The Settlement of Wage Disputes

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THE SETTLEMENT OF WAGE DISPUTES

The MacMillan Company
New York . Boston . Chicago . Dallas
Atlanta . San Francisco

MacMillan & Co., Limited
London . Bombay . Calcutta
Melbourne

The MacMillan Co. Of Canada, Ltd.
Toronto


THE SETTLEMENT OF WAGE DISPUTES

by

HERBERT FEIS, Ph.D.

Associate Professor in Economics
University of Kansas







New York
The MacMillan Company
1921
All rights reserved

Printed in the United States of America

Copyright, 1921,
by The MacMillan Company.

Set up and printed. Published October, 1921.
Press of
J. J. Little & Ives Company
New York, U. S. A.




To

37 Mellen St.




PREFACE


"The Settlement of Wage Disputes" falls naturally into two almost equal
parts: the first an account of the present industrial situation in the
United States, and of the factors which govern American wage levels at
the present time; the second an attempt to formulate principles which
might serve as the basis of a policy of wage settlement for the country.
The proposals made in the second part are based on the theoretical
analysis of the first part.

Certain chapters in the first part (III and IV) may prove difficult for
the ordinary reader. They are intended to be merely an analysis of a
particular set of facts and tendencies--those which affect the present
wage situation in the United States, or may affect it in the near
future. Such an analysis of a particular set of facts is all that
economic theory can successfully accomplish.

This book was first projected in the summer of 1914. The Dress and Waist
Industry of New York City had set up a Board of Protocol Standards to
settle wage disputes. The late Robert C. Valentine was then engaged in
finding a basis of wage settlement for the industry that would be of
more than passing value--and as his assistant, I first became convinced
that there could be no permanent peace under the wages system, once
different interests became organized, unless a clear body of
fundamentals principles applicable to all industries are supported and
enforced.

In the course of the work I have incurred many obligations both in the
United States and Great Britain. I can only acknowledge a very few here.
To my teachers, Prof. F. W. Taussig and W. Z. Ripley, I owe much, both
for their instruction, direct help and example. In Great Britain, Mr.
John A. Hobson, Mr. Henry Clay and Mr. and Mrs. Sidney Webb aided me
greatly to understand British experience. My debt to the work of Judge
Jethro W. Brown of the South Australia Industrial Court is heavy as the
book shows. Above all I have to thank my friend Dr. Walter B. Kahn for
his share in the work.

  H. F.

  _University of Kansas._




CONTENTS


                                                               PAGE

Chapter I--Introductory                                           1

Sec. 1. In any attempt to formulate principles for use in the
settlement of wage disputes, past experience furnishes much
guidance. What this experience consists of.

Sec. 2. Such principles as have been used in the settlement of
wage disputes have usually resulted from compromise; reason
and economic analysis have usually been secondary factors.
However, industrial peace cannot be secured by a recurrent
use of expedients.

Sec. 3. The attitude most favorable to industrial peace.


Chapter II--Some Pertinent Aspects of the Present
  Industrial Situation                                            8

Sec. 1. The chief aims of any policy of wage settlement for
industrial peace defined--the chief tests to be passed. A
knowledge of present industrial facts essential to the
formulation of sound policy.

Sec. 2. The present economic position of the wage earners.

Sec. 3. Their relations to the other groups in industry. The
acceptance of the practice of collective bargaining
essential to any policy of wage settlement in the United
States to-day. Trade unionism must prove itself fit for this
responsibility, however.

Sec. 4. The economic position of capital in the present
industrial order. Its service to production. The problems to
which the accumulation of capital has given rise.

Sec. 5. The economic position of the directors of industry.
Industrial control an attribute of ownership. Two important
suppositions used in this book, concerning: a. The forms of
industrial income; b. The possible spread of public
ownership, and its consequences for a policy of wage
settlement.


Chapter III--The Principles of Wages                             35

Sec. 1. A knowledge of the forces governing existing wage
levels essential in any attempt to work out a policy of wage
settlement for industrial peace.

Sec. 2. Wage incomes determined by great number of forces. The
three most important and constant among these stated.

Sec.