^ e^ -iSoo, ^^ 33/f OlnrttfU Ham %>t\\\xxx\ Slibratji ^.^^ Cornell University Library KF 3319.A72 Labor problems; a text book, by Thomas Sew 3 1924 018 170 211 LABOR PROBLEMS Edited by Richard T. Ely. Ph.D., LL.D.. Professor of Political Economy, University of Wisconsin 2^*^' orr, LABOR PROBLEMS BY THOMAS SEWALL ADAMS, Ph.D. Assistant Professor of Political Economy in the University of Wisconsin AND HELEN L. SUMNER, A.B. Honorary Fellow in Political Economy in the University of Wisconsin /Beta JJorii THE MACMILLAN COMPANY LONDON: MACMILLAN & CO., LTD. 1905 jfJl rights reterved 133oi Copyright, 1905 By the macmillan company Set up and electrotyped Published January, igo$ Reprinted January, igo6 THE MASON PRESS SYRACUGE, NEW YORK PREFACE The principal aim of this book is to furnish a conven- ient collection of facts that will facilitate the study and the teaching of the American labor problem. It is hoped that the book will be not without interest for the general reader. But it is the requirements of the undergraduate student, and the convenience of the teacher of under- graduates, that have been kept constantly in mind. Where it was necessary, we have sacrificed both interest and general social philosophy, in order to present con- crete facts. We believe that the gravest differences of opinion about the labor problem, and the most dangerous misapprehen- sions, are caused by the failure to view the problem broadly, to consider its many phases and ramifications. The labor problem is greater than the problem of trade unionism, far more important than the problem of indus- trial peace. Impelled by this conviction, we have pre- ferred to cover a broad field imperfectly, rather than a narrow field in detail. We have necessarily left much to be done by the teacher or the reader himself. There are important questions, such as the problem of the unskilled workers, which have been passed by without a word; there are logical gaps vi PREFACE which should be filled, such as the extent to which the progress of the last century may fairly be attributed to trade unions, strikes, and the other "remedies" discussed in Book II; there are facts stated and statistics cited which are sadly in need of long critical discussions con- cerning their probable validity and precise meaning ; and finally, there has been given no statement and little inti- mation of the general social theory which most logically and consistently explains the facts cited. These lacunae we have attempted to fill, in a measure, by the citation of certain Supplementary Headings, de- signed to eke out our treatment where it is especially inadequate, or to present another point of view when our interpretation is particularly dubious. For the most part, however, these defects must be remedied by the teacher or by wider reading on the part of the student himself. It is impossible to say all that should be said about the American labor problem in a single volume, and say it in the concrete way which the temperament of the undergraduate student and the exigencies of the college examination require. The authors take sincere pleasure in acknowledging the valuable assistance of Professor Richard T. Ely and Pro- fessor John R. Commons, of the University of Wisconsin, who have read the manuscript and have made many help- ful suggestions. To Mr. Max 0. Lorenz we are indebted for many valuable suggestions concerning the distribution of wealth. Acknowledgments are also due to numerous correspondents in different parts of the country who have PREFACE vii furnished information, particularly the various persons and firms whose experience in profit sharing furnishes the basis for a portion of the chapter upon that subject, and to the editors of cooperative papers and the organizers of cooperative associations, who have furnished valuable material. CONTENTS INTRODUCTION. Chapter Page I. The Labor Problem and Its Genesis 3 BOOK I. II. Woman and Child Labor, by H. L. S 19 1. Historic Conditions and Development of Legisla- tion in England 20 2. Rise of the Problem in the United States 24 3. Legislation In the United States 30 4. Occupations of Working Women and Children .... 37 5. Woman and Child Labor in the Manufacturing In- dustries 40 6. Nativity and Color of Working Women and Chil- dren 47 7. Special Problems of Woman Labor 51 a. Married Women in Industry 52 b. Low Wages 55 c. Competition with Men 56 8. Conditions of Child Labor 58 a. Ages 58 b. Hours 61 c. Health 62 d. Education 64 III. Immigration, by H. L. S 68 1. Extent and Causes of Immigration 69 2. Race and Nativity of Immigrants 72 3. Distribution of Immigrants 75 4. Economic Aspects of Immigration 79 a. The Standard of Life 80 ix X CONTENTS Chapter Page b. Occupations 81 c. Wages and Unemployment 87 5. Special Problems 89 a. Illiteracy 89 b. The Padrone System 90 c. "Birds of Passage" 91 d. Canadian Immigration 92 6. Legislation 93 7. Chinese and Japanese Immigration 99 a. History of the Problem 99 b. Numbers in the United States 101 c. Chinese and Japanese in Industry 102 d. Legislation , 105 8. The Problem of Immigration 107 IV. The Sweating System, by H. L. S 113 1. Characteristics of the System 114 2. Rise of the Problem 119 3. Legislation 122 4. Present Status 126 5. Social Aspects 130 6. Conditions of Labor 134 7. Sweating and Its Remedies 138 V. Poverty, Earnings and Unemployment, by T. S. A 142 1. Poverty 142 2. Wages and Earnings 154 3. Unemployment 160 BOOK II. VI. Strikes and Boycotts, by T. S. A 175 1. Definitions 175 2. History of Strikes 176 3. Statistics of Strikes 179 4. Trade Unions and the Strike 181 5. Causes of Strikes 185 6. The Legal Aspect of Strikes 187 CONTENTS xi Chapter Page a. Combinations to Terminate Employment 189 a Statute Law on Strikes 194 b. Picketing 195 c. Boycotting 196 7. The Blacklist 200 8. Criticism of the Law 202 9. Strikes and the Public Welfare 206 VII. Labor Organizations and Employers' Associations, by T. S. A 214 1. Definitions 214 2. History 215 3. Historical Lessons 223 4. Government 228 5. Structure and Organization 230 6. Jurisdiction Disputes _. 234 7. The Economic Justification of Labor Organiza- tion 240 8. Methods and Policies 245 a. Inclusive Methods 245 b. Exclusive Methods 246 (1). Entrance to the Trade 246 (2). Restriction of Membership 248 (3). The New Trades Combination 250 c. Monopoly and Labor Organization 252 d. Regulation of Wages 255 e. Hours of Labor 259 f. Attitude Towards Machinery 262 g. Restriction of Output 263 h. Strikes, Boycotts and Arbitration 266 269 i. Insurance Benefits 9. The Incorporation of Labor Organizations 271 10. Employers' Associations 279 VIII. The Agencies of Industrial Peace, by T. S. A 287 1. Definitions 287 2. Governmental Conciliation and Arbitration in England 289 3. The French Conseils de Prudhommes 292 . xii CONTENTS Chapter Paee 4. The French Conciliation and Arbitration Act of 1892 295 5. Governmental Conciliation and Arbitration in the United States 295 6. Collective Bargaining, Joint Conferences and Trade Arbitration 301 7. Structure and Organization of Joint Conferences and Trade Boards of Arbitration 305 8. Statistics of Collective Bargaining and Trade Ar- bitration 316 9. Compulsory Arbitration in New Zealand 319 10. Compulsory Arbitration in the United States 325 IX. Profit Sharing, by H. L. S 333 1. Methods of Profit Sharing 335 a. Cash Bonus 336 b. Deferred Participation 336 c. Stock Ownership by Employees 338 d. Amount of Bonus 341 e. Distribution of the Bonus 342 f Qualifications for Participation 343 2. Profit Sharing and Trade Unionism 344 3. Industrial Partnership 347 a. The Maison Leclaire 348 b. The Godin FamilistSre 349 c. The Bon Marche 350 d. William Thomson and Sons 352 4. History and Present Status of Profit Sharing 353 a. In Prance 353 b. In England 355 c. In Other European Countries 358 5. Profit Sharing in the United States 358 (1). The Peace Dale Manufacturing Company.. 360 (2.). The Columbus Railway and Light Company. 361 (3) . The Roycroft Press 361 (4). The Solvay Process Company 361 (5). The Acme Sucker Rod Company 362 (6). The Proctor and Gamble Company 363 (7). The Bourne Mills 364 .. CONTENTS xiii Chapter Page (8). The Ballard and Ballard Company 365 (9). The Cabot Manufacturing Company 366 (10). The Baker Manufacturing Company 367 (11). The N. O. Nelson Company 368 6. Profit Sharing and the Labor Problem 371 a. Economic Basis of Profit Sharing 371 b. Objections to the Principle of Profit Sharing. 376 X. Cooperation, by H. L. S 379 1. Methods of Cooperation 380 a. Consumers' Cooperation 381 (1). Methods of Dividing Profits 382 (2). Prices 383 (3). Cash Payments 384 (4) . Share of Employees 384 (5). Wholesale Societies 385 (6). Discount Societies 385 b. Producers' Cooperation 386 (1). Ownership of Capital 387 (2). Distribution of Profits 388 (3). Individualist and Federalist Schools 389 c. Cooperative Credit 390 (1). Credit Unions 390 (2). Building and Loan Associations 391 2. Development of Consumers' Cooperation 394 a. The Rochdale System 394 b. The English and Scottish Wholesale Societies and Consumers' Cooperative Production 395 c. Consumers' Cooperation in Other European Countries 397 d. History of the Movement in the United States 397 (1). The Union Stores 398 (2). The Patrons of Husbandry 399 (3). The Sovereigns of Industry 400 (4) . The Labor Exchange 401 e. Growth and Present Status of Consumers' Co- operation in the United States 401 (1) . The New England Movement 403 (2). The Kansas Movement 404 xiv CONTENTS Chapter Paffe (3) .