A study of the preventable accidents and of the safety work of federal and state bureaus, such as the federal Bureau of Labor, and those of the states of Wisconsin, Minnesota, New York and Pennsylvania, also of the large transportation and industrial concerns of the country, such as the Chicago & North Western Railway Company, the Chicago Railways Company, the Brooklyn Rapid Transit Company, the International Harvester Company, the General Electric Company, the Remington Typewriter Company, the American Steel Foundries and the United States Steel Corporation and its general subsidiary companies, also of public and semi-public organizations, such as the Public Safety Commission of Chicago and Cook County, the American Museum of Safety, chambers of commerce and national and state manufacturers and trades associations, and of hundreds of other concerns and activities too numerous to mention, will show that where any successful safety campaign is waged, it is necessary (1st) to provide and maintain proper working conditions and proper and efficient safeguards upon dangerous machines, and (2nd) to educate and inculcate habits of caution. This experience has also shown, and it will be conceded by all that a comprehensive organization to formulate and carry out a definite plan or program for such a campaign is absolutely essential. There must also go hand in hand with organization the hearty co-operation of all those involved in the common undertaking and the widest publicity possible.

The experience of the past years has also demonstrated that conferences and interchange of ideas and experience has been of great benefit and that the results of the labors of those who have been engaged in accident prevention work have been of great value to those commencing such work, who very often hesitate to request information, data, etc., from others which otherwise would be readily available. It has, therefore, seemed to many of those engaged in accident. prevention work that it was a waste of energy and loss of time for each industrial concern to have to go over the same experimental ground which others have covered and that there ought to be some medium or agency whereby any one interested could have access to the knowledge and experience of others, thus bringing about the highest measure of co-operation, which agency also might promote gatherings where common problems could be discussed.

ORGANIZATION OF NATIONAL COUNCIL.

Having these these requirements and needs in mind, a year ago at the first co-operative safety congress held at Milwaukee, Wis., under the auspices of the Association of Iron and Steel Electrical Engineers, there was appointed by that association and its guests at the congress, a committee to take charge of the formation of a national safety organization and to promote a second safety congress to be held jointly with that association a year

later.

The National Council for Industrial Safety was organized during the year as the result of the efforts of that

committee and was formally launched at the second safety congress held un

der its auspices in New York City,

September 23, 24 and 25, 1913.

The object of the National Council for Industrial Safety as expressed in its constitution and by-laws is "to promote the conservation of human life

and its incidents in the industries of

the nation", and to that end:.

(a) To establish a conveniently located headquarters for the maintenance of a clearing house of safety information, available to all concerned.

(b) To encourage and promote throughout the country the organization of those engaged or interested in safety work into district and local councils, in affiliation with this National Council.

(c) To hold annual congresses, at which all persons interested in accident prevention and kindred subjects may take part in practical discussion of vital problems, and also having opportunity to examine carefully prepared exhibits; to publish and give wide distribution to proceedings of such congresses; to give awards for meritorious exhibits, safety devices and other accomplishments in line with the objects of the Council.

(d) To encourage and assist in the practical standardization of safety devices, safe conditions and practices.

publicity,

(e) To give the widest through its own publications and other channels, to all matters calculated to promote industrial safety.

(f) In general to initiate, promote, cooperate with and obtain the assistance of, any and all activities of agencies calculated to conserve human life and its incidents in the nation's industries; and to participate in and aid other activities for the welfare of the industrial workers of the country.

Any person, firm, corporation or organization interested in forwarding the objects of the council may be a member.

There are three classes of members in the council, namely, honorary members, associate members and active members. Associations, the membership of which is made up of persons who otherwise might be eligible to membership in the council, are eligible only to associate membership in the council. All other members, except such as may have been elected to honorary membership by the executive committee, are active members.

Active membership in the council is a requisite to membership in a local council. Membership in a local council does not relieve a member from re

sponsibility to the council for dues provided for in its by-laws. The council, however, will pay or cause to be paid to any local council the amount of its expenses up to but not exceeding twenty per cent of the amount of dues paid to the council by the members of such local council.

Annual reports by each local council to the council are required, otherwise local councils may adopt their own constitution and by-laws and carry on their own affairs as they deem advisable; provided, however, the same shall in no wise be inconsistent with the constitution of the council or its by-laws.

To create greater interest in the affairs of the council its activities will be divided into sections in accordance with the differences that may exist in the hazards incident to the several industries, such as transportation, textile, boot and shoe, foundry, electric light and power, iron and steel, etc., federal and state bureaus, manufacturers and trade associations and public safety.

From among the members of the council men connected with each of the several sections into which its activities may be divided will be selected to act as chairmen of committees to assist in the accumulating of information and data, to assist in interesting those in their particular industries in accident prevention work, and, as far

as possible, to standardize safety devices, practices and rules applicable to the special hazards in their several industries, as well as to provide at each congress of the council a program for their several sections at meetings of such sections, where problems peculiar to the work of their industries and activities can be discussed.

CLEARING HOUSE FOR INFORMATION.

Another principal function of the council will be its work of disseminating information respecting accident prevention work. All of the accumulated data as to safety devices, safe guards, safety rules and regulations and the experience in methods or plans or organization and education. and publicity of all the large industries and federal, state and municipal bureaus and commissions and other activities will be made available to all who may be interested through the bureau of the council at its headquarters in Chicago.

A secretary who will devote his whole time to the service of the council has been secured, who is widely experienced in organization and safety work. Within a few months' time it is believed by the officers of the council that very valuable information will be collected and if not yet collected such information can be at once obtained for the benefit of those who may desire it. It is also planned through its headquarters to distribute freely information respecting all matters of interest pertaining to safety work generally, and to aid and cooperate with all those who may desire to promote safety work. Lists of speakers, lecturers, organizers and experts will be compiled and the council expects to be able to meet every requirement of every inquirer for information respecting accident prevention work, no matter what its character may be.

The council hopes to co-operate with and obtain the co-operation of every individual, every industrial or transportation concern, every federal, state, municipal or other bureau, commission, association or activity and

through its offices to obtain for each the co-operation of the other. It proposes to undertake itself and assist others in any and every plan or scheme or enterprise that may have for its object accident prevention and its sole hope is that it may receive the hearty co-operation and support of all those. whose aim and purpose is the conservation of human life and limb in and about the industries and public activities of the country.

The council is now thoroughly established and will be a most important factor in the accident prevention work of the country. Its headquarters are

Το

The Associated Employers of Illinois have issued a statement in which they contend that "although the minimum wage proposition is essentially economic, the arguments favoring its establishment by law are vague and sentimental, and never economic. argue," they say, "that social justice demands that each and every working girl should receive a living wage' a living wage' without regard to her worth does not prove that a minimum wage law will insure that every girl will be employed so that she can earn a minimum wage. The arguments by those favoring such a law consist largely of indictments, instead of sound economic reasoning. A clear understanding of the minimum wage is possible only in the light of fundamental economic principles. We must consider how wages are fixed.

SUPPLY AND DEMAND

"Political economy teaches us," they continue, "that wages are determined by the law of supply and demand and that the employer cannot fix wages. If he cannot and does not fix wages, he cannot be held responsible for 'unfair wages', so far as such may exist. The employer affects wages only by his demand for laborers; he does not control the supply. The wage of any person should and does depend upon his productivity, which in turn is the result of skill, industry and experience. The skillful and industrious person is in great demand by employers and therefore commands a high wage. The unskilled or shiftless worker is not in strong demand, because such a worker produces little, and may waste considerable material for the employer,

and accordingly is worth but little to that employer. That worker receives low wages because he deserves no more than he earns. He earns little for himself and is not very profitable to his employer.

"The supply of inefficient workers is large, the demand small and wages. low. On the other hand, the demand for skilled, industrious workers is large, the supply small and the wages high. The way for any worker to increase his wages is to become more skilled and industrious, so that he will be in greater demand. In fact the only manner by which a person can secure a permanent increase in his wages is to increase his efficiency by strict attention to business and by becoming more skilled either through training or greater experience in the business. If he does not receive a proper reward for his increased efficiency from one concern, he can go to another concern who will grant it, for capable business men are always seeking the most effi cient employes. Moreover, a number of concerns pay commissions, or by the piece, so that the pay is a direct result of efficiency. Often bonuses and discounts on goods to employes increase the stated wage considerably.

"Because pay by the piece is based directly on efficiency, it is the most equitable system of payment ever devised. It encourages every man to develop the best that there is in him and makes his earnings depend wholly upon his productiveness; in other words, it encourages him to effort and pays him for it. A man's initiative is developed fully because he is rewarded in full for his efforts.

He

requires less supervision as he does not need to be urged to do his work; he utilizes fully the equipment of the concern, and is thus more profitable to his employer. It allows the less efficient workers to be employed at their true worth, but it justly gives the large rewards to the fit, the skilled, and the swift.

"The number of persons employed in any business is somewhat elastic. This number depends upon the wages that have to be paid, which in turn depend upon the supply of laborers suitable for that business, and whether each additional person employed yields the employer any increase of profit. Business, in the long run, is conducted only when it is profitable; sentimentality does not control, and cannot control, any successful business.

Since

business is conducted only on a basis of profit, an employer will not permanently employ persons who are not profitable to him. It is universally conceded that an employer cannot make a practice of paying his workmen more than they are worth to him and their worth to him is dependent upon their ability to aid him effectively in his business. No employe can expect to receive more in wages than he actually produces for the business. Nor is the output of the business the sole product of the wage earners, for they constitute only one productive factor, there being other factors such as fixed and fluid capital, supervisors, etc.; of all these factors, fluid capital and labor are most easily adjusted, although a slight change in the proper proportion may mean an absolute loss. Labor can be employed or discharged freely and expenses are usually cut by the discharge of the lowest class of laborers.

less than they would be with the best. adjustment of the productive forces. The number and kind of persons employed in any establishment are regulated by the proper adjustment of workers to floor space, equipment, etc. A firm that employs 1,000 persons at an average of $10 a week, could use probably 100 more, but at a slightly lower average, for example, $9; 100 more at an average of $8.50; and an additional 100 at $8; another 100 at $7.50, and finally 100 more at $7.00. This is because of a well-known law of economics the law of diminishing returns or the proper proportioning of factors. ***Thus we can see that the wage of any person depends upon his productivity. In the retail business, for example, his productivity is related to the amount of goods he sells. A store, for example, will sell in a week a certain amount of goods with 1,000 employes. To raise the number of employes to 1,500 will not of itself increase the sales 50 per cent, although it will increase the sales somewhat, owing to the impatience of some customers, who, if they are not waited on promptly will go elsewhere. The reason that employes of a low grade of efficiency and training are employed at, say $5, is because at that figure they yield a small additional profit to the business. Let us assume that a store employing 1,000 salespeople sells $200,000 worth of goods each week, and that the employes receive an average weekly salary of $10-which is just 5 per cent commission. If the number of salespeople is now increased to 1,500 the sales will not increase to $300,000, because of more salespeople-in fact it is doubtful if over $210,000 worth of goods will be sold. Evidently, there will be many employes who will not be able to sell $200 worth of goods and so earn $10 a week; in reality, the average sales of each employe will amount now to only $140, and at a commission of 5 per cent the average wage on $140 would be $7, instead of $10.

"In this case the employer increases his sales $10,000, and his profits $1,000. If he were to pay the extra 500 employes the average wage of $10,