer of the company at any time throughout the -year, any matter pertaining to health, hospitals, physicians, nurses, -occupational disease, tuberculosis, sanitation, water supply, sewage -system, garbage disposal, street cleaning, wash and locker rooms, -housing, homes, rents, gardens, fencing, etc.</p> - -<blockquote><p><i>10. Duties of Joint Committee on Recreation and Education.</i></p></blockquote> - -<p>The Joint Committee on Recreation and Education may, of their own -initiative, bring up for discussion at the joint conferences, or -have referred to them for consideration and report to the president -or other<span class="pagenum"><a name="Page_134" id="Page_134">[Pg 134]</a></span> proper officer of the company, at any time throughout the -year, any matter pertaining to social centers, club houses, halls, -playgrounds, entertainments, moving pictures, athletics, competitions, -field days, holidays, schools, libraries, classes for those who speak -only foreign languages, technical education, manual training, health -lectures, classes in first aid, religious exercises, churches and -Sunday schools, Y. M. C. A. organizations, etc.</p> - -<blockquote><p><i>11. Annual and special joint meetings.</i></p></blockquote> - -<p>In addition to the district conferences in each of the several -districts, there shall be held in the month of December an annual -joint meeting, at a time and place to be designated by the president -of the company, to be attended by the president and such officers of -the company as he may select and by all the employees’ representatives -of the several districts. At this meeting reports covering the work of -the year shall be made by the several joint committees and matters of -common interest requiring collective action considered. A special joint -meeting of any two or more districts may be called at any time upon the -written request to the president of a majority of the representatives -in such districts or upon the president’s own initiative,<span class="pagenum"><a name="Page_135" id="Page_135">[Pg 135]</a></span> for the -consideration of such matters of common interest as cannot be dealt -with satisfactorily at district conferences. Notice of such special -joint meetings shall be given at least two weeks in advance.</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_136" id="Page_136">[Pg 136]</a></span></p> - -<h2><span>III</span> <span class="smaller"><span class="smcap">The Prevention and Adjustment of Industrial Disputes</span></span></h2> - -<blockquote><p><i>1. Observance of laws, rides and regulations.</i></p></blockquote> - -<p>There shall be on the part of the company and its employees, a strict -observance of the Federal and State laws respecting mining and labor -and of the company’s rules and regulations supplementing the same.</p> - -<blockquote><p><i>2. Posting of wages and rules.</i></p></blockquote> - -<p>The scale of wages and the rules in regard to working conditions shall -be posted in a conspicuous place at or near every mine.</p> - -<blockquote><p><i>3. No discrimination on account of membership or non-membership -in labor or other organizations.</i></p></blockquote> - -<p>There shall be no discrimination by the company or by any of its -employees on account of membership or non-membership in any society, -fraternity or union. </p> - -<p><span class="pagenum"><a name="Page_137" id="Page_137">[Pg 137]</a></span></p> - -<blockquote><p><i>4. The right to hire and discharge, and the management of the -properties.</i></p></blockquote> - -<p>The right to hire and discharge, the management of the properties, and -the direction of the working forces, shall be vested exclusively in the -company, and, except as expressly restricted, this right shall not be -abridged by anything contained herein.</p> - -<blockquote><p><i>5. Employees’ right to caution or suspension before discharge.</i></p></blockquote> - -<p>There shall be posted at each property a list of offenses for -commission of which by an employee dismissal may result without notice. -For other offenses, employees shall not be discharged without first -having been notified that a repetition of the offense will be cause -for dismissal. A copy of this notification shall, at the time of its -being given to an employee, be sent also to the president’s industrial -representative and retained by him for purposes of future reference. -Nothing herein shall abridge the right of the company to relieve -employees from duty because of lack of work. Where relief from duty -through lack of work becomes necessary, men with families shall, all -things being equal, be given preference. </p> - -<p><span class="pagenum"><a name="Page_138" id="Page_138">[Pg 138]</a></span></p> - -<blockquote><p><i>6. Employees’ right to hold meetings.</i></p></blockquote> - -<p>Employees shall have the right to hold meetings at appropriate places -on company property or elsewhere as they may desire outside of working -hours or on idle days.</p> - -<blockquote><p><i>7. Employees’ right to purchase where they please.</i></p></blockquote> - -<p>Employees shall not be obliged to trade at the company stores, but -shall be at perfect liberty to purchase goods wherever they may choose -to do so.</p> - -<blockquote><p><i>8. Employees’ right to employ checkweighmen.</i></p></blockquote> - -<p>As provided by statute, miners have the right to employ checkweighmen, -and the company shall grant the said checkweighmen every facility to -enable them to render a correct account of all coal weighed.</p> - -<blockquote><p><i>9. Employees’ right of appeal to president of company against -unfair conditions or treatment.</i></p></blockquote> - -<p>Subject to the provisions hereinafter mentioned, every employee shall -have the right of ultimate appeal to the president of the company -concerning any condition or treatment to which he may be subjected and -which he may deem unfair. </p> - -<p><span class="pagenum"><a name="Page_139" id="Page_139">[Pg 139]</a></span></p> - -<blockquote><p><i>10. Duty of president’s industrial representative.</i></p></blockquote> - -<p>It shall be the duty of the president’s industrial representative -to respond promptly to any request from employees’ representatives -for his presence at any of the camps and to visit all of them as -often as possible, but not less frequently than once every three -months, to confer with the employees or their representatives and -the superintendents respecting working and living conditions, the -observance of Federal and State laws, the carrying out of company -regulations, and to report the result of such conferences to the -president.</p> - -<blockquote><p><i>11. Complaints and grievances to be taken up first with foremen -and superintendents.</i></p></blockquote> - -<p>Before presenting any grievance to the president, the president’s -industrial representative, or other of the higher officers of the -company, employees shall first seek to have differences or the -conditions complained about adjusted by conference, in person or -through their representatives, with the mine superintendent.</p> - -<blockquote><p><i>12. Investigation of grievances by president’s industrial -representative.</i></p></blockquote> - -<p>Employees believing themselves to be subjected to unfair conditions -or treatment and having failed to<span class="pagenum"><a name="Page_140" id="Page_140">[Pg 140]</a></span> secure satisfactory adjustment of -the same through the mine superintendent may present their grievances -to the president’s industrial representative, either in person or -through their regularly elected representatives, and it shall be the -duty of the president’s industrial representative to look into the same -immediately and seek to adjust the grievance.</p> - -<blockquote><p><i>13. The right of appeal to the superior officers of the company -against unfair treatment, conditions, suspensions or dismissals.</i></p></blockquote> - -<p>Should the president’s industrial representative fail to satisfactorily -conciliate any difference, with respect to any grievance, suspension -or dismissal, the aggrieved employee, either himself or through his -representative—and in either case in person or by letter—may appeal -for the consideration and adjustment of his grievance to the division -superintendent, assistant manager or manager, general manager or the -president of the company, in consecutive order. To entitle an employee -to the consideration of his appeal by any of the higher officers herein -mentioned, the right to appeal must be exercised within a period of two -weeks after the same has been referred to the president’s industrial -representative without satisfactory redress. </p> - -<p><span class="pagenum"><a name="Page_141" id="Page_141">[Pg 141]</a></span></p> - -<blockquote><p><i>14. Reference of differences in certain cases to Joint Committees -on Industrial Coöperation and Conciliation.</i></p></blockquote> - -<p>Where the president’s industrial representative or one of the higher -officials of the company fails to adjust a difference satisfactorily, -upon request to the president by the employees’ representatives or -upon the initiative of the president himself, the difference shall -be referred to the Joint Committee on Industrial Coöperation and -Conciliation of the district and the decision of the majority of such -joint committee shall be binding upon all parties.</p> - -<blockquote><p><i>15. Representation on joint committees to be equal when -considering adjustment of differences.</i></p></blockquote> - -<p>Whenever a Joint Committee on Industrial Coöperation and Conciliation -is called upon to act with reference to any difference, except by the -consent of all present the joint committee shall not proceed with any -important part of its duties unless both sides are equally represented. -Where agreeable, equal representation may be effected by the withdrawal -of one or more members from the side of the joint committee having the -majority. </p> - -<p><span class="pagenum"><a name="Page_142" id="Page_142">[Pg 142]</a></span></p> - -<blockquote><p><i>16. Umpire to act with joint committees in certain cases.</i></p></blockquote> - -<p>Should the Joint Committee on Industrial Coöperation and Conciliation -to which a difference may have been referred fail to reach a majority -decision in respect thereto, if a majority of its members so agree, the -joint committee may select as umpire a third person who shall sit in -conference with the committee and whose decision shall be binding upon -all parties.</p> - -<blockquote><p><i>17. Arbitration or investigation in certain cases.</i></p></blockquote> - -<p>In the event of the Joint Committee on Industrial Coöperation and -Conciliation failing satisfactorily to adjust a difference by a -majority decision or by agreement on the selection of an umpire, as -aforementioned, within ten days of a report to the president of the -failure of the joint committee to adjust the difference, if the parties -so agree, the matter shall be referred to arbitration, otherwise it -shall be made the subject of investigation by the State of Colorado -Industrial Commission, in accordance with the provisions of the statute -regulating the powers of the commission in this particular. Where a -difference is referred to arbitration, one person shall be selected -as arbitrator if the parties can agree upon his <span class="pagenum"><a name="Page_143" id="Page_143">[Pg 143]</a></span>selection. Otherwise -there shall be a board of three arbitrators, one to be selected by -the employees’ representatives on the Joint Committee of Industrial -Coöperation and Conciliation in the district in which the dispute -arises, one by the company’s representatives on this committee, and a -third by the two arbitrators thus selected.</p> - -<p>By consent of the members of the Joint Committee on Industrial -Coöperation and Conciliation to which a difference has been referred, -the Industrial Commission of the State of Colorado may be asked to -appoint all of the arbitrators or itself arbitrate the difference. -The decision of the sole arbitrator or of the majority of the Board -of Arbitration or of the members of the State of Colorado Industrial -Commission when acting as arbitrators, as the case may be, shall be -final and shall be binding upon the parties.</p> - -<blockquote><p><i>18. Protection of employees’ representatives against -discrimination.</i></p></blockquote> - -<p>To protect against the possibility of unjust treatment because of any -action taken or to be taken by them on behalf of one or more of the -company’s employees, any employees’ representative believing himself -to be discriminated against for such a cause shall have the same right -of appeal to the officers of the company or to the Joint Committee on -Industrial<span class="pagenum"><a name="Page_144" id="Page_144">[Pg 144]</a></span> Coöperation and Conciliation in his district as is accorded -every other employee of the company. Having exercised this right in -the consecutive order indicated without obtaining satisfaction, for -thirty days thereafter he shall have the further right of appeal to -the Industrial Commission of the State of Colorado, which body shall -determine whether or not discrimination has been shown, and as respects -any representative deemed by the Commission to have been unfairly dealt -with, the company shall make such reparation as the State of Colorado -Industrial Commission may deem just.</p> - -<hr /> - -<p><span class="pagenum"><a name="Page_145" id="Page_145">[Pg 145]</a></span></p> - -<h2><span>IV</span> <span class="smaller"><span class="smcap">Social and Industrial Betterment</span></span></h2> - -<blockquote><p><i>1. Executive supervision.</i></p></blockquote> - -<p>The president’s executive assistant, in addition to other duties, -shall, on behalf of the president, supervise the administration of the -company’s policies respecting social and industrial betterment.</p> - -<blockquote><p><i>2. Coöperation of president’s executive assistant with joint -committees in carrying out policies of social and industrial -betterment.</i></p></blockquote> - -<p>In the discharge of his duties, the president’s executive assistant -shall from time to time confer with the several Joint Committees, on -Industrial Coöperation and Conciliation, on Safety and Accidents, -on Sanitation, Health and Housing, and on Recreation and Education, -appointed at the annual joint conferences, as to improvements or -changes likely to be of mutual advantage to the company and its -employees. Members of the several joint committees shall be at liberty -to communicate at any time with the president’s <span class="pagenum"><a name="Page_146" id="Page_146">[Pg 146]</a></span>executive assistant -with respect to any matters under their observation or brought to their -attention by employees or officials of the company, which they believe -should be looked into or changed. As far as may be possible, employees -should be made to feel that the president’s executive assistant will -welcome conferences with members of the several joint committees on -matters of concern to the employees, whenever such matters have a -direct bearing on the industrial, social, and moral well-being of -employees and their families or the communities in which they reside.</p> - -<blockquote><p><i>3. Advisory Board on Social and Industrial Betterment.</i></p></blockquote> - -<p>In addition to consulting, from time to time, the several joint -committees or their individual members, the president’s executive -assistant shall be the chairman of a permanent Advisory Board on Social -and Industrial Betterment, to which may be referred questions of -policy respecting social and industrial betterment and related matters -requiring executive action.</p> - -<blockquote><p><i>4. Members of Advisory Board.</i></p></blockquote> - -<p>The Advisory Board on Social and Industrial Betterment shall be -composed of such of the company’s officers as the president may -designate. </p> - -<p><span class="pagenum"><a name="Page_147" id="Page_147">[Pg 147]</a></span></p> - -<blockquote><p><i>5. Regular and special meetings of Advisory Board.</i></p></blockquote> - -<p>The Advisory Board shall meet at least once in every six months, and -may convene for special meetings upon the call of the chairman whenever -he may deem a special meeting advisable.</p> - -<blockquote><p><i>6. Powers and duties of the Advisory Board.</i></p></blockquote> - -<p>The Advisory Board shall have power to consider all matters referred -to it by the chairman, or any of its members, or by any committee or -organization directly or indirectly connected with the company, and may -make such recommendations to the president as in its opinion seem to be -expedient and in the interest of the company and its employees.</p> - -<blockquote><p><i>7. Supervision of community needs by president’s executive -assistant.</i></p></blockquote> - -<p>The president’s executive assistant shall also exercise a general -supervision over the sanitary, medical, educational, religious, social -and other like needs of the different industrial communities, with a -view of seeing that such needs are suitably and adequately provided -for, and the several activities pertaining thereto harmoniously -conducted. </p> - -<p><span class="pagenum"><a name="Page_148" id="Page_148">[Pg 148]</a></span></p> - -<blockquote><p><i>8. Method of carrying out improvements.</i></p></blockquote> - -<p>Improvements respecting social and industrial betterment shall, after -approval by the president, be carried out through the regular company -organization.</p> - -<blockquote><p><i>9. Hospitals and doctors.</i></p></blockquote> - -<p>In camps where arrangements for doctors and hospitals have already been -made and are satisfactory, such arrangements shall continue.</p> - -<p>In making any new arrangement for a doctor, the employees’ -representatives in the camps concerned, the president’s executive -assistant, and the chief medical officer shall select a doctor, and -enter into an agreement with him which shall be signed by all four -parties.</p> - -<blockquote><p><i>10. Company periodical.</i></p></blockquote> - -<p>The company shall publish, under the direction of the president’s -executive assistant, a periodical which shall be a means of -communication between the management, the employees and the public, -concerning the policies and activities of the company. This periodical -shall be used as a means of coördinating, harmonizing, and furthering -the social and industrial betterment work, and of informing employees -of the personnel and proceedings of conferences, boards and<span class="pagenum"><a name="Page_149" id="Page_149">[Pg 149]</a></span> committees -in which they are interested. It shall record events pertaining -to social and industrial activities, and be a medium for making -announcements with reference to the same, and for diffusing information -of mutual interest to the company and its employees.</p> - -<blockquote><p><i>11. Cost of administering plan of representation and of -furthering social and industrial betterment policies.</i></p></blockquote> - -<p>The promotion of harmony and good-will between the company and its -employees and the furtherance of the well-being of employees and their -families and the communities in which they reside being essential to -the successful operation of the company’s industries in an enlightened -and profitable manner, the expenses necessarily incident to the -carrying out of the social and industrial betterment policies herein -described, and the plan of representation, joint conferences and -joint meetings, herein set forth, including the payment of traveling -expenses of employees’ representatives when attending joint conferences -and annual joint meetings, and their reimbursement for the working -time necessarily lost in so doing, shall be borne by the company. But -nothing herein shall preclude employees of the company from making such -payment to their representatives in consideration of services rendered -on their behalf as they themselves may voluntarily desire and agree to make.</p> - -<p> </p> -<p> </p> -<hr class="pgx" /> -<p>***END OF THE PROJECT GUTENBERG EBOOK THE PERSONAL RELATION IN INDUSTRY***</p> -<p>******* This file should be named 65336-h.htm or 65336-h.zip *******</p> -<p>This and all associated files of various formats will be found in:<br /> -<a href="http://www.gutenberg.org/dirs/6/5/3/3/65336">http://www.gutenberg.org/6/5/3/3/65336</a></p> -<p> -Updated editions will replace the previous one--the old editions will -be renamed.</p> - -<p>Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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