during 20 years. No nation-wide investigation of the condition of tenant farmers has ever been made, but in Texas where the in

vestigation of this Commission were thorough and conclusive, it was found not only that the economic condition of the tenant was extremely bad, but also that he was far from being free, whereas his future was regarded as hopeless. Badly housed, ill-nourished, uneducated, and hopeless, these tenants continue year after year to eke out a bare living, moving frequently from one farm to another in the hope that something will turn up.

"Without a large family, the tenant cannot hope to succeed or break even, so in each tenant family numerous children are being reared to a future which under present conditions will be no better,if as good as that of their parents. The wife of a typical tenant farmer, the mother of eleven children, stated in her testimony before the Commission that in addition to the rearing of children and the work of the house, she always helped with the crops, and during all the years of her married life she had had no ready-made dresses and only three hats.

"The investigations of this Commission in that rich and generally prosperous section of the country only confirm and accentuate the statements of the Federal Inwhich dustrial Commission reported in 1902: 'The result of this system (share tenancy) is that the renters rarely ever succeed in laying by a surplus. On the contrary, their experiences are so discouraging that they seldom remain on the same farm for more than a year. They are not only unable to lay by any money, but their children remain uneducated and half clothed. The system is apparently one of the most undesirable, so far as its effect on the community is concerned.'"

Corporations and Wage Earners. Discussing existing relations between employers and employes, the report points out out that the typical form of industrial organization is the corporation.

"In transportation," says Mr. Manly, "approximately 100 per cent of the wage earners are employed by corporations; in mining, 90 per cent; and in manufacturing, 75 per cent. Moreover, it is under this form that the great problems of industrial relations have developed."

After analyzing the elements that go to make up a typical corporation, Mr. Manly says:

"The ordinary stockholder in a large corporation actually occupies a less direct relationship to the corporation in which he is interested, has less knowledge of its actual operations, and less control over its management than the ordinary citizen has over local, state and national governments.

"Boards of Directors in theory are responsible for and would naturally be expected to maintain supervision over every phase of the corporation's management, but,

as a matter of fact, we know that such supervision is maintained only over the financial phase of the business, controlling the acquisition of money to operate the business, and distributing the profits. Actual direction generally exists only through the removal of executive officials who fail to deliver the expected profits, and through the appointment of their successors.

"Upon the testimony of financiers representing, as directors, hundreds of corporations, the typical director of large corporations is not only totally ignorant of the actual operations of such corporations, whose properties he seldom if ever, visits, but feels and exercises no responsibility for anything beyond the financial condition and the selection of executive officials. Upon their own statements, these directors know nothing and care nothing about the quality of the product, the condition and treatment of the workers from whose labor they derive their income, or the general management of the business.

"So far as operation and actual management are concerned, the executive officials are practically supreme. Upon their orders production is increased or decreased, plants are operated or shut down, and upon their recommendations wages are raised or lowered. But even they have little direct contact with the actual establishment of working conditions, and no relation at all with the rank and file of the workers. They act upon the recommendations of superintendents, whose information comes from their assistants and foremen and from the elaborate statistics of modern business, which account for every piece of material and product, show the disposition of every penny that comes and goes, but ignore, as though they did not exist, the men and women whose labor drives the whole mechanism of business."

The Big Question.

"Here, then, is the field of industrial relations: Masses of workers on the one side dealing in some manner with foremen and superintendents on the other, behind whom is an organization of executive officials, representing in turn the Board of Directors, who are the chosen representatives of the stockholders.

"The crux of the whole question of industrial relation is: Shall the workers for the protection of their interests be organized and represented collectively by their chosen delegates, even as the stockholders are represented by their Directors and by the various grades of executive officials and bosses?

"In considering this issue the first question that presents itself is: Why should such representation be demanded as a necessity? The executive officials, superintendents and bosses, some witnesses have urged before the Commission, are not only for the most part humane and well-intentioned men, but they know that the interests of the business depend upon the welfare of the workers and, if unhindered,

will pay the best wages and create the best working conditions that the business can afford. Organization and representation are therefore argued to be unnecessary and tending only to promote friction and interfere with the management of the business.

"Let us grant the higher character and good intentions of officials, and consider the statement of the workers in reply. They say that in modern corporate business the actions of officials are governed not by their personal intentions, but by the inexorable demands for interest and dividends, and are driven not by their desire to create a permanently successful business with a contented labor force, but by the never-relaxed spur of the comparative cost-sheet."

Managers Cannot Effect Reforms. "The constant demand is for high production at low cost, not through improvements and good conditions which might give them next year, but this very month. In the high pressure of business, every superintendent knows that if his plant is at the bottom of the comparative scale for two months his position topples, and, if for three months, it is virtually gone. He cannot afford to experiment with changes that will not give immediate results. If he were his own master he might take a chance, knowing that the loss of this year would be compensated by gains under better conditions next year, but the monthly cost-sheet does not wait for next year; it demands results now.

"But it may be said that, if he cannot improve conditions himself, he can at least recommend them to his superiors to be transmitted to the Board of Directors for approval. This might indeed be done, and with the extension of an understanding among managers that low production costs may be secured with high wages, probably would be to an increasing extent, except that Boards of Directors scorn such abstractions as the high-wage-low-cost theory, and habitually insist that managers shall buy labor, as they buy material, in the cheapest market."

As to Directors.

"Moreover, raising wages is traditionally unpopular among stockholders and directors, and recommendations for better conditions, particularly if they involve new capital, are frowned upon. Neither the stockholders nor the directors have to live on wages or work in the existing surroundings, and profits deferred are considered profits lost.

"The workers, therefore, deny the potency of even good intentions on the part of managers, and point to labor history which they allege shows that at best only isolated cases can be pointed out where marked improvements have taken place except in response to repeated demands from the workers, or to forestall the growth of threatened organization. They point also to such facts as that children of 12 years or younger were not only kept in the factories (as they

still are in some states where there has been little aggressive agitation), but al most without exception they were insisted upon by the employers as a necessity." Organization Required.

"The evidence of this character, which is summarized elsewhere, seems to be conclusive of the necessity for organization and representation under modern business conditions. But even if it were not necessary, it is difficult to see any reason why what is demanded and required by stockholders should be denied to workers. It would be as illogical for stockholders individually to attempt to deal with the representatives of the unions, as it is for the individual worker to attempt to deal with executive officials, representing the organized stockholders."

Conclusions and recommendations relating to living and working conditions of labor are stated as follows:

Wages.

"As a result of the investigations which have been made the following conclusions are justified:

1. The welfare of the State demands that the useful labor of every able-bodied workman should as a minimum be compensated by sufficient income to support in comfort himself, a wife, and at least three minor children, and in addition to provide for sickness, old age, and disability. Under no other conditions can a strong, contented and efficient citizenship be developed.

2. Under existing conditions such an income is not received by fully one-half of the wage earners employed in industry.

3. The natural resources of the United States are such that an industrial population properly educated and efficiently organized can produce enough to achieve this standard of living.

4. It is probable that even at present the national agricultural and industrial output is sufficient to permit the establishment of such a standard.

5. The problem is therefore essentially one of distribution.

6. The fixing of the wages of adult workmen by legal enactment is not practicable nor desirable as a general policy, except for public employes.

7. A just standard of wages in any industry or occupation can best be reached by collective bargaining between employers and employes for the purpose of forming voluntary joint agreements. The success and justice of such joint agreements is, however, dependent upon the essential equality of the two parties and can not be attained unless effective organization exists. "It is suggested that the Commission make the following recommendations:

1. In order that the public may be kept fully informed with regard to labor conditions, and that a proper basis of facts should exist for negotiation and arbitration, the Federal Government should enact the necessary legislation to provide for the collection, through the Bureau of Labor Statistics or otherwise, of the full and exact

facts regarding wages, hours of labor, and extent of unemployment for every industry. Every employer should be required by law to file with the proper authority a sworn statement of these facts according to a prescribed form. These statistics should be published annually, and the full data regarding any industry or plant should be accessible to any mediator or any other responsible citizen.

2. Uniform statutes should be passed by the legislatures of all States requiring that wages be paid at least semi-monthly and in cash, except where by joint agreement other methods are agreed upon."

Hours of Labor.

"As a result of investigation the following conclusions are justified:

1. The physical well-being, mental development and recreational needs of every class of population demand that under normal circumstances the working day should not exceed eight hours.

2. A very large percentage of the workmen in manufacturers, transportation and mining work more than eight hours per day.

3. This is in marked contrast to the condition of those whose economic position enables them to define the length of their own working days.

4. Practical experience has shown that the reduction of working hours is in the interest not only of the worker and the community generally, but of the employer.

5. The regulation by legal enactment of working hours of adult workmen is not generally practicable nor desirable, except for public employes.

It is suggested that the Commission recommend:

1. That in the so-called continuous occupations, other than the movement of trains, requiring work during both the day and the night for six or seven days per week, the State and Federal Governments should directly intervene, so that the working hours should not exceed eight per day nor extend to more than six days per week." Safety and Sanitation.

"The investigations which have been made warrant the following conclusions:

1. Great progress has been made during recent years in promoting safety and sanitation in manufacturing, mining and transportation.

2. The progress has been most rapid in the direction of safeguarding workers from industrial accidents.

3. Progress in safety has been in part the result of continued agitation and education, but has proceeded most rapidly and satisfactorily since the enactment of workmen's compensation laws which render unsafe working conditions expensive to the employer.

4. The movement has also been largely promoted by the formation of safety committees composed of officials and workmen, and by the creation of joint conferences of employers and employes to assist and advise State officials in the administration

of the law and in the formulation of safety rules.

5. The campaign for safety needs, however, to be greatly extended as rapidly as possible. The annual list of accidents, approximately 35,000 fatalities and 700,000 injuries involving disability of over four weeks, can not be regarded complacently. From one-third to one-half of these accidents have been estimated by competent authorities to be preventable by proper safeguards, inspection and control.

6. The advance in the sanitation of work shops has been less rapid, because not only are the dangers less obvious, but there is no financial liability for diseases or deaths occurring as the result of improper sanitation. Future progress in sanitation demands attention not only to cleanliness and ventilation, but to occupational diseases.

7. The most direct incentive for the promotion of sanitation would be the adoption of a proper system of sickness insurance. It is suggested that the Commission recommend:

1. The creation of a bureau of industrial safety (except that the section providing a museum of safety is not indorsed). Proper steps should be taken to provide for the co-ordination of the work of all Federal bureaus whose work is concerned with industrial safety.

2. The appropriations of the Public Health Service for the investigation and promotion of industrial sanitation should be increased."

Housing.

"It has been found in the course of the Commission's investigations:

1. The present provisions for the housing of workmen are generally bad, not only in the large cities but in industrial com munities of every size and in rural districts.

2. Not only are the houses and tenements which are available for workers largely insanitary and unfit for habitation, but they are inadequate, resulting in high rents, over-crowding and congestion.

3. Such conditions make not only for discomfort and unhappiness, but for disease and degeneration.

4. The ordinary method of supplying houses through their erection by private capitalists for investment and speculation has rarely if ever been adequate.

5. Excellent plans for the housing of workmen have been put into effect by a number of firms and corporations, but such measures have not at all affected the general situation, and being dependent upon the volition of individuals can not be regarded as likely to greatly influence prog

curb speculation have proved to be necessary for the promotion of any real prog

ress.

8. Governmental action in Europe has chiefly taken the following forms:

a. Extension of credit to voluntary nonprofit-making associations.

b. Construction by the Government of buildings which are leased for long periods on easy terms.

c. Exemption from taxation and other subsidies for homes constructed for occupancy by their owners.

d. Legislation designed to prevent the holding of land out of use and to secure for the Government a part of the "unearned increment."

It is suggested that the Commission recommend.

1. The Federal and State Governments should institute investigations directed not so much to ascertaining existing housing conditions, as to formulating constructive methods by which direct support and encouragement to the promotion of improved housing can be given. Actual experiment in the promotion of housing should proceed as rapidly as proper plans can be drafted.

2. Special attention should be given to taxation, in order that land should as far as possible be forced into use and the burden of taxation be removed from home owners.

3. The municipalities should be relieved from all state restrictions which now prevent them from undertaking the operation of adequate housing schemes and from engaging in other necessary municipal enterprises."

Women and Children in Industry. "The investigations and hearings of the Commission justify the conclusions:

1. As a result of their unprotected condition, women and children are exploited in industry, trade, domestic service, and agriculture, to an extent which threatens their health and welfare and menaces the well-being of future generations.

2. The competition of women and children is a direct menace to the wage and salary standards of men.

children

3. Under present conditions, are permitted by their parents to go to work largely because their earnings are necessary for the support of the rest of the family. The restrictive legislation of the past quarter-century, although admirable in purpose and ultimate results, has thrown a heavy burden upon their fathers and mothers, who, at existing wages, have been barely able to support their families. The evidence shows that the burden of child labor legislation has rested upon the wage earners rather than upon employers. It is the testimony of enlightened employers that the employment of children is unprofitable, and that the effect of excluding children from factories has been to increase rather than decrease profits. In the interests of society as a whole, further restrictions on the employment of immature chil

dren are necessary, but it is important that they should be made with an understanding that the burden will rest primarily upon the wage earners, whose self-sacrifice should be fully recognized.

4.

The increasing employment of women has been due to two primary causes: First, the low wages of men, which have made the earnings of women necessary for the support of the family, and, second, the inducement to employers to substitute women for men because they will accept lower wages and are less likely to protest against conditions. The substitution of women for men has been greatly assisted by the introduction of improved machinery, which makes strength and technical skill unnecessary.

5. The increased employment of women, under present working conditions, is a serious menace to their own health and wellbeing, to the wages of their husbands and brothers, and to the ideals of family life upon which American civilization has been established.

6. The conditions under which women are employed in domestic service and in agriculture, merit the attention of the Nation no less than does their employment in manufacturing and trade. Not only is the economic condition of women employed in agriculture and domestic service a matter of grave concern, but they are subject to overwork, unreasonable hours, and personal abuse of various kinds, from which they have been largely relieved in factories and stores through agitation and legislation.

7. The position of women in industry has been rendered doubly hard by reason of their lack of training for industrial work, by the oversupply of such labor and the consequent competition, by their traditional position of dependence, and by their disfranchisement.

8. A very thorough investigation in the New England States failed to show a single manufacturer who had left a state as a result of restrictive factory legislation. On the contrary, the majority of manufacturers expressed the opinion that the legislation regulating conditions for women and children had been advantageous to the industry as a whole, particularly because it placed all competitors upon the same footing. Similarly, an investigation of the effects of minimum-wage legislation failed to show any calculable effects upon the cost of production, or upon the employment of women, after a sufficient period has elapsed to allow the necessary readjustments to be made.

9. Nevertheless, there is a strong and increasing demand on the part of manufacturers in the more progressive states that regulation of factory conditions should be undertaken by the Federal Government, in order that competitors in all parts of the country should be placed upon an equal footing in this respect. The same demand comes also from the representatives of labor, not only because the argument of

"interstate sompetition" is ereating strong opposition to progressive legislation, but because of the great economy of effort which would result from having to make the fight for better legislation only at the National Capital instead of in 45 states."

"It is suggested that the Commission recommend:

1. The recognition both by public opinion and in such legislation as may be enacted, of the principle that women should receive the same compensation as men for the same service.

2. Until this principle is recognized, and women are accorded equal political rights, the extension of State protection of women, through legislation regulating working conditions, hours of service, and minimum wages, is highly desirable.

3. The increased organization of working women for self-protection and the improvement of their industrial conditions.

4. The inclusion of all women working for wages, whether in industry, trade, domestic service, or agriculture, under future legislation regulating their wages, hours, or working conditions.

5. The extension of the principle of State protection of children and the rapid increase of facilities for their education as outlined elsewhere.

6. The enactment by Congress of legislation embodying the principles contained in the so-called Palmer-Owen bill, which was before Congress at the last session."

Public Utilities.

The report discusses conditions of employment in the two principal telegraph companies, in the telephone service, in the service of the Pullman Company and on the railroads. It says:

"The investigations of the Commission show:

1. The scope of the Newlands Act, which applies only to employes engaged in the operation of interstate railroads, is too narrow and leaves the public service in the transmission of intelligence and in the handling of interstate commerce likely to be interrupted by labor disputes without any adequate legal provision either for mediation and conciliation or for making the facts involved in the dispute known to the public.

2. Even as applied to train service employes, the Newlands Act provides no means of bringing the facts before the public, except when both sides agree to arbitration. 3. The selection of impartial members of arbitration boards has almost without exception devolved upon the Board of Mediation and Conciliation, owing to the inability of the parties to agree. This not only imposes an unpleasant and burdensome task upon the Board of Mediation and Coneillation, but tends greatly to weaken its influence. The experience in Great Britain shows that agreement can be reached by Joint conference of employers and employes during a period of industrial peace for the selection of a panel of impartial persons

from which arbitrators can be selected when they are needed, and seems to indicate that in the United States the inability of the parties to agree upon impartial arbitrators is due in part at least to the fact that they are always selected during the heat of the conflict.

"It is suggested that the commission recommend:

1. The extension of the Newlands Act to cover not only all classes of railroad employes, but all employes of public service corporations which are engaged in interstate commerce.

2. The functions of the Board of Mediation and Conciliation under the Newlands Act should be extended to provide for the creation of Boards of Investigation, to be formed only by consent of both parties and to make a report of facts and recommendations which will not be binding upon either side.

3. The Board of Mediation and Conciliation should be authorized by Congress to create an Advisory Council, composed of equal numbers of employers and employes, for the purpose of creating a panel of names from which impartial arbitrators may be chosen by the Board of Mediation and Conciliation."

Telegraph.

"The investigations and hearings of the Commission justify the following conclusions:

1. The workers employed by the two principal telegraph companies (the Western Union Telegraph and the Postal Telegraph-Cable) are not only underpaid, as admitted by the highest officials in their testimony before the Commission [Mr. Newcomb Carlton, president of the Western Union Telegraph Company, testified as follows: "I do not cite any of these things as a substitute for wages, because there is no substitute for proper pay. I believe that the telegraphers are underpaid."] but subject to many abuses, such as the denial of proper periods of relief while on duty, the establishment of arbitrary speed rates, which frequently result in overstrain, the arbitrary discharge of employes without notice for any cause or no cause, the employment of young boys for messenger service under conditions which can result only in their moral corruption, and the employment of women for telegraph service at night.

2. Such conditions have existed practically without change at least since 1884, in spite of the facts having been made public by three Government investigations.

3. The workers are practically unable to improve their condition because these two companies, which control practically the entire industry, deny them the right of organization. The suppression of organization is effectively carried out by the discharge of all known to be union men or union sympathizers by the use of spies who fraudulently secure the confidence of employes and report all known to be union