Man to man; the story of industrial democracy

MAN -TO -MAN

Tin: STORY or INDUSTRIAL

'2MOCKACY

JOHN LEITCH

MAN TO MAN

The Story of Industrial
Democracy

BY
JOHN LEITCH

ED nv THE
B. C. K)RBKS COMPANY

299 BROADWAY, M.\V YORK.

Copyright, /p/p, by
H. C. OSBORN

ALL RIGHTS RESERVED, INCLUDING THAT OF

TRANSLATION INTO FOREIGN LANGUAGES,

INCLUDING THE SCANDINAVIAN

INTRODUCTION

T I IK whole future of the United States is
bound up in the establishment of a happy
relation between tin- employer and the
employee. It mu.st he happy hut with the
happiness of united effort by both ami not the
happiness of mute, unthinking obedience. \\ e
have need for the brains as well as the hands of
all who are able to work. In the past we have
hat! only the hands; it is high time that we should
also have the brains --have complete men working
in a great industrial democracy. In this little
book I have faithfully set down something of the
theory and a tew ot the cases arising out of my
own conception of Industrial Democracy in the
hope that it will serve to bring the attention of
both employer and employee to the big probK m
which confronts us. I have taken most of the
incidents out of conditions arising from the Great
\\ ar because it is the War that marks the transi-
tion of labor to a state of economic independence.

JOHN LEITCH.
New York, N: Y.
January, 1919.

TAKLK OF CONTEXTS
CHAPTKR I

Till- F.-UTOKY WoRKl-.R OF ToD AY ... 3

I he m.m who works and the man who hire1; —wherein
tlirv difh-r the p.r sin^ ot the American workman -
the foreign-born fo-dav make up the body <>f our
workitv: people — standardisation ot work— repres-
sion of nuii\iJu.il cxpre»Mf>n— the inception .uul the
abuse of welfare woik -the lack of interest and cart-
among workers t!ie absence of well-conceived
policies to govern relations between employers and
employees the problem that employer.1; must .solve.

CHAPTER II
WHY Mi N STRIKI: 16

I he wastage of ;.OOO strikes • the greater wnsta^o of
silent !i!-\'.ii! - r.iiMt1.^ v.ams witl'.out r.ii'in:: work
values —competition of labor and capt.il within :\
factory- -the il!-v. ;il fii.it m -nerati s strikes work-
ers as rcnf.iMe comirodities hov.- j m.i :i is hire:! ...".,1
tiled -wh.it IKS job h<>K!s for him :e;vrt of t!u-
Mediation Commission--strikes are i!;:- to th.e '.:,'k
of a common ground of understanding tea •.•!u::^ a
inutu.;! under>tandmg without uisor^am/mi; in-

CONTENTS

PAOE

CHAPTER III
BUILDING MEN TO BUILD PIANOS ... 30

The Packard Piano Co., Fort Wayne, Ind. — A shut-
down and the aftermath — what ill-will did to the
product — the case of the varnishers — the beginnings
of democracy — the Business Policy — Justice — Co-
operation— Economy — Energy — Service — the first
dividend — the improvement in quality — inventions
to save labor — the efficiency report from the boiler
room — how they met slack times — how 168 men did
the work of 268 — "If there is no harmony in the
factory there will be none in the piano."

CHAPTER IV
OUT OF A CONFUSION OF TONGUES . . 63

William Demuth & Co., New York — nine hundred
aliens and how they acted in the pipe factory — the
making of a briar pipe — what aliens think of an em-
ployer and the resentment they put into their work —
putting over the idea of Justice — how they received
the dividend system — the organization of the House
of Representatives and Senate — the initial dividend
— how the men cut down absenteeism — removing
an incompetent foreman — the barring of alien
tongues — fixing their own piece rates — the case of
the superintendent — the taming of Rosa — making
an art out of patching — cutting out the labor turn-
over— the improvements in methods that came from
the men — eliminating seconds — a remarkable in-
crease in production.

CHAPTER V

THE SUPERVISION THAT COUNTS ... 92

Sidney Blumenthal & Co., the Shelton Mills, Shel-
ton, Conn. — the half million dollars in spoiled vel-

CONTENTS

vet* — the management's efforts to cut down waste
and the failure of cooperation the call of war work

— the character of the employees -what was the
matter with the goods the re|x>rtf that the House
Committee brought in on Ix-ttering condition-,
getting at the reasons for seconds wh.it the work-
ers think of piece rates and the quantity bonus
the evolution of the quality bonus quality vs.
quantity how the quality bonus workrd - quantity
went up with quality saving waste paper — "Saving
Waste Increases Pay."

CIIAPTF.R VI
MUST A FOR i- MAN Hi: A PUGILIST? . . in

The hard-fisted blacksmith who built a foundry — the
rule of force and how it worked — when the workers
got the upper hand —the drop in production— wage
increases that lowered production — the coming of
Industrial Democracy — ceasing to work as individ-
uals— the wage hold-up that failed — a IO per cent,
economy dividend — the Mutual Benefit Association
— eliminating imperfect castings— the story of the
"cupola man" — the inspector that they apjxmitcd
for themselves — a 5^ per cent, increase in production

— the fall in labor turnover.

CHAPTER VII
INDUSTRIAL DEMOCRACY 133

The universal application — the birth of Industrial
Democracy— wages and work — the first experiment
- -the fundamentals— definitions — details of organ-
i/ation — the Cabinet -the Senate — the House of
Representatives —adjusting wages — the Business
Policy of Justice, Economy, Energy, Cooperation,

CONTENTS

PACE

and Service — taking good intentions out of the pas-
sive— definition of manufacturing — the human as-
set— the common aims of Labor and Capital — the
right payment of workers — the place of money — the
evils of the production bonus — the necessity for a
fluctuating addition to wages based upon service —
the failure of profit-sharing — the Collective Economy
dividend.

CHAPTER VIII

INDUSTRIAL DEMOCRACY, THE EMPLOYEES,
AND THE UNIONS 169

The five changes which Industrial Democracy always
brings about — transforming the unskilled worker —
quality vs. quantity — some production records — the
suspicions of the workers — how to overcome them —
selling the idea of fair play — introducing democracy
— how the workers use their power — a model appeal
— how the foremen act — responsibility in hiring and
firing — how the men take charge of labor turnover —
there cannot be strikes from within — never a strike —
the attitude of the unions.

CHAPTER IX
INDUSTRIAL DEMOCRACY AND THE EMPLOYER 194

Corporation managers should not indulge in social
experiments — the dangers of laisscz faire — the labor
outlook — the need for a new relation — business is
propelled by human force — founding upon a princi-
ple— labor troubles at the root of business troubles —
the public is a party — how Industrial Democracy
strengthens the investment — how it affects manage-
ment— the two cases in which once tried it lias been
abandoned — an insurance of capital — what it does.

CONTENTS

MU

CHAPTER X
KI:I:PIM; Aim: THI. COMMUNITY SPIRIT . 213

Industrial Democracy 11 nut self-propelling - there
.irr always scolK-is the usr of message* and licilic
organs —advertising t!ir idea -the kind that pu!!-. --
i Dinniuiiu atiatis to thr I louse aiul Senate— the pivc
and t.ikc attitude— food for vanity — the- power of the
\\ rittcn word.

CHA1TKR XI
PtTriNi; I.M-.OR HI-HIND AMI-RICA . . . 221

Industrial Democracy mukrs Americans — our pres-
ent state of Americanism l.u-k of intense national-
ism— after the war -relation of prosperity and the
national spirit— how Industrial Democracy Lindlcs
the national spirit of democracy— insistence of
workers ti|x>n a single language — the political pro-
gression—Industrial Democracy is an Americanizing
force — an industrial union.

-o

MAN TO MAN

Man to Man, The Story of Industrial
Democracy

CIIAITKR I

Till- FACTORY WORK I R OF TOP AY

HAYK we not talked ratlu-r too much about
working people as a class and too little of
thorn as human individuals?

"Labor" and "capital" arc convenient terms,
but insensibly the terminology leads us into think-
ing that all people who work j>.r money belong
to one species and all people who work. ::;:/:
money to anotlu r.

Perhaps from the detached viewpoint <>i the
economist, you may take labor as one thing and
capital as another, bur \\htn you come clown to
specific problems in modern ir.v!i:s:rv YOU l:r.d
that you have to dial not \\ith broad, c;:?.rr;.ble
forces but with a more or less miscellaneous col-
lection ot individuals, some o! whom h..;^pe:i to
be employers and others employees. A;-.J. asiile
from some differences in clothing, education, and

4 Man to Man

money the capitalist and the laborer are really
pretty much alike. In fact, I think, if you strip-
ped any organization and turned it out into a field
you might have quite a little trouble cutting out
the employers from the employees! It is easy
enough to distinguish the common laborer in the
packing house from the great capitalist in Wall
Street if both are dressed and are in their usual
environments. When a mechanic hires two help-
ers on a job, however, and all three are working
together, you are put to it to discover which is
the representative of capital and which of labor.
The man who was a worker yesterday may be an
owner today. Schwab, Ford, Eastman, George
F. Johnson, and dozens of other men who are to-
day known as great employers of labor were work-
ers only a few years ago — were part of that which
the socialists would like to impose on us as the
proletariat. If you fall into the error of thinking
that capital and labor are differentiated in blood
just call the roll of the employers and find out how
many of them once were "workers."

It is not easy to get down to the man-to-man view;
a countless number of today's workers seem to be
scarcely human. In recent years, with the dwind-
ling of English and Irish immigration, the workers

Iiulustri.il Democracy 5

have been recruited from peoples with whom we
recogni/e little in common from the Italian
peasants ami from the uncouth dwellers in Russia
ami Southern Kurope. 'I hese were people who,
in their native lands, saw no future. They came.
here bearing hopes- inarticulate, perhaps- of a
freedom that could open a future. In our eyes they
were brutish; they herded like so many animals
and we began to think of them as such, lluir
names were commonly so outlandish and their
personalities so insignificant to us that we did not
attempt to note them on the pay rolls -it was
enough to designate them by numbers We for-
got they were human beings. Americans, refus-
ing to work with these foreigners, gradually drop-
ped out of the large industrial units or advanced
to positions as foremen or executives. For
instance, only ten per cent, of the employees in
the Chicago Stock Yards are American. An
investigating commission found 26 separate na-
tionalities in one Arizona mining camp and 32 in
another.

With a million of these polyglot workers pour-
ing in every year readv to take any jobs at any
wages, the whole face of industry changed. It
took us a while to find out what really was going

6 Man to Man

on. Then we awoke to the fact that between the
employer and the employee had been erected a
barrier of race and language. Instead of the old
order in which the employees knew their employer
as the "Boss" and called him by his first name,
came a new order in wThich the "boss" was an
impersonal being whom the workers did not know
by sight. There sprung up a kind of half military
organization in which the chief owner was a field
marshal, the executives were generals, and the
workers only privates — and they meant just
about as much to the field-marshal owner as does
a private soldier where there is military caste.
The old order had passed and in great establish-
ments there was a wide social gulf between the
employer and the employee. The gulf would
have been wide enough anyhow owing to the class
distinctions which the new immigrants brought
with them, but it was widened further by the
peculiar development of the processes of industry.
Professor D. S. Kimball presents the situation
very accurately in an article in Industrial
Management in which he says :

Changes in industrial methods are followed necessarily by
changes in the status of the worker; so far as industry itself
is concerned, and by changes in his social status as well. Ic •

Industrial Democracy 7

duttri.il changes and thrtr effect* come, usually, with great
rapidity, but social changes arc likely to follow very *lov*-|y
ami only because of jjreat effort on thr part of tho«- interested.
Invention and it* eHetts always greatly outrun the MKi.il
changes that inevitably follow in their wale. 1 he industrial
revolution at once separated the worker from the tool* of
industry- No longer could he compete as an independent
operator using handicraft tools, but he was compelled tt>
depend for employment upon capital, which alone could pro-
vide the new implements of production. At the same time
this revolution broke up the old social order, destroying the
old friendly paternal relations between master and man, but
provided nothing to take their place. 1 he problem before
us is to rind the conditions that will reestablish satisfactory
industrial and social relations.

It the worker of today had to depend upon medieval ideals
as to his place in the world his condition would undoubtedly
be much worse than it now is. It was quickly recogni/ed that
these new methods greatly increased man's productive
capacity but at the same time it was as quickly recogm/ed
by advanced thinkers that these methods carried with them
no regulative principle1! that guaranteed fair distribution »f
these added benefits. It was quickly .seen that the old rela-
tions were not adequate for these new conditions, .irul it was
quickly proven that the industrial classes could not depend"
upon the good will of individuals or group-? of CM;;-! >ycrs
fir fairru-s* or even decent protection against the e\ i!s of mod-
ern industrial methods.

Employers wi-re not inhuman; tlu-y simply
couIJ not realize what li.ul happened, \\hen
they did get their bearings a kind r.t stvial eon-
sci'.msness began to devi-lop. Movi-d partly by
the desire to have more intelligent pcvplr to deal

8 Man to Man

with, and partly by a feeling of benevolence, they
formed plans to better working conditions. This
first welfare work was almost purely philanthropic.
It was generally felt by even the fairest minded of
employers that raising wages would be a positive
disservice to the people because they would not
know what to do with the extra money and
would probably spend it in riotous living. Most
employers reasoned somewhat in this fashion:
"The people have accustomed themselves to a
scale of living nearly as low as that in which they
had been reared in Europe; they have no desire
for anything better. What they do want is more
to drink and more days on which to get thoroughly
drunk; their women want gaudier clothing, but
none of them have any desire to live a more
human and less animal existence. They do not
want to be clean or to be orderly, or to read, or to
exercise, or to play games." The improvements
in the standard of living among immigrants did
not spring from their natural desires but were, at
the first, imposed upon them almost by force, by
the employers. The employers took the paternal
attitude that the people would not help themselves
and therefore had to be helped. That is the idea
behind the first welfare work, and those employers

Iiuiustri.il Democrat) 9

who introduced welfare wotk should be given due
credit .

We sometimes forget that lute in America, in
what \ve are pleased to call a fire country, we had
a % .nt number of people who were little more than
serfs, because they could not comprehend any
other way of working. 'I hey worked in America
exactly as they had worked in Kuropr — with little
vision and without responsibility , grubbing through
from day to day, and mightih glad to have enough
to eat. I he tirst welfare work was a brave expcii-
ment— but not because those who instituted it
saw that the mental development of the workers
would create new problems. It was brave because
it seemed to be a throwing away of money which
had always been taken as profit. When J<-hn II.
Patterson insisted that Ins factories ih<'uK! be
flooded with light, that machines should IT spot-
lessly clean, and that workers should be personally
clean, his associates thought that he wa> c:a/\.
And other employers in Dayton jeeringly wanted
to know if he was sure of what he was doing and
had not absent-mindedly started a finishing school
for young ladies.

In the beginning, welfare work was thus a truly
zharitable uplifting of European peasants; mci-

c

io Man to Man

dentally it proved to be good business. It was
found that it was short sighted to expect good
work from undernourished human beings laboring
in a dark filthy hole. Even those employers with
no social consciousness were quick enough to
perceive the investment return on welfare work
and at once plunged. It was cheaper to maintain
a few baseball fields than to add a dollar a week to
the wages of ten thousand men. The mathematics
were all in favor of the welfare work. They began
to substitute it for wages and, unfortunately,
the welfare work that was good gained practically
the same disfavor as that which sprang from
unworthy motives.

The tendency of employers was to become more
and more paternal and of the employees to become
more and more dissatisfied. When you teach a
man to bathe, you do more than merely teach him
to cleanse his body. You introduce him to a new
kind of life and create in him a desire for better
living and then, of course, he requires higher
wages in order to satisfy the new desires. The
paternal employers thought that the living oppor-
tunities which they provided should be enough
and that the workers ought to be satisfied with
clean homes and clean places in which to work;

Industrial Democracy 11

they did not know that they had starml something
which they could not stop. lh<-.e \sho had gone
into the bettering of indiistn.il conditions solely
from a financial standpoint felt that they had
made a wroni; i;uess, while those who had been
animated solely by charity wen- deeply hurt to
think, that their benefactions had not been appre-
ciated. I recall one manufacturer telling me as ;;n
instance of " no matter what you do tor them they
won't appreciate it" that he had actually loaned em-
ployees in the a^rc^ate a very considerable sum of
money to tide them over a period when the factory
was closed and that some of the •workers had
been so rude as to tell him that if he knew how
to run his business he would not have to close
«t down!

The paternal idea persists. Employers think
that in many cases they arc public benefactors
because they provide work. 'I hey do not seem to
realize that they could not make money it" thev did
not have the work to provide. 'I he workers, on the
other hand, have also developed a class conscious-
ness and resent paternalism. 'I in;, have found that
by mass action they can make or unmake the
employer and set themselves up as a kind of com-
modity of a market value fluctuating \\iih the

12 Man to Man

times. The labor leaders resent any classification
of their people as a commodity and prefer the term
"collective bargaining." It does not make much
difference how we describe the attitude, the point
to bear in mind is that the worker very properly
takes the position that his wages are not largesse,
that it is not a favor for any one to hire him but
that it is really a pure business proposition — a
bargain and sale.

Collective bargaining and trade unionism pro-
tect against paternalism, against the cheating
employer (of whom there are some although for-
tunately not many) and help to add to the dignity
of employment by putting it on a business basis.
Trade unionism likewise holds dangers. In order
to attract members many organizers have talked
wildly and tried to persuade the people that
there is such a thing as "labor" and that its
chief duty is to fight a thing called "capital."
This acute class consciousness has not yet gone
so far here as in England, but its growth is being
helped not a little by the employers talking about
labor in exactly the same way that the unions talk
about capital. The further sinister development
is the attempt to destroy the individuality of the
worker by putting all upon the same level, by

Industrial Democracy 13

requiring that a man shall not produce more than
a certain amount within a en tain time, and by
short -sightcdly opposing the introduction of labor-
saving machinery which must, in the end, really
add to the dignity and power of labor.

Thus we find a kind of new alignment, not very
definite as yet but growing moie definite. The
employee works for the money that he can get.
lie knows perfectly well that if he does not look
after his own money no one else will; he lias taken
his regard from the work itself to the money
that he can get for it and he finds nowhere a
community of interest with the man who pays
him the money.

What is the result of all this? The first result
is that, lacking any incentive other than the money
the worker will listlessly return just that amount
of exertion which will obtain the money. He
feels himself fettered, unable to express himself,
and can see no chance to get ahead, lor, if he
has classified himself as "labor" and as having a
market price he cannot see how it is possible ever
to get out of the class or to command much more
by great exertion than he is now earning by little
exertion. He wants to give the least that he can
in return for the money paid to him. It is up to

14 Man to Man

the employer then to get his money's worth.
He drives while the worker sulks.

Both the employer and the employee are gov-
erned by the same impulses and the one is no more
culpable than the other — they simply have not
gotten to a place where they can converse with
each other in the same language and form a part-
nership. The employee thinks that the employer
is grinding him down for his own personal profit;
the employer thinks that the employee is a "gold
brick artist." They are mutually distrustful and
the result is petty, irritating incidents that de-
velop distrust. The employer likes to dodge the
situations. As a writer in the New Republic said
not long since:

If a survey could be made of the minds of a thousand Ameri-
can manufacturers at random, and a report gathered of their
prevailing practices in dealing with labor, it would probably
be a rudimentary affair. When orders are abundant, as at
present, hire as many men as you can get at the market rate.
If you can't get enough at this rate, pay a little more than
your neighbor. Work the men longer hours. If they become
dissatisfied, give them a little more money. If this process
forces wages too high, recoup in two ways: charge higher prices
and introduce cheaper labor wherever you can, especially
women. If that gets you into trouble with the unions, keep
your shops non-union as far as possible, appeal to the patriot-
ism of your employees, blame seditious agitators for all strikes
and demand industrial conscription from the government.

Industrial Democracy 15

This is an overdrawn description but it has some
elements of accuracy. It reveals the big fact —
which all of us like to dodge— that there exists no
general, definite labor policy. It is true that
employment managers have done much toward
helping to found policies, but generally they are
easily over-ruled by higher executives on the
points that are really important. Hut they seek
to adjust existing conditions as between C.<i'-:.:al
a nil I.al'Or, accepting the two as distinct entities.
They cannot formulate a new basis of understand-
ing because that is generally held to be beyond
the proper scope of their duties. And finally
(and I think this is the greatest obstacle they
have to \\ork against) they are apt to be hired by
the executives in the hope that thus they can dis-
miss the bothersome detail of labor.

What is really the trouble? Is there no way of
forming a new relation instead of tinkering with
the old?

I he problem before us is to provide n new
relationship between employer and employee.
\\ e cannot bring back the old conditions; the
present conditions are intolerable. We must
create a new set of conditions.

CHAPTER II

WHY MEN STRIKE

IN THE year 1917 nearly 5,000 strikes were re-
ported. Probably twice as many small strikes
and "near strikes" did not come to official notice.
In the State of New York, in the period from
October i, 1915, to June 30, 1916 (which period
I take because it preceded our entrance into the
war and it marks only the beginning of the upset
of the relation between employer and employee)
there were 328 strikes involving a quarter of a
million people, who lost in all, 9,581,163 days.
If you happen to have a mathematical turn of
mind, you can calculate nearly how much of the
time of American labor was spent in fighting em-
ployers. Or, rearranging the figures, you can
roughly ascertain the idleness of the industrial
investments of the country because their control-
lers could not find any one to help develop them.
One might also arrive at a money total of the wages
and profits lost. But the total that you cannot

even estimate is the production lost through ill-

16

Industrial Democracy 17

will before the actual strikes and after their sup-
posed settling.

It is less expensive to have men belligerently
"out" than to have them sullenly "in." The
I. WAV. who understand human nature, brilliantly
evolved the "strike on the job" as a device to
irritate the employer without affording him a
concrete point to combat. When men strike on
a job they devote their minds to doing as litrlr as
possible in a day and doing that little as badly as
ingenuity will devise. Almost any employer
prefers an out and out strike with rioting and vio-
lence to the insidious crippling of .the "strike on
the job."

Take the production loss through actual strikes,
whether on or off the job, and you have an appal-
ling figure. But if any means could be had of
calculating the total effects of the ill-will that did
not develop into actual breaks or that succeeded
unsatisfactory settlements the results would be
even more startling. My own opinion is that,
considering the country as a whole, we have not,
during the past ten or fifteen years, secured more
than 4Or(' of our labor efficiency; that is, we have
wasted probably 6or(' of our manufacturing ca-
pacity. This is a stupendous waste — far greater

1 8 Man to Man

than the wastage of war and it acts and reacts
through our whole national organization. It pre-
vents a just measurement of wages, lengthens
hours unduly, and makes production costs and
consequently sales prices unreasonable. The
average commodity going through no particularly
minute fabrication doubles in price from the raw
material to the consumer simply because it must
carry the expense of human waste. Every worker
and employer are also consumers, so this deplor-
able state of affairs hits everybody. Is not then
this question of eliminating ill-will between em-
ployer and employee and consequently the cause
of most human waste the vitally important one
in the country?

The casual onlooker thinks no labor trouble
exists without a strike — that industrial peace and
"no strike" agreements are synonymous; the
country is flooded with mediation and arbitration
boards busy with the settlement of specific dis-
putes. They take testimony, inquire into the
cost of living, and conscientiously endeavor to
give fair decisions. They do commonly get the
men back to work. But if a substantial raise in
wages Is a part of the compromise (and it generally
is) no sooner has the award been made than an-

Industrial DcrmxTacy 19

other group hears of the increase and it too wants
more wages. In every case the increased wages
are paid without regard to increased efficiency
and hence the cost is passed directly on to the
puhlic; the price of living moves up a notch and
before the mediators have finished their swing
around the circle they find that the price of com-
modities has so risen that the higher wages no
longer are adequate and the marking-up process
has to begin all over again.

The public mediation commissions arc import-
ant, because they recogni/.e that the relation be-
tween empl6ycr and employee is no longer a pri-
vate afiair and also they help to avoid actual dis-
order in industrial disputes. They are an un-
fortunate necessity of the times but they are of
no use in effecting more than a surface peace.
'I hey do not and they cannot go to the root of
the mutter- -that is, they cannot replace the
ill-will with good-will— and irulced, in this re-
spect they have a deterring Jn'luence because
they serve to persuade all parties that labor
disputes arc properly to be decided through pro-
cess of law rather than on the plain common
sense, man-to-man, basis. They serve to con-
firm the idea that capital is cne thing and labor

2O Man to Man

another and that any peace between them should
be founded on negotiation rather than on justice
and cooperation. I can see ahead nothing but
disaster if we accept as a fact that the natural
relation between employer and employee is one of
competition and war and that their rights are to
be adjudicated either through trial of battle or
trial at law.

Let us grant that mediation and arbitration
boards are a necessary evil — that they are doctors
who, if they cannot cure, may at least administer
an opiate to take the edge off the patient's misery.
We used to think the big function of a medical
man was to cure; now we know that it is to pre-
vent. Would we have given any particular
credit to Surgeon General Gorgas if, instead of
taking fever out of the Canal Zone, he had built
a series of splendid hospitals so that the victims
might comfortably be cured? Is there not room
for practicing a little preventive strike medicine?

Strikes are culminations of ill-will. Look at
them from that angle. Take the 328 strikes in
New York; 270 of them were for wages, 26 for
union recognition, 13 for shorter hours, and 5 for
bad working conditions. Those for bad working
conditions may be dismissed at once; the employer

Industrial Democracy 21

who will nor voluntarily provide a decent working
place is to be considered as an industrial outlaw, a
menace to the community, and to be treated as
such. The wages and the Iwuirs are matters of
easy adjustment, if there is a mutual interest and
understanding between the parties. It" tin- em-
ployer and the employee are working together the
efficiency of the unit will be so great that wages
can be paid with respect not to the market ran-,
but to the productive power. I his productive
power will be so high that wages will always be
far in excess of the market figure and a continuous
balance between wage and profit can be main-
tained. This eliminates wage disputes. By the
same token, hours adjust themselves; the mutual
spirit of fairness will regulate the hours by what
the job requires. 1 hese questions out of the way,
union recognition becomes a purely personal mat-
ter. If the employer and the employee have a
convenient and just means for settling differences
as they arise, it is small matter whether or not
the union be recognized. For the workers in
fairness, although union members, will nor counte-
nance any itrjust interference by the union.

Unions were created to gain justice for the
workinc man. \Vhen thev make unjust demands,

22 Man to Man

as sometimes they do, the cause will be found in
the existing ill-will of the people responding to
demagoguery. I have yet to discover a case of
union interference sanctioned or upheld by the
workers where there were not already discontent
and trouble. Get these positions in mind. If
the employer thinks of workers merely as rentable
commodities, the employee will think of him only
as a rent payer and will be glad to have the assis^
tance of a union business agent to raise the renting
terms. If, however, there is a common feeling of
cooperation instead of competition, there will be
no room for any one who tends to disturb that
cooperation.

Trace how a worker begins his connection with
the plant, find out what the average job holds for
him and then I think it will not be surprising that
he has no fellow feeling for the employer. Until
there began to be an apparent shortage of workers
few concerns had employment offices. The com-
mon procedure was for a foreman to go down
among the throng of unemployed at the gates, or
(if the management did not happen to like a crowd
around) herded into a barn-like structure called
an employment office. Suppose he wanted five
turret lathe operators. He would yell:

Industrial Democracy 23

"Any of you fellows that e\ei run a turret
lathe stand over line."

The line would form and the foreman would
make his selection by the simple process of pointing
his ringer at the selected candidates and barking:
"Here, you."

If the foreman actually needed five men prob-
ably he would pick our ten and at the end of the
da)' fire all those who did not seem promising.
Some of the men would undoubtedly lie about
their knowledge of turret lathe operating in the
hope that they could get away with the job. If
they proved to be rank failures they would be
fired immediately without the slightest effort to
see if there was any other job m the place that
they could do. During the demonstration of
their incapacity, doubtless they would spoil
some material and retard production.

Suppose t!u-\' do get by. 1 hey may discover
that they are on a piece rate at which they cannot
make a decent wage no matter how hard thev \\ork.
I hey feel that it is useless to kick about the rate,
for the foreman has probably set it and v>ill dis-
charge them as shirkers if they complain. 1 here-
fore they quit. Or, the rate may lu high and their
fellow workers will quickly give the tip not to

24 Man to Man

spoil a good thing by turning out too much. They
loaf on the job.

Take such an individual case. What is his
outlook? He knows he will not be advanced to
a better rate because the work he is doing is worth
just so much and no more. The best that he can
expect is to keep working away at that machine
until the end of time, being paid precisely the
same amount for his labor regardless of his effi-
ciency unless some force outside the factory com-
pels a general raise. The reward for high efficiency
will be a cut in the rate. When the volume of
work lessens he expects to be laid off; he knows
also that the foreman, convinced of the efficacy
of military discipline, will, probably, from time
to time, do a little indiscriminate firing in order,
as the foreman himself would express it — "to
put the fear of God in their hearts."

The worker's relations are wholly impersonal;
he has a number and he is nothing more than a
number. His first thought always must be to
look out for himself — certainly no one else will do
that for him. He will be fired for bad work but
not rewarded for exceptionally good work. He
has not a single inducement to take an interest
in what is going on about him. Having his own

Industrial Democracy 25

welfare in mind, he is ready to join in any move-
ment which promises higher wages and easier
work.

There is the average factory worker! Probably
at some period of his life he has been harshly or
unfairly treated by a boss or by some employment
agency — for cheating immigrants used to be one
of our favorite national pastimes. It is inevitable
that he should gather together quite a good deal
of specific ill-will against individuals and it is not
unnatural that this sense of cumulative smarting
injustice should be directed against some specific
object. The most convenient target is the em-
ployer for whom he happens to be working. And
because human nature is always illogical, he bears
ill-will toward his employer — no matter how
fair that particular employer may happen to be.
It is a class and not an individual enmity.

Thus he is open to suggestion from any and
every demagogue who comes along. \Vhcn a
man is discontented he greatly appreciates having
ft demagogue to congratulate him on hts discontent
and suggest a few other things thar he ought to
be angry about. It is a deplorable condition but
perfectly understandable; it is reasonable in its
very unreasonableness. Take this extract from

26 Man to Man

the extremely intelligent report of President Wil-
son's Mediation Commission upon labor unrest:

As is generally true of large industrial conflicts, the roots
of labor difficulty in the packing industry lie deep. The
chief source of trouble comes from lack of solidarity and want
of power on the part of the workers to secure redress of griev-
ances because of the systematic opposition on the part of the
packers against the organization of its workers. The strike
of 1903 destroyed the union, and for fourteen years the organi-
zation of the yards has been successfully resisted. In 1917
effective organization again made itself felt, so that by the
end of the year a sizable minority, variously estimated from
25 to 50 per cent., was unionized. It is a commonplace of
trade-union experience that an organized compact minority
can control the labor situation in an industry. The union
leaders felt, and rightly felt, therefore, that their demands
had the effective backing of a potential strike. More import-
ant than any of the specific grievances, however, was the
natural desire to assert the power of the, union by asking the
packers for union recognition, at least to the extent of a meet-
ing between thj packers and the representatives of the unions.

This the packers refused to do. They refused to meet eye
to eye with the union leaders because of distrust of those
leaders. It can not be gainsaid that the absence of a union
organization for fourteen years, the increasingly large per
cent, of non-English-speaking labor, and the long pent-up
feeling of bitterness, all tended to make some of the men in
whom the leadership for the time being rested somewhat
devoid of that moderation in thought and speech which
comes from long experience in trade negotiations. On the
other hand, refusal of the packers to deal with these leaders
tended to encourage and intensify those very qualities which
dissuaded the packers from industrial contact with them.

The two important specific grievances involved low wages

Iiulustri.il Democracy 27

and lonjj hours. In fact, two wage increase* had, during if/17,
been granted to workmen, largely in an endeavor to forestall
union aitivity. Nevertheless the- i lairn w.»% nude, and
vahdly made. ih.it flic wa^r scale*, particularly f«>r the creat
body of unskilled workers, were inadequate in vu-w of the
increased cost of IIMIIK- A further fait that mfluerued the
workers in their w.i:;e demand was the h.-hef that the com-
panici had hern maLing e\n-ss profit-, dr-.pifc Cinvernment
rejjtilation of juurs. I nfortunatcly thr rrtus.il of tin- pack-
ers to meet flu- union leaden deprived the p.u Li rs of tfie op-
portunity ot explaining away, if possible, the Ixlitf enter-
tained by tiic men that the packers were profiteering.

Analyze those paragraphs. The union was
strong In-cause of the ill-will of the workers.
This ill-vsi!I h.ul not been ijuieted by increasing
waj;es; rat fur the increases were taken as evidence
that evm higher waives could be paid. Discon-
tent generated the suspicion that the company
profits \\ere unduly large and th«- people asked
for a share in them under the guise of higher pay.
The workers called their employers profiteers and
in the next breath asked to share in the swag!
How easily these matters nii^ht have been settled
had the workers some democratic nut hod of hnd-
inp out what really was goi:i£ on and of urging
their pleas for what they thought was justice.
I am not attempting to say who was n^ht; there is
nothing to show that the profits were unduly

28 Man to Man

high, but the real point is that the packers and
their workers "had no easy, informal way of get-
ting together and finding cut about each other.

Men strike because they are without adequate
representation; they may ostensibly go out for
wages or hours but the rub nowadays is the recog-
nition of the union. They think that they want
money, but when they get the money they have
always another complaint and whether or not it
happens to be phrased in money is of small matter;
that is merely a fault of expression. What is
really behind it all is the half-articulated feeling
that they should be treated not as mere material
but as co-promoters of industry; that there should
be a dignity in their position and relations.

Take again the report of the Mediation Com-
mission and look at this summary of why men
strike:

American industry lacks a healthy basis of relationship
between management and men . . . there is a widespread
lack of knowledge on the part of capital as to labor's feelings
and needs and on the part of labor as to the problem s of man-
agement ... to uncorrected specific evils in the absence
of a healthy spirit between capital and labor . . . too
often there is a glaring inconsistency between our democratic
purposes in this war abroad and the autocratic conduct of
some of those conducting industry at home.

Industri.il Democracy 29

Is not this formal conclusion only another way
of saying that we have failed to appreciate the
value of mutual understanding? That we have
failed to get down to a man-to-man basis?

But can such an understanding he had without
radically changing the whole organization of
industry?

It can. In the following chapters I am present-
ing some cases where it has been done.

CHAPTER III

BUILDING MEN TO BUILD PIANOS

THE mutterings, the vague threats, had come
to a head at last. An emissary of the union
had just informed the president of the Packard
Piano Company of Fort Wayne, Ind., that thence-
forth the shop was to be exclusively a union
shop, that other than union members in good
standing were not to work in it — it was to
be run as a "closed shop." He had broken the
news with a half-courteous, half-impudent man-
ner— a "this is how you're going to run your
business" air — taking no pains to conceal his satis-
faction over the rapid unionizing of the men.
He felt able to dictate.

"You mean that I am to discharge every man
who does not belong to your union?" queried
the president.

"Most of them belong," answered the agent,
"and we will give the others a fair chance to
join.'*

"And if they don't?"

30

Industrial Democracy 31

"Thru I guess we'll have to treat them as
scabs," remarked the agent carelessly; and thru,
significantly, "you know we union men can't
work with scabs."

"You nu-an ro say that if these men do not join
anil I do not discharge them you will call a strike?

1 he agent nodded, " I hat's about it."

"I will not discharge a man except for poor work
or bad conduct here," continued the president
firmly. "I ndcr the circumstances, I think we
had bitter quit before you do. I will shut down
this factory within an hour and I will not open it
again until I lind men who are willing to work as
I want them to and not as you want."

I he president kept his word, lie closed flu-
shop but not in the way that the union agent had
asked; he closed it "for repairs and installing
machinery."

The strike was on. The union fought hard but
the odds were against it and also the people, tor
the Middle West was not then very favorable ro
unions, \\ithin a month the factory opened
again; the union men came straggling back for
their old jobs and got them. The president-
had maintained his position and the unjust labor
leader had been forced to back down. According

32 Man to Man

to the technique of strikes, the company had won
and the men had lost.

Such was the face of things. But a glance at
the production chart for the first month after
opening caused the president to doubt if he had
won as much as he had lost. On paper the factory
should have been producing to the limit; the full
complement was on the pay roll, every machine
was running. But pianos were not coming through
at more than half the right volume and those
that did come through were by no means up to
standard; the workmanship was careless and the
sales agents began to complain. As the months
went by, conditions became worse. The men
openly soldiered on their jobs; they had no in-
terest, they disgruntedly worked because — and
they did not care who knew it — they had no other
place to find wages.

The company lost not only money through the
high cost of the instruments but also customers
through delivering faulty goods.

Everybody — company and men — was sore.

This was not a case of a grinding employer
trying to beat production out of his men. The
president was a fair man — one of the fairest that
I have ever met; he wanted to do what was right;

Industrial Democracy 33

he paid the market wage for a ten-hour day.
His trouble with the union had not been due to
wages, hours, or conditions; he was not opposed
to unions and he would have stood ready to con-
duct a "closed shop," could he have reconciled
himself to discharging workmen for nor belonging
to the union. He hoped that better methods might
bring a change and he retained an efficiency' en-
gineer; for eighteen months that engineer labored
to speed production and cur costs but the men
simply would not cooperate; they would not do
more than drag through their tasks'.

I he president put the whole situation before
me frankly: "I feel that I am somehow to blame
here; I cannot get down to the men; they do not
trust me although I am as fair as I know how to
be. I simply have not sold myself to them. I
shall do anything you tell me to do. I put myself
in your hands."

I was convinced of his sincerity. I looked about
a bit for the real causes ot the strike whose wake
hail caused the trouble. The factory wa-s an old
established one and had originally made reed
organs for the home. They branched our into the
manufacture of pianos as the market for organs
lessened. In the change the men who had been

34 Man to Man

with the company for years were shifted into new
departments and, although places were found for
all of them, they were none too happy at the new
work. The efficiency engineer put in a schedule of
piece rates. They began on a wrong basis, had to
be tinkered constantly, and gave universal dissat-
isfaction. The workmen came to doubt all the
rates and felt vaguely that they were being "done."
Then appeared the "walking delegate" to
unionize the town; he got a hearty reception
and within a few weeks the president was called
on to recognize the union — which he promptly did.
It so happened that the president, secretary, and
treasurer of the local were all in the company's
shops and they began at once to use their new-
found power. All three of them were in the
varnishing department; they asked and got a rate
of 30 cents an hour for varnishing piano cases with
a time limit of 32 hours for 16 cases and a bonus for
finishing within that limit. Then they asked
for a limit of 36 hours and a higher hour rate.
The president did not grant the increase; instead
he brought over some of the old non-union men
from the organ department who were rated at
only 28 cents. These men did their first cases in
26 hours and, within a few days, cut the time to

Industrial Democracy 35

2O hours. Thrn the president, as an answer to
the union demands, cut the rate and time limit
according to the records made by the non-union
men. Thereupon the union men retired in a
hufl and the acute labor trouble stage set in.

The men did not dislike the president; they
simply did not know him and defiantly did nor
want to know him. I say the men did not want
to know him. It would be more accurate to say
that they refused to know him. They were stub-
born although they did realize, in a way, that it
was disagreeable to work under an armed truce-.
Time passes heavily when there is no joy in tin-
work and every ir.an, I do not care v,!;o lie 's,
would rather i ::jov working than n;u! ir a bun!- :i.

'1 he p:'ei .<'.*. nt was sincere in his iKrir,- to have a
comple'.- understanding with his nun- !:;K-.Y
t'.ar otherwise I should rot have a:tt.mp: '. t >
won. v\i'!i him. ^ on can tal.e it as absolute t!..:t
there can be- no decent relation1; lutv. ,••„ n employer
and employee if either wants to "put anything
over" on the other.

After spending a few days talking with the men,
wandering about the shops and getting all of the
conditions hxed in my mind, I called a mass meet-
ing in the company's time. To ir came every

36 Man to Man

officer and employee of the company. Every per-
son on the pay roll was there. Probably they would
not have come had the meeting been held at noon
time or at any other period when the minutes
were paid for by the men and not by the company.
If the holding of any kind of a mass meeting for
the betterment of an organization is worth while,
then it is worth paying for and it is the company
and not the men who should do the paying. I
planned for no formal meeting. We did not hire
a hall nor did we have a platform from which
any one might take an exercise in oratory and
talk down to the men. We simply grouped in the
biggest shop. I cannot say that there was any-
thing particularly inspiring about the atmosphere.
The workers were willing to hear what I had to
say largely for the reason that they were being
paid for the time, and as between two evils, they
preferred listening to me to working. I spoke to
them carefully, simply, and as one of them. I
did not assume that the company was right and
they were wrong; neither did I tell them that they
had nearly all the known virtues and that we were
meeting largely to shake hands with ourselves
over that fact. A workman is a human being;
he knows perfectly well that he is not a paragon

Industrial Democracy 37

of virtue anil however much hi- may applaud
any one who tells him that he is, right down in In.
heart he feels that the speaker who emits such
persiflage »s no better than a fool. A normal
human being will take great gobs of "soft soap";
he will even follow leaders who do nothing but
oo/c such stuff; but our of all my experience I
have yet to find a workman who does not consider
himself first as a man and only secondly as a
workman, and who does not know that as a man
lie has no greater share of attributes divine than
is commonly dealt out to humanity in general.

I told the crowd that things were not going
well, that they were not doing their work, and
neither they nor the company were getting as
much out of life as each had a right to expect.

1 he trouble is," I said, "you are working ar
cross purposes. The company is going one way
and you are going another and it is not necessary
for me to explain to any of you that a cart cannot
get anywhere if it is being pulled in different di-
rections. It is not anybody's fault -it is every-
body's fault. ^ ou are to blame and tin- company
is to blame, or, if you would like better to put ;.
in another way, you are not to blame and the com-
pany is not to blame.

38 Man to Man

"I think that I know what the trouble is and
I am here to help you and the company to help
yourselves. I shall not ask you to do anything
except listen and ask questions. If you think I
am on the square we will have more meetings
and work this thing out. But if you think I am
trying to put anything over on you, say so. This
is your meeting and not mine. By your vote you
can take me or leave me.

"I think the trouble with this company and
with you is that we have no common business
policy — a single policy which will be that of the
company and of every man in this room. Did
you ever think how easily matters would run if
both the company and yourselves were working
along the same lines? If you were all out for the
same thing and willing to work together in the
fairest, squarest manner? If we have a policy
it should be put down in black and white and
hung up on the wall. You can carry copies in
your pocket, and you can make it the rule of your
conduct in everything.

"I am not going to give you a policy — I am
going to ask you to adopt one for yourselves. It
will have four corner-stones and a cap-stone but
I am going to suggest only one a week. We will

Industrial Democracy 39

take one today, talk it over, ami then vote on it.
If you vote "Yes" wr will lay the second corner-
stone a week from today and then you can vote on
that. Hut if this corner-stone or those which
we may talk about on any later day, does not suit
you, I expect you to vote "No" and we will quit.
There is absolutely no use in having a business
policy unless everybody agrees to ir, ami by every-
body I mean not only the president of the company
but also the truck men and the office boys. I
suggest, as the hrst corner-stone — Justice"

I talked about Justice; what it means in our
daily life; that we cannot expect Justice unless
also we give Justice. That it is two sided; that it
causes a square deal all around — on the part of
the men as well as on the part of the company.
Then I offered this resolution to be adopted as the
hrst corner-stone of the policy:

NVc, the Employers, Officers, and Directors, rcco£ni/ing
that Justice is the greatest pood and Injustice the prcatrst
evil, do hereby lay and subscribe to, as the first corner-stone
of our policy, this greatest of all good.

JUSTICE

The fullest meaning of this word shall be the basis of all our
business and personal dealings — among ourselves as indi-
vidual s, between our company and those of whom we buy, and
bef.vccn our company and those to whom we sell.

40 Man to Man

Justice shall be the first Corner-stone upon which we agree
and determine to construct broader character as individuals
and broader commerce as an institution.

We recognize that justice to ourselves necessitates taking
advantage of every opportunity to do the best that is in us,
and each day improve that growing ability.

We realize that merit must be recognized whether in ability
or merchandise. With this assurance we cheerfully, hope-
fully, and courageously press forward to certain and unquali-
fied success.

The men were interested. Some of them had
thought of justice only as another name for law,
somehow mixed up with courts, bailiffs, prisons,
or judgments. Others had thought of it as a
fine thing to have around — like a Bible. But I
believe it had not occurred to any one that it
was something which might be used on each day
and every day of the year. They talked it
over among themselves and with me. They
wanted to know if the resolution meant what it
said or if it was only a lot of words. Finally
they adopted it unanimously. We adjourned
for a week.

During the days following I could note a
change; it was a different crowd of men that came
to the next meeting. Where they had been
doubting they were now inquiring. They were
opening their minds. At the second meeting we

Industrial Democracy 41

adopted the second corner-stone -Cooperation
— in these words:

1 1» accomplish thr greatest possible rr-.u!f» as individuals
and as an institution we htul Cooperation a nrcrs.itv.

We recogm/e that business without l''»>prr4fi'iM is like
sound without harmony, fhcrcforc we determine and agree
to pull together and freely offer, and work v. uh, the spirit
of that principle— Cooperation.

So we shall grow m character and ability and develop in-
dividual and Commercial Supremacy.

Differences of opinion shall he freely and fearlessly ex-
pressed, but we shall at all times stand ready to C. < • ,' fr.-.'.e with
and heartily support the final judgment in all matters.

In the successive weeks we adopted the remain-
ing corner-stones of Economy and Enc'r^y, thus:-—

ECONOMY

As each moment is a full unit in each hour and each hour a
full unit in each day, so each well spent unit of thought and
well-spent unit of action makes for each victory and the final
success-.

When the hour, the day, the year, or the life is filled with
well-spent ability, and an institution is composed of individ-
uals who recognize the value of and .so use their time, then
success is controlled and governed and there is no longer
vague uncertainty or a blind and unreasoning hope.

Life is like a bag in which, each moment, we p!.uv a unit
of value or of rubbish, and our present and future happiness
depends upon the contents of that bag.

Rccogni/.ing that l'.c->r., n:y is time, material, and energy
well-spent, we determine to maki- the he»t u-.c of them, thus
so shall time, matcn.il, and energy become our servants
while we become the ma.sti:.s >•; ;>i.r destiny.

42 Man to Man

ENERGY

As Energy is the power back of action, and action is nec-
essary to produce results, we determine to Energize our
minds and hands, concentrating all our powers upon the most
important work before us.

Thus intensifying our mental and physical activity, we
shall "Make two grow where one was," well knowing that our
Individual and Commercial Crop of Results will yield in just
proportion to our productive and persistent activity.

This power of Energy directed exclusively toward sound
and vigorous construction leaves no room for destruction
and reduces all forms of resistance.

Having all our corner-stones in place, in the
fifth week I summed up all that had gone before.
I told them that we had the solidest foundation
in the world to build on, one that could not be
shaken. It only remained for them to put on a
roof or a cap-stone and then we should have a
complete structure that would last forever. As a
cap-stone I suggested Service. I explained that
our only end in life was service; that the only fun
that we might find in life was through service;
and that if we always bore in mind the four
principles we had adopted and made them con-
verge in the rendering of service we should not
thereafter have anything anywhere to fear.

With yells and cheers, that crowd of men who,
five weeks before, had greeted me with an if-you-

Industrial Democracy 43

must-get-it-out-of-your-systcm-shoot-ancl-gct-il
donowith look, halted the beginning of work
under what they conceived to he the new order
of things. They were as one man for .SVrriVr.
Here is what we voted as .SVf:/tv:—

We believe that the only sure ami sound construction of
succr.ss as an uulivKlu.il or an institution depends upon the
quality and quantity of service rendered.

\\ c neither anticipate nor hope t<> be unusually favored by
fortune, but are thoroughly persuaded that fortune favors the
performer of worthy deeds and of unusual sen ice, and we
therefore determine that our days and our years be occupied
with such performance.

Quality shall always be the first element of our service and
quantity shall e\er be the second consideration.

I hus shall we establish nor only the reputation but the
character of servmp best and serving most.

I hcrefore, by serving admirably, we shall deserve and re-
ceive proportionately.

The five resolutions formed our business policy;
it was typewritten am! hound and ever}' man in
the entire organization — even,' officer, even,' di-
rector, every workman — signed ir. We had addi-
tional copies struck oft" so that each man might
carry one in his pocket as a kind of a rule hook
for his guidance. We hung copies around the
office and the shop. \\ e sent them to our agents.
In short, we wanted everv human being with whom

44 Man to Man

we came in contact to know what our policy was —
what we intended to live up to.

Having adopted a policy I explained to the men
that from that time forward we were going to run
that institution together; that we were going to
meet once a week, tell about anything we found
wrong, and then devise a remedy. That from
henceforth we were all going to work together;
that they were not working for the president nor
for the company but that every man was working
with the company and the company with every
man; that there was not a single question of any
kind wrhich could not be brought up in open meet-
ing and threshed out. That nobody was to go
around nursing a grievance — that instead he was
to bring it right out in open meeting; that nobody
was to be fired for anything that he said or did
in meeting unless the meeting decided he should
be fired; that the organization was to be a democ-
racy run by all for all.

I told them that they were going to save money
under the new plan — that they were going to get
more work done; that it would not be a square
deal for the company alone to take the money
that they had saved but instead that we would
split up the savings 50-50, that is, as the books

Industrial Democracy 45

of the company showed savings in the cost of
operation, the amount saved would he divided
into two parts— one would go to the company
and the other would he distributed every two
weeks to the men as a dividend on wages.

They cheered and went to woik with a will.
The very day of that meeting, six men called on
the president. They said that their gang could
spare a hand. That they had tried it our among
themselves and the only thing that bothered them
was that none of them wanted to lose a job; if
any place in the factory could be found for the
sixth man they knew they could make a saving.
A place was found and they made the saving.

At the end of the first month the force had cut
costs of production 5 \r/0 which meant a dividend
equally to them and to the company. For
several months they kept on with an average
dividend of never less than 5^ and sometimes
higher. They put their whole selves into the
work.

They had been working ten hours a day, six
days a week. A resolution was offered that the
working day should be nine hours. Immediately
the objection was raised that it would not be
fair to the company to ask for ten-hours' pay

46 Man to Man

for nine-hours' work, that to make such a request
would be violating the corner-stone of Justice.
A workman spoke up:

"If we can do in nine hours what we used to do
in ten hours, then we can work nine hours and yet
live up to our principles. The only way to find
that out is to try it. I propose that we try the
nine-hour day for a month."

The meeting passed that resolution. The fac-
tory turned out more work in the nine-hour day
than in the ten-hour day; the piece workers who
composed 83% of the force each individually
made more money, and of course there was a
bigger dividend than ever to cut up because of
the "overhead" saving on the shorter day.

After running along for some months on the
nine-hour day, several of the more progressive
spirits proposed the eight-hour day with a half
day off on Saturday. But this was too much for
the conservative piece-work element. Charlie,
one of the best workers, announced definitely that
he could not do in eight hours what he was now
doing in nine and what he had been doing in ten.
He was at his absolute limit and that if the hours
were cut he was going to lose money.

The company advocated the reduction to nine

Iiulustri.il Democracy 47

hours anil also to eight hours. When Charlie had
finished his speech the president asked him:

"Do you nerd another press? Could you get
more done if you had another press?"

"No, I do not need another press."

" Ho you need more nxjm ? Are you cramped ? "

"No, I am not cramped."

"Charlie," continued the president, "I know
what is the matter with you. When you leave
here you go home to a shop in your own house
and you work there as hard as you can till II or
iz o'clock at night. When you come here in the
morning you are a tired man. You do not know
that you are tired, you think that you are fresh,
hut as a matter of fact you are tired. I think
that you can do more than you an- doing if you
cut out your outside work; and that you will make
more money right here than you do now with your
work outside and your work here."

The meeting resolved to give the short day a
two months' test. If, at the end of that time, the
men's wages had fallen, or production costs had
risen, breaking into the dividends, then they would
go hack to nine hours.

At the end of the first thirty days even,' piece
worker in the plant received a bigger wage than

48 Man to Man

he had ever previously earned and, in addition,
there was an 8% saving on production and another
wage dividend — the best which had yet been de-
clared.

How did they do it? Did they slight the
quality? No, quality was the first consideration.
I heard a new man challenge a fellow-worker:

"Bet you a cigar I can beat you done."

"Not on your life," came back the reply, "a
fellow's got to be careful on this job. You can't
slight things around here; just get that idea out
of your system and you'll last."

The quality was so much better than before
that the company could not keep up with its
sales.

The men made the savings by being interested
in their work, by putting themselves into it, and
by diverting all the thought and energy which
they had formerly used in the development of
the fine art of loafing to bettering the processes
of manufacture.

One of the most important parts of a piano is
the sounding board. The wood must be exactly
seasoned and it had always been thought that
it had to be made by hand. Seven boards was
considered good ten hours' work. The men de-

Industrial Democracy 49

vised a machine to do the work better and quicker
than by hand. I he president had it built accord-
ing to their designs. It was shaped something like
a banjo— they called it "the banjo." With it
one man easily turned out sixteen boards in an
tight-hour day — boards which were more uniform
and in every way better than the hand-made ones!

The spirit of "getting by" dropped our of that
plant. At one of the meetings a workman sug-
gested that the company employ an efficiency
engineer to teach better methods. I his was
startling enough in itself, because the very name
"efficiency engineer" is anathema to the average
union workman— it brings up to him only inhuman
and unhuman "speeding up." Hut the men took
the suggestion seriously. They did not jeer.
They had open minds. They discussed the pos-
sibilities until one exasperated spirit burse out:

"Hell, we have 268 efficiency engineers right
here now!"

That ended the idea of luring an outsider. The
meeting voted to post signs— "\\e have 268
efficiency engineers in this plant" — the conserva-
tives ruled out the emphatic introduction of the
coiner of the slogan ;>s tending toward ribaldry.
There were 268 employees and there were 268

50 Man to Man

efficiency engineers ! They made themselves such.
Look at this report. It came, not from high-priced
specialists, but from the men in the power plant
working as self-appointed industrial engineers.
Would it be possible anywhere in the world to
parallel it?

I know you are interested about the cost of operating our
power department and the savings that have been obtained
in the last couple of years. In the year 1912 there was a
great leak in the power department for the cost of coal in
said year was $8,967.12 so our department started out to
repair this leak, so we of our department all took upon our
shoulders the responsibility of efficiency engineers, and by all
pulling together we obtained 331 per cent, saving in 1913 or
$2,735.15 as we had reduced the cost from $8,967.12 to
$6,231.97. We also worked to better water conditions for
the cost of city water

in 1912 was $309.91

we reduced the cost in 1913 to 31.82

or a saving of 90 per cent, or $287.09

By reducing the amount of coal used we saved two men's
labor, which men we placed in other departments. The way
we saved those two men's wages was we cut do\vn from two
firemen to one and that one fireman had it easier than either
of the two firemen had it for we cut down from 4 boilers to 2
boilers and by re-arranging the pipes throughout the factory
and around the boilers the one fireman had a nice position.
The other man we done away with was a man hauling in coal
and unloading it. How we done away with this man was by
making a test on our boilers with a couple of different grades
of coal and we found a coal that cost just as much but had

Industrial Democracy 51

more H. and V. in it ami beside* they dehvr red our coal as we
needed it and that saved the job of a nun hauling in the
coal.

I hrrr Wat another saving obtained through not u»ir.g *o
much coal, for in the year of 191: we had to pay a man £4 oo
a week for hauling away ashes whuh amounted to f>icA co a
yrar. Now we can give all the ashrs away that %%r nuke and
by letting the coal we found out that thr nld tual that we
used to use went as high as 8 per cent, ashes. 1 he o>al we
now use runs between -J-4 per rent, ashrs.

The cost of coal per piano during the year of 191: was
$4.98 per piano anil in the year of !'>n, £4 :''>. \Ye arc not
stopping at thrsc figures for we h;;urc for the year of 1^14 to
obtain a ^o per cent, saving in coal over the year l(>i- and
also to reduce the cost of coal per piano from £4 ';S to ,<i.io
per pi.mo. And to h.i\c no city water bills at .ill .is we are
using our own well for watering purposes. N> 1:1 unc year's
time we patched the leak in the power department to a preat
extent, but this year we are going to put a gcxul patch on the
leak. 1 he savings obtained in 1913 were as follows:

Water

'--•; 09

Saved on ashes
One fireman .
One vaid man

::^ co

. . . J»CO 00

<-:o co

Oil on engine

" " CO

Total

,M.' ~<> 14

There u> no use in stating what changes took place, to make
these savings, but it shows ho'.v a few nun working as "p.e can
get better results. And the boys are working their heads to
make a 50 per cent, saving in fuel in this department this year,
and nothing less will do.

Below I will state the amount of piping and machinery in

52 Man to Man

the factory and then will write two tests that we made, one
in August, 1912, and the last on April 27, 1914.

There is 4>6o5 feet of different size steam pipes or
62,608.07 square inches cross section area
26,832 feet pipe used in heating factory of
which 25,338 linear ft. of I in. pipe used for coils the

remainder i?494 feet is main lines leading to the coils
There are 1,310,496 cubic feet of space in factory heated by
31,437 linear feet of steam and heating pipes

4 boilers area openings
106,643 sq. inches, area of steam lines taken off of

boilers

48,899,338 There is six miles of steam and heat-
ing pipes in the factory.
Sizes of Lines taken of boilers:

i~5in. line for a 150 H. P. Base Noncondensing engine
1-3! in. line fire pump
1-3 in. line for the heating system
2-2 in. glue lines

2-l| in. lines for two boiler feed pumps
1 1 in. line for 4 dry kilns

4 boilers 54 per cent, rated H.P»
385 H. P. Builders Rating

7 hour test

Tests made August 18, 1912
8200 Ibs. of coal fired
1165 " ashes

7035 " combustible matter
1171 " coal fired per hour
1005 " less ashes
43625 " water used
6232 Ibs. water per hour
698 cu. ft. of water
167 Ibs. of ashes per hour
I4-9/-82% per cent, ashes

Industrial Democracy 53

Economic results on thi* tc'.t arc I lt>. of t.<»a! t» 53 lb«. of
water per hour

Test made April J7, I >I4

duration ol teif 7 hours

franc C'reelt coal used

Kconornic results I Ib. of

C'oal to 1 1 J Ibs. of water

(.'oal burned Jo '7 Ibs.

Total evaporation 40,^00

Water per Ib. of coal 11.5

Ashes 11 ; ;

I'er cent, ashes from coal 4-$ per cent.

Rated II. P. bo.lers :H:5

Rated H.I', generated during rest 60 per cent.

Boiler room temperature 7H decrees

Steam temp, in boilers 331 degrees

Water temp, in boilers -IO degrees

Coal burned per 11. 1'. : ,\ Ibs.

H.I', developed 171

Today we are operating on two boilers easily and two
years ago we had a hard job to run \vith four boilers with the
same amount of piping in the factory but the.se results were
obtained through using our heads as well as our hands. All
the boys have it easier today than they e\er had it and get-
ting better wages and less hours.

1 rorn your friend

1'. S. One of the Happy Family.

This letter would do credit U-xcept for the Eng-
lish) to any graduated mechanical engineer. Can
you think of ordinary mechanics becoming so
scientific? These men in the boiler room had
been ordinary mechanics; to make good the
"efficiency engineer" title they had studied the

54 Man to Man

best practices in boiler economy. They studied
every minute in order to make their jobs better.

The average employer loses a deal of money
through the unstable qualities of what is called
"unskilled labor." It comes and goes like the
four winds of Heaven. This company had its
share of such trouble. The men themselves
changed all that. They abolished "unskilled"
labor. When you stop to consider it, all work is
"skilled." Every job can be done well or ill.
Skill can be used in anything. The unskilled
laborers of the factory caught the ideas in the air
and became skilled workmen. Truckers found
that there was more than one way to load and
haul a truck. Shovellers discovered that a shovel
was something to conjure with. The man who
did not have brains enough to make a skilled
task of his job received instruction from those
who did use their heads as more than supports
for hats. The man who came into that shop
and acted as if he were working for and not with
the boss soon got his awakening. The men held
a slacker as no better than a thief for he was
stealing from them by helping to cut down
dividends.

The original trouble in this plant, the big

Inclustri.il Democracy 55

quarrel, had been brought about, as ir.ual,
by a reduction of piece rates. A worker never
knows how to act on n piece rate. If he dors
exceptionally well and makes a nigh wage, be is
afraid that his rate will be cut; if he falls below a
certain production, he fears tliar he will he fired.
Therefore, since two fluids of all piece rates arc
Set without exact knowledge, the average worker
makes a game our of beating the rates. Some-
times he wins and sometimes he loses. Neither
be nor the management is ever satisfied. Hut
here it was to the interest of the workers them-
selves to have a fair rate. They knew that a
fair rate would not be changed because they them-
selves were the only people who could change it.
The corner-stone of Justice insured fair dealing.
Therefore they studied rates. One group had
been producing units at 42 cents each. They
devised certain ingenious jigs and also they cut
out a deal of lost motion. After having given
their improvements a fair trial they suggested
that their rate be cut to II cents. At II cents
each of these men is making more money
than he did at 42 cents and with less physical
labor I

These remarkable savings — and I have only

"56 Man to Man

spoken of a few of them — were as nothing com-
pared with the heightened morale of the force.
The men were heart and soul for the company.
It was their factory and their company, and they
had a hand in governing it. There was no infor-
mation that the weekly mass meetings could not
have for the asking. But they were so absorbed in
making a better company for themselves and
getting their own dividends that they did not
bother about any matter in which they could not
assist. Only once did they go into any affair that
did not involve strictly a production problem and
that was in the year 1914. Everyone recalls
the way that business was palsied by the outbreak
of the Great War. The sale for pianos stopped.
The warehouse began to fill up, the outlook ahead
was dismal. The president did not want to shut
down or run on part time because he did not want
to inflict a hardship upon the organization; at
the same time the company could not continue
to manufacture at full speed without making sales.
It was a delicate question. It bothered the presi-
dent; he planned to present the whole case to
the men. But he did not have to; the general
assembly took it out of his hands. In September,
1914, a cabinet maker read this letter in meeting:—

Industrial Democracy 57

To TII r BOY* IN nir F.MTORV:-

I he present MI .1 m >n and condition of the country do*--, not
look very bright, and the general feeling 11, the worst u yt t to
come; but let us hope jj.it.

I take it for granted that we arc all interested in the welfare
of this factory, and arc willing t«» male a little sacrifice for
its interest and to put Mr. Bond at e.i-.r t» know that we
KDOV. what he does is for the be.sf. It is n«>t a pleasant matter
to tell us that we will shut tins part, or that p.irr. or the whole
factory down for a few days, so when these conditions come
up let us greet therein a cheerful way. Mr. Bond has proven
a worthy master and if we trir.t lu:n at t'u- helm he will steer
us through these troubled conditions. (I hat's Justice)

As a suggestion, I think if we take a day or so off now and
then would help a great deal. Take a day <>r two e .rra <>n
Labor Day instead •>( waiting and getting it all t;i one lump,
what is hahle to follow if we don't. What do you suggest?
Now is a chance to cooperate. (I hat's cooperation.)

'I he president was astonished. He was as-
tounded at the animated discussion that followed.
He realized that he was nearly an outsider at that
meeting. Instead ot discussing how long tiie
company could continue to pay full rates, the
meeting took the attitude of inquiring how little
the workers themselves could get on with until
better times came around!

First, all the foremen volunteered to reduce
their own wages 25^, for the time being. Then
•the" meeting, after debate, decided that it would
be more economical to work part of the week than

58 Man to Man

to reduce the force and they proposed that the
factory run only during three days of eight hours
each. The president had to argue against such
drastic economy. He assured them that they
could get along on a four-day week. The work-
men were not inclined to believe him, but, after
he produced facts and figures, they gave in to the
extra day — to a four-day week.

The factory went on under the limited schedule
until times began to pick up in 1916. Out of the
former force 168 men then remained. One
hundred had been unable to meet expenses on
the reduced wage and moved away from the town
to take other jobs. They drifted off gradually
and without disturbing the organization. As busi-
ness began to liven, the president brought before
the meeting the question of hiring additional
men. He was opposed. The workers declared
that for the present they could attend to every-
thing and it would be time enough to talk of hir-
ing new hands when they had more than they
could do. Business increased; it is still increas-
ing but more men were not hired. At the time
of writing this account, the factory is doing a
larger business than at any time in its history
and the work is being done by 168 men.

Irulustri.il Democracy 59

That is, these men have, in their role of efTi-
ciencv engineers, so increased their individual and
colU'Ctivc efficiencies that they are doing not only
thai own woik hut more than the additional work
that was formerly done by an extra hundred men.
i hey are not speeding up, they ate not sighting
quality. Not one of them is working hardir than
he did before, hut hy employing their hrams to
the very fullest extent, by making themselves a
part of the company and the product they have
gone to lengths that a few years ago would have
been considered as wholly beyond possibility.
The men are making money; the company is
making money; the wages and the dividends as
earned by the workers are larger than those earned
by similar workers in any part of the country.

They have made an institution. It is rare
indeed for a man to leave for any reason other
than death or disability. What is commonly
known as labor turnover docs not exist and this,
mark you, during a period when an alleged
shortage of workers and the irresponsibility of
"cost plus" contracts made by the Government
has caused employers to bid recklessly for any
man who could handle tools.

The workers have their own family and they

60 Man to Man

insist that every member of that family live up to
the business policy of the company. If any one
lags he is promptly informed of the fact and his
own fellows suggest to him that he wake up or get
out. If any man has a grudge against the manage-
ment and prefers to mutter about rather than
bring it up in meeting it is his fellow-workers who
insist upon a showdown.

.The meetings are now held monthly because
•not enough happened to require the continuance
of weekly gatherings. They discuss all sorts of
things; when they have nothing else to do they
swap stories or just "hot air." Once they took
it on themselves to investigate the president.
He had not taken a vacation within their memory
and they decided that he needed one. They
passed a resolution granting the president three
weeks' vacation and intimated that they expected
the president to regard their wish in this respect
as law. He declared that the company could not
function without him. They came back with the
assertion that they would do better without him.
He took the three weeks' vacation. When he
came back he found that all previous production
and sales records had been beaten!

This is in many respects an almost unbelievable

Industrial Democracy 61

Story. It is wonderful to any one who has brcn
accustomed to regarding the workman as a soul-
less being, but it is not wonderful when one con-
siders what is really at the base of good work.
Let Mr. Bond, the president of the company, give
his own explanation. He says:

"\Ve used to build pianos. Then we stopped
building pianos and began to build men — they
have looked after the building of the pianos. We
have adopted as a slogan for the Packard Com-
pany 'If there is no harmony in the factory there
will be none in the piano."

And so strongly does the president believe in his
statement that it is the men, nor the company, who
are responsible for the success that he hopes to
devise ways and means for the men themselves
to become so financially interested that they
can guide and control the company. I cannot
better summarize the results of the work here
than the men themselves have done. They for-
mally stated that a democratic administration,
guided by fair business policy, has accomplished
these ten things for them:

I. Reduced working hours.

;. Increased the output.

3. Produced better instruments.

62 Man to Man

4. Increased workmen's income.
$. Put the whole man to work.

6. Done away with misunderstanding.

7. Given each man a share of the responsibility.

8. Made real inventors of many workmen.

9. Instilled a spirit of genuine comradeship into the entire
'Organization.

10. Established a new kind of democracy.

But what of the union trouble, what of the
closed shop? What happened to the original
grievances ?

They got lost in the shuffle.

There are no differences between the men and
the company. The men have made their own
wages higher than they could possibly ask through
the union; they do not need outside rules because
they make their own rules. The men and the
company being one, no room has yet been found
for an outsider to wedge into.

"If there is no harmony in the factory there -will
be none in the piano"

CHAPTER IV

OUT OK A CONFUSION OF TONGUES

HOW did the superintendent of construction
feel, what did IK- say, and what did he do
when the curse of languages descended upon the
Tower of Babel job ? Did lie make an effort to sort
out and reorganize? Or did he just quit on the
spot.

Over at William Demuth & Co., at Brooklyn
Manor, Long Island, we had nearly ever)' feature
of the Biblical story except the tower. We had
nine hundred men and women; about half were
Italians, a quarter were Poles, and the remaining
quarter covered nearly all other nationalities, with
a very slight sprinkling of Americans. Many of
the force could speak no English and those who
claimed to speak English had very sketchy vocabu-
laries which, under pressure, spluttered into their
native tongues.

The factor)' made smokers' pipes and had been
founded sixty years before in a small way by \\il-
ham Demuth when all pipes were being imported.

63

64 Man to Man

It had grown steadily until it produced a majority
of the smoking pipes sold in the United States;
it had spread from a little back room in lower
Manhattan to a splendid modern building in a
Brooklyn suburb. In the beginning it employed
foreign pipe makers; there are only a few pipe
factories in this country and few native pipe
makers, so it was very seldom that trained workers
could be hired. The operators must be trained.
The work of making a briar pipe is not arduous
but it is tedious. Here roughly is the process.
The briar wood comes in various rough shapes and
sizes and often has many natural imperfections.
The pieces are sorted to size and shape and then
roughly cut into a pipe form which is called a
"stummel." The stummel is then bored and
goes on to be formed and polished. The forming
is done by hand against whirling disks covered
with sandpaper. In this process various knot
or insect holes are uncovered and these must be
patched with a special kind of putty which will
take a stain and blend into the coloring of the
wood. A high-grade pipe has no patches and
a cheap briar many of them. It is the perfection
of the wood as well as the workmanship that
largely determines the quality. The finished bowl

Irulustri.il Democracy 65

goes on to he mounted with a base or precious
metal and finally to have an amber, hard ni!)her,
hone, bakelite, or other hir inserted. 'Hie com-
pany makes pipes ftoin woods other than briar
and also from meerschaum, hut all materials go
through substantially the same process except that
meerschaum and calabash require most delicate
handling. Most of the work has to be done by
hand and even a slight mistake will either ruin
the stummel entirely or at least take dollars of!
the selling price. Americans do nor shine ar
careful hand labor; the industry is an imported one
anyway and ir has always drawn its labor largely
from the immigrants who used to flock into New
York.

Until the Great War shut off immigration,
labor conditions were not serious. Men or women
could always be had and although they came and
went, the wages were high enough and other jobs
sufficiently chrhcult in the getting, to hold a work-
able force. But war conditions brought a change.
These operators weir highly skilled in one task;
they could in normal turns work outride only as
laborers and main' ot them wi re too slight phys-
ically for the outdoors; bur when the demand for
war workers became threat, and anv one could

66 Man to Man

get a job at high wages, they drifted away to the
munitions plants.

We fondly imagine that our immigrants come
to us to be under the flag of Liberty. Some of
them do. But the majority come for the dollar
and with a fixed intention of going back again when
they have enough dollars. They work solely for
the high dollar. They care for their employer in
so far as it affects the number of dollars earned.
We have taught them to put the dollar ahead of
the work by treating them as impersonal things
to be rented as cheaply as possible. It is not
strange that the Russians who went back for the
revolution found nothing to praise and much to
blame in our institutions; they had seen the
United States through a sweat shop window.

This particular factory was not a sweat shop in
any sense; it had above the average amount of
light and air. The workers were treated well —
much better than in any institution I know of
employing foreign help — but they bore an imper-
sonal relation to the company. And when high
wages were offered outside, they left. New
employees had to be hired and they were pro-
gressively of a lower and lower class — the men and
women who were too ignorant to find better jobs

Industrial Democracy 67

or who stopped in at the factory only until they
could get something better. They were unruly;
few cared if the work were good or bad. I hey
were content to "get by" except for a sprinkling

ol older men who had been employed for years and
were past the age when they could venture to
seek outside employment. '1 hesc men did their
work well by habit; but there were precious few
of them.

The problem was to get this polyglot crowd
interested in their work, to make them one with
tin- company, to introduce a spirit of cooperation
which would reflect higher and happier pay for the
men and a better product for the company. It
was a serious problem.

I know that one concept is international; that
every human being, every dumb animal responds
to it. It is expressed in the one word fustier. If
that idea could be sent across, no longer would
there be a problem. Hut how couKl ir be pur
into the nnmU of men who knew not Justice; who
had buit their backs to injustice horn the day of
their birth; whose nearest word to it was revenge1
It could not be established by preaching. 'I hese
people were elemental. They could learn only
from example. If we wanted Justice, Coopera-

68 Man to Man

tion, Economy, Energy, and Service, we should
have to "show them."

If I could establish Justice as a principle for
daily guidance, every other matter would adjust
itself. I brought all of the people together in the
biggest department of the factory to try to explain
Justice as a living, breathing guide.

It is not so difficult to meet and overcome op-
position when it is articulate. Then at least you
have something definite to combat. But with
a crowd such as this the opposition was sullen
and unintelligent. Many could not understand
(what I tried to tell them, while others, I think the
majority, had become so accustomed to having
things "put over" on them in their daily life that
they were frankly suspicious and hostile. We
commonly do not realize that our welcome to the
immigrant consists in "taking him in," in "hand-
ing him something good." I sensed all of these
things in the air. I should have been relieved
had a few men spoken against the plan — had ac-
tively opposed it. But they did nothing of the
sort; they just sat around and listened; some
blankly while others glowered. We adopted the
first corner-stone of Justice unanimously, it is true,
but without other than formal enthusiasm. The

Iiultistri.il Democracy 69

Italians cheered because they naively like a cele-
bration; tin- Poles said nothing.

I explained the dividend .system; just how we
intended to work together - that we should nor
only govern ourselves but that of all the savings
made in the cost of production, one-half \\<>uM
go to the company and the other half t<> them.
They asked a few questions about this a frv,
details of the hoax they suspected we should
play on them. They did not believe me. 1 he-
more experienced men in the crowd had long been
familiar with the promises of political candidates
and, since we were going to have a kind of political
orgam/ation, I think they took it for granted that
it would be managed along political lines and
therefore no promises whatsoever would be kept.

In successive weeks we adopted a business
policy defining and adopting, after Justice, tin-
three main corner-stones of Cooperation, I.con-
omy, and Energy, and finally the cap-stone of
Service. Tlu-n we organi/td, with this policy
as a kind of constitution, a government on the
same lines as that of the United States. \\ c
formed a Cabinet consisting of the executive
officers of the company with the president e-t tin-
company as president of the cabinet. 1 he legis-

70 Man to Man

lative bodies were a Senate made up of depart-
ment heads and foremen, and a House of Repre-
sentatives elected by the employees. The elec-
tions to the House were by departments — one
representative for each 25 employees, or, in the
case that a department had less than 20 employees,
it combined with another small department. The
various bodies elected their own oftcers and
adopted by-laws covering their procedure. The
House had as officers, a President, a Vice President,
a Secretary, and a Sergeant-At-Arms; and these
standing committees: Program, Imperfect Mate-
rial and Poor Workmanship, Suggestions, Public-
ity, Safety, Flag, and Educational. The official
make-up of the Senate was similar to that of the
House.

I tried to make it clear to everybody that hence-
forth we should be governed exactly as the coun-
try in which we are living is governed. They
were told that all complaints, all grievances, all
disputes over rates or wages, should be presented
to their representatives in the House who would
take them up in meeting, and after a fair and open
discussion, try to arrive at a just decision. That
all laws and measures affecting the conduct of the
factory would have to pass the House and Senate

Iiulustri.il Democracy 71

and be approved by the Cabinet. That they
were now under democratic rule— under tin it own
rule, and they were expected to make light use
of the powers that had been given to thtin.

1 his aroused at least .some interest. 1 think
that most of them were cuiious to know what was
going to happen. I cannot say that they had
moie than a cunositv. Without knowing it, they
began to wotk a little better than they had, for
at the end of the first two weeks we found that
we could distribute a dividend. 1 hat dividend
was real evidence!

Their initial interest was purely financial.
These people had no practical and precious little
theoretical conception of democracy. The Poles
had bxX-n born under the rule of old Russia.
They knew law and government only as some-
thing which restricted and punished. Represen-
tative government meant nothing to them; they
had heard vaguely of various assemblies but
had never discovered that the form ot government
made much difference in their actual condition.
Of course they had lived in the I'mted States;
some of them were naturalized and had voted;
but without any particular idea of what it all
meant — certainly without a conception that the

72 Man to Man

voter was the ultimate ruling power. They were
in America to make more money than at home.
They cared little for theory — any one might have
the theory, they would take the cash. For co-
operation in the abstract they cared not at all.
The dividend taught cooperation. For instance,
a number of men decided to celebrate an Italian
holiday. They stayed out. At the next meeting
of the House of Representatives it was announced
that the dividend would be only 12% but that it
would have been higher had not so many men taken
a holiday. That is, a man who earned $20 a week
got a dividend of $2.40 instead of $3.00 — he lost
60 cents because some other fellows did not work.
It is one thing to leave a shop knowing that only
the company and yourself will lose money by your
act, but it is quite another matter to realize that
your fellow-workmen also lose money — money
they need. The dividends are the most practical
and forceful argument for cooperation. They
reduce talk to the universal common denominator
—to saying something like this: "Because Pete
and Tony stayed out three days you fellows lost
20 cents each."

The workers ventured into industrial democracy
searching for cash; they stayed because they

Iiidustri.il Democracy 75

liked the idea. 1 lu y saw and learned— but
slowly.

I he representative s\ su -m dul nor work smooth-
ly. Some of those- \vh<> h.ul !u-< n elected did
not attend, while others fc-Il oil in th< ir attendance
because their fellow-workmen, although electors,
jeered at them. 'I he House member, \\i ir Mipn-
sensitive— they were as temperamental ;r, pinna
donnas. 1 he minutes show some ol the tM.r^Ks.
Heie is what one session of the House had to con-
tend with:

Miss F.uvre stated th.it slu- li.ul interviewed Mr. Cortegiano
who s.iul th.it owing to the trouble lie .'i.ui \\ith Mr. 1 rtink
thrcr NM-cLs .i^>>. In- thought it \MM r t > ii M.-M, ar.d tin- f.u t
that a rivort.1 of this nn\-up h.ul !>cin nuhulcd in the r;;i:;utcs
of th.it incrtinu, lu- h.ul iltviJril t-> re-' -:\. It" I'M, h..il iK-t
been .uKlcil t" tin- initmtrs. In- \\msul n"t \\is!i t-> itM^n.

Mr. 1 home rrptirti-d th.it Mr. Cortt-pi.mo s.iul that lu- \\as
not smart enough to nunglc with the other represent. iti\ r<f
and that, as this was n<> government house, he tlioup.h.t it un-
necessary to hand in an official resignation a:ul h.ad just st.i\ed
away from the meetings.

'I he President was of the opinion th.:t t!.;> \vjs a >i^n of in-
suhordination.

The committee was instructed to till Mr. (/orte^uno t!iat
the minutes of each meeting must con^^t "t e\erythmg that
is performed at each meeting, and that this is an unreasonable
excuse; also to assure Mr. Cortegiano that he is perfectly
welcome to come back to the House. Miss r.iivre v, as di-
rected to report at the next meeting.

74 Man to Man

Mr. Reina of the Polishing Dept. handed his resignation
to the President, which read as follows:

"I beg to present to you my resignation as representative
of the Polishing Dept. for the following reasons:

"Friends who desire an increase in the price of pipes come
to me continually. Mr. Steiler and myself spoke about this
to the foreman who told us that all the men desiring an in-
crease should give in their names, and he would give them to
Mr. Feuerbach. We accordingly did this and gave the
foreman a list. After a few hours, he feared to present the
list to Mr. Feuerbach. The workers became indignant and
demanded my resignation. I believe it is superfluous to add
that the increase is asked on account of the exceeding high
cost of living.

(signed) GIOVANNI REINA."

Mr. Reina and Mr. Steiler explained that this had hap-
pened over two weeks ago, and no reply had been received.
The meeting said that this was an injustice on the part of
the foreman; it was wrong to direct Mr. Reina to make up a
list, and then do nothing in reference to it. It was moved
that the House should not accept the resignation of Mr.
Reina, as he was doing his duty. Mr. Moll seconded this
motion, and the resolution was carried.

A few members quickly caught the theory of
representative government. Of course at first they
believed that the whole idea was a fake. They
came to show us up, but they turned out to
be the real constructive force. They had to be
convinced; but once they had a conviction of our
sincerity, they were willing to go to any length
to make the experiment a success. They knew

Industrial Democracy 75

and were in touch with the mass; they knew the
mass psychology.

I or instance, half a dozen men who could nor
speak Knghsh walked our. We took it up at a
House meeting. ( )ne of t!u- "agitators" explained
"These fellows do not speak F.nghsh. All that
they know how to do when they do not like any-
thing, is to strike. That is the only way they can
express themselves."

The House appointed a committee to investi-
gate and traced the whole trouble to some trivial
error of allotment in the work; it had not been
called to the attention of the head of the depart-
ment. The committee hunted up the men, talked
to them in their own language, and had them back
within a few hours. This incident brought up the
importance of having a single language in the
plant instead of half a do/en. I he House was
discussing a house ^rgan for general circulation m
the factory. Read the minutes:

Someone asked whether it would he advisahlc to hive the"
paper printed in different languages. 1 he people who live
in this country must speak Lnglish some time and they might
as well learn now. It we keep on punting in different lan-
guages the people will not learn to speak Knglish. \S c ought
to print it in one language only— English.

76 Man to Man

Take another case. It is the custom in nearly
all factories employing foreign-born people to post
signs in the varied tongues of the workers and
some foremen are retained largely because of their
knowledge of the languages. The representatives
decided that this practice must be changed. They
resolved that all foremen should give instructions
in English and only in English. That the same rule
should apply to all notices; that this was to be
known as an English-speaking shop and that any
one who did not understand the language should
learn it. To help those who wanted to learn, they
asked the company to provide classes for the
teaching of English. These classes are now doing
splendid work.

They were determined that no dividends were
going to be lost in that place just because some of
the people could not understand what was going
on.

Unhesitatingly I say that the dividends were the
first feature of the new plan to awaken interest—
they were our first "point of contact." It is not
cynical to say that the easiest way to reach any
one's heart is through his pocketbook, though it
must be borne in mind that merely putting money
into a pocketbook does not, in natural sequence,

Iiultistri.il Democracy 77

reach the hcait ami attract the interest. Increas-
ing wages may cause tin- recipient to think that
\ ou are generous, more than likely it \\ill convince
him that you ate an "easy maik." Neither con-
viction makes for good work, \\ages must he
based on service rendered. An overpaid man lias
as little of the cooperative spirit as one who is
underpaid.

That mass of men awakened to the knowledge
that there was justice in tins world through the
stimulation of the pay and dividend envelopes.
But not because of the contents— because of the
essential justice of the sums.

A group claimed that their rates were unjust,
that with a certain style of pipe, a man might
make a third more in a day than with another
style; thus the distribution ot work and not the
ability of the workman controlled the day's wages.
Under the old system this complaint until J have
been directed to the foreman and he would have
said "Yes" or "No" and his answer would have
been final, t ruler the new system the complaint
went to a representative and he brought it up he-
tore the House. I he House appointed a commit-
tee, they fully investigated and tendered a report
stating just how and why the rates were incorrect

78 Man to Man

and recommending certain changes. The bill
then went to the Senate, was passed by it, and
finally approved by the Cabinet. The origi-
nal complainants grasped the justice of all this.
Not only were they satisfied with the specific action
but they found a sense of future security. Other
wage complaints came up, were similarly investi-
gated, and decisions arrived at. Some of the
decisions were affirmative and others negative.
Formerly, when a foreman refused, discontent had
followed. But the force of public opinion now
sustained the democratic decisions.

Slowly the spirit of justice began to percolate
thro ^h the organization. The mass awakened;
the foremen awakened; all of them began to realize
that there were merits in self-government. The
people learned that they had their destinies in
their own hands. The foremen learned they
could make good showings in their departments
only by leading and not by driving the people
under them. The superintendent of the factory
began to thaw out. He had held that the
factory force was a working army and should
be ruled with stern, military discipline. But jus-
tice got him! He mellowed; he began making, al-
though at sufficiently long intervals, remarks that

Industrial Democracy 79

were not reprimands. And as he progressed on
the road to humanity so, keeping pace with his
own progress, went his popularity and authority.
Where he had been hated he was liked, and no-
body appreciated the change more than did he
himself.

In the patching department, where they putty
up the defects in the lower grade pipe bowls,
was a group of middle-aged Italian women. They
all had hair-trigger dispositions and, their work
being monotonous, were always on edge for excite-
ment. 1 heir leader was Rosa, a brawny Amazon
of perhaps 34 with flashing eyes set in a round,
swarthy face out of which could race countless
words per second. I had taken pains to make
myself popular with Rosa and her companions; I
knew that their force for destruction might, rightly
directed, make for construction.

We had in a committee meeting been discuss-
ing poor patching. I asked one ot the Committee-
men to point out to Rosa that she was not patch-
ing to the best advantage. He did not like the
assignment but I promised to join him in the
department. I entered perhaps a minute after
him. I saw a wild Rosa on her feet.

"You no like mv work?" she shouted. "Come

8o Man to Man

on, girls," and in an instant the whole department
was up, rallying around Rosa.

The Committee-man hurried to Rosa, glaring and
defiant, at the head of her cohorts. Just as though
she had been a child he took her arm: "Aren't you
ashamed, aren't you going to try to help me when
I'm trying to help you? Aren't you ashamed to
act this way?"

She stopped talking. She dropped into a chair
and I saw that she was crying.

"I do so bad. You speak so kind."

The House investigated and this is what the
minutes show:

Miss Bachman came down with firsts, light seconds and
good seconds that were broken out pretty good. The patch-
ing was all right but the cavity was too big. We spoke to
that one woman and she had a whole lot to say. They are
getting sick of us. Miss Bachman went off and I started
going my rounds the same as usual trying to teach them how
to take the defects out. I kept on until I came to one woman
with a dozen pipes very bad putting them aside and taking
only the good ones she started in to argue they were all bad.
I was talking to someone else and she was still talking. All
at once she held up her hand and said "Stop." I asked
what was the matter. She said she was going on the strike
so I told her to sit down and not do anything like that.

Mr. Smith (the foreman of that department) may have
been a good piece worker but is not any good as a foreman.
The House of Representatives therefore recommends that Mr.

Iiuliistri.il DcmcKTacy Si

Smith of tlir patching department be given an opportunity
t'i work in viinr other department of thu plant. ri"t 4» fore-
man because \%e consider tint tir is not a profitable foreman,
tli.it in tiis place thrie should l>r put .1 new foreman of tlic
patching department. \\ c recommend Mr. 1 run It and we,
the members of the House of Rrprcsrntatix rs, hereby guar-
antrr to linn our lull su;<j>utr arul coopcf ation to aid him in
making that department a succ'ess.

In the minutes of the next meeting, the result of
the change is Set down:

With one or two I had a lot of trouble. One of the women
sj>caks pretty p»>d Hnfjlish and she explained everything.
It is real hard. I' ro;n nu\v on things will run altogether dif-
ferent. In .i!>out a couple of weeks we will sec tjuitc an
improvement m t!u- pipes.

Mr. Trunk st.ifc-l th.it he thought he would have sonic
trouble with the Italian women but Cantoni (a Representa-
tive) told v>me of t!ie:n tliat Mr. I rnnk w.is a pood man and
now the worst ha\e turned out best. Mr. Schmidt moved
that we extend a vote of thanks to Mr. Cantoni for co-
operating with Mr. I r;mk.

In other words, the House of Representatives,
composed of workers, recommended the removal
of a foreman because he was incompetent! Alter
that a foreman held his place only it he were just
and competent— and no just and competent fore-
man was removed. 1 hat put the workers and
the supervisors in the n^ht relation. In the he-
gmning the workers had been all aid to complain
to their representatives about a foreman and it

82 Man to Man

they did the representative was fearful of taking
the complaint before the House lest it might come
to the ears of the foreman and he would be hazed;
a workman fears, more than a discharge, the ill-
will of the foreman. It took some time to let both
the workers and the foremen know that complaints
were, in a measure, impersonal and stimulants to
better business.

The labor turnover throughout the plant was
serious; as soon as the Representatives and Sena-
tors realized that this affected dividends, they
investigated. They found that in the sand-
papering department, which was the largest,
75% °r more of the workers left or were discharged
within a period of 12 months. Often men taken
on in one day, one left the same day, two the next
day, three stayed about three weeks, and the re-
maining four left gradually over a period of six
weeks, all stating that the work was too hard for
the money. The work was hard and disagree-
able, involving the shaping of the pipe against a
high-speed convex disc covered with sandpaper.
There are various grades to the work, one group
using a very rough quality of sandpaper, the next
a somewhat finer quality, and so on until the pipe
becomes perfectly shaped and absolutely smooth.

Industrial Democracy 83

The work is expert because not only must the eye
judge the proper shaping, but the hands and wrists
of the operator have to be very flexible to make
quickly the necessary turns and twists with just
the right pressure of the pipe against the wheel.
Klderly men are too stiff jointed to learn the work,
so the recruits are drawn from boys ranging be-
tween 18 and 25. The work is dusty and tedious
and does not appeal to the better class of young
men. As a rule, less than half of the men in the
department know more than a few words of Eng-
lish. Yet it is a critical section. They can make
or mar the pipe. The least slip of the operator's
hand will ruin the "stummel" beyond repair,
but if the sandpapering department is not working
to capacity every department after it is held up.
Commonly about 125 men are employed; the best
of them will earn on piece rates between $50 and
£40 a week with an average of about £24. 'I here
is no fund of skilled labor to draw on for vacancies.
The raw man must be taken in and taught and of
course he has to be paid while being taught. The
initial rate of pay is below that of the lowest piece
worker; a beginner goes on piece rates when his
output at piece work exceeds the weekly flat wage
at which he began. It formerly took a long tims

84 Man to Man

to make even a second-class operator, and because
of the long training at low wages, less than 20%
of the new men stuck through to go on piece
rates. The personnel was constantly shifting
and the foreman in that department was always
at his wits' end to keep up production.

Calculating that it cost the company $100 to
train a sandpaperer, which investment was lost
when the man left, it was demonstrated that the
company lost through the year in this single de-
partment an amount of money, which, if saved,
would pay about $14,000 in a dividend to the
employees.

Those figures impressed the sandpaper shop.
They set about finding ways and means to get the
dividend. Their first step was to cut down the
training period. They suggested that certain of
the men be employed to teach newcomers. The
result was that new men found themselves making
a satisfactory wage on piece rates at the end of
about three months. It became a matter of mo-
ment when a worker said that he was going to
quit; his fellows got around him, tried to find out
what the trouble was, and to persuade him to
stay. Their whole attitude toward each other
changed. Formerly they had gangs and cliques,

Iiulustri.il Democracy 85

especially flu- Italians; if a man became unpopu-
lai lu- had to get out and if he did not get out
In- was apt to pet hurt. Hut all of that ended
\\hen they found that forcing a worker out was
money out of pocket. That put quite a different
face on it. 1'irsr, they found that it was finan-
cially better to have harmony; then they dis-
covered it was a nicer way to work.

The ordinary workman just "pets by." He.
Seldom suggests new improvements. In the
beginning he may think of how to do something
better but when he makes Ins suggestion to the
foreman he finds that it is not welcome and there-
after he keeps to himself any ideas he may have.
Foremen are constitutionally opposed to change.
'1 he Senate and the House appointed a joint Com-
mittee on Suggestions and made a schedule of
prices with further rewards ar the discretion of
the Cabinet. They got suggestions. '1 he making
of pipes had been more or less static. So much
of the work is done by hand that it has adhered
pretty closely to the practices ot tin- t Kl country.
I' or instance, someone hail, years before, invented
a machine for the rough cutting of the block
which later becomes a pipe. I asked it it were a
satisfactory machine.

86 Man to Man

"Yes," was answered proudly. "We have not
had to change or improve it in 25 years."

There were quite a number of these machines.
I felt that no machine had so nearly attained per-
fection that it could not well be changed in a
quarter of a century. And surely enough, once
the suggestion idea got about, an employee came
forward with a plan for a new machine. It was
built according to his designs. One man with
this machine does as much as six men operating
six of the old machines.

The polishing and buffing of a meerschaum pipe
is a highly delicate operation which has always
been performed by hand. The foreman of that
department devised a machine to replace the
hand movement. He demonstrated that one
man with it was more than equal to three hand
workers. The foreman of another department,
a man who had been making pipes for at least
40 years, examining the little device, said: "This
is the best thing I have ever seen in pipe making."

Look at a few more improvements that came
from the men. An improved chuck for boring
rubber bits increased the production about 300%
and did not require expertness in operation. The
old boring machine could be managed only by an

Industrial Democracy 87

experienced workman. A first-rate man could
mount 15 do/rn bakehtc bits a day. Using an
improved screw, the same man now mounts three
gross per day and the improved scu\v will wear
better and longer than the old on«. Muslin
buffs soon become hard and lose their effective-
ness. Formerly they were cleaned and roughened
with sandpaper and a knife. After this rough
cleaning they were not satisfactory; nor a few-
were cut in the handling and ruined. A buffer
made a tool with which he could both clean and
roughen a buff in a few seconds— and the reno-
vated buff was as good as new. Under the old
process of staining Congo pipes, the production
was 12 gross a day. Under a new process, the
production became 109 gross. Meerschaum pipes
have to be finally polished after the ferrules
are in place; all gold work had to be by hand
because machine polishing scratched the gold. A
foreman designed a metal device. 'I he best that a
good female polisher could do under the old system
was three dozen a day. The work required no par
ticular skill, high wages could not be paid, and the
hand polishers were always discontented. I sing
the new protector and a machine one woman can
now turn out from 15 to 18 dozen a day — or the

88 Man to Man

output equivalent of five or six girls under the
former method.

Go back to the patching department. The
men discovered that far too many seconds and
thirds were coming through. Their dividends lay
in "firsts." A joint Committee of the House
and Senate took up the subject. They visited
the patchers. It had been the custom of the
patchers to rim out a knot hole with a sharp
knife and then fill the cavity with a special kind
of putty. They might thus carelessly turn a
small hole into a big one and transform a potential
first or second into a bad third. Skill had never
been at a premium in that department. A hole
was just a hole. Then the committee began to
plan changes — to become efficiency engineers.

They decided that instead of a rough task this
was really one requiring an artist. If a dentist
could fill a tooth so that the filling would remain,
could they not similarly plug a hole in a bit of
wood? They took a page from the dentist's book.
They turned hundreds of former seconds into firsts
and former thirds into seconds.

Under piece rates the workers press for quantity.
A company makes its money out of quality. The
emphasis in this factory was placed on quality;

Inciiistri.il Democracy 89

Through the dividend svstrm the men came to
know that although rushing their work and turn-
ing out inferior goods might increase their indi-
vidual pay it would so decrease the mass dividend
that their net return would he less than if they
had devoted themselves to perfect goods. From
the minutes cf the House:—

Miss Madeline Wojtyniak said that the piece workers Am-
orally rush their work, in order to earn more money; therefore,
the work is not as go<xl as it should he. JJuantity is con-
sidered before quality with a piece worker. She moved that
a committee l>e appointed to look into the condition* and
that gix>ds should be examined before they are polished. If
the week-workers are doing the ri^ht thing the House should
know it. 1 here is about £16,000 at stake, and \\e arc either
pomp to save it, or continue to lose it. A committee should
be appointed who understands this work, who would >;ct to-
gether, investigate, and bring in reports. Perhaps the cure
for these men is better supervision, one who will teach his
people what is necessary to make Roods ri^ht. Whatever
ideas the committee have should be presented to cure this
defect. \\ ho pets out the greatest amount of imperfect
goods' Suggest that there is a cure for this by all people
being put on piece work, or week work, whichever the case
may be. Then the matter can be taken up with the Senate
after the reports are in.

They did attain quality and also production in
a most remarkable fashion. One department
had a former record of 25 gross of pipes a week
with three men working. Thev increased their

90 Man to Man

force to ten men and attained an average of 50
gross a day. One man turned in a record of 240
gross of pipes in one week — beating all former
records. The sandpapering department increased
its wages through increased production by 10%
and on the quality side there was an even greater
improvement. The big production — in spite of
poor material — is in "firsts" and "seconds"
while before "thirds" and "fourths" were heavily
represented. The whole product of the company
has gone to a considerably higher plane than ever
before. The stress has been on quality — that
has been first. Quantity has come, as a matter of
course — but it has come.

And this quantity arrived during shorter work-
ing hours. They had been working 53 hours.
Then they reduced to 50 — with a 10% increase
in production. Now they are experimenting with
a 48 hour week. They are doing all this them-
selves and at the same time watching dividends.
They have touched iy|% in dividends and they
intend to go higher. They have an esprit de
corps. They have designed service buttons.
They compete by departments for efficiency rec-
ords— the leading department holds the Stars
and Stripes for a two weeks' period. And they

Iiulustri.il Democracy 91

ft^lit hard tor that flag! The buffers have pledged
themselves to do 50 pross of pipes tf> a hufi us
their contribution toward saving material in war
tune. They now use three where they had used
four hufls.

And so it goes.

Hut inatk. this. That factory formerly could
hardly pet its complement. Now, with labor even
scarcer, it has a waiting list!

CHAPTER V

THE SUPERVISION THAT COUNTS

THE Committee on Seconds of the Shelton
Looms found annually going into the ware-
house a great pile of fine velvets worth $500,000 —
at least they would have been worth that sum were
they perfect. But they were not perfect — each
piece had one or more defects. The best material
had gone into them; they had absorbed the usual
amount of power in fabrication, they had taken
their share of the big overhead expenses, but, be-
cause someone had been careless, these splendid
stuffs could not be sold as the trademarked product
of the company.

Of course the management knew of this waste;
the foremen, too, knew about it; but neither they
nor the weavers realized what it all meant — they
did not stop to think that the big output of
seconds had a direct influence upon wages and the
steadiness of work, nor that if the company did
not make standard goods, it could not earn prof-
its. The company did make standard goods and

Industri.il Democracy <)$

:t tin! earn piohts; doing a business exceeding ten
million a year, the loss on halt a million of defec-
tive production was not serious in a financial
sense. Hut it was serious as a waste which might
be avoided.

Sidney Hlumenthal & Co. owns the Slulton
Looms. 1 hey had for years tried in every fashion
to be fair with their employees. They paid cur-
rent wages and worked current hours. They
had tine, modern factory buildings and were not
behind in any improvement. It could never be
said of them that they were penny wise and pound
foolish in dealing with any phase of their business.
They had never had acute labor trouble or more
than the usual and commonplace disagreements
with their men. Hut they had not found a suffi-
ciently responsive chord in the workers. And as a
consequence they did not have the cooperation of
the workers. Their people worked for them and
with the inevitable result -a proportion ot pro-
duction which could not sell as tirsr-grade goods.

Located in the Housatonic Valley in Connecticut
they were in the big war work /one. Ansonia,
Bridgeport, New Haven, and other munition
towns were calling tor workers and offering high
wages. Other looms in the valley and near by

94 Man to Man

were short of men. Anybody who could do any-
thing could get a job and a weaver especially
found work calling from a dozen directions. The
Shelton Looms make fine velvets which require
extraordinary care in every process. The good
run from the very highest to a high medium grade;
they make no cheap fabrics. Some of the fabrics
are condemned for even the slightest flaw. It is
high-class textile work in which small mistakes
cause big losses. But the workers were not afraid
of losing their jobs and they cared little if they
did make mistakes. If a foreman tried to enforce
discipline, the worker quit confident that he
could get another job before sundown. They
^were not interested in any one job; they had no
interest in anything but a pay envelope and they
cared as little who provided the pay as they did
who made the envelope. Weavers are natural
floaters; it is their heritage. They are accustomed
to being laid off in dull seasons; they normally
expect to go from place to place. They have
never felt that any one was particularly interested
in their going or coming and finally, most of them
expect to live and die as weavers. About 35%
of the i, 800 employees spoke imperfect English
and a fair percentage spoke no English whatso-

Industrial Democracy 95

ever. Very few of them had any idea of democ-
racy or saw any reason to cooperate with the
company.

Such was the soil in which the seeds of democracy
were sown. In the former chapters I have largely
described what was accomplished in each case. Here
let the people themselves do the telling— let the
minutes of the Senate and the House tell the story
of what was done to better the quality of produc-
tion. They give an idea, reading between the
lines, of the spirit of industrial democracy:

(Mr. Richards): "I have a little matter here in regard
to which I would like to say a few words. Mr. Blumenthal
had me on the 'phone this morning and said 'Mr. Richards,
you gave me an estimate indicating that from Sept. iqth
you would do certain things. In other words, you would pro-
duce so many pieces of "first" grade and other qualities.' I said,
'Mr. Blumenthal, you arc correct, but we have not lived up
to our estimate. ' He said, 'Give me the reasons.' I told him
I would let him see the reasons on paper. In the first place,
we promised or estimated that we would produce 800 pieces
of the ' first* quality for which we had taken orders and had
obligations to deliver. Also 75 pieces of lonq pile and IOO
pieces of long pile silk Blushes— nearly 1,000 pieces to be turned
out. Since that time we have kept records which show that we
produced the first week —

4:8 pieces instead of 800

47 " _ " " 7;

and none of the one hundred promised.
"That is about 60' '[ . My promise was based upon 70%

96 Man to Man

efficiency of the finishing room and dyehouse — mainly the
finishing room. The statement shows distinctly that we
are not even 35% efficient. So it goes on. I have it for three
weeks. The second week was a little better but not up to
50%. Last week we fell down again. There are a good many
reasons for it, which can be attributed to the weaving, dye-
house, and finishing room. Through the weave room out
of a total of 733 pieces we had to mark 288 pieces the
'second' quality instead of 'first,' which did not enable us
to fill the orders we had. In the first place, we have been
falling down about 50% on our estimated production. Be-
sides that, we have made a second quality instead of a first
quality which we were supposed to turn out. This is a se-
rious situation.

"These matters are very vital to our business. I suggest
that this matter be taken up by the House and a special
committee appointed to look into the matter. I do not know
whether the committee should include men from the finishing
room or away from the finishing room. I leave it to the
House. If we want to keep our business we must be able to
fulfill obligations and orders on a certain date when due and
with goods properly made."

The House Committee brought in a report and
here is how the House discussed it. Much of the
talk is technical, but the interest of the people
is apparent. They are on their mettle.

One representative thought that part of the
trouble was due to the weavers not using powder
on their hands; another believed that keeping
material wrapped in tissue paper would cure the
trouble. Finally the discussion narrowed down

Industrial Democracy 97

to whether thr winders or the weavers were ar
fault. They recommitted the report to the com-
mittee to discover whether or not all were not at
fault and with a positive instruction to locate the
exact cause or causes before the next meeting.
They went into various other defects of the goods
such as the "machine marks." One representa-
tive said that they were due to a failure to handle
the loom correctly and that attention to merely
one bad practice had eliminated nearly 50^,' of
the marks within ten days. '1 he committee gave
in detail the numerous tests they had made to
locate the reason for machine marks and the
various other defects, and recommended that
certain conclusive tests might be made. Others
thought that a contributing cause was carelessness
in the care of the spools. Here is the discussion
on that point.

(Mr. Kenn): "Mr. President, in the many trips I have
made through the Winding Department, I flunk tli.it they
could £et a K»od l).jsrh.ill team out of there. 1 hi-y throw
the spools mt>« boxes about tuc teet aw.:}'. You could not Jo
that with a COVIT on."

(Mrs. WVM>): "I haven't much to S.TV except th.u
it would be wasting time to push the boxes around and put
the spools in."

Mrs. \\ y.M) explained that the bo\ of vp.ii!-, V..K brought

98 Man to Man

over to a girl who packed them in cases to go to the warping
room. She stated that there was clean paper on the boxes.

(Mr. Hoson) : "It is cleanliness we are after. It is one
of the things to success in business. I think the winders could
soon adapt themselves to these."

(Miss Morris): "There are about 50 spools in a box and
we would have to push them up and down an alley."

(Mr. Hoson): "What do you do with the boxes now?"

Miss Morris explained that they kept enough spools on the
frame so that they could pick them up when they wanted them
and that the box was kept at the end of the aisle.

(Mr. Kenn): "That's one of the things we are trying
to eliminate. That's where the oil comes from."

(Miss Morris): "There is no oil on the frames."

(Mr. Meek): "I make a motion that you appoint a com-
mittee to investigate this matter."

Motion Seconded. Voted.

Remember this discussion is not at a meeting of
high-priced technical experts. These are ordinary
workers talking — men and women of the rank and
file using their whole brains to discover why the
product is not better. And they are not being
paid for the investigation— it had simply never
been put up to them before to remedy their own
defects ! See how they get at the bottom of things
in a way that an executive could not. Here is
another meeting — they are still discussing the
elimination of "seconds."

(Mr. Shine): "Regarding piece work and a bonus for
quality against daywork. In the first place, day rates would

Iiuiustri.il Dc.noeracy 99

be very hard to eitabh\h in the weave »hrd when one con-
udert the tvpr of men there. It would IK- one c«»ntinual
turmoil for the foreman and any one to try to maintain peace
under a day rate sytlem. Here is the tendency in day work.
Suppose you give two men $10 a djy and nay 'I wjnt perfect
goods. Make what you consider a fair day's production
but make it perfect.' Hie nr\t djy one fellow makes 8
yards and the other 10 yards. I he fellow making IO yard*
will jay, ' I he other fellow made only 8 yardt.' He will
consider it an unjustice, and may not kick but will cut down
his production to 8 yards. On a piece work basis, with a bonui
for qualitv. a man produces say 10 yards. 'I here is $5.00.
Suppose we have a quality bonus of 30% for perfect quality.
Suppose the minor defects arc allowed to get by. Suppose
it takes an hour to pick them out. 1 he weaver loses one
hour of his productive capacity in picking out. He would
gain by leaving it in — one yard, perhaps 500. What would
he lose by leaving it m? — * " on the value of the piece which
would amount to $1.1$ if tMc piece was worth $5.00. It is
to his interest to pick out all defects.

"I nder present conditions does a weaver take time to pick
out defects? No, he lets them go by. I he- committee has
had weavers. loom-fixers, etc., before them and had te->t!:n"nv
as to the actual facts under present conditions. '1 hey s..:>l
they would prefer straight piece rate*., or a combination
quality and productive bonus. \\ e interviewed about :i
people. We had loo' [ weavers---; or IO. I asLeJ each
weaver a direct question. '\\ hat would you do provided there
was some little defect in your cut at present. 1'u i. it our
and make a perfect piece or let it :•_••> by .::ul tale more pr>>-
duction?' Everyone said, *\\ e would let it :;o by.' I >aid,
'I nder quality bonus would y.ui do i::* 1 i-.rv said, 'No.'
t'nder straight piece work they said: 'We w. >i:kl let it go by.'

" The way it appears to me is: I hat under a flat day rate
no matter how high or how low it is, a man on one machine

loo Man to Man

is going to hold his labor down to that of the man on the next
machine. You will come to the lower level rather than the
higher level, and it will affect production to a point where
this company cannot compete with competitors. The com-
pany could not as a financial proposition adopt a plan of that
kind. They would be bankrupt. Our plan is not revolu-
tionary, and is working toward better quality but not looking
for absolute perfection. It will mean better quality from the
weavers."

(Mr. Regan): "The principal reason why a weaver may
be tempted to leave mistakes in his cloth under the present
system of paying bonus is this: Suppose a weaver is allowed
17 hours to weave a cut and he loses one hour correcting mis-
takes. That lost hour will be added to his standard time
and his efficiency will come down from 100% to 94% approxi-
mately. If that weaver was under straight piece rate he
would lose only his yardage rate by correcting the mistake,
which would be about 37c for the hour while at the present
time he is losing 37c in yardage rate and a bonus, which
amounts to about 3 8c, making his total loss for one hour of lost
time amount to about 7$c. That is why he may be tempted
to leave the mistake in and save 7£c. Under the newly
proposed plan of quality bonus payment, the weaver will get
a bonus for good pieces. He will have either to make good
goods or lose the bonus, which should be at least as big as the
present bonus is. The bonus will spur him on to make good
goods. I can bring facts to the next meeting to prove my
statement."

As a result of this investigation the committee
worked out what they called a quality bonus.
The weavers were to be paid a flat piece rate as
before, but for a perfect piece they were to receive
an extra sum of 20%; if the piece had one defect,

Industrial Democracy 101

i 5r, ; two defects reduced the bonus to ior' ; three
to 5V(' and four or mole defects forfeited the bonus
and reduced the pay to the Hat rate. Now in the
House they are discussing the wisdom of adopting
tlnir own suggestions.

(Mr. Meek): "Instead of selling our gooiU v.e ha-.e l>rm
putting them over in the storeroom. In respnt to this new
bonu< there arc a good many points, nilt I don't tl.;:ik for
a intnute that the management has been letting the old uric
go on if it did not have some good points, \\hcn you say a
slight curtailment of the production, just how much do you
mean? I make a motion that the bill be held over until
next week."

Here is a side of production that the employer seldom thinks
about --that before a man can In-come truly skillful and turn
cut standard quantity of perfect goods he must pass years ar
a low \sagc. His alternative is to rush through poor goods
and thus, by a large production, make the standard wage.
The g<x>d operator, such as the employer wants, can reach the
go.il only by working against his own pocket-book. He is, in
irtect, pcnah/cd for good work, and this representative puts the
matter \ ery concretely in the discussion ot quality vs. quantity.

i Mr. Shine): "With regard to the remarks, on the present
production bonus -saying it is perfectly satisfactory. He is
a gtKkl weaver. I le has no difficulty in turning out 1< >ts of goods
but a big majority of them are not periect weavers. I hat is. 1:1
order to reach the loo' ,' mark they have to hurry and spoil the
goods— have to leave defects in, they do net come t.» the fixers
for aid and things of that sort. How about the poor learner?
1 he learner wily gets a low piece rate, and under the new bonus
system he would collect his quality bonus. Learners would
get the full amount ot the h.>nus on top . t the;r earnings.
I hey arc the people that we cannot ho'ui. h takes them two

IO2 Man to Man

or three years or may be four years to become expert and they
get discouraged and they neglect quality and become careless
weavers in order to get up to the quantity bonus. Nine
times out of ten they quit and go to work at something else.
Now, under the proposed system, those fellows would be
tickled to death and it would tend to make the kind of weav-
ers that we want. We want men who feel hurt when they
see a piece of defective goods. They will not only feel hurt
in their feelings but also in their pocketbooks. If they see
something done wrong it will hurt them in several ways and
for that reason they will be more careful.

"There has always been, since I ha^e been here (nearly six
years), complaints about the production bonus. Now it would
be very hard to figure just how much or to what extent we
have suffered. One good point is this — we have got produc-
tion by the production bonus. Now if we want to get quality
let us offer an incentive. We wanted production and we got
it. We want quality and we will get it."

(Mr. Barge): "Mr. Meek doesn't understand the qual-
ity bonus as we have laid it out. The quality bonus will
not be figured on a daily rate but on the same piece work
standard as at the present time, but instead of paying a bonus
for production we will pay it for quality. Every string we
take out in any operation tends to make the customers more
satisfied — it makes the goods easier to sell — tends to make
our reputation better with the trade. This bonus is not
only for quality but for perfect quality. If all the strings but
three were taken out of a piece the company would not get
any more for the piece but they would get repeat orders."

(Mr. Regan): "I would like to say this to the people who
may not very thoroughly understand it — the quality bonus
will not hurt the good weaver because no matter which sys-
tem he is under he will get quality, so he is entitled to the
bonus anyway. The poor learner has to strive, too, and he
can't get it, so he will spoil the goods by trying to get the pro-

Iiuliistri.il Dcmounty 103

tluctmn bonu» and !u- \'.<>n't j,*rt the <|t!ahty ami the result will
be tint he will cither 'get t!if".:;;h' <»,- trv firnrthing cl-.c.
We l«»st many xvcavers thi* wjy and we d»n't wjnt t'» repeat
the error. 1 he j;o«>d \\r.i\rr will iir\<t !•< e anything it n
money just tile same whether he ^' ts it by the production
bonus »r the quality bonus and the b-urner v • :!' r greatly
bcnchtcd."

Ilcic aie the facts and figures <>f the nuny inJucernenti
that a nun h.is f.>r ilomj; l».al wt>;L .iiul t!u \ery few that arc
olfered to him fur p>oj wurl..

l\lr. Krgan): " 1 he only clung I would hLc to say is this.
That at the !.i-.t meeting when we J:scu:.'.ed the bonus system
1 made a statement that a weaver \ve.r. :n^ under t! < | le.nit
bonus system, it he loses one or more li-uiis f>r torrei :.n.; mis-
takes he is losing h.i-. yardage rate .i:ul h:s bonus, m l..^t, be
loses uvue 1:1 bonus t.-.an til Varda/.e late. A staternent
was made tliat t!u. was ru't s>). I promised to brinj; in f^cts
aiul figure i. I ba\e them l:rr<-.

"On .;'.iality tiie standard tune per unit is .6 ,:; hours. It
re (litres 17 .;/ b,uii> to make :$ yards and be 100', tthcicnt.
Losing one hour on a cut for OTrcctuiK mistakes, tl.s. v. eaver
reduces Ins ellkieiKy from loo' ,' t>> V4 < • !''> r.ite per yard
on that <;uahty is > .:;S making a total of js/'i 4: t T :> \.ir^! ••..
i'or 1 >/ ,' prodiK'tive etliaencv we pay :o' , l«i-ir.ts. v.i..J;
would make ,<!.:; on h.s cut. I or </ \' [ produrtis c i ':.i .< -P., y
w-e pay I i' ,' bonus wiuvh makes i^cv on bis c;:t o: ; . U --.
in bonus a Kino than he would have received f«r I _• ;\ -1 *c-
tion etHcieiuv, rmt countm:; the >7c he is !.-,:n^ 0:1 ! - yarJ-
n:;c rate t""r t!i.it h mr. In other w.-rds, M h IO-..-N t!;..t hour
f >r correctm.1, misf.iki . under str.n.;!it piece u.uk. h:- i - .r.sj
:7c. If l;e is Ki.sin;; it under the prr-.,.-nt s\ :.-:i ol bo:u:s
paying, ho is losing ;~c and ; ,c which make-. 7' c. I hat is
the pnn.-ipal re.is->:i why he v. .n't C'»rre>.t t;, .e iristakes
under t:u ptosent system <>t paying bonus. He did 'lot
correct thuse mistakes under the Hat Lite system either,

104' Man to Man

because for the yardage rate he would lose by doing so. Give
him the bonus for good cloth, make it big enough to pay him
for at least four hours of his time on a cut, and you will get
better cloth, because the bonus will more than pay him for
the time lost for correcting his mistakes."

(Mr. Deering) : "I had a case the other day. A 100% man
brought in a pretty bad piece. I wanted to know why he
did not make a good piece. He said 'I cannot make a good
piece and 100% at the same time. I could not do it. If I
do not make 100%, I lose $3 a week/ I asked him if he could
make a good piece and promised that if he did he would get
1 00%. The next piece was perfect. He corrected all the
mistakes. The piece before that had about 20 strings."

Mr. Shine asked Mr. Deering what the man's efficiency was
on the second cut.

Mr. Deering said that it was under 100%.

(Mr. Pearsall): "I have a few facts. I examined a piece
the other day, employee No. 423, a 100% man, who has been
working here for nine years. The piece had fifteen defects
and of ten kinds — an imperfect piece. I spoke to him in a
nice way. He gave me the same excuse as other weavers —
'If I wanted to be a 100% man I could not pick that out.'
There is another employee, No. 466. His piece had sixteen
defects of seven kinds. Both of the weavers are of the same
type. The only excuse they gave for the imperfections was
that they were after the production bonus.

"I had another case, employee No. 482; I looked up his
efficiency. He averages 90%. I looked up his cuts for the
past two weeks. The pieces are perfect. I said to him,
'You are doing fine. How much are you earning?' He said,
'I do not make enough.' I asked him if he were a 100% man
and he said he was not, that he averaged 90%. He said 'If
you want to make fine pieces, the way these look, it is impos-
sible to make 100%, figuring on an average.' The man is
earning $16.65 a week. Can we afford to lose such a man?

Industrial Democracy 105

He i« not satisfied with Ins present earning, judging from
rrtnjrks lie lui made. Can we afford to Io-.c SIA!I a nun,
break in a nr\v one, uke chances with the nr-.v t<t\c until he
is up fi» thr standard, spend another .<;<•>•) or ,<;'x; on hjrn
until h<- IN in our employ a year or so as a \<!.<t v,<a\rr'
If \vr paid this weaver 2O* ^ "'I (JliahtV lie w.i-.iKl avrra;;r fjir
wages about ,<: o weekly. Can we afford to let tin, r.i.m KO
atul hreaL in a new nun' \\ c will ru-\cr reach M:»V« ,, M we
contiri'ir t!iat way. I make a motion that we accept t!.'- re-
port as read at the meeting."

1 hey went on t<> cjuote other cases. 'I hey told of one \\ea\ er
\V!KI left heratise he could not make enough money. I le could
not operate above an So'"' efficiency without neglect inq ijinhty.
lU-mg a \ery mnNCientious man (exactly the .sort of an em-
ployee that f\crv employer wants), he refused to r.ish for
loor\' by slighting his work— but he had to pay for his care
by taking lower wages. It was stated that this :i',.in would
have made 30'",' more than he did make and, because of
quality, would have been profitable to the company on a Inmus
given for careful weaving as opposed to the bonus for "regard-
less" production.

The representatives had several other like cases.

Did the quality bonus work? IK- re is what the
Senate heard after a few weeks of operation:—

(Mr. Pearsall): "I believe it is rather early and very diffi-
cult besides to show exact figures or concrete facts as to how
the present quality bonus works, but judging from the reports
of the different examiners ami foremen, and mv own personal
experience, I must state that the goods ha\e improved a lot.
I called on the man who examines the goods when it comes
from the loom, and he stated that the £<**.!•> are coining much
better and are improving each day. I a!.-» called on Mr.

io6 Man to Man

Hoson who has charge of the Narrow Goods, and he also
stated the goods had improved considerably. In an inter-
view on May I7th about the 5O-inch goods, he said it was
remarkable. He made the remark that they examined 300
cuts on the i6th of May and not one piece of seconds were
in the lot and only a few "R" (rejected) goods. This
must be so for I had the pleasure of having Mr. Brager ask
me on seven occasions: 'What change did you make in the
weave room? I get no more fleeced goods. Nearly every
cut is Lapinex.' I don't know whether or not Mr. Brager
wants to take the responsibility of last year's improvement,
but nevertheless I can state from my own experience that the
Quality Bonus has something to do with the improvement of
the goods. In my daily inspection of the weave room, after
the installation of the quality bonus, I was stopped several
times by weavers and asked if the goods were all right —
they would show the goods to me. I asked the weavers what
they were referring to and they replied: 'I want my quality
bonus and I will not get it if this does not cut right.' The
cutting of the goods means a whole lot. The knife and stones
must be watched continually on account of the dust of the
material and the dirt from some of the dyestuffs, and the
assistance of the weaver is required. In the first two weeks
I had quite some difficulty with some of the better weavers
who were still under the impression that a few imperfections
would leave them in Class i and allow them to collect a 20%
bonus. They were put in Class 3 and collected only 10%
bonus. They improved on the next cut and collected 15%.
Some wanted to know what was required to be in Class I
and I told them there must not be one single imperfection
in the piece. I can prove that they tried to get it.

"The transferring of weavers is also a great deal improved
as now a weaver cannot lose what he has already made.
This was not the case heretofore.

" The -production has not suffered through the Quality Bonus.

Industrial Democracy 107

The average production for April amounted to:
April i st wrcl. 10:' i

" ;.-! " 14,
" 4th " 101

" I hat i:. a pretty go«>d avera:;r f»r t!ic first month of t!ic
quality K»»nus."

"Mr. I iallagher sai-1 lie had hern t.i!Li:i~ to an av.rt.mt <>f
Mr. Mi nrr aiui asLrJ his opinion about the com!-, lotninj;
through. I he assistant saiJ that it was- wonderful t!.c wjy
the go»xls were coining at the present time."

How did it come about that the workers them-
selves went so far toward the solution of this pi r-
plexing problem of bettering the quality of pro-
duction? Simply because Industrial Democracy
taught them the principles of an all-around square
deal and put the enforcing of that square deal up to
them. The problem ceased to belong to the cor-
poration and became the property of the people
themselves.

Eliminating "seconds" was only part of the
work which they did and are still doing. The}
Went after "seconds" because they were wasteful;
they went alter other wastes in a like thorough
fashion. Here are some extracts from the report
of the Committee on the Conservation of Supplies:

It has been brought to the attention of the Conservation
of Supplies Committee that a large amount of good paper
is destroyed or spoilt in our Weaving Department and the

io8 Man to Man

following recommendations are put before the Senate for dis-
cussion and for action to be taken.

(1) (a) That the Warping Department when wrapping
covering paper around the warps, mark the paper on each warp
with an arrow, the arrow to point and show the direction of
the material on that warp. This will enable the parties who
are putting the warp into the loom to know, without tearing
the paper to obtain this information, how to place the warp
and the direction the material runs.

(b)That an arrow be painted upon the flanges, the direction of
this arrow to be always noted and taken care of by the foreman
of the Warping Department when starting to make a new warp.

There seems to be quite a difference of opinion as to which
is the best and most convenient method. We consider the
subject should be discussed in the Senate, then a bill put
through for the method decided upon. Under present con-
ditions there is a lot of paper spoilt through those putting in
warps tearing the paper so that they can see the material
and the direction in which it runs. Either of the above
methods should eliminate this practice.

(2) That there is a lot of paper wasted through it being
allowed to lie around on the various looms where it is placed
after being taken off the warps. It is considered that either
the men taking it off the warps should deliver it back im-
mediately to the Warping Department or that the foreman
twister have a boy to make trips once or twice a day through
the weave sheds for the particular purpose of carefully picking
up all paper from off and around the looms and turning same
into the Warping Department.

We are of the opinion that the foregoing should be read out
to both houses and all members should strongly cooperate in
their endeavors to stop the waste of this paper, and also to
bring to the personal attention of any member of this com-
mittee all matters where they consider that our supplies are
being misused or wasted.

Industrial Democracy

Take stationers ami blank forms which cost £900
to £1,000 a month. I lie committee suggested that
the accounting department furnish each foreman
with a statement of the amount of stationery us»
c>vii a period of time so that they could check
up on each item. They further recommended
that no forms should he independently issued,
Imt that all should come to a central control; that
if a new form were desired it should not he prmtrd
until its absolute necessity was established and
the other forms of the company were investigated
to make certain that none of those in stock could
be used. They found that the manila paper
bought for the packing and shipping department
was used in various departments of the mill where
cheaper grades would answer the purpose quite as
well. They posted the sign:

"SAVING WASTE INCREASES PAY."

And there you see the economy dividend at
work — it hitched up saving waste with pay.
They got that idea very quickly; they made
money tor themselves and for the company.
Look at this joint resolution:

BE IT ENACTED AND Ki SOLVED Tn\r:

I. A blackboard be placed in each department, or upon

no Man to Man

each floor where a department exceeds one floor, throughout
the mill.

2. A committee be formed consisting of members of the
House of Representatives and Senate in each respective de-
partment, or on each respective floor, for the purpose of
originating and writing on the blackboard — three days prior
to the date of dividend payment — a message on dividends to
the employees of the said department or floor.

3. The Dividend Committee shall receive and pass upon
all messages to be placed on the blackboards in the different
departments so that all messages will keep within the busi-
ness policy of this concern.

4. The department of floor committees will also be notified
of the percentage of dividend to be paid, and each week this
will be entered at the same time that the message is.

5. A blackboard as per the attached design shall be adopted
for the purpose of entering the message on dividends to the
people.

6. The messages to be written on the blackboards in English

This is by no means the whole record of Indus-
trial Democracy in the Shelton Looms — it is a very
small part of the record, but it gives the oppor-
tunity to hear the testimony of the people them-
selves on some points which are troubling most
manufacturers — whether or not they are in textiles.

Industrial Democracy not only found that lost
half million but it is finding countless other thou-
sands which will, within a few years, mount into
the millions.

CHAPTER VI

Mt'ST A FOREMAN III: A IMT.IUST?

AIX)/.KN miles out from Cleveland, Ohio, is a
sleeps , dust-covered little town which serins
to hnd its excuse for existence in being a butt for the
big city. Whenever a traveling comedian wants
to work in a local joke of a peculiarly rustic nature,
he habitates it there. One has only to start,
"I was over in Blank yesterday . . ." and the
audience begins to laugh.

Formerly a single-track trolley line wended its
way through its straggling main ami only street
and furnished a link between the inhabitants and
the effeter civilization in the city. Hut the town
has a college and the college had a professor of
economics and he delved into the proper relations
of transportation companies and communities.
His researches convinced him that the trolley
company was not serving the public as well as a
perfectly ordered franchise holder should. 'I hen
he convinced the town fathers of the enormity of
permitting a soulless corporation to act so brazenly.

H2 Man to Man

Thereupon he drew up and they adopted an elabo-
rate schedule of the cars the company should
run, when they should leave, and when they should
arrive, providing adequate penalties for non-
performance, and generally introducing the most
modern, academic methods of transportation reg-
ulation. The only flaw in the plan was the
trolley company. Its officers and directors read
the new edicts with the utmost care, said that
they were perfectly splendid, and if carried out in
the spirit as well as in the letter, the town denizens
might fare forth into the world with regularity
and dispatch. Modestly they confessed to an
incapacity to manoeuvre in such an ideal atmos-
phere, but asserted they would not, in the slightest
degree, interfere in the communication scheme.
They would efface themselves. Thereupon they
packed up their tracks and their cars and headed
for some less progressive community, cheerfully
offering to give the franchise, which the professoi
of economics had evaluated so highly, to any one
who hankered after a franchise.

Thereafter the townese made connection with
the United States over a storage battery car on a
spur line. That is, they made connections if the
weather were all right, the conductor and motor-

Industrial Democracy 113

man both feeling well, and the car in working
order; it is only fair to say that oner in a while all
of these happy conditions did concatenate.

More than half a century before, long before
trolley cars had been dreamed of, came to the town
a big, hard-fisted blacksmith. He was a fore-
handed smith and his forge had not breri working
many months before he discovered that his cus-
tomers could use a certain amount of castings to
replace broken parts for which they would other-
wise have to send afar.

He sit up a little foundry which made such good
gray iron castings of the lighter weights that others
than the neighbors sought to buy them. And
soon he forgot about his blacksmith siiop and
gave himself up to the foundry. He was an
iron master in every sense of the word; he was the
master and he ruled. Those who work about iron
are not a gentle lot; they run to red tlannel under-
shirts ami belligerent dispositions; they give ami
they take and they have no respect for a boss
who cannot, it the occasion rises, roundly thrash
any one of them. The old master could do it
and his son, following after him, ably maintained
the martial supremacy of the family.

It is tins son with wh<>m we are concerned, a;ul

H4 Man to Man

at the time with which we are concerned he was
president of the company, stood two inches over six
feet, owned 240 odd pounds of brawn, a million dol-
lars or so, a sunny, even disposition, and, although
nearly sixty years old, had an equally hearty wallop
and handshake. He, too, had a son, also in the busi-
ness, and also entirely able to take care of himself.
There were no pacifists in that management; they
did not know what a "nonresistant" was. All the
foremen were "huskies" and thus they ruled some
300 Poles, Lithuanians, Hungarians, Italians, and
Negroes in a comparative peace and quiet, because
any one who wanted "to start anything" could
find far safer places than this particular foundry.
Everybody was reasonably happy, the castings
came through, and although laboring men did not
like to work in such a dead, far-away town, the state
was so glutted with immigrants that it was always
possible to find plenty of men.

The foundry could shut down on any day, pay
off the labor, and after a month or so of idleness,
be absolutely certain to recruit a full force simply
by hanging out a sign. The men received the
market price for their services and were fairly
treated. It was a good, average, thriving, foun-
dry business conducted on good, average, thriving

Industrial Democracy 115

foundry business lines. They did not try any
fool experiments; they knew what they were
doing; they were able to get their share of work
and they made money. The president and his
son both had statewide reputations for absolute
fairness and integrity. They were respected by
their employees and by the community. They
were the big people of the town. They had that
patron-saint position of the manufacturer from
whose activities flows the prosperity of the neigh-
borhood.

Then came what I think we shall some day call
the Industrial Revolution of 1916. The war
orders of the Allies brought a feverish activity into
the state. People began to talk about labor short-
age; labor took up the cry, and, turning back the
law of supply and demand upon their employers,
the labor market became a first-class imitation of
the Chicago wheat pit with a speculator frying to
effect a corner. The laboring man revelled in
a new independence. Having a do/en jobs to
select from any day in the week, he lost all tear
of discharge. He grew careless, worked only
when he felt like it, and enjoyed his inning to the
utmost.

The management of the foundry could not

u6 Man to Man

understand the new order of things. Like most
employers they tried to face the new facts — but
they could not realize that world conditions had
changed, that old methods would not do in a day
of rising living costs, restricted labor supply, and
intense demands for more and more production.
The president tried out various bonus systems
of production; he looked into efficiency methods,
and, although every method he tried was in itself
good, all of them neglected the factor which had
undergone the greatest change — the human factor.
All the methods presumed that money incentives
would bring men up to capacity. In that they
reckoned wrongly. The workers were interested
in money but they were making more money than
they had ever seen before. They found employers
bidding for them on every side and they trans-
ferred any interest which they might have had in
the work to seeing that the employers kept right
on bidding. At the end of a day they thought to
themselves not, "How much did I do today,"
but "How much shall I ask for tomorrow?"
The care was not to earn but to get wages.

The president, his son and the foremen railed.
But what was the use? The men, when too
much bossed, simply took up their coats and went

Industrial Democracy 117

on to the next job. Ross rule the rule of the
hard fist and the strong arm ended.

All the while, the company was being deluged
with orders. I hi v could not keep up, though
running on full toice, with ev«-n subnormal pre-
war production, while on thru hooks were three
times as great a quantity of orders as had ever he-en
there. Among them were rush orders for the
United States Government.

The president resolved that, since labor seenu-d
to want more and more money, he would go tin-
limit on wages. 1 he company contracts were lib-
eral enough to give a profit even at high wagis
provided only they were filled within a reasonable
time. lie raised all wages a flat IC/"t. He de-
termined to buy production. But at the end of
that month the summary of operations disclosed
the startling fact that production had fallen of!"
lorl and that the labor turnover for the month
hail nor decreased. Perhaps the increase in wages
had not been large enough. 'I he president added
another 10' [.

''Now," he declared, ''I have given them all
the wages they can think of asking for. They
are getting double what they got two years ago
and I ought to get a little action out of them."

Ii8 Man to Man

He posted the new voluntary increase; the men
took it calmly. They expected monthly raises
and figured to themselves that the company was
not entitled to any particular credit but was only
buying at the market price for labor just as it
bought pig iron at the market.

The production in the second month made a
new low record for the full force working — another
straight 10% drop.

The increases in wages had been to date a flat
failure but the president did not realize that the
workers wanted anything more than money.
And he was right in a way — it was wages they
thought they wanted. Really, they did not know
what they were after. A few long heads may
have seen that there had to be a limit to wages;
that if wages kept going up so would the prices
of the finished article until they reached a point
where no one could buy — and then there would
be neither work nor wages.

The president tried again; he put on another
10%, making a total increase of 30% within three
months — a procedure which caused him and his
fellow executives to wonder where in the world
business had started for and to hope that the end
might come quickly. This third 10% increase

Industrial Democracy u<)

pave no better results than tin- previous ones.
Production made another IK w low record and if
the labor turnover hail been any faster they would
have had to employ a traffic policeman to prevent
those going out from getting into tin way of those
coming in.

1 hen and there the executives went into solemn,
almost sepulchral, session. They mournfully de-
cided that they had reached the end of their rope,
that they did not know anything about business
cavorting as it was then. Bur they could not
shut up shop; they could not completely fall down
on the Government contracts; they were far be-
hind in deliveries— but they had to go on. Mow1
could they continue with a shop that was out of
control, with costs going higher every day, and
with production both in quantity and in quality
sliding so rapidly down the scale that their only
hope was, when it did hit zero, it would have suf-
ficient force to rebound. Ilu-y were willing to
try anything. They had tried everything and
everything had failed.

It was then that they heard of Industrial De-
mocracy and into the swilling chaos I took. In-
dustrial Democracy.

I had the men meet with the officers and di-

I2O Man to Man

rectors and we talked over things. I told them that
riding on a merry-go-round was fun for a while,
but it wasn't the kind of thing that any one found
pleasant day in and day out. That they them-
selves were probably becoming tired of following
the call of high wages from place to place; that
if they struck a balance they might find that the
expense of shifting and the discomforts of new
quarters every few weeks were costing them more
than the additional money they were continually
asking and obtaining.

They agreed with me that running from job to
job was a nuisance, that they felt that they were
not getting anywhere. But what was a man
going to do? It cost so much to live that even
at the highest wrages, precious little stuck for
a rainy day. I did not blame them for selling
their services to the highest bidder — -that \vas
only natural and right. When there were more
men than jobs, precious few employers had ever
paid or could ever pay other than the lowest wage
which would fill the shop. They were competing
in the outside market in the price of goods and
they thought they had to compete in the inside of
the shop with the price of labor.

"But," I went on, "we can all find a better way

Iiulustri.il Democracy i~i

than this. \\ r can all make motr money the
company as well as yourself h\ g< -mug n>«»ic < ui
of the ilay, by ceasing to w»ik as individuals and
all working together. ^ ou have pi obably heard a
great deal ahout working togtthci tot rhc i«m-
pany's benefit but have \ <m i-\ i i thought of making
a team out of \ ourselves for your own hinefit :

I he crowd hLtil thr idea •>! self-government.
Still more t!u y liked the idea of getting a di\ id< IH!
on their wages calculated on tlu u o\sn sa\ m;rs ami
efficiencies. 1 hey liked tlu- thought <«f M»ir <i
going into Inisiiuss for themselves, «f huildir.g an
institution ot tlu-ir own, ami ot dropping out < f
the mad and titesome chase f<»i the alluring jot
of wages at the end of the rainbow.

I hese rough men were ituliir.entary. Like
most strong, uneducated male amm;ls tlu\ had
simple, single- track minds winch respondi il (jinckly
to the elemental things of life. 'I lu\ l>i;;:m \\ith
the ardor i>f children starting a mw g;u;ie.

A few could not shake oil the old "hold-up"
spirit. '1 hey saw in the IH \v older of thiv.ps a
chance to "fake." Six nun working at a 4] cent
piece rate waited upon the superintendent; they
insisted on a raise to six cents; otherwise they
would quit. Answered the superintendent:

122 Man to Man

"This is out of my hands now. If your rate*
are not right tell your representatives about them
and1 the House of Representatives will appoint a
committee to see that you get what is coming to
you."

The kickers did not like that idea. Complained
their leader:

"What does the House of Representatives
know about this? We know what our rates are,
what our work is, and how much we ought to get
for it."

The superintendent absolutely refused to exceed
his authority. The dissatisfied men would not
appeal so the superintendent himself explained the
situation to the Speaker of the House who at once
convened a session and appointed an investigating
committee. This committee examined the work
and the men. They brought in a finding that the
six cent rate had not been asked for in order to
bring up wages but that the kickers had calcu-
lated that at six cents they could do less work than
before and earn the same total amount of money.
Thus the increase would retard and not stimulate
production. The men were caught at their own
game. They were caught trying to hoodwink
their fellows.

Industrial Democracy 123

Strangely enough the- protestors did not quit
when the adverse verdict was handed down. In-
stead they went really to work, exerted themselves,
ami earned high wages.

1 he quantity and quality of the production of
the whole foundry began to incieasr with the very
first month's operations. The dividend for the
first thirty days was (/ ,' and at the end of three
months, the workers had increased it to ior,'.
They did this by working together. '1 hi v found
that dividends came from following the principles
of the Business Policy they had adopted —that
the policy was not a mete collection of words, hut
a living thing, to which tiny might turn tor advice
at any hour ot the day. 1 he men her. an to know
and interest themselves in one another.

"Jimmy is sick," announced a ripusuitativc
ar a House meeting. "He is a good fellow ami he
isn't earning anything. He has a big family and
he hasn't had a chance to lay \crv much hy.
Let's take up a collection and send him some
money."

Another member thought that ir would not be
right to rake up a collection Kcai^c then Jimmy
might ieel that he was getting ch;:i:t\ and anyhow
any workman who tell sick should have an equal

124 Man to Man

chance and it might be that when an unpopular
man was in a bad way nobody would "chip in"
for him.

Out of this discussion grew a mutual benefit
association. The company had looked after its
men when they were ill but they could not know
all of them and the workers themselves — that is
the setter class — did not like the idea of receiving
charity. They wanted to stand on their own feet.
The House committee took actuarial advice and
worked out a plan to provide in advance for any
trouble that might come to any man — including
both health and life insurance in the scheme.
They devised a schedule of deductions from the
dividends and absolutely forbade the taking up of
a public subscription for a worker. Any one on
the pay roll might elect the sort of insurance that
he fancied. For i% off his dividend check he
might have insurance equal to his annual earnings.
Thus they accomplished insurance without cutting
in on the pay envelopes — which always comes
hard to a workman. And they were the happier
for doing the insuring themselves.

The making of castings is a tricky b usiness. The
mold must not only be well made, but the gate
through which the molten iron enters has to be

Iiulustri.il Democracy i " S

just the right si/e and shape or the iron v.ill flow
in too slowly or too last and cause an imp! itect
casting; the man pouting must regulate the speicJ
at which the iron leaves tin »adle. hut above all,
the lion has to In- "hot" and "miming right. "
Changes in atmosphere aflect the fluidity of the
iron; it tuns om- way in dry weather and another
in wet. Ins'ioit.it lias an exaspcratinply fickle
natutr which IK\ cr \ et has hem tjiiite put undir
control.

The moldcrs weir paid at piece rates for peiltct
castings but imperfect ones might result Irom ;::u
ot siver.il causes not under tlu;i control. 'I he
"cupola man" who hlled the biL: "bull ladle"
might help or hinder the run, or he might do 1 is
work properly and the ''pouiei" be caielos.
The cupola tender and the "pouu is were on
day wages and they had no incentive to better
work; their money came through regulaily,
whether or not they did then best. ^ on can
realize the possibilities tor disputes under this
system. I think that no chances tor rows slipped
by.

The molders were usually cursing the pourers
and even body cursed the "cjpola man." NMun
blows threatened, a foreman jumped in. A halt

126 Man to Man

row was always on and a fair-sized war was a daily
happening. This was before they learned the
.cash as well as the happiness value of united work.

The House quickly took up the situation.
They began with the "cupola man." He was a
dour individual who intensely disliked improve-
ments. He had opposed every improvement in
the past — he was one of the few men who had
been with the company a long time — and he hated
the new idea of community interest. He made
himself the first big barrier to an improvement
in the work; he refused to change his ways. His
particular fancy was to fill one ladle and then
stop the flow of metal at the cupola while the next
ladle was being put in place. That choppy meth-
od restricted the whole flow of production.

The new idea was to lead the metal out through
a two-pronged trough so that while one "bull
ladle" was being filled, another might be wheeled
into place ready at once for its quota of live
metal. Thus a constant delivery might be
obtained.

Everybody wanted the new way — except the
" cupola man"; he said he would quit before he
changed — and he quit. A man was selected from
the working force and the foundry took a step

Industrial Democracy 127

forward. Hut what happened to the conscientious
objector? I It- wi-nt out and got another job
and inside of thirty days came back again to do
his old job in the new way. He said that he did
not like to woik anywhere else! Hut now lie is
working ti".:k the company.

The "pourers" had been careless. They were
not interested in results and were usually at
swords' points with their molders. 1 he House
got around this by resolving to have tin- molders
select and control their own "pourers" so that it
any "pourer" were not satisfactory, the molders
through the House would have correction in their
own hands. I he molders could no longer cntici/c
the company for hit ing incapable or careless men—
they had to look to themselves. And because not
only their pay but also the dividend depended upon
turning out first-grade castings they saw to it
that the "pourers" used care. Thus ended the
pouring troubles.

Molding is something of a fine art. There
are only a few skilled molders and, try as they
might, some ot the men could not produce even
a reasonably high average of good castings.
T hey made their molds and gates with all care
r.nd to the best o{ their knowledge, but often good

128 Man to Man

castings would not result — and why they knew
not. This, too, came before the House. A
committee investigated and reported that the
causes for most faulty castings could be traced
by an expert in molding practice and it would
materially help quality production if the com-
pany had an inspector who would not only know
a bad casting when he saw il, but also why it was
bad and who would be able to go back to the man
who had made it and tell him the exact trouble.
They suggested one of their number — Harry.
The company appointed Harry. And he set in to
raise the casting standing of the shop. Being
an expert molder and a student of iron, he could
instantly put his finger on the cause of defective
work. When a bid casting came to him and he
had diagnosed the trouble, he went to the molder
who had made it and explained the exact nature
of the defect. It might be that the gate was too
large or too small; but whatever the cause, Harry
found it and the men, recognizing that he knew
what he was talking about, were glad to have his
advice. When they were puzzled on a mold they
began to get Harry's approval before the pouring
began. They realized that it helped dividends to
avoid the waste of poor castings and they dropped

Industrial Democracy 129

the too common attiuulc of letting pride forbid
thnn to ask quefft!* us.

These improvements w« -re all in tin- direction of
quality production. 1 In y saved tin- company
mom v hy cutting out tin- e\p» nsr ot t<j<enons in
tin- foundry and of rejections by tin- customers.
Also they made money for the wo:kt is because the
workers received one-lialf c{ all these >avm^s a :
dividends. The improvement in qualit) u.is
remaikahlc, hut wliat is even ir.(/ie remarkahle
i > that the ream spuit produced n»-r only Inttti
cast. .11'^ hut more ol them. I nder the <>K1 silu-me
ot individual work, the company hud faced steadiK
mcieasini; war.e-i and .steadily ckcreaMng pio-
duction.

In the httli month of the experiment in silf-
government, t!u- co?npan\' had a net increase in
production and shipping ot ;i' , in excess of the
best month in their history !

I hat is N'vhar team work did f<>t jV' • di:ction.

The lal>or turno\-er, except id MA!I causes as
death or sickness, practically cca^ d t«> he. 'i he
waives with the dividend :_'avc the i tr.p!"\ 1 1 s higher
returns than were paid in the dinner i«r suv.ilar
work. But the companv could atlord the waives
and dividends because the increased elHciencv and

130 Man to Man

the elimination of wastes scaled down their unit
costs of production. They saved money on high
wages — which is as it should be. Instead of scour-
ing the country for men, they had a waiting list.

The business of the company increased to such
an extent that, in spite of the big production of
the force, it became necessary to take on more
men. The Cabinet decided on this addition only
after consultation with the House of Representa-
tives and the Senate and a general agreement of
opinion that the best business interests would be
served by increasing the force. But where could
these men sleep and eat? The little town was
already crowded. The House had long since sug-
gested that the company build houses and a num-
ber were being built, but they did not meet the
immediate need. The House asked for a mass
meeting to consider the subject. The Speaker of
the House told the men of the conditions. That,
as they all knew, the company should add to the
force; there were no houses for new employees and
none could be built and finished within four or five
months. Had the workers any recommendations ?

Suggested a worker, "Let every man here who
has a house take in a temporary boarder. I don't
think any of us want boarders just now when we

Industrial Democracy 131

arc making money but it is up to us to help out.
hi very man in this room who will take in a boarder
raise his haiul."

Up went the hands. They absorbed the thirty
men then hired, and since then thi-v have found
quarters tor many more men. Thus they ban-
ished the housing problem from the little town
that had no housing facilities.

I1 torn a wrangling, snarling mass, rough of
speech ami ready ot rtst, this foundry group be-
came a band of cooperative1 manufacturers. The
men now like the plan because it gives them the
joy of creative effort. No longer does the money
incentive wholly stimulate them. They have
learned the fundamental truth that a task \\ell
done brings quite incidentally, but with absolute
surety, its own proper and adequate reward.
I hat v. hosoeViT makes his job the complete expres-
sion ot himself need no longer worry about pa\ .

I have spoken of the nun. How did the com-
pany like the way things worked out? I his is
what the president had t'> say the other dav.
The results have been:

F irst — Increased pnuluctiiin.

Scvorul — IniTiMvil i-.it:i!Mi;s to the company a:iJ the men.

ThirJ —Pccrc.iM.-J co.-,t.

132 Man to Man

Fourth — Better quality.

Fifth — A contented and energetic organization.

Sixth — Our business is more strictly within our control
than ever before.

The manufacturer struggling alone with his business bur-
dens, carrying them on his own shoulders only, and who lias
not seen the value of the interest on the part of the humans
in the organization, will not believe such a change is possible.
He, however, has something pleasant to learn.

CHAPTER VII

INPTS 1KI M. Pi M<K K.U V

IN II IK four chapters imnu-diare!) prccrdini; I
have pveti accounts of the working of Irdiis-
tria! Democracy IM vaiious dissimilar helds <>t the
results ot shop as distinguished iiom Inhotaiory
ti-sts. My thought has In < n to prtsmr ivr
nuTcrly a thfory of industrial relation, hu* a t!u-<>[\-
which has hecii estahhshed and proved in pnu'tir.-
and uiuler vaiietl rondirions. A theory which
piovc-s itsc'lt uith American woiknu-n of ratlu;
ai>o\ r the average ^i.ul, a-. :M:!I th.e Packard
C'oinnativ \sith t»>n<.Ji ti'ii-mn i.tl^.r as in tin- i: n
foundry; with practicall) alu-n v. . tkvrs as in t!-..
case ot tiu' Deinuth I >mpanv; with wea\'i-rs '.\!i '
are notorious]) floating, as \M*!I Ijlunu-n; hal ^\
C'o. can, 1 think, s.:!<.!\ In- t;:kv-:i as unr.cis.il m
application.

I p.n;;!u have re-red ar 1> a-«r i:itein trori-
sroiu-s ot i-ijual inte:<-.r \\itii tr.i^ \\!MC!I ha\e
he<n uivcrutor Iiultistnal Dirioera. •, is jvi lop.^i-r
an expt iiir.cnr. I ha\c v.oiked :' • >it t!;iou.;h a:;

134 Man to Man

experience of ten years in many and varied in-
dustries. It is a form of management which de-
veloped with me; it was not born full grown. It
grew out of my own long experience as a worker
and has its genesis in the late P. D. Armour.
Years ago our gang was splashing about in the
muck of the old stockyards when "P.D." came
along on his old sorrel. He noticed that Pat was
wearing a thin coat and had leaky boots: he
stopped.

"What are you doing around here dressed like
that?" he asked.

"It's all I got," answered Pat.

"Go buy yourself a heavy suit of clothes and a
pair of boots and charge them to me," ordered
Armour. "We can't afford to have a good man
like you get sick."

Armour was always doing that sort of thing.
Of course he was an autocrat, but his was a
benevolent despotism. He paid fair wages
and demanded long hours of service because
he knew no other way to work — -that was the
way he had been brought up— it was the way he
had worked. I hold no brief for all his business
practices but I do know that he had a profound
personal interest in all those who worked for him

Industrial Democracy 135

and that they returned that interest by a remark-
able loyalty. That incident and others like it
made an impression on me. It started me to
thinking why could not all employers and employ-
ees have mutual interests; why could they not
treat with each other on the man-to-man basis?
I kept that idea with me through endless jobs.
I saw employees come and go, live ami the, with-
out a thought on the part of the employers as to
their welfare. I saw the employees show an equal
lack of interest in the employers and demonstrate
this disinterestedness by pointedly doing just as
little as they possibly could for their wages. I
could find no relation between wages and work.
The employer paid the lowest wage at which he
could get men and the worker gave the smallest
return which he could possibly give and still
get the highest wages. I am speaking generally.
I noticed striking exceptions and I also noted that
many, 1 think a majority, of the employers had
no measure of wage except that paid by a com-
petitor and they felt that if they raised wages and
the competitor did not they could not sell against
him. 'I he workmen also did not coniuct wage
with work. They wanted two dollars in pay for
a dollar's worth of work; they did not work any

136 Man to Man

harder or any more intelligently for two dollars
than they did for one dollar. In neither case did
they put more than their hands into the tasks.

Inside each institution I found runious com-
petition between labor and capital — the one to
get more the other to give less. This competition
seemed to me both wrong and foolish and I delib-
erately went from job to job, although I had no
income other than my wages, merely to find if
there was not some better way of adjusting the
relation between the proprietor and the worker.
Out of that first-hand investigation, pursued with-
out theories and without a knowledge of philos-
ophy, came a gradual comprehension that there
could be a better way. Seeking the why and
the how led me into philosophy — into the causes
behind what we call results — and step by step
unfolded that which I now call Industrial De-
mocracy.

My first large opportunity to try out my ideas
came as one of the managers of an envelope plant.
I had then no well-defined plan of formal organi-
zation. I tried merely to come to good terms with
the people who were working in the departments
to make them feel that I was one with them and
that their interests were mv interests. I was

Industri.il Democracy 137

astounded to see how quickly they responded.
\Ve held mass meetings from time to tune in order
to try to pet the same point of view and at those
mass meetings we talked over the management of
the factory, better ways of doing work, and
although we had no power to enforce any res-
olutions we adopted — the executive officers proved
themselves willing to atlopr most of our sugges-
tions and seemed to welcome our cooperation
— they found it profitable. I hat is the record
of my first trial at anything approaching demo-
cratic shop government. Of course it was far
from actual democracy; ir was practically only a
democracy of suggestion. Bur the big thing
about it is that it worked. It gave a foundation
upon which to build. It proved to me that my
fundamental ideas were right.

The men liked the meetings; they liked the
chance to air troubles, to have it out over any-
thing which did not satisfy them; and gradually it
dawned on me that this desire to talk and to have
a say in things was the bubbling to the surface of
the innate spirit of democracy — of the desire
which is in almost every man to have a voice in
his own destiny and a means for self-expression.
And that the great change which had come about

138 Man to Man

in their work was by reason of the brain power
freed through responding to these natural urges.
Analyzing my personal work I found that what I
had really done was to capitalize fair play — to sell
the management to the men, to convince them
that their meetings were of importance and not
merely opportunities to blow off steam. I found
it difficult to measure the relative importances of
the two phases. The opportunity for democratic
expression was undoubtedly that which attracted
and held interest, but just as undoubtedly that
opportunity would not have been seized had not
the men been convinced of its fairness, sincerity,
and mutual good.

That is entirely reasonable; one finds the same
thing in politics. We have been managing busi-
ness autocratically; one man or a group of men
has commonly had absolute Kaiser-power—
power more absolute within its sphere than that of
any ruler on earth — and if employers do not, most
certainly employees do, recognize the fact. They
are therefore suspicious when an employer de-
velops overnight a zeal for democratic control. I
do not care what plan you attempt to put in force,
and I do not care how sincere may be your desires,
the workers will question whatever you give to

Industrial Democracy 139

them. They will quickly pick, any patent Haws
or limitations and if they cannot tuul such they
\vill not thereupon conclude that you intend to
he fair. On the contrary, they will ask "Where
is the joker?" I hey expect a joker. \\lu-n the
1 s.u granted the Duma to Russians only a few
ol the people accepted ir as a step toward iK i.ioc-
racy, the others wanted to he shown the "joker.*1
And, Mire enough, in due turn-, they found not
only one, init halt" a do/en jokers.

Bearing in mind this wholly natural mental
state I have gone forward with Industrial Democ-
racy, holding two propositions as fundamental:

(/) A ]<'Tin of di-tnncracy should If adopted •:; /; :Y/i
permits thf most direct possible act: on l>y the :: ' jric-rs
tktmsfkfs and practically without rigid I in: '.'.a'.: •?: <•{
its txtfi:!. In such casf probaHv r.o '/•<•'-•
jurisdiction 'til! c-ccr arise. If yo.v c' > jl.\- /:"::'.'.
ij you erect a jfnce around the dm:'
natural human instinct is in j p. -•;:.;' 77; . .' < •' :!:r ::^:r
If aningotfr that fencf trying t) i;.-; int-j :':•• n ' \ .'/;'.-;./.

(2) Sc\l the plan t > '.he- ttr.p'o^ ^^'•'-•'-'•' '•'•?n:
cf \'<i:ir s:ncfr:'.\'. '

I have spoken of Industrial Democracy as a >ratc
o* mind. In its broadest sense it is a state of

140 Man to Man

mind. As far as this present book is concerned I
am considering it only in a limited application —
as a method of management of a factory or some
other specific commercial entity — and not broadly
as a mode of national government. I am taking
as settled without argument that American prin-
ciples of democracy are right and then making
application of these principles to the governing of
a factory. My thought is that if we manage our
smaller, more intimate affairs on right principles
then, as a matter of course, we shall manage our
great, national affairs on right principles.

This, then, is what I call Industrial Democracy:

The organization of any factory or other business
institution into a little democratic state, with a rep-
resentative government which shall have both its
legislative and executive phases.

The democracy which I favor and which I have
proved in practice takes its titular organization
from our own Federal Government and also fol-
lows its modes of procedure. It necessarily dif-
fers in detail. The formal organization depends
upon the size of the company. In a large insti-
tution one would require a Cabinet, a Senate, and
a House of Representatives supplemented by mass

Industri.il Democracy 141

meetings of the entire working force as occasion
requires. In u very small place (employing jOO
or less) it may nor he necessary ro elect represen-
tatives at all and the ma-.s meeting may, in town
meeting st\ le, he able tot r.msacr all of : he business
subject to the confirmation <>f a Cabinet. Take the
three divisions, their derivations and their powers.

Tin: CAKIM:T

'I he Cahmet con ists ot the executive officers
of the company with the president of the company
acting as its chairman. I ins body is not elective
by the workers and its personnel exists by virtue
of the vote of the corporation through its st-K'k-
holders or directors according as the by-laws <>! the
corporation may prescribe. I do not think it
would make tor democracy to have the Cabinet
elective and I have nowhere heard :ha: is 1:1 tins
country — workers ask that it should be.

I he Cabinet is pnmaHv an e\i-cu:i\v body.
It has the power to veto hut I have never known
that power to be exercised. Ir a!>o ha, the power
to initiate legislation ui the same manner as the
President of the United States -that is, hv making
a suggestion in a message to the Senate or House
of Representatives. Neither the Senate nor the

142 Man to Man

House is obliged to follow these suggestions.
But, as in the case of our own Government, each
practically always does adopt the suggestions, al-
though frequently with additions. Thus the exe-
cutive officers, instead of issuing orders to em-
ployees, become a part of the democratic control
and are fully in touch with the people and their
needs as expressed through the Senate and House*
The Cabinet meetings have before them not only
the bills which have been passed by the Senate and
the House, but also the minutes of all the meet-
ings and the discussions. The extracts from the
minutes which have been given in the preceding
chapters show how free and informal is the debate
— thus the executives know what the people are
thinking about by reading what they say in their
discussions. All communications in the Senate
and House are privileged and no employee may
be punished for anything that he may say in
meeting. In fact, he should not even be cautioned
or criticized, for to limit the right of free speech
in the Senate, in the House,Sor in a mass meeting
would be to make an absurdity out of democracy.
And the inevitable self-criticism by the bodies
themselves is more efficacious. The Cabinet
meets once a week, discusses the specific bills,

Industrial Democracy 14;

which come up for approval, any communications
or joint resolutions, and also deals with tin- larger
problems of management which would naturally
come before a meeting of executives. If they
decide a change to be desirable, they do not, as
would ordinarily be the case, simply frame an
order and promulgate it for better or for worse;
instead they put the order into the form of a sug-
gestion, or recommendation, give the reasons be-
hind their action, and send it to the Senate or
House. 1 he exact measure will be adopted or re-
jected as these bodies' see fit, but in any event it
is sure of a full ami complete discussion from
even, possible angle and the object will be at-
tained. It the measure be rejected, the execu-
tives may rest assured that they have been piv-
vented from issuing an erroneous order and saved
from the results of a mistaken snap judgment. Pu-
ventmg unwise orders by the management would
be of itself a sufficient reason for the existence <>t a
form ot democratic government.

THK Sl.NXTK

1 he Senate also is not an elective body. It is
made up ot the under-cxecutives, department
heads, and sub-foremen, according to the si/e ot

144 Man to Man

the establishment, the idea being that its members
shall comprehend all of those under the grade of
chief executive officers who are in a position of
authority over the workers themselves. It elects
a president, a secretary, and such other officers as
may be necessary. It has standing committees
and special committees just as has the Senate of
the United States, and it is an extremely valuable
body in that it represents the supervision point of
view. It approaches measures from the stand-
point of the man who must put them into effect,
Its powers and practices are identical with those
of the House of Representatives which are given
in the next section.

THE HOUSE OF REPRESENTATIVES

The House of Representatives is the popular
body of government, being elected by secret ballot
by the whole body of workers. The exact mode of
election depends upon the size and the character
of the institution. I find that it is commonly
best to have the elections by departments with a
representative for each twenty to forty people
employed within the department. The depart-
mental basis is advisable because then every
phase of the business is assured of a proportion-

Industrial Democracy 145

ate voice, which might i<>t he the case were all
the representatives elected at large. The repre-
sentatives are also supposed to act as counselors
within their departments, to receive all complaints
and suggestions from their constituents, and also
to acquaint them with what the legislative bodies
are doing.

The Speaker of the House is elected and he
appoints the committees. His right-hand man
is tl-.e Chairman of the Ways and Means Com-
mittee, which is the committee of paramount
importance. Both the Senate and the House are
governed in their proceedings by Robert's Rules
of Order and both, in addition, adopt constitutions
ami by-laws. Meetings of the Senate and House
are weekly and always on company tune, piece
workers being paid an approximation of what
they would have made had they been working.
The system will fail miserably if the meetings are
held after hours or otherwise in the employee's
time.

Business is transacted to a considerable degree
through committees. Kach measure is, as a rule,
referred to a committee to investigate and report
so that when the time conns for open discussion
all available facts will be in hand. 1 his tends to

146 Man to Man

shut off irrelevant discussion and keeps the meet-
ings from wandering from their subject matter.

THE POWERS OF THE HOUSE AND SENATE

Every measure before becoming a law must
pass both the Senate and the House and be ap-
proved by the Cabinet. When the Senate and
the House cannot agree on the terms of a bill, a
conference committee is appointed to iron out
the differences and present a compromise measure.
Every dispute, whether between workmen, a
workman and a foreman or executive, between
foremen, or between a foreman and an executive
may come before either the Senate or the House.
Usually a committee is appointed. This com-
mittee will take testimony, find according to the
facts, and report back their findings. The House
may accept or reject their findings. If it accepts
them it passes a measure to correct the trouble
which may involve only a change in method,
or may bring in a recommendation for the dis-
missal or shifting of one of the parties. The bill
then goes to the Senate and, if it concurs, passes
to the Cabinet for final approval. If the facts
surrounding the passage of the measure are not
clear to the Cabinet they will call for more infor-

industrial Democracy 147

mation and may suggest changes; the wise Cabinet
will not use a c!ul>.

This wide latitude of expression makes the House
and the Senate important cooperative factors
of management. If any men think that their
wages 01 rates are unjust they have hut to bring
the matter before the House of Representatives
and it will receive a thorough and impartial inves-
tigation by a committee of their peers. Thus
the legislative bodies practically adjust wages and I
have yet to know a case in any of the establish-
ments where Industrial Democracy is in force,
that an increase in wages passed by both the
Senate and the House has not been willingly con-
firmed by the Cabinet. Particularly do thev
ferret out injustices in piece rates. Very few
piece rates are scientifically set. In the same
department the same amount of effort and skill
may net ,^i or >2 according to the vagaries of tin-
rate. Men hesitate to complain to foremen be-
cause more often than not the foremen have
hxed the rates. I he men know jusr rates and
through their House of Representatives they
see to it that rates are made just. Permitting
the men to have a say in adjusting their wages
removes the perplexing wage question as a fer-

148 Man to Man

tile field of dispute. Of course they will not agree
to low wages, but no manufacturer desires low
wages. If he is big enough to stay in business,
he must know that low wages spell high cost pro-
duction and output of poor quality. Only the
fool thinks that low wages save money. Hours
of labor are on a similar footing and similarly are
best left to joint determination.

Employers fear giving power to employees
through a democratic organization, but that is
because they have never tried them with power.
It is true that unions will sometimes increase wages
and shorten hours to such a degree that a plant
owner thinks he cannot accept the terms without
ruin. But there is a big difference between a
union meeting and a shop meeting. The union
is probably antagonistic to the employer for some
reason — good or otherwise. But the shop meet-
ing, if the employer has convinced it of his desire
to be fair, will not be unfair. The men who will
vote regardless of whether or not they are killing
someone's else goose will not vote to kill their
own goose.

Through the machinery of democracy it is
perfectly possible for the employees and the em-
ployer to reach a common ground and to begin to

Industrial Democracy

know each other. It is haul to have serious mis-
understandings if there is a wide opportunity to
exchange views ami appreciate viewpoints and
that is precisely what the machinery of Industrial
Democracy affords.

"i in: IU:SINI-:SS policy

Hut the machinery of democracy will not, of
itself, bring about the understanding. It is oniv
a machine, and, like every other machine, ir needs
power to turn the wheels. That power comes
from the adoption of a bu—jiess policy, a constitu-
tion, a bill ot rights, or whatever one may choose
to call it. '1 he Constitution of the L'nited States
finds its reason for being in the Preamble in which
our forefathers stated in a very few words not
merely why we should have a Constitution, but
why we should have a Lmted States. The Pie-
amble defines the common object what the
machinery described in the Constitution is ex-
pected to do. Similarly an industrial democ-
racy needs a statement of principle, a summary ot
its reasons for beiivj, and the e\pivsMi>n ot t In-
spirit which animates it. As a precedent to the
installation of the actual machinery 1 always
establish with both employer and employee

150 Man to Man

a set of simple, elementary principles which I call
the Business Policy.

In Chapter III concerning the Packard Com-
pany I have set forth the Business Policy in full.
It is universal and invariable and in it will be found
a rule to meet any situation whatsoever. It
might all be expressed by a mere statement of the
Golden Rule and I would so express it, had not
the Golden Rule joined that class of indisputably
good axioms which everybody agrees with and
nobody follows. Therefore I have split the Gol-
den Rule into five parts as follows: — Justice,
Economy, Energy, Cooperation, and Service.
I invariably discuss each division of this busi-
ness policy at a separate meeting and thus fix
the attention of the people on the basic principles
of fairness.

The preliminary meetings to discuss and to
adopt these platitudinous principles are highly
important — they open the campaign of selling the
SQUARE DEAL — to carry out the principles of
the business policy.

Justice, Economy, Energy, Cooperation, and
Service have nothing of novelty — they are
basic. I simply aim to renew truths which are
fundamental but which have become rusty

iiulustri.il Democracy 151

through disuse. I convince not merely the
workers, hut every person in interest including tht-
difectors, if the business happens to be in corporate
form.

It is a mistake, in policy as well as in fact, to
assume that lahor difficulties originate exclusively
with the workers. It is not fair to assume that
all workers are constitutionally shiftless and care-
less and that all employers are paragons of virtue.
Neither is it fair to assume the reverse. I have
not yet found a case in which both parties were
not more or less equally to blame. Most employ-
ers and most employees will resent this statement
and aver that their intentions are of the best. I
cheerfully prant that most people have pood
intentions and I am willing to let it po at that.
The point is that the most splendid intentions will
not, of themselves, accomplish anything. \\ hat
we need is something to put pood intentions into
effect, to make them active and not passive, and
above all to make sure that they are practical
and not merely comfortable points of view. '1 he
business policy is intended to take all of the inten-
tions out ot the abstractly pood class and pool
them into a sinple working intention. I hat is
the reason it is absolutely necessary for every

152 Man to Man

person in the corporation to attend the pre-
liminary policy meetings and there and then to
pledge the same intentions.

Tacking up a set of moral principles is very dif-
ferent from discussing and adopting these prin-
ciples in a united group. When the worker sees
the employer pledging with him to do justice or to
perform service he is more ready to believe that
nothing is being "put over" on him.

There is no possibility of success in practising
Industrial Democracy without a common desire
on the part of everyone to follow its principles.
If the high officers of a corporation imagine that
they can turn over the whole question to someone
else and go on their several ways without a thought
as to whether or not their people believe in them
or the plant, or are at least open minded toward it,
the experiment is sure to fail. Personally I will
not undertake to instil the principles and to start
the machine going unless I am entirely convinced
that the management is sincerely anxious to bring
about better understanding with the employees
and willing to do its part to attain that under-
standing. I will not accept a retainer merely to
bring about better labor conditions; I will not act
as an ambassador from the management to the

Industrial Democracy 153

men, nor undertake anything which would fall
into the class of "personnel manager." For if
the managers do not show as keen an interest
in carrying forward the principles of Industrial
Democracy as they in turn expect from the men,
if they expect merely to install a system and Ret
rid of the personal bother once and for all, they
have not the attitude which makes success even
remotely possible.

These human factors are of the highest import-
ance. Before going forward with Industrial De-
mocracy it is well for an executive clearly to get
in mind what manufacturing really is and to de-
termine the relative importance of men, money,
merchandise, and buildings. I hold that the
human asset is the largest. Ill-will is not a lia-
bility, but a positive loss, and when it culminates
in a strike it is seen in its true light. 'Hie exe-
cutive's object, if he is something more than a
machine, is to put good-will in the place of ill-will ;
it is up to him to manufacture that condition of
mind which we call good-will, just as much as it is
up to him to manufacture any other finished prod-
uct jout of the raw material that he buys. Hie
finished product to be saleable must be good,
and I take it as an axiom that without good-will

154 Man to Man

within the works one cannot have good-will out-
side the works.

I hold to these three propositions:

(/) In proportion to the harmony in the organi-
zation so is the profit in the product. When you have
the people, 75% of the business battle is won.

(2) Manufacturing consists primarily in mak-
ing men — they will attend to the product.

(j) The making of men involves the developing
of the brain service of the whole human element and
then concentrating this force along a specific line of
action and toward a definite goal.

The object of Industrial Democracy is to gain
a collective human interest. It is perfectly pos-
sible to gain it. So easily possible indeed that I
look forward to a time when bankers will examine
the human asset before they check the statement
of condition — when no appraisal of a corporation
will be complete unless it contains a history of
that corporation's relation with workers. I take
it that we will come to regard the now familiar
phrase "not responsible for strikes, lock-outs, or
other delays beyond our control" as a confession
of an inability to deal with the biggest asset of

Inilustri.il Democracy 15;

business, When a man sta'es as a fact tiiat he
considers strikes and lock-outs as beyond his con-
trol, lu- infercntJally states that he does not know
how to do business— that he simply is throwing up
his hands and passing the solution of the human
equation to luck.

For business today is not the business of our
forefathers; it is no longer individual; the hand
craftsman has disappeared in all but a few trades;
we do business collectively; no one man makes all
of anything. The workman has lost his former
individuality ami has become part of a great manu-
facturing machine. Before the division of labor
and application of power (which we call the indus-
trial revolution) any man in almost any line might
set up for himself with his bag of tools. But now
he needs more than a bag of tools. lie needs
machinery — he needs capital. Even the smallest
enterprise, for instance a tiny machine shop, repre-
sents a greater investment than the average worker
can lay by during a normal working lifetime.
Capital, too, has undergone a change. Years
ago a rich man was one who had broad acres and
tenants. Today he is the man who holds the
bonds or shares of an industrial adventure. His
industrial adventure requires workers. His capi-

156 Man to Man

tal, if not used, does not remain inert; it actually
depreciates by a kind of erosion. The capitalist
today is as helpless without the worker as is the
worker without the capitalist.

Capital and labor are not alike. They travel
the same road only up to the division of profits;
there the road forks and we do not yet know just
how the profits may reasonably be divided. We
do not know how much labor should have and
how much capital should have — certainly neither
should have all the profit, for then the other must
starve and die. Perhaps it has required the Rus-
sian revolution to teach this lesson to the unthink-
ing. There the workers thought to take all the
profit of industry. Consequently capital has
died and there is no industry. The interests are
not identical, but they are complementary and in
many aspects so nearly identical, that, with some
reservations, they can be considered as identical.
This identity unfortunately has only begun to be
accepted. There is a feeling that capital may con-
quer labor or labor may conquer capital and that
the victor will not perish in his triumph. But if we
clear our vision we cannot fail to see that modern
business is not a question of a man or men repre-
senting capital, hiring another group representing

Industrial Democracy 157

labor to work for them and make their capital
productive. Business is more than that. It has
passed into the institution stage and its success
depends upon the full cooperation of all members
—that is, depends upon the acceptance of a com*
inon policy and a mutual aim.

Yet we continue to compete. Old-fashioned
owners expect people to work for thfm. Working
Jor spells competition; working :cith is cooperation.
It is to attain this 'forking with that my Business
Policy was formulated.

THE PAYMENT OF THE WORKERS

I have given the basis and the mechanical work-
ings of Industrial Democracy, but I have touched
very lightly upon the subject of wages — of the
remuneration which should accompany a
square d<al policy. I have reserved wages until
toward the end because they arc distinctly
secondary to the broad principles of fair dealing.
They are incidental in a way; they are a detail
and not a foundation. A proper industrial rela-
tion cannot be achieved upon a merely financial
understanding. You can hire men but you can-
not hire brains — you cannot hire heart interest.
Business and interest make for industrial happi-

158 Man to Man

ness. One often hears employers say, as though
they should receive congratulations, "I pay the
market price for labor.'*

Mere hands have a market price; hands and
brains have none. I think that this has been con-
clusively demonstrated by the increases in the
wages granted or compelled during the war
period. Paying higher prices for labor has not
brought efficiency. Of course, considered from
the bread standpoint, many of the wages have not
actually been raised; they have merely been
adjusted to the shifting purchasing power of
money. But in many other cases from the bread
standpoint, they have gone up. There are quite
a number of instances where the sums now paid
have a 20% to 30% increase in purchasing power
over the highest wages previously paid. But
has production then also increased in proportion?

Wages are low or high according to the produc-
tion that they cause. A wage of $10 a day is
cheaper than a $5 if the $10 man turns out $10
worth of production and the $5 man produces
only $4. We have found that production has
not improved with wage increases and especially
that increases gained through compulsion, force,
or violence have been reflected in a constantly

Iiulustri.il Democracy I ><>

lowering quality ami volume of production and
also that in thr highest paid institutions the rate
of turnover of labor is Abnormally high. A
worker will no more perform at his lust solely
for money than will any other human being and,
therefore, 1 am at variance with all modes of
management wlml^Voncentrate upon the pay
rather than upon the human interest.

Take the familiar case of the production bonus.
\\ e put a premium upon the amount of produc-
tion rather than on the grade; we do not inculcate
the habit of good work but transfer the operative's
attention from the quality to the quantity. For
a time he will undoubtedly produce in quantity
by "speeding up," but because we, in effect,
penali/.e him for care, he must go forward with
an "anything goes" attitude. There is no question
in my mind that the losses thus incident to detec-
tive goods overcome the apparently increased
efficiency.

The aim of the workman should be to produce
first-class articles and he will produce them if he
has a pride and an interest in his work. But he
cannot have that pride and interest it his output
represents only dollars for quantity.

The underlying principle of Industrial Dcmoc-

160 Man to Man

racy is the square^deal. Starting with a desire
to be fair makes fixing wages a very easy matter.
The men themselves., through the machinery of
democracy, will come to a consideration of their
own wages with precisely the same method of ap-
proach they would have were they paying those
wages to someone else and not to themselves.
I do not advise abolishing all wage scales with
the introduction of democracy. To abolish all
existing rates and to say to the workers "Now
go to it. Fix your own," would only be invit-
ing chaos. My course is simply to let the wages
stand and trust to the people themselves to bring
up increases or adjustments as the case may re-
quire. They will do this fairly. I have had a
very large number of instances in which a lower-
ing of rates has voluntarily been asked, because
under improved conditions the men were getting
more for their work than they thought their
services was worth. And yet I do not doubt that
those very same men would have started a riot
if the management had arbitrarily lowered the
rates! The representative plan of Industrial
Democracy will attend to wages more fairly than
is possible for any member of the management,
but with this one provision — there must needs be

Industrial Democracy 161

some payment on top oj wagts tuhich tvill ftprtstnt
in monry iki interest and If tiff work.

PROFIT SHARING

The added payment, at first impression, would
seem naturally to take the form of a share in the
profits and there are many who advocate profit
sharing without stock ownership as a way of bring-
ing about a very desirable partnership between em-
ployer and employee. There are also those who
think that helping employees to buy stock will
put them into a community of ownership with the
corporation.

Stock purchasing is to me aside from the ques-
tion. I think that it is highly desirable that
employees should own stock and I am in favor
without reservation of practically all efforts in the
way of inducing employees to purchase stock
and of making their payments easy for them.
The immediate difficulty is that the average em-
ployee cannot possibly set aside sufficient money
out of his pay to buy a large enough block so that
the dividends on it appreciatively affect his in-
come. Further, he docs not intimately connect
his daily tasks with his semi-annual dividend — he
knows in a general way that work affects the

162 Man to Man

dividends but he does not keep it before him every
day and every minute — the dividend periods are
too infrequent. Therefore I take stock purchas-
ing by employees primarily as an encouragement
to thrift and not as an aid to a better industrial
relation. Profit sharing without stock ownership
— considering the workers and the corporation as
partners — is on a different footing.

Undoubtedly the phrase "profit sharing" is
alluring. It seems very fair to share the fruits of
industry — to make the workers partners with the
company. But is it basically sound? The stock-
holders or the owners of an investment are not in
like case with the workers. The one offers to
gamble his money against the chance of profit;
the worker is paid for his services — for his con-
tribution— and he has no power to ensure that his
efforts will result in a profit upon the capital.
He knows that his work, well done, should result
in a profit, but he does not know how many other
considerations may step in to diminish that profit.
He is not a co-manager; he is a worker. It is the
decisions of others and not alone his work which
determine profits. He can fairly ask that he re-
ceive for that which he supplies — his work — but
for nothing else. Are we not trying to mix oil

Iiulustri.il Democracy i'»;

and water when we set- k to mix the return of the
worker ami the profit of the corporation ?

I can conceive that the wages might he con-
sidered as a drawing account against profits ami
that the stockholders and the workers could then
pool their interests in the whole outcome; or again
I can imagine a case where the worker might have
enough to live on during the three or six months
between settlement periods and then take his
share. Hut in tin- plans which I have seen, tin-
workers and the shareholders do not pool ilnir
interests and it is out of the question to assume
that workers can exist for several months without
drawing pay. The usual profit-sharing scheme
simply says that a certain portion <>f the net earr-
ings applicable to dividends shall he set asid>%
ami distributed to the workers according to their
salaries. Sometimes only the executives are in-
cluded, or a certain period of service must elapse
before profits are shared, or again tin- distribution
may be made to all who are in the employ at the
particular time, \\hen the executives alone are
included, the plan seems to woik because the
executives are the ones who commonly have in
their hands the making of profits. But the work-
ers seldom consider the payment in its dividend

164 Man to Man

phase. They regard it as a kind of bonus which
reaches them without much rhyme or reason—
as manna from Heaven.

Sufficiently educated employees may grasp
corporation finance. If so, they are then entitled
to a share in the determination of the profits — to
a distinct voice in the management. Such a
voice is seldom given; it is rare to find directors
elected by employees and still rarer to find them
with any real say in management. As now con-
stituted, profit sharing is only an arbitrary bonus.
It is not mutual, for the workers cannot also
be asked to bear losses; the stockholders have
to bear losses — the loss of the earning power
of their money through the passing of a dividend
or an actual depreciation of their capital invest-
ment through the impairing of the capital fund.

Practically considered, profit-sharing plans are
ineffective with the workers because the dividend
periods are too remote from their daily work and
also because they do not understand the compli-
cated accounting by which the payments are
arrived at; thus the dividends do not help to
interest them in the daily tasks.

After a long investigation of many systems I
have concluded that it is unfair to permit the

Industrial Democracy 165

compensation of the worker to depend upon any
factor which he does not control; he may do his
work well and hnd that there are no profits be-
cause the company did not sell at a proper price,
or granted improper credits, or did any one of the
thousand things which lose money. If under
profit sharing he does his work and g«-rs no divi-
dend, he is very properly dissatisfied. I there-
fore have thought out a plan of making the pay
dependent upon only that which the workers
accomplish.

THE COLLECTIVE ECONOMY' DIVIDEND

What regulates wages? The productive ca-
pacity ot the individuals in the mass. Wages are
not absolutely high or low; they are in comparison
with the efficiency of production. Why not then
base the increment to wages on the efficiency of
production? That is my plan in a word.

Here is how it works in practice. I take the cost
of a unit of production in the period preceding the
introduction of Industrial Democracy and com-
pare that cost with the results after democracy
has gone into effect. If there is a saving, then
one-half that aggregate saving is the amount of
the economy dividend for the period and is paid

1 66 Man to Man

to the men as an added percentage to wages.
This is a dividend upon service. It should be
paid at intervals not longer than two weeks, to
preserve it as a matter of current, everyday
interest. I add to it the element of competition
further to stimulate. I arrange for the award of
a banner to the department which shows the
greatest saving for the two weeks. The banner
— always a large American flag — is a prized pos-
session and is fought for in the field of greatest
benefits-economy.

The dividend is regularly calculated on the
basis of the savings. Thus it fluctuates and this
again increases interest, for it often is possible to
post up just why the dividend is low — absence
of workers, carelessness, or what not. And then
absence and carelessness take on a very definite
money value.

The economy dividend is not solely an account-
ing affair; it is a relation of service with income
and takes into account the savings in defective
output, the better quality of the product, and the
general betterment of the business. It is arrived
at by thinking as well as by accounting.

But how can such dividends be calculated in
times of rising costs and how is it possible to say

Industrial Democracy 167

that this or that economy was directly due to tin-
work «>f the employees? Take the second ques-
tion first. All economies in production are not
due to employees, but I have found, under Indus-
trial Democracy, that the employees suggest the
majority of improvements ahead of the manage-
ment— that they are very quick to discover how
any tiling might he done better. And hence the
agreement that they share m all economics effected
works out very fairly. And if the management
should make an improvement which was not the
result of an employee's suggestion, the plan en-
sures that it will be heartily put into operation.

Now tor the first question — the calculation of
the dividends when costs are rising. Economy
is a relative term. I calculate the rdaths saving
in cost of production. Suppose wages, materials,
etc., have risen 5Ort', over a former period but pro-
duction costs have gone up only 30%- — then have
not the production costs relatively decreased?
I take it that they have and I award dividends
upon this basis. In the case of a very large-
dividend during a single period it may In- advis-
able to distribute its payment over more than one
period and in this case the undistributed surplus
goes into an employee's dividend account for future

i68 Man to Man

distribution. For instance it would not pay to
sandwich in a 50% dividend between two 15%
ones.

Another natural question is this: Will not the
economies soon reach the limit and thus cut off
the dividends? When they do reach that limit
we can devise another plan, but when I consider
the actual efficiency of manufacture as compared
with its possible efficiency I think that none of us
will live until the day when manufacturing per-
fection has absolutely arrived. You will recall
that the piano company (Chapter III) has de-
veloped marvelously and yet has not even
approached the limit. I think that the fear of per-
fection is scarcely an objection! My eyesight
has never been strong enough to see a limit to im-
provement.

ni.MTKR VIII

IMH'STRIAI. IHMOCKACY, "Hi I 1 M1M.OYI 1 S, AND

•mi: t MOSS

THK reaction upon the workers of t!u- spirit
ot the square deal as administered through
Industrial Democracy has in every case brought
at least these live changes:

/. .In :ncrt\:s;' a: p'oJuction.

j. A dfCTca>f it: the cos! < t' production.

?. ./ dfcrfn^f in tr.f Lil-.r I:CT. j-.cr.

.;. ,-/ Tf?uUii'\'>r. tk'Giighrr.i'. thf community as a
dfsifiillf place to work i>: ar.d consfqutntly a grfaifr
catf in hiring vifii.

5. .7?: immunity from strikes an.! other labor
troubles.

This has, I grant, some of the earmarks of the
industrial millennium it sounds a hit too good to
be true. I admit that often the results astound
me until I reflect that I should he no more sur-
prised by workmen in mass being efficient than by

170 Man to Man

a single worker. It is simply that we have gotten
into the habit of thinking that sloth and inatten-
tion are the natural attributes of the man who
works for hire. But it is just as natural for a
man to exert the best that is in him when working
in a shop as when playing on a baseball team.
The real trouble is that we have denied him the
opportunity and the reward for self-expression in
the average factory; we have organized with so
little attention to the human factor that we have
in effect thrown away brain power and taken only
body power. We have become so obsessed with
the utility of machines that we have tried to make
a machine out of a human being.

Everyone grants that mere opportunism will
not make a big man — that the larger material
successes in life are the products of imagination
as much as of any other quality; but we forget
that these same qualities are useful in every sphere
of life — that each job, no matter how big or how
small, is capable of expansion. One frequently
hears the term "unskilled worker"; it serves well
enough as a designation for the man who has no
particular trade, but it should not be the classifica-
tion of a job. There are no tasks which do not re-
quire some measure of skill if the whole of the task

Industrial Democracy 171

is to IK- realized. Industrial Democracy sptrdilv
transforms "unskilled" jobs and in a perfectly
natural way. A task needing little dexterity is
usually subsidiary to a more skilled one; in a way
it feeds to it. The trained worker is the rirsr
to grasp the opportunities of working :i i:k the
employer and very quickly he takes notice of the
meptness of the laborer and at once proceeds to
instruct him —to make him a skdled laborer.
The passing of the common laborer is immediately
reflected in the labor turnover; it has been wrongly
thought that one man was about as good as an-
other in these classes and not much attention
has been paid to them — they hare been allowed
to come and go almost without remark. The
waste through having "unskilled labor" about
has been prodigious; no one has been able even to
estimate it.

It is inevitable that the cooperative feeling
should extend to bringing up the grade of the
laborer and giving him a future. Commonly he is
disregarded by the other workers; they call him
a "wop" and dismiss him as such. But with the
economy dividend, cooperation has a definite
money value; what another man is or is not doing
becomes a financial as well as a moral concern to

172 Man to Man

his fellow. It is money out of pocket to have him
loafing or going about his task in snail fashion.
And the other workers quickly see to it that no
man about the place does loaf — something which
no boss could possibly do. The "unskilled
worker" is eliminated in Industrial Democracy
because he is not efficient — he is eliminated not
in the flesh but in the spirit. He is made over
into a new being.

EFFECT ON PRODUCTION

The cooperative exertion at once makes itself
felt in production although I have never stressed
quantity of output. My theory of business is
that quality should control quantity and that thi
truly successful enterprise is that which makes the
best in its line at the price. It may also turn out
the most, but I regard that as secondary — that
quantity must never overshadow quality. A
uniformly first grade of production ensures a con-
tinuity of demand that makes for stable, profit-
able business. But greater production is an in-
evitable sequence to putting the heart into the
work. You cannot drive a man as fast or as far
as he will go of his own tense will and this has
been proven to me time and again. Self pro-

Industrial Democracy 173

polled, workers will make, and without effort,
production records that could scarcely be at-
tained by inhuman "speeding up"; they use so
little effort that they are surprised when they
see the figures! In some instances it is possible
to point our specific mechanical improvements
which are responsible for part of the increase, but
always the really big improvements have been
personal and not mechanical -human improve-
ments that product- new machines ami methods.
The pace -Joes not come from "speeding up" as
under the Taylor and other efficiency plans; it
Comes from within, not from without. I take the
general leavening as much more important than
single noteworthy performances — team play as
more important than individual star plays.

Look at a few records of what has been accom-
plished without additions of equipment and
sometimes with an actual decrease of personnel:

An Ohio steel fabricating plant paid riveters
37.8 cents and 2^.3 cents per hour in April, 1917.
and the record for the assembly room then stood
at 15.017 rivets; exactly four months later they
were paying 47.2 cents and 35.4 cents respectively
to the same classes of men, but the average of
rivets had risen to iS,</>7. This is only one of the

174 Man to Man

many cases where wage increases have brought
cheaper production.

At the Atlantic Refining Company of Cleve-
land the production increase per dollar paid in
wages (the real economy) is represented by these
startling figures: April, 18%; May, 21%; June,
33i%; July* 44%; August, 74%.

The Kaynee Company, makers of blouses, in
ten months increased their business 34%. For-
merly they had worked many nights and most
Sundays in an effort to keep abreast of orders;
they made this remarkable increase, but were
able also to do all the work in shorter daily hours
than before and without any overtime whatso-
ever.

The Printz-Biederman Company of Cleveland
reports a production nearly 50 % in advance of
all previous records with a net increase of per-
fectly made garments and a net decrease in the
cost of manufacture, at the same time increasing
wages and decreasing hours. A textile manu-
facturer increased production one-third within
a year and also eliminated all overtime and Sun-
day work and cut the day from ten to nine hours.
The American Multigraph Company, because of
the cooperative, interested spirit of the employ-

Iiulustri.il Democracy 175

cos, increased more than 40% over its former
st.tiul.iul for a year.

Hut what is more important than these startling
increases in production is the fact that in every
case the quality of the product bettered as greatly
as the production. It is an approach to perfec-
tion when quality increases with quantity. Put
is real manufacturing!

These results have not been attained (as I have
tried to show in the preceding chapters) in any
one line ot work or with any one class of workers.
Industrial Democracy is in operation with makers
of women's wear, men's clothing, boys' waists,
paper bags, pianos, steel, automobile parts,
paints, furniture, tobacco pipes, textiles of various
sorts, and in several machine shops. The workers
are both male and female and hail from all classes,
some American, many foreign, some speaking
English, some speaking little or none. In bhorr,
we have tried out Industrial Democracy with
every possible combination and permutation of
labor and in nearly every section of the industrial
East in small towns and in large cities. I can
find no single controlling circumstance running
through these various installations of such a
common nature as to permit one to ascribe sue-

176 Man to Man

cess to anything other than the basic spirit of the
organized "square deal."

HOW THE WORKERS RECEIVE THE PLAN

It must not be imagined, however, that the work-
ing people have been eager from the start for demo,
cratic government. They have not been eager
for anything but high wages for little work.
Rather, that is what they all think they want but
really they never know what they want. They
are restless in hopeless fashion; they bay at the
moon, they work for this or that generally in
terms of money, but are never satisfied when they
get the money. In no case have they thought of
self-government. The English labor party in
its "platform" asks for a greater share in the
management of industry, but I suspect that this
is largely a socialistic demand and that Mr.
Arthur Henderson would be at a loss to suggest
specific ways to put the ideas into force. In
America I have not discovered any apparent de-
sire to participate in management; in fact, the
tendency of the union has been to discourage any
steps to make the relations between employer and
employee other than one of bargain and sale. I
have found no particular welcome for my ideas; I

Industrial Democracy 177

have usually been received with suspicion as a
"guv" rakrn on the management to "put some-
thing over."

\\Y have talked too much, preached too much at
employees. \Ve have tended toward moralizing
ami senr.om/ing as from a pulpit and have as-
sumed that only the men were at fault. I hat is
the trouble with most "welfare work" it stoops
down to uplift the "fallen worker"; it dots not
regard him as a reasoning human being, hut as
some kind <>t an animal which ought to he taught
to live as living is dehned hy the welfare worker.
I have no quarrel WIMI what welfare work teaches;
I think it is lis'j.t that shops should he as clean
and pretty as the circumstances will pennir. that
employees should live in neat houses and have
flowers, and that they should have full oppor-
tunity for education. Hut I take it that all of
these tilings are merely incident to employment
—that they are a duty. What I do not like is the
welfare- work of what might he called an e\ ange-
lisiiC character directed hy the too common
type ot .social worker who is a product of some
charity organization— the kind of worker who
noses about in the homes and stops at no invasion
of private life. That sort of uvlfare work does a

. *"V«r«

4. '• ' >
1 ' I •
178 Man to Man

deal of harm because only the most ignorant of
foreigners will not resent prying and meddling.
Therefore when I begin to talk of Justice I must
always overcome the strong sentiment against
one-sided preaching; I have early to demonstrate
that what I say applies to the management as
well as to the men and that we are all on exactly
the same plane.

The second big suspicion is that I am a disguised
efficiency man and that I am going to pull some
new "speeding up" stunt out of my bag. The
very large number of first-class efficiency men have
had the misfortune to be classed with the com-
paratively few charlatans who masquerade as
experts. Indeed the best men in the profession
have adopted the title of "industrial engineers"
to try to get away from the prejudice against
false efficiency. The trouble with the "fake"
experts is that they have seldom done more than
wholly upset working conditions in trying to
transform men into machines, quite regardless of
the men themselves. Thus they have earned a
great measure of ill-will by making unpleasant
tasks even more unpleasant, and aided by the
welfare department, have fostered the idea that
employers generally are trying to produce a race

Industrial Democracy

of healthy, docile work horses. (J. K. Chesterton
has so stamped all the English welfare effort.
The socialistic labor agitators have not lost a
chance to add to this idea and, unfortunately,
some very well-meaning capitalists have played
up to the opinion by posing as benevolent despots.

Thus I have at least a double-barrelled suspi-
cion to overcome and it is not an easy task to get
down to a footing of mutual trust. It takes weeks
and weeks to replace- ill-will with good-will; my
practice is not only to create interest in the busi-
ness policy of morality by straight, simple talks,
but also to go about among the men in man-to-
man fashion, to talk with them and generally to
get on a basis of trust and friendship. I like to do
tiiis: I could not do it were I not sincere in my
conviction that I can do no greater work in life
than to spread the doctrines of Industrial IX-
mocracy, and thus give hope to workers. It is a
task for which absolute sincerity is a prerequisite.

It is right at this point that the personal ele-
ment enters in the introduction ot democracy—
as I have mentioned in the preceding chapter.
In even the fairest shops there are many petty
injustices done from day to day which never come
to the attention of the higher executives; foremen

i8o Man to Man

will tyrannize now and again, workers will haze
unpopular associates; pay masters will make errors
and, often in the lofty manner assumed by some
clerks, refuse to correct them. These little incidents
make for hard feelings — they are held against the
owners — and, before getting on a broad, firm plat-
form of justice, it is quite necessary to see that little
injustices do not exist. Once the machinery of
Industrial Democracy is working, these matters
are taken care of, but in the early days it is well
to make sure that they are corrected at first hand.
It might well be that no member of an existing
management could sufficiently gain the confidence
of the people to do his selling work, but that is an
individual matter. The big thing is to make
certain that it is not only done, but done in entire
sincerity.

Selling basic ideas of fair play through the suc-
cessive meetings for the adoption of the Busines?
Policy is in reality a course fitting for democracy.
Just as it would be unwise to turn a monarchy
overnight into a complete democracy so is it un-
wise to make a sudden change in the management
of a company. It is better to go at it gradually,
first to inculcate the principles upon which you
are to proceed and to educate the people to a con-

Industrial Democracy 181

ception of the functions which arc to be placed
with them. Perhaps they start with a notion
that capital and labor are of necessity antagonistic;
often I know that they do approach from that
angle and, if at once pur in control, they might
rival the Russian Soviets in the distance of their
circumlocutions. I am not sure that they would;
there is a very fair amount of common sense in
every group of workmen in America; they may
talk wildly when they are merely talking to arouse,
but when it comes to action they are law abiding
to the last degree. They are nor Russian peas-
ants. However, it makes for smooth process for
all to have a common intention from the start.
Developing the common intention creates interest,
and when the democratic orgam/ation finally
arrives the people have a very definite idea of
what is to be done.

I have had many rabid socialists and a few
anarchists in my meetings; I welcome them.
Once they become convinced <>f the essential fair-
ness ot the plan, they use their undoubted forensic
talents to aid in development. No matter how
destructively a worker may talk our of meeting I
find that as a legislator h • is conservative — that
he will :u '. fry to derange his own people. There

1 82 Man to Man

seems to be a vast difference between prescribing
for the world at large and prescribing for the men
and women right in the neighborhood. Abstract
theories fall before the stone walls of fact.

Curiously enough the votes of the legislative
bodies in Industrial Democracy tend to the con-
servative and incline toward the company rather
than toward the workers. Indeed sometimes laws
are passed which seem too harsh and the Cabinet
finds it necessary to ask for modifications to lessen
the severity. This is particularly the case with re-
spect to penalties for absences and the like, where-
by dividends or parts of dividends are forfeited.
The dividend provides the legislatures with a
weapon which they are sometimes too prone to use;
they underestimate the force of public opinion
which is their real weapon and, factory fashion,
think that a penalty should always be provided.
The punishment nearest at hand and easiest to
enforce is the forfeiting of a dividend or a part
thereof. Sometimes they thus make the penalty
too great. As they grow in legislative experience,
they find that money penalties are not the most
efficient and they are sparing with them. The.fully
developed spirit of cooperation resting on public
opinion is shown in this communication from a

Iiulijsiii.il DcmovT.uy iw :

committee of the House of th<- Printz-Bicdcrmaii
Company on the shortening of v,oik hours:

June I, 1915.
To TTI F HorsK or RrrnFsFNT<\Tivr«i:

Your Committee appointed t-> drjft a bill recommend,
ing t!ic reduction of the working hours to 48 hour* per
week, and recommending the necessary rules and regulations
applying to such a change, submits the following for your
approval:

\Vc recommend thjt the working hours be- reduced from
4<;J hours to 4$ hours per week.

In consideration of the foregoing the employees of th«
Print/- Im-derman Company guarantee their earnest co-
operation to give 48 hours of actual service. 1 Ins dots not
mean any harder work on the part of any individual— it
merely means increasing each individual's efficiency as a
workman, and the elimination of all things which now cause
loss of time.

The greatest loss of time now occars through the following
causes:

1 ardtness in arrival.

Leaving the work before closing time for washing up and
changing clothes.

Conversation during working hours.

Misuse of the toilets.

As a hrst consideration, we wish, however, to recommend
the following plan for the elimination of tardiness:

An honor system should be m.ide, similar to that followed
out in the grammar grades, that is those people ha>mg a
perfect record of bein^ on time every day in the wtik should
have their names appear on the bulletin boards, aUo those
having satisfactory records. Kvery few weeks or so, con-
venient to the time urticc, there could be ported a record of

1 84 Man to Man

those names that appeared the greatest number of times on
the weekly notices, and a reward granted. The reward, how-
aver, is optional.

In order to make 48 hours not only a reality, but a success,
these things which at present cause so much loss of time must
be eliminated. This Committee, therefore, recommends that
each individual be advised by a personal notice regarding this
recommendation, and asked to give their best cooperation
to prevent loss of time for any of the above reasons. It will
be necessary for each individual to be prompt in his atten-
dance not only in the building, but at his work. That is,
each one should be ready to work when the bell rings and
should not leave his work until the closing bell.

In the event of the adoption of this resolution, we suggest
that a warning bell be sounded five minutes before the
regular working bell, both in the morning ard at noon.

Of course, it is to be understood that it is necessary to wash
the hands quite often during the summer months in order to
prevent the garments from being soiled. This should in no
way affect the consideration of this resolution.

Time lost because of the management of the factory should
in no way affect this resolution. If there is any time lost
in any department because there is no work on hand, the
individual employees are not responsible. However, every-
one should cooperate to eliminate as much of this as possible
and should not hesitate in recommending plans which might
better these conditions.

It is further recommended that the foremen be on time to
give their service to assist this Committee in the elimination
of tardiness.

It has been deemed advisable to recommend no punish-
ment for the individuals who do not comply with these re-
quests, especially when each must realize the effort which
must be put forth to make the 48 hour week practicable.

It is to be under :tood that those who do not comply with these

Industrial Democracy 185

ni art er>nJfmninf tkf 4$ Aoar Ktek ar-.J art

fc.'.Vf/V Ittfitk.

It it further recommended that three member* of t'tis
Committee he permanent member* anil they, together with
three members appointed by the Senate, shall be eirxrcfrd to
submit necessary rules and regulation! a% thry are required,
which shall guarantee that every employee, re^ardies* of
any condition, d<> his part in the furtherance of giving 4° hours
of service -these rules and regulations M be approved by the
Senate and the House of Representatives.

The working period to be from 7:15 to 4:4; with forty-five
minutes for lunch on five days of the week and 7:1^ t>> Il:?o
on Saturday, beginning Monday, June 7th. I he rea .on the
Committee recommends these hours is in order that the em-
ployees may avoid the rush hour on the cars in the. evening
and also it was felt that fifteen minutes at this time of the day
\\ould be nvre appreciated than in the morning. It was the
opinion of the members of the Committee that those who ha\ e
had ditf.cuhy in bcin.; on time at 7:15 \\ould hud it no easi« r
to be on time at 7:30, or any other hour which Plight h<-
adopted.

Respectfully submitted,
1 HI CoMMirnT,

1 1. \\ rr.i H, C'!::-.ir::inn.

I have not found anywhere a desire to chair;-- the.
general internal workings of the shop or t > ihs-
pense witli local executive control hy the fnr--nu-n.
The foremen, it must he remembered, sit in the
Senate and thus are part of the legislature. 1 hey
have, as noted in the cases, a joint law-making
power with the workers and through the proceed-
ings and votes of the House quickly learn the senti-

'i86 Man to Man

ment of the people. They are stripped of arro-
gant power by reason of the right of appeal and
investigation. Every employer knows that one
of the most prolific sources of discontent flows
out of petty tyranny by foremen. The men who
come up from the ranks are proverbially the harsh-
est task masters.

Nothing has arisen to lessen or displace the
authority of the foreman or sub-foreman, but
there is no room in Industrial Democracy for the
autocratic subordinate who does not share in the
spirit of the new freedom. And this is as it should
be. It is of the utmost importance to the manage-
ment that no foreman who cannot cooperate with

the men should hold his place. They must be
-**.-'' A . *

leaders and not drivers. Generally I have found,

however, that the foremen fall very quickly into
line — that they are really glad to have the oppor-
tunity to work with their people and that the pose
of absolutism has been assumed through a fancied
necessity and not because of desire; they are quite
as ready to drop it as the men are to have them.
The misfits are few, and they are real mistakes
which should have been corrected in any event.

The right to review by the workers does not
operate to lessen the foreman's authority; rather

lruiustri.il Democracy 187

it tends to strengthen it. Both he and the worker
know that bluffing is out of tin- question; that an
investigation will uncover tlu- truth. Hcnct- the
worker will not kick for the mete love of kicking,
inn the foreman exert authority because he likes
the feeling of power. Orders are not given with-
out a comprehension of their justness and there-
fore tlu-v are given surely in the confidence that
they should he obeyed; and they are obeyed.

A worker cannot refuse to obey because he
thinks the order is unjust; he must do what he is
told. The rules are absolute on thar point, for
otherwise discipline would be replaced by argu-
ment, which everyone agrees would be destruc-
tive. There has never been manifested thr least
tendency toward holding obedience in a!n \ ance
pending an appeal, as did the Russian soldiers so
disastrously. On the contrary, the order must be
carried out and its justice later inquired into.
And there arc really very few appeals or requests
lor investigations of grievances — I can almost
count them on my ringers throughout all the
plants where Industrial Democracy is working
today. People are much more exercised over
their right to appeal than actually to appeal; the
:'.;;ht to have justice tends to promote justice.

1 88 Man to Man

But suppose an appeal is taken and resolved
against a foreman and in favor of the worker; does
not that put the worker in a bad position? Will
not the foreman hold it against him ? One would
imagine so. But such is not the case. The
foreman seldom harbors any particular resent-
ment, nor does the victorious worker "crow"; the
one swallows his defeat and the other his victory.
For each knows that it will not be profitable to keep
up the row, bring on another investigation, and
possibly run the risk of dismissal. Of course one
finds, as in everyday life, a few nuisances with a
passion for litigation, but they are either reformed
or gotten rid of by the workers themselves.

LABOR TURNOVER

Without a mutuality of work, the hiring and fir-
ing of men is not of concern to the employees and
only of incidental interest to the foremen. A
foreman thinks it is a perfectly good excuse to
say: "I could have gotten that out but I did not
have the men."

But firing men is not cooperation and also it
cuts dividends. The Senate holds foremen respon-
sible for the turnover within their sections — when
a man is discharged, some good explanation must

Indtistri.il Democracy

he given even if the matter has not come up on*
appeal. Ami wht-n a man leaves voluntarily the
foreman is expected to know why and to l>r able to
say what he did to prevent the going. The labor
it-cord has great weight in determining a foreman's
standing with the Senate and if th<- turnover is
abnormally high he is sure to be investigated.
That cuts out indiscriminate firing by foremen.

Hut I think, ir is the men themselves who have
the greatest effect upon turnover. The older
hands know that once a man clearly understands
the principles of democracy and the square deal,
he will not want to leave and they take it upon
themselves that no workers Lave simply through
a failure to appreciate conditions. Tin- turnover
among the men is generally very low indeed; when
one omits the withdrawals due to the draft,
death, or illness it is rare for any working man to
seek a new job, provided he has stuck for three
months. \Ye everywhere take ir as a surprising
event to have a man leave for higher wages or
any of the common causes of job shitting. Such
things simply do not occur, because the spirit
of fellowship is so great that there is no desire to
"float" and the economv dividend makes such a
satisfactory addition to wages that it is seldom

190 Man to Man

that men can be bid away. This has been the
universal experience in all of the installations.
There must be some hiring; in a large force changes
are bound to occur in personnel through unpre-
ventable causes and also there is always the matter
of taking on additional men to meet the needs
-of increased production. Since the beginning of
the war it has been almost as hard to hire men as
£o keep them, but not a single plant under Indus-
trial Democracy has had the slightest difficulty
in hiring men, although none of them have been
able to offer wages approaching those of the
munition workers. The news of square dealing
travels rapidly; it is not necessary to advertise
it — the men about soon learn of it and they seek
the jobs instead of insisting, as is the rule in these
times, that the jobs seek them. Not a single
one of the plants has found it necessary to adver-
tise for workers, except in the cases where new
departments for government work were opened.
In nearly all of the plants there are waiting lists
of applicants for jobs.

THE ATTITUDE OF THE UNIONS

Since all disputes and wage matters pass
through the deliberative bodies elected by the

Industrial Democracy i >i

people themselves, the opportunity for strikes
from within does not exist. There has never
been a strike in the history of Industrial Democ-
racy. But how about strikes from without?
How about the unions and the closed shop? Are
all of these shops open?

Let me give some incidents. The Print/-
Bicderman Company had an open shop, although
many of the employees were union members.
On September, 1915, the Garment Makers'
I'nion decided to unionize Cleveland and to
start with this shop. I he employees heard ot
the intention through the newspapers; the Senate
and the House passed a resolution and it was
ratified by the general mass meeting. Here is t lie-
resolution:

Whereas the article appearing in the 1*1 ^in Dfilfr under
this date and attached hereto conveys a false impression con-
cerning the working conditions in our factory and further
indicates our plant as the object of an unjust attack; we, the
employers in the 1 louse of Representatives, and Senate,
specially assembled this third day of September;

Resolved, that the action of the l'rint/-Biederman Cv,
in giving us for the past two years such full authority to
change any and all working conditions in our plant is fully
appreciated by the whole bodv of employees, numbering
about l.ooo people and it is

Resolved, that we. the employees of the Prinw-Biedcrrnan
O> , hereby express our str >ri^ disapproval ot the a, :•• >n tAcn

192 Man to Man

by an outside organization as shown in the proposed demand
referred to in this newspaper article, and be it further

Resolved that we tender to our company our most earnest
and sincere support for the present most fair methods of
conducting the business.

If we knew any stronger language of expressing our full
satisfaction, we would use it.

Chairman, House of Representatives.
President, Senate.

The union never presented a demand. The agi
tators left town that night.

At a metal working plant in Fort Wayne,
Indiana, a mass meeting of the employees voted
against a closed shop on the simple principle that
they did not think it just to force any man out be-
cause he had not a union card. A majority of that
meeting were union members. The shop did not
have a strike, but later strikes were called in every
other machine shop in that city which did not close
to non-union men.

From this it might be imagined that Industrial
Democracy is opposed to union organization.
It is not. It sees no point of conflict; that has
also been the view taken by union leaders when
they have come into actual contact with it. In
every case wages are as high or higher and hours
as short or shorter than the union scale for the
district. There can be no serious disputes result-

Industrial Democracy 193

ing in breaks. For, jusr as the people of the
United States, no matter how bitterly they con-
test an election, always accept the decision of the
ballot, so it seems do both employees and employ-
ers when put upon the same basis of government.

CHAPTER IX

INDUSTRIAL DEMOCRACY AND THE EMPLOYER

DOES granting a measure of autonomy to
the worker lessen or strengthen the author-
ity of the employer?

We are not anxious for any dividing up of prop~
erty or for proletarian control, or for anything
which smacks of them. The president, directors,
and other officers of a corporation are, in a sense,
trustees of the funds which have been placed in
their hands for operation. Regardless of their
personal views on social subjects they are not,
under the rules of common honesty, at liberty to
try any fantastic experiments which might cause
their trust to be dissipated. An individual, as
long as he protects his creditors, may play any
sort of game he fancies with his money, but cor-
porate directors are not in like case. They are
not expected to take chances other than those ris-
ing in the ordinary course of business. They
should approach every problem with a consider-
able degree of conservatism; not with hide-bound

194

Iiuliistri.il Democracy iv5

and impervious mind-', nor with intelligence
chained and fettered In precedent, but with open
minds, with the keen desire "to be shown"
attitude. 1 here an- limits to conservatism.
Plunging wildly ahead in the il.uk may be !e-s
dangerous to the welfare of a corporation th.m
crouching fearsonuly in the darkness. I ir-
plunging may end crashing against a wall or again
ir may find the way our. But the fear-palsied
are hound to stay where they are. Conservatism
is a virtue not to he confused with ahject mental
inertness- with "standing pat."

In the.se stirring times no one can afford to sir
still. When evolution ceases, revolution hemns.
\\ e have problems all ahour us which will no;
solve themselves. A doctrine of '.r. ;s:~z ].::"•: i-;
as dangerous to an industrial unit as to a nation.
\\ e are constantly rinding ourselves face to face
with unprecedented sit tuitions. \\ e can take it
as an a\:o:u that tlu- measure of the success i>! anv
business ;n the future \\ill be precisely in accorj-
aruv witli tin- fle\ibi!;f.- it sho-.vs \\\ aJaptinL; itself
to new conditions.

1 ake manufacturing. 1 he properties of raw
materials will not changi — \ve ma\ have t^ learn
to use diitVrer.r kinds of material^, bur tiiat ij

196 Man to Man

beside the question; it may continue for a few
years to be harder to buy than to sell; then prob-
ably it will become hard to sell and easy to buy.
But the ordinary machinery of commerce will
remain essentially as it is now. Then where will
the great change come ? In that element for which
we have as yet no gauge — the human factor in
business.

Our human resources will change. They are
now out of tune with industry. The relation of
employer and employee is in a state of suspended
animation. There are few who will deny that we
urgently need a new relation between capital and
labor. Those who call themselves "radicals"
insist that the Government find this new relation.
I am not myself convinced that the Government
can happily adjust industry. I should personally
view the wholesale regulation of business by the
Government, once the war is ended, as an evidence
that the business man is incapable of adjusting
himself to new conditions and has to appeal to
politicians to do it for him.

The big man sees these facts; he looks them
squarely in the face. The little man lacks the
courage to view facts; he hopes to avoid them by
shutting his eyes. The big man realizes that up

Iiulustri.il Democracy 197

to tlu- present tune "hands" only have been cm-
plo\ed ami the biggest of them regret that they
did not see years ago that human beings have also
"heads" which can be of service in business;
beads and brains, capable of adding intelligence
to the work of the hands. The big man furrhei
knows that he cannot gain the use of brains bv
national edict; that IK- can persuade them to work
only through some process of cooperation.

A static conservatism in these dynamic times
is not a virtue. I lie real question which now
confronts the owners or trustees of any business
is this:

"How can we adjust the human relationships
in our business so that we may continue to he
factois in commerce? "

One need no longer tear to take steps lest
one endanger the investment -the investment is
already in danger. The question now is to save it.

\\ e are fond <'l talking about the permanency oi
our business orgam/ations; we like to think that
they can inn on and on, regardless <>t the individ-
uals in charge; that tlu-v are vast machin-. s pro-
pelled by natural eternal forces and n<>r by tians-
ient human beings. I have yet to hiul Mich an
organization.

198 Man to Man

Many businesses have evidences of permanency,
but a close investigation of some of them uncovers
the fact that they are really running on momen-
tum— and it is well to remember that momentum
spends itself if the executives do not add the force
of new ideas. Every live, successful business
depends ultimately upon the energy and discern-
ment of one man. A few companies are fortu-
nate enough to have an unbroken succession of
competent executives. Generally, however, if you
plot the curve of success in any business you will
find that the peaks happened when a strong man
sat in the executive chair and that the valleys
came about when a weak man held down the
chair. Some parts of an enterprise may be made
almost mechanical. To some degree you can
reduce finance, and to a very large degree buying,
making, and selling, to plans and methods which
do not require more than ordinary, average intelli-
gence to direct. But there is one side of business
which up to date has not been charted — the
human element. The big man succeeds and the
little man fails, although they may be alike in
technical skill because the big man knows how to
manage the human element and the little man
does not. If you will run over the roster of most

Industrial Democracy i</>

of our hip individual successes — Schwab, J. J.
Hill, John II. Patterson, Ford, Marshall Field,
Armour — you will discover that none of them
founded success upon technical expert ness as
much as upon an ability to persuade men to:tork
'.nth them. The greatest of men cannot do more
than develop the cooperation of those with whom
they come in contact.

Individuals die; persons vary in their thinking
from day to day and frequently arc defective
in their thinking, but principles arc permanent.
Would not business attain a greater permanency
if founded upon a principle rather than upon an
individual? Or, neglecting for a moment the
permanency, would not the business genius find
a greater play for his remarkable talents were In-
able to free himself from the intimate day-to-
day supervision of employees?

I know of many successful men who take the
direction of their labor as their first duty and
pass fully half of their day mixing with employees.
They find they can delegate almost the whole
management excepting where it touches the
human being. I do not know of a single manage-
ment which has had harmonious labor relations
and has not been a success. Neither do I know of

2oo Man to Man

any institution having continuous labor difficulties
which has been successful when compared with
its opportunities. Labor troubles are at the root
of most business troubles. A fight between labor
and capital is, if long enough continued, bound to
result in the annihilation of capital.

There must be evolved some plan to show men
how to get along together — some way that will
be just to all parties in interest — to labor, to
capital, and to the public. For it is to be remem-
bered that a settlement between capital and labor
will be but temporary unless the third party in
interest — the publics — be considered. That is the
trouble with the financial settlements which are
being made today amid the stress of war. They
are exclusively for the momentary benefit of only
capital and labor; they do not at all consider the
public that pays the bills and without which
neither can exist. Edward A. Filene, the Boston
merchant, recently made this illuminating remark:

"No adjustment between the employer and the
employee can be considered worth while, or of
eventual benefit to either, unless it also results in
lessening the cost of service to the consumer."

The question with which I opened this chapter
— that is, the effect of Industrial Democracy upon

Iiulustri.il Democracy 201

thr control of tin- investment — would 1 • more
accurately phras. d:

"Can Industrial Democracy give Midi control
of thr investment that it may not only be saved
but also strengthened?"

Kverv far-seeing, forehanded management
knows that it must make a rhair^ - ifi: i. t •> retain
control. Now look at the effect of Industrial
Democracy upon t!ie management. I.: t us see
what it does to the investor's none',' and to the
public. It is all very well to make the workers
happy, hut the end of business i> profit. A policy
which abandons proht in order t<> give content-
ment to employees creates an orgam/ed chanty—
a self-supporting, eleemosynary institution. On
the other hand, we know that profit gained at the
expense of the workers, wrung from them, is not
only unwholesome and unsavory money, but also
of a purely ephemeral character. Cheating work-
ers is just as bad policy as cheating customers.

Although we talk a deal about democracy, we
are unfortunately afraid to practice it. \\Y teel,
even if we do not say, that it in ay be an instru-
ment wielded by those who /:utr ;: .', to take away
from those who ha*.-c; we mix it with communism,
with common ownership instead of with common

202 Man to Man

control, in spite of the fact that in the democracy
as developed by the United States, the citizens
do not usually insist upon carting home the bricks
of the public buildings to demonstrate that they
have an ownership in them. Industrial Democ-
racy is, from the employer's standpoint, repre-
sented by a change of spirit and not by a change
in the relative rights of ownership. It is simply
a hitching up of labor and capital. It is removing
the great power of cooperation from the field of
fancy to that of actual, accomplished fact. The
several departments of the business function as
before; no powers are withdrawn; only remedies
are set up for the abuse of power. Nothing but
ill-will is taken out of the business.

Industrial Democracy is not a weakening, it is
a strengthening; it is a providing of a mechanism
to secure fair play and satisfaction; an infusion into
the business of the propelling mental instinct.
It is a change from a purely bureaucratic govern-
ment to one of representation. We all know
how infinitely silly a government bureaucracy
can become, but we do not stop to think that a
business bureaucracy can easily be as foolish; the
languid, sneering, brainless government clerk who
rouses in one the will to murder is full brother of

Industri.il Democracy 203

the tired maiden who presides over the switchboard
of the- hurcaucrancallv managed business office.
Neither is a human being during working hours;
they belong to that strange species known as the
bureaucr.it. 1 he description of a governmental
board as something long, and narrow, and wooden,
applies equally to a hoard of directors which
keenly feels the absolutism of its powers. Kew
men care to be tsars. I hey do not like the
trouble which the exercise of absolute power en-
tails; they would be glad to have someone else
around to do a little thinking now and again
instead of merely executing orders'. Such a man
finds no difficulty in acting as the chief executive
under a democratic form of management. I It-
issues his orders as before and they are executed;
but when it comes to orders affecting matters of
policy with the employees, instead of issuing an
order, he makes a suggestion. If he is a real
leader and a wise man his suggestion will have in
it so much common sense that it will be enacted
by the legislative bodies into law and then be
heartily obeyed. If lie is not a leader and has no
right to be in the position, his orders will be un-
wise and therefore his suggestions in Industrial
Democracy will not be put into effect as regula-

2O4 Man to Man

tions. If he is discerning he will see that he has
been saved from error; if he has not the discern-
ment to know a mistake when it is pointed out to
him, he should not be in a position to dictate.
The man who has a right to be an executive will
find that his powers are increased and made
more effective. From the executive standpoint
Industrial Democracy may be viewed as proof of
the right to a position; from the investor's stand-
point it presents itself as the most conclusive test
of the fitness of the executives.

For the individual executive the transition is
easy; if he has thoroughly grasped the Business
Policy, he really does not know that he has made
a transition. Only the insincere man will find
the going hard; he will have endless difficulties
and he will fail. It is not easy for a man, who for
many years has considered himself a tsar, to re-
linquish his title, even though his head has become
weary and the crown of power so heavy that it
has slipped down over his eyes and blinded him
to the facts. Such men are incapable of function-
ing in democratic government and I think the
general opinion of business is that such men no
longer belong in industry.

In two instances, and in only two, has Industrial

Industrial Democracy 205

Democracy been abandoned ami in both cases
it was abandoned because tbe executives belonged
to the Kaiser type tli.it I have just described.
'Hie system did not fail; it was unqualifiedly suc-
cessful. 1 he two cases ate fundamentally alike.
The one was a metal working shop in the Middle
West, the other a large clothing factory in the
East. The presidents were the founders ami
practically the owners <>{ the enterprises. Each
of them had been brought up in tin- <>ld school of
"bossing," of having their most trivial expres-
sions taken as the law by those around them.
Each had the attitude of "What I say goes" and
any one who disputed tl.eir statements went
forthwith and with a celerity approaching pre-
cipitancy. They had ruled their establishments
with iron, although not always unkindly, hands;
were, according to their lights, humane; but when
they conceded a point they felt that they were
being charitable and paternal and not simply
just. Their morality was not unlike that of the
Sadducees. They considered their employees
as dependents and not as co-workers. 1 hey
felt that they were not as other nun. for they had,
out of the vast depths of their abilities, created
institutions which provided work and saved poor

'2o6 Man to Man

unfortunates from starvation. They dismissed
from mind that they themselves were incidentally
making millions. But I may say that their
opinions were exclusive and personal; no one else
shared them. The day came in each institution—
the day that always comes — when the workers
asked for more money and fewer words. The
strike spectre loomed on the horizon and these
strong, brave men, accustomed to bullying help-
less individuals, quailed before the thought of
mass action. For the time being they were ready
to do anything to bring peace — the milk of human
kindness fairly bubbled out of them. I made the
mistake of thinking that they were sincere and I
consented to go forward with the work of intro-
ducing Industrial Democracy.

In both cases I thoroughly sold the workers on
the spirit of Justice, Economy, Energy, Coopera-
tion, and Service, and established Cabinets, Sen-
ates, and Houses of Representatives. The strike
talk stopped, the men went ahead whole-heartedly.
Here is what the general manager of the metal
plant had to say of the results after the plan had
been in operation for nearly a year: —

"First, increased efficiency by the enlistment of
interest and thought on the part of the employees.

Industrial DcmcxTacy 207

"Second — and possibly the more important
the building of stronger, broader men and women
by giving them broader responsibility and wider
vision, as by this method they are afforded an
opportunity of seeing the problems of other de-
partments and of the business as a whole. I his
results in a feeling of brotherhood and c<xiperation
impossible to secure in the ordinary organization."

The clothing establishment was equally enthu-
siastic and for a twelve month I thought that
both of the institutions had been made over.
Although there were many strikes in the trades in
the localities*, there were none in these plants.
Both the average quality and the gross produc-
tion increased very materially; the ill-will <>t
the employees practically disappeared— in short,
a complete regeneration was under way and all
bur completed. Everyone noted the marked
changes and was delighted.

I know now that the apparent executive con-
version was only for the moment. As tune went
bv, lulled by an apparent sense of security, they
began to disregard, rirst in little things and then in
larger onw*, the principles of the Business Policy.
I hey interfered with the orderly workings of the
machinery of democracy and. little bv little, be-

208 Man to Man

gan to suspend its functions. They opposed the
calling of mass meetings; they pigeonholed bills
and resolutions of the House and Senate, until
gradually these bodies found that it was useless
to meet. The attendance dropped off and finally
they quit their sessions altogether and Industrial
Democracy died a lingering death. As the prac-
tices were abandoned the good-will that had
been accumulated evaporated; the old feeling of
distrust came back with new force, and my last
accurate information on either of these companies
was that their condition today was worse than
ever before, because the people who remained
had lost all faith in the integrity of the owners.

These cases are very instructive as showing
what will inevitably happen if the employer is
not sincere, if he does not remake himself accord-
ing to the model set up for the whole company.
There is no room for the double standard.
If the employer violates any of the principles of
the Business Policy, if he does not keep the pledge
of Justice and Cooperation, neither will the em-
ployees and, more than that, they will go the
employer one better on every violation. An
employer must remember that it will take a num-
fcer of years before all of his employees trust him,

hulustri.il Democracy 209

and any straying on his parr from the straight
and narrow path which has been laid out for the
whole organisation will give great aid and comfort
to the noisy "I told you so"s, who have a con-
siderable influence in almost every factory group.

Hut I think there are precious few employers
who do not put the success of their work ahovi:
themselves. Having only two backsliders our of
twenty odd conversions should l.e a gratifying
rate. However, I think ir is high; I think, that it-
is at least the rate per hundred.

I have said enough to show that Industrial
Democracy is not a dangerous communistic ex-
periment, that ir has no rufous streaks of Bul-
shevikism and that it is an insurance of invested
capital, not a speculation. I know that it is an
insurance, because in several instances it has hem
introduced while disorder threatened. It has pre-
vented strikes which would seriously have affected
the value of the investment and might eventually
have brought ruin. I do not care to represent
Industrial Democracy as a strike settler, because
that might confuse its real merits and fetch ir into
a class with nostrums and panaceas. Industrial
Democracy is a level of thought and only inci-
dentally a system. Ir stops strikes because it

210 Man to Man

goes back of the strikes and reforms the numerous
mutual errors of thought which generate the ill-
will and cause the desire to strike.

Industrial Democracy is a definite and profit-
able plan of organization. It feeds men with
'constructive thought, gives them more reason
for active service to the company, and makes
them personally and collectively interested in
reducing costs in shop, office, and sales. It pulls
them out of hopelessness and builds up a spirit
that brings cooperation and hence profit. Moses
said: "Without a vision the people perish." He
said that a long time ago, but it holds true today -
The business without a vision will have no aim
and hence no ginger. It is the part of the manage-
ment to supply the aim; then the organization will
put in the ginger. An organization is efficient in
direct ratio to the clarity of its vision. In every
shop and every office there lies buried under the
dust of routine work, in the doubts of opportunity,
in the lack of faith in the management, the dor-
mant will to do a better and more profitable busi-
ness. Every organization has these qualities and
they can be brought out into the light and made
to function.

Industrial Democracy increases and develops

Iiulustri.il Democracy -ii

the control over the investment by causing every
member of the organization to sec that every por-
tion of the capita! is conserved and directed along
the lines of more business and more profit.

Is nor capital safer with labor not competing
bur cooperating? Here is how the Printz-Bictkr-
man Company answers the question:

"Thus you can readily see, the people, under-
standing the troubles and need of betterments,
make and abide by their own laws, winch laws are
of course subject to confirmation by the Cabinet.
Contrast this method, if you please, with the old-
fashioned method of arbitrary rule by arbitrary
authority backed only by the power of discharge.

"As much difference exists between the old
and the new method of business conduct, as be-
tween Anarchy and Democracy."

Another employer says that Industrial Democ-
racy has enabled him "to have a better and firmer
control" over every portion of his business than
he had ever before thought possible.

Industrial Democracy, from the employer's
standpoint, is but a development and c • K>rdina-
tion of existing labor systems. fake welfare work.
The thought behind the right kind of welfare work
is the creation of a physical and mental environ-

212 Man to Man

ment that will develop the brain force of the worker
— that will cause him to think. A mass of thinking
human beings will at once ask, and finally demand,
not only a share in their political government
but also in the ordering of their industrial lives.
This progression is inevitable if the welfare work
is clean, honest, and truly uplifting. In no case
has there not been, as a sequence to welfare work,
a demand for a greater share in the fruits of
the business. Every one of the institutions which
has led in bettering the physical and mental wel-
fare of the workers has eventually granted higher
wages, profit sharing, stock ownership, or all of
them — either by compulsion, in order to quiet
labor troubles, or voluntarily by reason of the
fairness of the executives. I have particularly
in mind the United States Steel Corporation, the
Ford Company, the National Cash Register Com-
pany, and the Filene Store. The Filene Store is
more advanced than any of the others and has
already (I think inevitably) passed on to a kind of
informal democracy and I take it that in every
other institution distinguished for its humanity,
the evolution will be similar. For to me Indus-
trial Democracy is not a drastic revolution but
an inevitable,* resistless evolutions.

CHAPTER X

KM PINC MIVF I III COMMIMIV SPIRIT

ON K of tin- several objects of Industrial De-
mocracy is to eliminate the necessitv for the
close supervision of employees by abolishing "work-
ing for" and putting in its place "working with."
Thus the mimls of the executives as well as of
the workers are freed from burdensome routine
and enabled to express themselves in their fullness.
That is what has always happened — as the inci-
dents which have been related bear witness. Hut
it must not be imagined from this that Industrial
Democracy is a kind of perpetual motion and that
once started it w ill go on of itself forever.

The underlying thought is the change in mental
attitude by having all parties to the work cooper-
ate toward the same end. 1 he machinery of
democracy keeps alive the spirit of cooperation
by us assurance of the universal squar-- deal; the ^
people can expre.-.s themselves m their forums —
they cannot complain that thev have wrongs
without redress cr that thev have ideas to vhich

214 Man to Man

none will pay attention. Having an opportunity
' for expression, their minds are open for ideals;
they have founded their organization upon the
ideals of Justice, Cooperation, Economy, Energy,
and Service. They will want to carry these ideals
into their work and here it is that the qualities of
leadership on the part of the executives will find
wonderful opportunities.

It takes time to make ideals second nature;
some of the men reach that point quickly, but the
more suspicious (and there are as many suspicious
employees as employers) will doubt for months
and perhaps for years. It is to convert the doubt-
ers and to stimulate the believers that some writ-
ten evidence of what is going on should continually
be in circulation.

First, the full platform should be in the hands
of every person connected with the establishment;
it should be posted on every bulletin board; it
should be so much about that no one can forget
its existence. Second, the proceedings of the
various bodies in so far as they can well be pub-
lished should be given in abstract to the people.
Let them know what is going on and especially
tke decisions of moment to them; it is not well to
publish the full minutes, because that tends to

Indusiri.il Democracy 215

curtail discussion; but a general "newspaper ac-
count" of the proceedings can In- distributed.
thud, the messages from tin- management to the
men should be given all possible publicity: they
may be messages of any kind so long as they show
the people what the company is doing and conse-
quently make them feel that they are a part of the
company in the fullest sense. Let them know
something of sales and policies so that they cannot
take the attitude that any part of the orgam/a-
tion is without interest to them. Interest is
founded upon knowledge. It helps a worker to
know what a salesman is up against. I here are
no high board fences separating the departments
of a well-organized business.

In short, it vitally helps toward a better common
understanding and interest if there is a continual
stream of communication among all parts of the
orgam/.ation. From the nature of things this
communication should be written as well as oral,
in order that it may have an entire audience. The
end is to beget mutual confidence, which is only
another way of saying that it is necessary con-
tinually to advertise Industrial Democracy to every
member of the organization.

Advertising has lorn; been recognized by Indus-

216 Man to Man

trial leaders as a powerful means for quickly
building good-will among their customers, but
many have failed to realize that it can be used
just as effectively for creating good-will among
the men who make the products.

Advertising for this purpose can take the fornv
of printed bulletins, letters, house organs, pay
envelope enclosures, or any other form that seems
advantageous, and their issuance should at all
times be under the supervision of the Cabinet.
They should be couched in simple, direct language.
They should be written as man to man. They
should carry absolute sincerity in every line.
They should show a real desire on the part of the
owners and management to work with the humblest
employees. They should carry a stimulating and
contagious enthusiasm, but they should never
be mere empty "ginger" words, and again, care
should be taken that there be no "writing down"
to the people or any other evidence that the man-
agement considers itself mounted on a pedestal
or occupying a pulpit.

Part of this printed matter may be addressed
to the Senate and the House of Representatives
and part of it to the whole mass of employees.
That addressed to the lawmaking bodies should

Industrial Democracy 217

earn,' constructive suggestions for the working out
of concrete problems. It should be such as will
give the members of those bodies a broader outlook
and assist them in rendering balanced judgments.
Such matter as is addressed to the whole body of
employees should be friendly, stimulating, and
upbuilding. Whether it be in the form of letters,
bulletins, house organs, or notes, it should carry
an atmosphere of complete frankness. In these •'
pieces of good-will advertising you can state ex-
actly what your aims are, what you want to
accomplish, and why. And if you really have as
sincere a desire to build up your workers as to
build up your business, they will soon become
fully conscious of ir; and there is no question
a» to the response you will get. If you consider
your workers merely from the standpoint of the
dollars you can make out of their skill and muscle,
they will think of nothing but rhe dollars they can
get from you. They will return to you what
you £itr ihsm. Treat them as though they are
antagonists and you will get antagonism all day
long and overtime besides. Hut show them you
believe in them and they will believe in you. Show
them you have their interests ar heart and they
will take an intsrtst in von. Show them that YOU

2i 8 Man to Man

believe they have intelligence and fairness, ambi-
tions and ideals, and you will find that they do
have them.

If the factory is a large one, the house organ
may require an organization to handle, but the
occasional copy is better done on a multigraph be-
cause then it may be gotten out quickly without the
delays of a printer and, in addition, there need be no
fear that more or less intimate communications will

reach the eyes of those for whom they were not
t
intended. A stale message is not worth much

and often executives are deterred from saying
what is in their minds because they know that by
the time the words are printed they may not be
pertinent. By the multigraph method you get
immediate action, before the subject has grown
cold — putting the circulars, bulletins, or notes
into the workers' hands on the same day the need
arises — if necessary within an hour or two.

Mr. Charles M. Schwab has said that the two
most powerful forces for accomplishment in the
industrial world are rivalry and enthusiasm. And
these forces can be put to work in any establish-
ment. As I have previously stated in this book,
high wages are not alone sufficient to keep men
contented or, which is the same thing, to

Industrial Democracy 219

them to pur their hearts into their jobs. We are
all vain. \Ve all warn the approval, respect, ami
prarse of our feilowmen. Therefore, it a woikei,
a gang, or a department does something excep-
tional, give the teat all publicity. (Jive a perfectly
natural ami wholesome vanity some thin:!; to feed
on. Nothing is more stimulating. Nothing i->
better calculated to bung our hidden capabilities
in men and women who have previously gone
along in a twilight ot hopeless drudging.

When a department \sins the tlag for the period,
print the names of the people in that department
and tell how and why they effected their econo-
mies. If a dividend is above the average, explain
how it came about and, if it is below the aveiage,
then likewise give the facts with some suggestions
as to how another low dividend can be prevented.
'I he whole factory is always the better for know ing
just what it is doing. I do not stress quantity
production; I think that quantity is wholly sec-
ondary to quality and that when quality is the first
consideration quantity will tlow of itself. But
publish the quantity records, too, it quantity be
needed.

The big thing is to keer>
work, tlic spirit akin to the old

22O Man to Man

working together to produce the best product
of its kind at trie price. And, in order to accom-
plish this, the power of the written word must not
be neglected

CHAPTER XI

PITMM; IAIIOR uruiM) AMI RICA

IHAYK touched but lightly upon that phase of
Industrial Democracy which is really the most
important its function in helping to make
Anu-nca a nation.

A nation is something more than a ^eo^raphical
division; it is a spiritual unity of individuals. A
mere joining at the top does not make a nation.
Russia was joined only at the top; its various dis-
cordant elements were held together only by
force and the moment that the grip loosened the
separate nationalities wmt their several ways.
There is a similar situation in the Dual Kmpire.
Through hundreds of years the various national-
ities therr have- not assimilated, they have no
common aim, and no common spirit. A C'zecho-
Slovak hates an Austrian more bitterly than a
Frenchman hates a German.

Here in America we have not had to contend
with distinct nations preserving their national
entities within our borders. \\ e have stretches

222 Man to Man

of country — particularly in the West — where most
of the inhabitants belong to a particular nation-
ality and preserve in a degree the fatherland
language and customs. We have had districts ii\
which English-speaking schools failed for want of
attendance; but in no case have we had to deal
with alien inhabitants on a purely geographical
basis. Our alien minded are scattered through
the whole country joining in small groups here
and there (small that is, when considered in re-
lation to the total population) and as political
units they are negligible. Our problem is not
one of definite, sectional alienism, nor even of
making the American spirit predominate. For,
when put to the choice between loyalty and dis-
loyalty, loyalty always wins. But a subtle, al-
though very real, difference exists between actual
disloyalty and a failure to grasp the spirit of
America.

Disloyalty is a defiance and may be dealt with
by law, but no law can be framed to create a
common Americanism, a knowledge of American
ideals, and a wholesome, whole-hearted interest
in their extension. We cannot touch spiritual
matters by law, we can only enforce a lip service,
and lip service will not cause a man in any emer-

Industrial Democracy 223

gency to tlunJjjJjjH that he js an American arid
only secondly that he is an individual Yet that
is precisely the spirit that we must have in order
to attain a trulv united America.

We have not that united America today; we
have an encouragingly large number of true na-
tionals, but also we have a dangerously largr num-
ber of half-baked nationals and a big class of splut-
tering, phrase-loving, wholly unworthy, inter-
nationals -men who are proud to be without a
country. They are not confined to any one class
or to any one particular social order. 1*1 ie em-
ployer who profiteers in war time is nor a whir
better and probably he is worse than the work-
man who profiteers by striking in the midst of the
manufacture of vital munitions. \Ve have found
that we have such employers and such employees.
We have erred in directing all of our efforts at
Americanization towards the employees, simply
because there happen to be more of rhem than
there are employers. I know of one employer on
the East Side in New York who discharged a
worker for taking time oft to become naturalized!
Un-Amencanism is not confined to any class;
you will find it among the rich and among the
poor. It may take the form of lukewarm loyalty.

224 Man to Man

or again it may be a professed loyalty to the coun-
try as such, but with a positive disregard of
the ideals that dominate its foundation. Forcing
employees to vote for certain measures and can-
didates is spiritually quite as disloyal as cursing
the country. What is the difference between
jumping on the American flag in public and
flouting our Bill of Rights by forcing a kind of
servitude upon workers? There is a legal and
circumstantial difference, of course, but is there
any particular difference in degree of Un-Ameri-
canism?

We have little to guide us in the future. We
do not know whether after this war we shall be
able to recognize the world that we are living in.
Some social changes will undoubtedly come about;
they may be drastic or they may be gradual; more
probably they will be gradual. But one thing is
certain. The prosperity of any country will
depend upon its ability to make and to sell with
the highest possible efficiency. Of course that
has been the rule in the past, but we in America
have not felt it so keenly because we have not
been a world-competitive manufacturing nation
and our natural resources were so great that we
could waste a deal of them and still have enough

Industrial Democracy 225

lo sc!l and live on. \S e arc now a manufacturing
nation the greatest in tin- world. <>iir factories
have been so extended that I think working full
tune we could supply all flu- nerds of our people
with six months of operation. Bur we cannot
work only half tin- vear and continue prosperous.
\\ e must hnd some way to take up twelve months
of efficient production that is, we must find new
markets for our products and those markers will
have to he without our own holders. In other
words, to imd an outlet for the full yearly produc-
tion, we shall have to he prepared to make and
to sell more efficiently than other nations.

\Ve shall not breed a national spirit without
national prosperity; the one begets the other.
If we have a real national spirit we shall have a
fundamental prosperity; if we have a fundamental
prosperity we shall have a real national spirit.
Perhaps this is utilitarian reasoning, but there is a
utilitarian background for most ot our ideals.
It is very difficult, although not impossible, for a
wife to love a husband who will not support her.
It is even more difficult for children to pay homage
to parents who think that their whole duty lias
been performed when they have brought the
children into the world. Therefore, I think that

226 Man to Man

Americanism is a reciprocal relation; it is a give-
and-take proposition. The quickest educator in
the American spirit is the practical realization
that following American ideals produces both
material happiness and prosperity.

I have tried to show in the preceding page?
that Industrial Democracy has produced a very
large degree of material happiness and prosperity
in the institutions where it is in force. The
people have come to regard the factory in which
they work as their factory and here is the re-
markable further development — they have gone
beyond the factory in their awakened spirit and
found a new interest in the country in which they
live.

In the average factory the man who does not
speak English finds that deficiency of compara-
tively little moment because notices and orders
are given to him in his own language. If he
learns English it is because he needs it outside the
factory. But in every case of Industrial Democ-
racy one of the earliest enactments of the Senate
and House is always a rule that notices and orders
shall be only in the English language. They pro-
ceed to force a knowledge of English — it becomes
an essential. Here is a typical speech with its

liuiustri.il Democracy 227

English unreviscd. It happened to have bern
made in the Senate of a textile plant; I could ckp
others of similar import from almost air, of the
installations:

This brings up something that occurred in mv
department through lack of understanding th •
English language I had one man who t.i!L«<l
English fauly well; I have told him to do different
things and he would say 'Yes, I understand.'
Once or twice I let him go and he did just the
opposite* of what I li.ul intended. I found that a
little more explanation was necessary and some-
times an interpreter. That may have happened
in other departments where employees not under-
standing English were told to do something and
seemed to, but really did not understand."

The people themselves have asked for English
classes and have insisted that those who do not
speak English attend them. As a result ot learn-
ing English the people get away from reading
foreign language newspapers and, having a Senate
and House of Representatives of : .^ir own, the
doings of the Federal and thj State legislative
bodies cease to be mere abstractions. 1 hev
know what their o\v;i Senate and House do tor
them and they read of the public bodies in the

228 Man to Man

same spirit. Government ceases to be abstract
and impersonal and becomes something which,
vaguely at first, but then more and more defi-
nitely, is a part of their lives. A man who sits
as a representative in a factory House has a pretty
fair idea of the situation of his Federal representa-
.. tive and further than that, he gains out of his new
experience a rule of measurement to determine
whether his political representative is or is not a
faithful public servant.

In passing from a regard of the employer as an
uncontrollable autocrat to a recognition of him
as the executive of his own best interests, he like-
wise makes a political progression from regarding
the government as something set up merely to
punish to something which exists by reason of the
exercise of his own will to reflect and administer
his own best interests. He thus grasps the phi-
losophy of representative government — he catches
the American spirit.

I doubt if we can teach Americanism; I doubt
if the clearest possible knowledge of the workings
of our institutions will give the spirit behind them.
We have got to practice what we preach — all of
us. And if we take what we think is the spirit
of Americanism into our everyday relations, will

Iiulustri.il Democracy

it not spread into our political relations and tin:
give us a solid American front ?

That is the phase of Industrial Democracy that
transcends all others.

present Industrial Democracy/

/. As an Amtricani~in% jofct,

2. As an industrial union.

. L_ ._^-X

PUBLISHERS' NOTE

The Publishers desire to add that industrial
organizations contemplating the installation of
Industrial Democracy and desiring more informa-
tion than is contained in this book may address
Mr. John Leitch, 512 Fifth Avenue, New York City.

THE PUBLISHERS.

A1TKNDIX

APPENDIX ONE

HUMM .S I'.il.H V
OF

TICK PACKARD COMPANY

\Vc, the Employes, Othcers .uul Dim-tors of the
Packard Company, tecogm/mg th.ir "Justice is the
greatest pood and Injustice the gieatest evil. " do here-
by lav and subscribe ro, as the fust conu-r-stone of
our Policy, this greatest of .ill good,

Jt'STICE

I lie fullt sr meaning of tins word sh.ill he the hasis
o| .ill our business ami personal dealings between our-
selves .is individuals, between our comp.my .uul those
of whom v. e buy and between our company and those
to whom \\ e sell.

Justice sh.ill 're t!u nrst Corner-stone upon v.huh we
agree and determine f > constiuct bfo.idel character
as individuals and broader coninu'ic«- as an ir.stirut; >n.

\\ e recogi%.i/e that justice to i l.is nece\si;a:es

taking advantage of every opp^i ni::i; \ t > do the be^t
that is in us, and each da\ unpnne that i,:'
ability.

234 Appendix

We realize that merit must be recognized whether
in ability or merchandise. With this certainty we
cheerfully, hopefully and courageously press forward
to certain and unqualified success.

The second Corner-stone of Our Policy is

CO-OPERATION

To accomplish the greatest possible results as indi-
viduals and as an institution we find Co-operation a
necessity.

We recognize that business without Co-operation is
like sound without harmony. Therefore we determine
and agree to pull together and freely offer, and work
with, the spirit of that principle — CO-OPERATION.

So we shall grow in character and ability and develop
individual and Commercial Supremacy.

Differences of opinion shall be freely and fearlessly
expressed, but we shall at all times stand ready to CO-
OPERATE with and heartily support the final judg-
ment in all matters.

The third Corner-stone of Our Policy is

ECONOMY

As each moment is a full unit in each hour and each
hour a full unit in each day, so each well spent unit of
thought and well spent unit of action makes for each
victory and the final success.

When the hour, the day, the year or the life is filled

Appendix

Tvith \\rll spent ability, ami an irutitution is
of individuals who recogni/c the value of and v> u»c
thc-ir tiinr, then success is controlled and governed urn!
there is no longer that vague uncertainty or a blind
ami unreasoning hope.

Life is like a bag in which, each moment, we place
a unit of value or of rubbish, ami our prevent and
future happiness depends upon the content* of that
bag.

Recognizing that ECONOMY is time, material ami
energy well spent, we determine to make the !>esr use
of them, and so shall time, material and energy bo < am-
our servants while we become the. masters of our dest in v.

'I he fourth Corner-stone of Our Policy is

1 M IU.Y

As Energy is the p -.vcr back o! action, and action is
necessary to produce results, we determine to IAI.R-
(il/.K our minds and hands, concentrating all our
powers upon the most important work In-fore us.

I bus intensifying our mental ami physical .U'IYIP, ,
we shall "Make two grow where one \»as," well know-
ing that our Individual and Commercial Crop (>t Re-
sults will yield in just proportion to our productive
ami persistent activity.

1 his power ot Lncrgy directed exclusively toward
sound and vigorous construction leaves n-> loom for
destruction and reduces all torir.s .t u stance.

236 Appendix

Having set in our Business Policy the four Corner-
stones of JUSTICE, CO-OPERATION, ECONOMY
and ENERGY, we are convinced that the super-
structure must be

SERVICE

We believe that the only sure and sound construction
of success as an individual or an institution depends
upon the quality and quantity of SERVICE rendered.

We neither anticipate nor hope to be unusually fa-
vored by fortune, but are thoroughly persuaded that
fortune favors the performer of worthy deeds and of
unusual service, and we therefore determine that our
days and our years be occupied with such performance.

Quality shall always be the first element of our
SERVICE and quantity shall ever be the second
consideration.

Thus shall we establish not only the reputation but
the character of serving best and serving most.

Therefore, by serving admirably, we shall deserve
and receive proportionately.

APPENDIX TWO

RiiFs (JoviRMNc. l.Mn.ovn s*

(,KM MM.

Iii welcoming you as one of us -as a newcom'-r in the
PRINT/KSS f.imi!v -we hand you thu l..,-,k!«-f.
not so much as a book <>l rules to govern \niir c< :i iuct,
hut as a word of greeting -a means t» tell \.»u .1 little
more ahout us, that you may know wh.it we h.ivt- thus
far cloiu- for ourselves ami that you may hetrer mulrr-
staiul what we are trying to do ami so i;i\c us \oiir
help to reach our goal.

\\ e can only accomplish something \vhen \M- .1!!
work in harmony, in a true co-operative spirit. 1 iu K -
fore, we must learn to recogm/e the discipline <>t this
factory as something that serves t» guule us .nul help
us by laying down the same rules t»r .ill. 1 rv and help
this discipline by observing these rule-;.

Read the book carefully, and if then- is anything
that you do not understand, ask. the head <>t v»ur de-
partment or the S >cial Secretary who will be glad to
give you further information.

cil for their own ^uiJjrKc l>v rhc employed of the l't;ntt
BicJcrmjn Co.

238 Appendix

We hope that your stay with us will be permanent
and a pleasant and most profitable one.

We, the employees of The Printz Biederman Com-
pany, acting with the Cabinet, which consists of the
officers of the firm, have adopted these four principles
as the corner-stones of this business, and in welcoming
you as one of us, ask that you, too, subscribe to them
and observe them faithfully:

JUSTICE
CO-OPERATION

ECONOMY
ENERGY

By so doing, you will be furthering your own interest
and the interests of all the rest of us.

RULES GOVERNING EMPLOYEES

Applications and Commencing Work: — When you
first report for work, the Superintendent, or his assis-
tant, will introduce you to your supervisor, who will
assign to you your place and your work. You will
later call on the head of our social service work, who
is also in charge of the hospital room, the purpose of
which interview will be to explain to you the object of
that department and the work it is carrying on. Your
application card will contain your address, and any
change in address that you may make after commenc-
ing work is to be immediately reported, without fail>

Appendix JV;

to your foreman, so that hr may 1:1 turn rrp<>rr it to
the Pa\ roll Depart inrnr.

//• :<rr .;*;/ f>.-v.': '•:.' Your working h «urs will l><-
frmn 7:1 ; to 1 1 ;o \. M . a-i ! t't .-n i ; i ; r , • } ; I' M ,
excrpt Saturday, when tin- -.Mirkm.; hour, -.vill in i'r.-m
7:1; A. M. to ! l ; ) \. M . ni.tk:'^ .1 t'lt.il .i[" .p IMUCS
prr week. 1 IH-SI- hours ;''>\rr:i .ill tlcpjrtnirnrs r\itpt
other departments, \\hosr worLni^ h >\n\ .K« t'rotn ":4i
A. M., until ii:;o A. M., an>l h'>;n I : ; ) to 5:^0 I'.
M. Hours on Satur\iav tiorn 7:4; A. M. to i: >j M.
You will not IK- rr^mrvil to \vork oji S.irur.l.iv aftrrn«»:i
«>r on Sunday cxcrpt in t-riHT^cru'v. It is not t!u- in-
tention to a:>L anyone to work overtime, bur %'iouM if
ever he necessary to do this, the overtime w-iik. v. ill
In- paid tor at the rate of time and a half for length of
overtime put in. An ( ). K. lor this overtime wotk ->»i!l
have to he turned m hy the t"reman <>t your depart-
ment to the Payroll Department so th.ir u, n tur:i,
can credit you with correct amount ot overtime.

Timf Rtcorcting:—\uii wi\\ he assigned a tune card
on which to register y«"ir time of gom^ to and c ••mini;
from work. 1 he payroll ottice %\ill collect t!ie <..ir>ls
every Wednesday for the purpose of making out your
pay. I he Payroll Department requites two djvs to
figure up the pay ot the many employees, so that the
pay you receive on Saturday will represent what you
have earned up to \\ednesdav mi;ht. Lutene%s \\ill
be deducted for, as will aiv> ahsence.

240 Appendix

Holidays: — The following legal holidays will be ob-
served throughout the plant and will be paid for just
as if you were at work: New Year's Day, Decoration
Day, Fourth of July, Labor Day, Thanksgiving Day,
Christmas Day, and PRINTZESS Day.

Advancements: — Your advancement, and pay, in
every way will depend entirely on the quality of work
you do, the way you apply yourself to your work, and
your attendance.

The practice of loitering is to be avoided at all times.

Do not visit in other departments.

Tools and Their Care: — Workers on sewing machines
are not required to provide any tools needed except a
pair of scissors or shears. There is a deposit required
for machine foot, shuttle and bobbin, which deposit
is refunded on surrender of these parts. Cutters re-
quire a large pair of shears, yardstick and draw knife.
All power and electrical equipment and the machines
and tools needed in your work, except the above, will
be furnished you free of charge and will be maintained
by the firm in proper working condition. Competent
machinists and repair men are employed for that pur-
pose, and whenever your machine or tools get out of
adjustment, you need only notify the superintendent,
or your foreman or forewoman, who will instruct the
machinist to make the repairs without delay.

Care in Handling Materials: — The material used in
the factory being of a nature that is easily injured, you

Appendix .341

must he c.irrful in the use of oil on your machine* and
refrain from bringing any eatables to thr work, n-.ni,
or to cut anywhere throughout thr pLnr <>rhrr than in
the dining room provulni li»r the- purposr.

llouif rurthiitfs: You have thr ri^ht to p-irchatr
garments at regular wholesale prur for \<>ur wife,
mother, .sister, or daughter, if living inulrr the- s.unr
roof. Before making such pun lust %oii \vill obtain
an order from the head of the planning department, or
in his absence, from the head of the sto«.L department,
and this order, when presented to the nun in charge of
the surplus stock, will authori/e him to \%.i:r «>ri \ou.
'I o save your time these purchases must he m.u!r i!i;r-
ing the noon hour. ^ our purchase \\ill he p.n krd up
and a slip will he mven to you hy means ot w!mh \«\i
can ohtain your package on the hrst t1.*..r from t!u-
floorman when leaving at night. Sucli s.ilrs are for
Cash only. Purchases ol raw materials, such as lining,
cloth, etc., can he made in a similar manner on appli-
cation to either of the above-named department heads
for n purchase order, or on application |.>r s;uh an
order to the head of the purchasing department. v.ho
will direct you to head of puce poods and trimming
department, who \\ill wait on you.

Circulation of .S'ui/rr; *;:•»:; c. .: I he circulation
of subscription lists for any purpose is discouraged.
The circulation of subscription to raffles, m\ est merits or
Speculations of any nature is absolutely prohibited.

242 Appendix

Fire Precautions: — For reasons of personal safety
and in accordance with orders from the Fire Marshal's
office, no smoking can be allowed in or about the work
room. The fire drill, which will be signaled by gong
on each floor, is for the prevention of panic, and the
instructions given by the fire drill lieutenants on your
floor must be rigidly followed in all such drills.

Telephone: — Personal messages over the telephone
during working hours are prohibited except in cases
of urgent necessity.

Public Discussion: — Such information as comes to
you in the course of your work is of interest to only
yourself and your fellow-workers and, therefore, is of a
more or less confidential nature. It is expected that
you will refrain from discussing publicly outside of the
factory anything pertaining to the factory, and thus
keep from violating the confidence placed with you.

Applicants' Waiting List: — We often find it neces-
sary to make additions to the force of employees, and
applications are always welcome from favorable work-
men or women. If you have any friend that you think
might want a position here, direct them to our employ-
ment department, even though they may at the present
time be employed, and they will be put on a waiting
list, and will be advised at the first opportunity of an
opening.

Example and Good Fellowship: — Make every effort to
set the right kind of example in courtesy, energy,

Append!* 243

enthusiasm, and chrrrfuinr» t» tho-,r around v>u,
cspev -Lilly to Hew employers. A'.'.isf fhrni in every
wa\ th.it you can an.urring thru <| H-,?: nv. and nuL-
ing them feel ar ease. 1 M the ciu! t haf .1 spirit <.f ;• H, i
fellowship may prevail throughout the f.uT.>ry at ji!
tunes, a Print/ess Ciotxl fellowship League !-.u» l-rrn
fonncJ. I ho purpose of tins lej^ue !•. f-> e:: >ur^^<-
a«.'>ju.uutaiice aiul friendship with ;..>ur fellow-workers.
AN a I'rnit/.ess employee, you arc a me:n!><-r of tliis

Economy: — A ^reat deal of needless expense is i;u ur-
red hy the allowing of t;.is and eleerriv- li^hrs to hum
when they are no longer needed. Hrlp to econ-imi/'-
hy turnmj; out th.ese lm!its when they are no 1 >n^r;
necessary. Aside Ironi the saving itsc't, ecotMi:u i::
one's own make-up is a tiling to he cultivated. I .imps
must not he removed from hxtures » \irpt hy tin- i !••..:-.-
ers or machinists. Lconomy in the UM- <>t lend pc:'.c:!s,
papt-r. etc.. is also a matter that is p. >r usually i^ven
the attention it deserves. Kconomtzc so t.ir .l^ p >s
in the matter of stati-n'.erN'. supplies, etc. I conmry
in the use of raw materials is also a thing to he desired
and any suggestions that you offer alone; these lines are
especially entitled to reward.

lnlfrdff>arimtr.i C >••:?•: ;<»::' \::\f>». •: -All CvMnmunica-
tions Ix-twevn departments must he put ir.t > the out-
going baskets supplied tor that purpose. a;:d will he
collected hy the house nieiienger ai^.d dii'nhutcd trom

244 Appendix

one department to the other. Rush communications,
however, should be sent by special messenger.

Visits from Friends: — Do not have your friends visit
you during business hours except on urgent matters,
in which case they will leave their name with the floor-
man on the first floor, who will in turn send it to the
head of the department in which the person desired is
working.

Publicity: — In order that everybody may be kept
informed of whatever of factory interest there may be
going on, there is on every floor, near the elevator, a
bulletin board on which is posted, periodically, matters
of general interest. Everyone is requested to make
reference to this board from time to time, as this is your
way of keeping yourself informed on the various matters
about which you should know. Occasionally, also,
special subjects will be brought to your attention by
means of slips inserted in your pay envelope.

Suggestions: — If you have anything to suggest in the
way of improvement in the methods of work, or that
will add to the comfort and benefit of your fellow-
workers, or that will correct any improper existing
condition, give us the benefit of your thoughts. You
will find a suggestion box on every floor, near the ele-
vator, and blanks on which to write your suggestion.
The Suggestion Committee will give your suggestion
careful consideration and if it is considered as having
merit, you will receive a suitable money prize as a

Appendix 245

reward for your efforts. The signing of your name
to the suggestion is encouraged, although not iniiited
on.

Self C'lffrnment: — Our Senate and House of Rep-
resentatives meet each week for the consideration of
such matters as have to do with the betterment of con-
ditions in ami about the plant and our well-hring. If
you know of any matter that you think requires atten-
tion, bring it to the attention of your representative or
your foreman, that it may be properly brought up
before the House of Representatives or Senate .it the.
time of meeting. 'I he- Senate meets on Wednesday
mornings at 10:00 o'clock, and the louse of Repre-
sentatives meets on Fuesday morning at 10:00 o\!<«L.
You can find by inquiry tin- representative f. >r your
particular department, and present matters of interest
to the House of Representatives through him. 1 here
is, also, a Betterment Committee to whom grievances «r
complaints of any kind should be made. ^ our repre-
sentative can tell you the names of tin- members of this
committee.

Soda! .SVrfr.'jry: — Our social service head, who is
experienced in work of this nature, can be found in the
hospital room office at all times from the hour o! ^.XD
to i :oo, except on Thursday, on \\hich da\ she is there
from 10:00 to 1:50 only. Suggestions that particularly
apply to the social work \\ill be welcomed by her and
she \\ill be glad at alltiir.es t.» !e of service to anyone

246 Appendix

seeking advice. You may obtain from the social
service head, for purpose of vacations, a list of desir-
able country boarding houses with location and terms.

Dining Room: — A commodious dining room with
ample seating capacity for all is provided. You will
be assigned a permanent place where you can leave your
lunch when you arrive in the morning. The dining
room is also provided with a double cafeteria, on the
serve-self system, where you can obtain milk, hot coffee,
tea, etc., and if you do not bring your lunch, you can
obtain wholesome, well-cooked hot meals, as well as
sandwiches, fruit, pastry, etc. The schedule of prices
is on a cost basis. In order to lessen the amount of
work for the dining room care-takers, please carry
your tray and used dishes to the kitchen window ledge
when through eating.

Washrooms, etc.: — Ample washroom and toilet fa-
cilities are provided for all floors, and should at all
times be kept in clean and sanitary condition. It is
expected that all employees are interested enough in
conditions around the factory to help keep them so.
Any untidiness or disorder should be promptly reported
to the head of the social service work.

Hospital Room: — It is the aim to have everything
about the factory tend toward the best possible con-
dition of health for employees. To that end a hospital
room has been established for cases of illness or indis-
position. In such cases, please report to your super

Appendix .247

vuor or foreman and thru go to the hospital room
where thr head of the social srr\t>r work, who \\ a
trained nurse, is 1:1 charge. Any rnrdical aid that ihc
can render, you \\ill nvnvc frt-r f>f charge.

/?^/f /?oom/:— Adjoining thr timing r 1*1:11, y<>u will
lirul a room provided with chairs, S«>L(S( periodicals,
nuga/mes, etc. Ilu-rv is alsn ;i pun<> for your jnuisr-
ment .nul recreation. 1 his is to I*- pljycil onlv ilurir ^
the mxw h«)iir betwcx-n 1 1 :;o ami I : : ; ; jiul to IK- In kc.l
jt all other times. There is rx> smoking allowed in
this rest r<x)in, nor is the rating <•{ IUIH!K-S allowed
there. Anyone desiring quiet for reading or stuiKmi;
during the noon hour can use the meeting room on the
fifth floor next to the hospital room, where they will bc
undisturbcd and free from intrusion.

Lofkfrs:—Yor the hanging away ot your wraps. :he
social scrvicv head will provide you with a ! 'vkrr t »
which you will have a key. I \vo persons \\;!I UM (>::e
locker. It is expected ttiat you will leave r. > ii:M
or papers in the locker, as proper rivepracles arc pro-
vided in and about the locki-r room tor MIC!: ariilr-..
A deposit of 25 cents is requited to insure sa!c return
of the key.

Librar,: — A free circulating library, branch of the
Cleveland Library, is maintained in the social "service
department office where l»<>ks may !><• obtained ui.vl
exchanged during the noon hour. I !ic hbunan VM!!
also obtain for you from the main hbruiv ar.v KXJ'K

248 Appendix

that you may desire that is not already in our li-
brary.

Aprons: — Female employees may purchase, at cost,
if they wish, large aprons for use in their work and so
save wear and tear on their clothing. Aprons are to
be obtained at the social service department room on
the fifth floor, at noon on Mondays and Thursdays,
and will be laundered each week without expense to
you.

Towels: — On Mondays and Thursdays individual
towels will be distributed in the basement. A de-
posit of 15 cents is required for your towel. This
towel may be exchanged for a fresh one without cost
twice a week, at noon, on the above days. When
finally surrendering your towel your deposit will be
returned.

Umbrellas: — Umbrellas can be borrowed on rainy
days, on application to the social service head. These
must be returned the following day or their cost will
be deducted from your envelope on the following pay-
day.

Lost and Found: — Any articles lost or found should
be reported to the head of the social service depart-
ment, who will take what steps she can to find the lost
article or to locate the owner of a found article by means
of the bulletin board, etc. Report such articles im-
mediately, as delay might tend to counteract this de-
partment's efforts.

Appendix 24«>

Knforcfmfnt of ,4b>?f Rul/s: — It is rcqucitcd that
any onr noticing thr violation <>t any •>( thc\c ruin
rrjxirt N.IIIIC to flic hr.iti <>f the lirpjrtrnrni uitrrrttrd.
Repeated violation <>| rules »>n thr purt <>f uny «>tir will
mur his or her record aiul act :i^.nnut advancement.

THE LND

DATE DUE

GAYLORD