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Official Magazine of the American Federation of Labor 


EDITORIALS ‘ . ‘ , ° . William Green 
Relief . ; , . ‘ ; ‘ ; . ‘ 129 
National Health Sew , . ‘ ° ; ‘ . . 130 
Child Labor . ‘ ; . . . . ‘ ‘ . . 132 
Spies and Informers . . ‘ . . ° ' . ‘ 132 
Voluntary Organization e . . . ° . . . 133 
Responsibility for Peace . ° ‘ ‘ . ‘: : 135 
Paths to the Stars. ‘ e - Thornton Oakley . : 137 

Civilization Looks to the Lowen ‘ ‘ . Irving H. Flamm ‘ 143 
Secondary Boycott Legal . , , , . William Karlin . ‘ 150 

The Futility of Incorporation . , : . Myrick H. Sublette. 156 
The North Star Cooperative . . John Ilmari Kolehmainen 160 
The Role of Unionism in Industrial Conflict - Walter L. Daykin P 166 
The I.L.O. Month by Month . , ‘ . Smith Simpson. : 171 
Man Talk . , ; ' : . Fred Hamann . . 176 
Two Paths ‘ ‘ ‘ . George W. Shaw . : 182 
National Labor Relations Beond oe ; , ‘ ‘ . . 184 
Federal Labor Unions— 
Watch Wages . , ‘ . William Green . ‘ 193 
A Service for Local _—— 2 ‘ ‘ , ; ; ‘ ‘ 193 
A Model Union Meeting ‘ . Thomas N. Taylor ‘ 197 
Pen and Pencil Workers’ Aenemuee , ‘ ; : . . 199 
Carnation Company Agreement’. . ‘ ‘ . . . 200 
Unemployment in Trade Unions > ‘ ° ; . ; : ‘ 203 
Books for Workers . , ; . ‘ ‘ . . ° . 207 
From the Atlantic to the Pacific . . . . . . . . 210 

Entered at Washington, D. C., post office as second-class matter. Accepted for mailing at 
special rate of postage provided for in Section 1103, Act of October 3, 1917, authorized July 
11, 1918. Published by the American Federation of Labor, Washington, D. C. Twenty cents 
a copy, $2.00 a year. 

FEBRUARY, 1938, VoL. 45, No. 2 

Published in two sections—Main Section 

aS a 





Over 675,000 
obtained helpful loans from 


How the “Doctor of Family Finances” helped wage 

earners without collateral to get cash for emergencies 

In the service rendered by Household 
Finance over half a million families last 
year found a solution to their emergency 
money problems. To these families House- 
hold provided the opportunity to borrow up 
to $300 for constructive purposes without 
bankable collateral. 

Unbelievable as it may now seem, before 
the development of the modern small loan 
company like Household Finance, there was 
no place where the average family could bor- 
row on a business basis. Persons of wealth 
could borrow from commercial banks on 
collateral which could be sold in case of de- 
fault. But for the great majority of families 
our banking system provided no credit facil- 
ities. It is probably no exaggeration to say 
that this great majority had greater need of 
occasional credit accommodation than the 
small percentage whose needs were taken 
care of by banks. 

This belief finds support in the ever in- 
creasing demand for the service now pro- 
vided by the small loan company. Each year 
the public makes more effective use of its 

facilities. In 1927 Household Finance, one of 
America’s leading family finance organiza- 
tions, made loans to more than 100,000 fam- 
ilies faced with unexpected money problems. 
Ten years later—in 1937—Household served 
over six times that number. 

What people borrow and why 

Who were these borrowers? People from al- 
most every walk of life—office workers, 
farmers, mechanics, servants, sales persons, 
executives, teachers—responsible, industrious 
citizens on whose solvency and stability 
rests the future of our modern industrial 

What were their reasons for borrowing? 
Most frequent single motive was to pay up 
over-due bills and get a fresh start. Other 
major purposes: medical, dental and hospital 
fees, business needs, taxes, to assist relatives, 
make repairs, keep insurance in force, pay 
for education. Loans made by Household 
Finance meet important human needs and 
improve the positions of the families who 


“The only person who can be 
really independent is one who has 
nothing and wants nothing—for 

> + 
“The seamen—the last of Ameri- 
can bondmen—are free.” 

Signing of Seamen’s Act, 
October 1915, 

Andrem Furuseth 


“You can put me in jail. But you 
cannot give me narrower quarters 
than as a seaman I have always 
had. You cannot give me coarser 
food than I have always eaten. 
You cannot make me lonelier than 
I have always been.” 

—Statement by Andrew Furuseth 
when threatened with imprisonment 

for violation of an injunction issued 
during a strike. 

Vo. 45, No. 2 



With cumulative evidence of increases in unemployment it 
Relief is obvious the Federal Government must expand relief 

provisions. There are new elements in the situation since 
the Administration first undertook to deal with the problem in 1933. 
Two fundamental changes are: Acceptance of Federal responsibility 
and the setting up of permanent machinery to make relief available 
for the victims of economic insecurity. In planning aid for the mil- 
lions without incomes, we find they may be classified by the reason for 
their inability to earn a living. First are the dependents because of 
youth together with widowed mothers and then those at the other end 
of the life span incapacitated by age. In between are those unable 
to find jobs or who have been laid off by business recession and techni- 
cal change; those physically incapacitated by accidents, disease or in- 
validity; there are persons forced to readjust their lives by personal 
adversities. The number of persons needing help in all these groups 
is greatly increased by business depressions so that even permanent 
provisions should have emergency reserves. 

Our Federal Social Security law is designed to provide relief 
for dependence due to these various causes except illness and accidents. 
Workmen’s compensation laws take care of workers incapacitated by 
industrial accidents or occupational diseases but the major problems 
due to sickness have not been met. ; 

The benefits for emergencies provided under Social Security are 
limited in amounts and duration. We have not yet tested the adequacy 
of its provisions, but we know that if the recession or depression is a 




major one, normal unemployment benefits will be wholly inadequate. 
Obviously another provision must be made for those who have ex- 
hausted benefits in a long period of unemployment. An integrated 
program for social security is necessary for intelligence and economy 
in administration. , 

The fact that workers have been registered under Social Security 
and have exhausted their claims is proof of an honorable record as a 
self-supporting individual who has contributed to the National wealth. 
It is the height of unwisdom to require such citizens to undergo the 
humiliation of a means test and become paupers in order to qualify. 
The interests of the whole Nation are served by maintaining citizens 
in their own home surroundings until Society can again give them jobs 
that will make them self-supporting. We cannot escape the lesson of 
the great depression that unemployment is not due to moral causes but 
to a break-down or mal-adjustment of industry. Unemployment com- 
pensation funds should be supplemented by a federal fund from which 
emergency benefits could be drawn. The unemployment compensation 
administration should administer the special fund on a basis of its 
existing records. 

The employment office, which is the agency to which the unem- 
ployed report, must put increased emphasis on finding jobs in standard 
industries and placing members in jobs for which they are fitted. The 
employment office should maintain retraining opportunities for those 
whose morale is low through long unemployment and those whose 
training has been made useless through technical changes in produc- 
tion. Only retraining based on direct contact with employment condi- 
tions is practical or economical. 

A further responsibility of the Federal Government in develop- 
ing an efficient plan for relief is a permanent bureau of public works 
charged with long-time planning based on a study of national re- 
sources and conservation needs. Such a bureau would have available 
plans for projects which would give the needed jobs for those unable 
to find jobs in normal or private industry. Every possible delay in 
starting projects could be avoided and all work could contribute to 
national development. 

In addition, direct relief will still be necessary but it should be 
administered as a part of such a coordinated national program. The 
United States needs to apply to its human problems as much intelli- 
gence as is characterized in dealing with material production. 

The United States Public Health Service has re- 
National Health cently completed the most comprehensive sur- 
Survey vey of national health that has been made in this 
country. The survey relates sickness to the 
economic and social background of the families included in the study. 


The sections of the report thus far made public deal with the amount 
of disabling illness in the Nation as a whole and illness and medical 
care in relation to economic status. 

The survey finds that on the average winter day 6,000,000 per- 
sons are incapacitated for normal duties—of these, 2,500,000 are suf- 
fering from chronic illness; 1,500,000 from colds, influenza, pneu- 
monia, etc.; 2,500 (chiefly children) from acute infectious diseases; 
and 250,000 from acute diseases of the stomach, liver and appendix. 
On an average every man, woman and child is incapacitated by disease 
at least ten days each year from illness lasting one week or more. The 
death rate is not a clue to community illness—for every death there is 
on the average 16 cases of illness lasting one week or more. 

The survey shows a definite relation between low incomes and ill- 
ness. Low incomes mean inadequate funds and clothing, poor hous- 
ing, the mental consequences of insecurity and inability to pay for ade- 
quate medical care. Disability in the low income families is double 
that in the higher income groups. Chronic illness is nearly twice (87 
per cent) more in the small income families than in the higher. The 
days of disability per year are three times higher in the lower income 
families than in the higher. 

Those families whose incomes are less than $1,000, but who are 
not on relief, have twice as much illness as the families in the higher 
income group—but the higher income families have 46 per cent more 
medical care. 

A bi-product of the study is the light on distribution of income. 
Of the urban population interviewed (some 2,250,000 in 81 cities), 
40 per cent were members of families existing on incomes of less than 
$1,000; 65 per cent were in families with incomes under $1,500 and 
80 per cent in families with less than $2,000. Only one person in five 
were in families with incomes over $2,000. The minimum income pro- 
viding standards of health and decency is $2,500. Inadequate incomes 
mean more illness and sickness of dangerous duration. 

The proportion of disabling illness for which no medical care 
was given was: 17 per cent for families with incomes of $3,000 or 
more; 30 per cent among relief families and 28 per cent among those 
families not on relief with incomes under $1,000. 

It is estimated that approximately 1,250,000,000 days are lost 
from normal pursuits annually through illness lasting one week or 

These facts make plain the waste through illness, the inadequacy 
of medical services to which most of our citizens have access, and the 
inadequacy of incomes of 80 per cent of our families to provide ade- 
quate medical care. 

The most important problem in national conservation is outlined 
for our study and constructive action. 


Despite all the information we have of the evil con- 
Child Labor sequences of child labor and our realization that 

poverty in families is the easy road to injustice to 
children through labor in the immature years, we still lack Federal 
law safeguarding the children of our free Nation. Legislative expe- 
rience demonstrated the need of a Federal Amendment. Up to the 
current year 28 states have ratified the joint resolution adopted by 
Congress in 1924 and submitted to the states for action. Eight more 
states must ratify the Amendment to make it effective. 

Last spring the American Institute of Public Opinion conducted 
a nation-wide poll which showed 76 per cent in favor of ratification 
of the Federal Amendment. There is no question about the desirabil- 
ity of protecting minors in their right to opportunity for education and 
physical development. 

Children are still permitted to work in commercialized agricul- 
ture, in street trades, in hotels, restaurants, laundries, garages, offices, 
in “home industries’’, canneries, factories, etc. Children work in the 
tiff mines of Missouri. Ninety per cent of children of tiff-mining fam- 
ilies when 14 or 15 were working instead of attending schools. Of 
86 children studied by the National Child Labor Committee one-half 
had begun work before 11 years old. 

Industrial home work has been growing in rural communities in 
recent years. Work is sent out from the factory to be done at piece 
rates. One child, 10% years, made lamp shades at 80 cents a dozen— 
working after school hours until 10 or 10:30 school nights, and mid- 
night on Fridays and Saturdays. Three children 10 years old were 
found crocheting hats for not more than 60 cents a dozen. In the 
South some children are employed in lumber mills and helping with 

All of this goes on when millions of adults are unable to find jobs, 
making the exploitation of children unnecessary as well as unjust. 
We owe to the children and ourselves to take the necessary federal 
action to protect all. 

Labor looks to the New York Legislature to lead towards final 
ratification of the Child Labor Amendment. 

We have a tradition that men should be free, 
Spies and Informers each assured equality of opportunity, and we 

have been fairly successful in preventing politi- 
cal repression. But the degree and extent of economic dictatorship is 
only coming to general attention now that the Federal Govern- 
ment has undertaken to secure for those who work for hire the right 
to union membership for the purpose of collective bargaining. Em- 
ployers have opposed collective bargaining because they realize they 
will be unable to take such a large share of the returns from joint 


work. The union is the agency that gives workers the power and the 
opportunity to establish their rights. 

Spies and espionage are a terrible foundation upon which to 
build human relations in industry. The practice brings into the com- 
pany the outcasts and criminals hired by detective companies. Com- 
pany police are no more desirable for lifting industrial relations to a 
constructive basis. The employer has no more right to surveyance 
over the private life of an individual than has a democratic political 
government. Corporations have spent millions of dollars for a 
service that does not facilitate production—which maintains their 
control by denying workers their right to organize. 

Every fair minded person has a healthy contempt for informers. 
Any system of human relations that does not develop out of itself the 
facts necessary for policy making is on an unsound basis. Employers 
will find collective bargaining the most dependable way to develop the 
facts when they are ready to conform to law and fair practices that 
give Labor equal opportunity to present its case. 

Opposition to power and status for workers has been translated 
into terms of devotion to freedom of contract, the right to work, 
Liberty League and all the rest, but the mechanics of that opposition 
are disclosed by the Senate Committee investigating violations of free 
speech, free assembly and the right to organize and bargain collec- 
tively. That Committee recently made a report on industrial espion- 
age. To those not familiar with labor policies of big corporations 
the net-work of spy and espionage systems is an appalling reminder 
of how despots have ever maintained their power. 

Spies impose upon the good faith of fellow workers and use 
against them information they obtain merely to get income. Only 
persons of low-grade ethical standards accepted such employment. Un- 
der no supervision or restraint and appreciated only for their ability 
to “get something” on fellow workers, industrial spies have worked 
their way into union offices and there established intimate relations with 
union members. They made reports based on experience and failing 
that improvised reports that were good for their business. No person 
and no situation had protection against such pollution. Spy reports en- 
abled employers to discriminate against union members and to destroy a 
growing union and lay off members. Though entirely different pre- 
texts for discharge might be given, the fact that no active union mem- 
ber could continue to hold a job, would carry its own lesson to workers 
who could not jeopardize their chance to earn a living. 

The success of a voluntary organization depends 
Voluntary upon the discipline, the loyalty and the wisdom of 
Organization those who are its constituent members. Voluntary 
institutions develop best where there is a respon- 
sible government. They perform those functions which are necessary 


for the government of the group concerned in the promotion of the 
purposes of the organization. If the organization is to function in 
society, it must conform to society’s regulations in its external rela- 
tions, but within its own jurisdiction it has complete authority. Along 
such lines the workers of America have built their labor organization 
so that it is free to respond to their decisions and needs. We believe 
that our membership ought to solve problems of organization and 
jurisdiction within itself and that any other method endangers our 
control over our own organization. 

It was a matter of grave concern to the officials of the American 
Federation of Labor and to all our membership when one of our older 
members, the International Brewery Workers Union, sought an in- 
junction in the Federal Courts to prevent our carrying out a decision 
of the convention of the American Federation of Labor, directing 
drivers in that industry to join the Teamsters International. The 
issue came before several conventions and meetings of the Executive 
Council without modification of the decision. Under the principle 
of majority rule the decision was ordered in effect. When the issue 
was carried to the court the American Federation of Labor defended 
its position. The decision of the court was as follows: 

This is a suit by the plaintiff as representative of the Interna- 
tional Union of what may be called the Brewery Workers against 
the American Federation of Labor, the International Brotherhood 
of Teamsters, etc., and certain officers and members of the two de- 
fendant associations seeking in substance to enjoin the Federation 
from attempting to compel those teamsters who are members of the 
plaintiff union to become instead members of the Teamsters Union, 
to set aside certain actions of the Convention of the Confederation 
and for declaratory judgments as to the powers of the Confederation 
over the plaintiff. The defendant has moved to dismiss the bill upon 
several grounds and chiefly upon the ground that the courts will not 
interfere with the operations of associations which are not conducted 
for profit, when no property rights are involved. I cannot see that 
the plaintiff as an international union and as an afhliated member of 
the Confederation has any rights in this controversy that are property 
rights in the real sense. The mere fact that members of local unions 
may have certain rights as to strike benefits or similar rights in the 
international does not give the latter any real property rights in the 

Apart from the question of property rights, I think that — 
tions of jurisdiction are to be settled by the proper authorities of the 
Confederation; and so too as to any contract between different mem- 
bers of the Confederation or unions insofar as the Confederation is 
concerned. The plaintiff has acquiesced in the actions of the Con- 
federation so long as they were favorable to it, without apparently 
raising any question of jurisdiction. P ; 

On the whole I do not think that this case is of the character 
that would give the Court power to interfere in the actions of the 


Confederation, and consequently the Court would not enter any de- 
claratory judgment as to matters which are not within its jurisdiction. 
The motion to dismiss the bill of complaint should be sustained. 

The decision maintains the voluntary nature of our organiza- 
tion and we hope that it will be accepted in good faith by all con- 
cerned. The Brewery Workers International is held in high respect 
by the members of the Federation. They have repeatedly demon- 
strated their devotion to the cause of Labor and trade unionism and 
in this matter we are convinced they will put general welfare first. 
There must be discipline and the American Federation of Labor 
holds discipline based on the decisions of a voluntary organization 
is best. 

The horrors of the World War are still 
Responsibility for Peace _ vivid and the mention of its economic con- 

sequences still stirs our fears. At the end of 
the war we tried to create an international agency that would adjust 
those matters that have in the past resulted in wars. Many nations 
signed treaties renouncing war as a method for dealing with interna- 
tional relations. Because the League of Nations was not all-inclusive, 
it became a European agency. When the first European country initi- 
ated a war of aggression to extend its territories, no concerted effort 
was made to maintain the integrity of the Nation attacked and to 
maintain the respect for international peace and law. Under pro- 
tection of this international situation Japan made her first raid on 

Because the Versailles Treaty sought to penalize nations for past 
deeds rather than to find a basis for future amity and collective well- 
being, it sowed the seeds of future difficulties. As a consequence 
Europe lives in fear of the shot that will proclaim general war. Since 
the life of the civilized world is organized on a world basis, it is prac- 
tically impossible for any nation to live within itself, and no nation 
can escape becoming involved in a general war. The only way to 
protection against irresponsible nations and to world peace is to set up 
international agencies for adjusting our common problems and for 
enforcing the peace of the world. In other words, we must extend 
to international relations political organization that will reclaim 
this area from anarchy and conflict. 

The majority of the citizens of the United States deeply resent 
the action of Japan in making an unprovoked invasion of China 
and waging war upon her civilian population, threatening to destroy 
one of the oldest civilizations. We condemn such action as do many 
other countries, but only concerted action can make Japan feel the 
effect of our disapproval. The American Federation of Labor has 
urged its membership to boycott the manufactured goods of Japanese. 


While that action has been effective, we realize that only a general 
boycott can bring the desired economic pressure on Japan. We realize 
that unless the democratically governed people stand together refus- 
ing to sell arms and munitions or to make loans to any country violat- 
ing international peace and law, the other countries whose interests 
lie in aggression and arbitrary rule, will make common cause with 
Japan and protests of individual countries will be useless. 

If we value peace we shall have to be ready to fight those who 
destroy peace. 

IE “ek Ku ye 
koe 7 

by Thornton Oakley #*+*« 

Copyright 1938. 

EEP is thy children’s reverence for thee, my country! We gaze upon 
thy banner where it rides from masthead, pinnacle and tower and our 
hearts are lifted to its stars. From their field of blue they call as do the 

torches of the skies. Symbols are they of the yearnings, of the aspirations of 
mankind, of all that stirs the human race to noblest effort. Symbols too are 
they of thee, the mightiest of nations, gazing questioningly into the boundless- 
ness of space, into the endlessness of time. 

And with thy banner’s stars there float the stripes. These mean not alone 
the states that gave thee being. Each band has quality its own. Each offers 
light that leads the eye, the mind, imagination toward the azure field where 
gleam thy stars of destiny. 

What typify ye then, O stripes of purity and flame? What principles are 
ye that guide toward the mystic goal P 


In this mystery of existence, in this bubble of space and time floats a 
microscopic mote, the Earth. On this mote move human beings, all but noth- 
ings in the cosmic vast. No one knows the reason of this mystery. No one 
knows why human life is here. Our temporal powers cannot fathom the 
eternal. But to the normal mind this much seems clear. We see a mighty 
plan unfolding. Shall we call it God? It is Infinite Purpose. It is Creative 
Power. It is the Way. Name it what you will. Of it we are a part. In it 



is all existence. In it all is one and one is all moving toward an unrevealed 
accomplishment. Life and matter are but variations of the cosmic urge. 
Science is revealing that that which ignorance has termed dead material 
is one in substance with the energy that permeates the universe. Electrons 
whirl, movement reigns, be it within the microscopic atom, be it in space amidst 
the flaming spheres. 

Life! life! Inestimable privilege to be of thee! To strive, to search, 
to help in carrying forward the plan of the Evolving Power, this is reason truly 
for our presence. In this conception of our being discord vanishes. Through 
realization of his oneness with the eternal man advances the purpose of the 

Hold high thy light, America! Behold upon thy banner is revealed the 
unity of life. 


Upon thy flag there floats the band of tolerance. In this mighty attribute 
lies solution of many a tribulation of mankind. Tolerance is charity. Toler- 
ance is understanding. Blessed are the peoples who recognize its power. Is 
this not thine, America, to understand the sufferings of menP Wellest not 
thine heart with pity as thou beholdest the passions of the earthP Ignorant 
thyself of what the future holds in store thou canst be tolerant of all the world’s 
confusions. Searching thyself for revelation thou canst be charitable to them 
who grope in darknesses of doubt. With thine own people in perplexities thou 
canst be patient with those in greater quandaries. Thus canst thou prove thy 
life of value. Thus canst thou show compassion to human kind as it stumbles 
onward through the years. 


Freedom flames upon thy banner, O my country. To win this band of 
light thy founders died. Without liberty of what value may be life? True 
life exists not where speech is silenced, action bound, the heart forbidden utter- 

But what may be this freedom? How may it be defined? It is not license. 
At the expense of others it is not insistence upon self. It commands regard 
of every man’s desires, insists on consideration of all men’s needs. It is com- 
promise. It is cooperation. It is acknowledgment of others’ rights, to them 
indeed surrender. In this surrender it becomes a power irresistible. It keeps 
alight the fire of universal purpose, sends man in harmony with man upon his 
eager way. 


Democracy—the will of a people, the representation in government of all 
a nation’s citizens. This is modernity; this is justice; this is at once the safe- 
guard of proved philosophy and outlet for untried modes of life. In true de- 
mocracy violence is inconceivable, for every train of thought is given hearing, 
is afforded share in government control. The days of monarchs have gone by. 


Dictators rise and fall. Upon the foundation of universal responsibility must 
stand the nation that wishes not internal strife. 

My country since thy birth thou hast endeavored to perfect thy government. 
Thy sincerity has made thee leader amongst peoples. What if discord still be 
found within thy borders? What if disagreements rend thy ranks of work- 
ers, ranks that should in amity be moving toward a common weal? What if 
imperfections still remain within thy governmental chambers? 

For thou my land art searching ways whereby amongst thy law-givers 
all creative, all constructive thought shall be given utterance. Thou wilt see 
that new philosophies, new interpretations of life’s problems shall not be forced 
to silence by the might of thy majorities. Amidst thy legislative walls sincerity 
in all opinions shall be given voice. Never has thou doubted the judgment of 
thy people. Thou knowest they will not fail if all be given share in quest for 
straighter paths to Truth. 


One is each human soul with the myriad millions of the human race, one 
in origin, one in destiny, one in strengths and frailties of mankind. Yet as each 
grain of sand differs from each other grain on all the strands of all the seas, as 
each snowflake differs in its crystal from all the flakes that ever fall, as every 
leaf is different from every leaf in every forest of all ages, so differ human 
beings from each other. 

In an organ of many pipes each pipe plays its part. It may be loud, it may 
be all but imperceptible; it may speak often, it may speak rarely, but when 
called upon to sound its note it is essential in the melody. So in the symphony 
of life. When the Divine Composer calls each voice is irreplaceable. Let 
individuality be forced to equality of sound, all music dies, the happiness of 
each soul is killed. 

The nations that recognize not personality recognize not a fundamental of 
existence, still the melody that inspires the human race. From personality are 
born the seers; from personality are born the prophets; from personality are 
born the artists, statesmen, scientists, the leaders of mankind. Nowhere, 
America, more than within thy shores has personality been cherished. It speaks 
with joy, contributes unafraid to the harmony of living. To you come too 
those voices who threatened and oppressed by tyranny seek thy sheltering 
realm. Blessed be thine understanding. 


Strength of a nation is not force. Its strength lies not in battleships, nor 
in the possession of gold or treasure. It is not found in magnitude, in giant 
structures of men’s hands. All these thou hast, America. Fate has lavished 
thee with riches. Hast thou found thy life thereinP Well thou knowest it is 
not these have made thee what thou art. 

Behold the nations whose desire is earthly power; whose impulse is but 
greed; whose goal, world domination. Crushed by debt, riven by fear, they 
face impenetrable blackness. 


Strength is light. Strength is spirit. Strength is majesty of purpose. It 
is glory of ideals. This thou hast my country. From thy banner radiates the 
strength of thy desires. Armed with sympathy for all mankind thou stridest 
onward. Thou art become invincible. 


This, my land, has been thine to offer since the day of thy foundation. This 
will hold true with thee as long as thou art faithful to the reason of thy being. 
Let thy gates of opportunity swing wide unto thy sons and daughters, no rancor 
then can sear their hearts. Here is welcome for personality. Through these 
portals beckons the fulfilment of imagination’s dreams. Here lie approaches 
toward the common welfare. 

Ye remaining potentates of earth; ye governments who impose your wills 
upon your peoples; ye who clang to the bars upon men’s longings, snuff out 
the fires of individuality, strive to fit into one mold the infinite varieties of the 
sons of men—your days lie brief before you. You are doomed to strife and 
to extinction. 

With might of tyrants the madness of the carnage through which the world 
has but just passed has in its afterings swung to many a door through which 
broad paths once lead. At the closed portals men wait, huddled. Destroyed is 
their eagerness to live. No light pierces the impenetrable gates. America, 
thou too, one with all the world in human ties, hast had the force of madness 
press upon thy doors that give on opportunity. But thou amongst the nations 
has been blessed. Thou has been enabled to keep the doors ajar. Strength of 
purpose now is giving thee the power to fling them wide once more. 


What is wisdom but the voice of God? What is wisdom but a sense of the 
Infinite Reason that pervades all being? Lend he ear to wisdom and man no 
longer vacillates in indecision. Lend it ear to wisdom and no nation lives save 
unto the benefit of all races of the earth. Wisdom angers not, is calm in judg- 
ment, in voice impassionate. It tears not the air with sound. Its utterances 
are lost where tumult reigns. It is not heard where rage inflames men’s hearts, 
where roar of conflict echoes over embattled lands. Wisdom searches all, con- 
siders all. It is master of self, is not controlled by standards of a temporal 
world, remains untroubled by the scorn of the uncomprehending. 

Wisdom is unfettered life. Sweeps it not across thy flag, my native land? 


Humility—word that breeds contempt from a world in arms. Who would 
dare be humble when fear engulfs the nations! Conscripted youth marches to 
the bugle. Bombing planes darken well nigh every sky. Arrogance rides high. 
Threat is heaped on threat. Self-laudation reigns. 


America, thou canst make plain the futility of hatreds. Thou canst guide 
bewildered peoples to where sympathy abides. Before the wonder of the In- 
finite thou canst reveal there is no pride. 

Humility is one with greatness. It is one with reverence. It is mightier 
than might. Upon thy banner, O my country, let its spotless band lead on 
toward the beckoning heavens. 


Toil ye men of power! Delve into the earth’s black deeps! Rear your sky- 
capped temples! Lauach hulls majestic! Let your engines thunder from shore 
to farthest shore! 

Your country waits on you. Beneath your hands the fields yield food; the 
herds, the mills give raiment. At your command the forests and the mines 
provide your countrymen their warmth and shelter. You dam the floods; you 
seed the wastes; you bring life upon the deserts. Without your will and sinew 
America would vanish. 

Your country knows, O men of toil, you are the framework of her struc- 
ture. She renders homage. She ordains that you shall share with all her sons 
the blessed gifts of life. Lo, from your brows light radiates as from crowns of 
splendor. It is the light of labor. 


Stability, security, prosperity—what signify these words to an ever altering 
world? How prone is man to think in terms of temporal senses! The con- 
sciousness of the present in physical existence obstructs his realization of the 
non-material. With difficulty can he escape the illusion of permanency. He has 
evidence that nothing lingers. He observes that history is but record of ap- 
pearances from out an unknown sea, of vanishings into oblivion’s waters. He 
beholds the rush of all todays into forgotten yesterdays. He sees that nothing 
is more swift than earthly life. Yet holds he still to thought of physical con- 
tinuance. His mind still ponders possibilities of ensuring unalterable condi- 
tions upon this whirling planet, of guaranteeing treasure to protect him through 
unvarying years. 

America, thou hast ever triumphed over the illusion of the stability of 
material riches. No greed for gold has seared thy heart. Yet fate has filled 
thy coffers with earth’s treasures. Thou hast not despoiled thy neighbors of 
their lands or placed unwilling peoples beneath thy conquering hand. Lo, thy 
territory reaches from ocean to far ocean, from glacier unto tropic strand. Thou 
seekest only wealth of spirit. Thou revealest to thy people paths that will not 
fail, turn them from the blind alleys of self-desires. Behold amidst a world of 
tribulation and privation upon thy children rains every bounty of the earth. 
Thou hast not striven to render absolute thy form of government. Thou at- 
temptest not to arrest inevitable change. Thou seekest to advance with knowl- 
edge. Lo, thy foundations shake not. Thou hast become a rock among the 



All works of man are due to vision. In the eye of the imagination he be- 
holds what shall be done. 

Vision is Creation. It is the boundlessness of art, the revelation of science, 
the clarity of philosophy, the exaltation of religion. Alone in vision lies free- 
dom absolute. No force, no barrier, no human considerations, no restrictions 
of physical existence can impose a limitation on imagination’s light. The eye 
of the mind reaches to unending space, penetrates the deeps of time, fathoms 
the mysteries of the suns. It perceives the unrevealed. 

Without vision the people perish. Lo, my country, heaven hath granted 
light unto thine own. Its stripe in glory illuminates thy flag, ° 


Adventure, it is thou my land! Where more than with thee has its spirit 
been made manifest! This is the secret of thy youth. This is the reason of thy 

Ever hast thou cast aside the outworn. Ever hast thou welcomed the new. 
Thou stridest into paths untried. Thou quailest not at what may lie before. 
To thee what value are the ships of hope, of faith, of aspiration, be they not 
launched upon discovery’s seas! The heights of heaven know thy wings. Thy 
heart exults at the unknown. Who can prophesy what next thy dauntless spirit 
will explore! Who will say that aught there be that thou wilt not attain! 

Lead on thou banner of light! Thy stars are lamps of the 
Eternal. Thy blue is mystery of the Infinite. Thy bands of 
purity and flame sweep hearts and minds beyond all earthe 
born passion. They are way to Everlasting. 


Irvinc H. FLamM 


HE key position in the affairs 

of our nation is occupied by the 

legal fraternity. The full sig- 
nificance of this has not yet been real- 
ized. The fact is that our present 
social fabric has been spun by law- 
yers and any alterations made therein 
will be made by them. Our destiny is 
largely in their hands. If we are to 
make any real progress towards the 
solution of the many complex social 
and economic problems that trouble 
us today, we must first see to it that 
the lawyers receive a more liberal 
training. Their traditional education 
in principles of the ancient “common 
law” and obsolete case precedents is 
no longer sufficient. They, above all 
others, must learn more about eco- 
nomics, the workings of our present 
day industrial machine and the cur- 
rent social theories; for these, now 
more than ever, influence the policy 
and the interpretation of laws and the 
objectives of government; and when 
we discuss laws and government, we 
cover a field in which the lawyers are 
the dominating group. 

We must not ignore the fact that 
we live in a nation ruled by lawyers. 
Consider for a moment the makeup 
of all three departments of our gov- 
ernment, the executive, the legislative 
and the judicial. In the executive 
branch, the head, our President, is a 
lawyer, as were most of his prede- 
cessors in that office. The Vice-Presi- 
dent is a lawyer. In the present cab- 
inet, the Secretaries of State, the In- 
terior, Commerce, Labor, the Navy, 


and the Attorney General are all law 
trained. It is probable that the ma- 
jority of the cabinet members in the 
past fifty years and their principal 
aids have been educated for the law. 
In the executive branches of state and 
local governments, we find that most 
of our governors and city mayors are 

Passing to the legislative branch 
of government we observe that the 
high percentage of lawyers is even 
more pronounced. The great major- 
ity of our senators and congressmen 
are from the legal profession. The 
same is true of the members of our 
state legislatures and our municipal 
legislative bodies. 

In the third branch of government, 
the judiciary, the personnel is com- 
pletely made up of lawyers. Recent 
decisions involving social and eco- 
nomic issues of great moment have 
forcefully reminded us that the pow- 
ers possessed or assumed by this 
branch and the personal economic be- 
liefs of its members, deeply affect our 
lives. Nor is the lawyer’s influence 
confined to the field of public gov- 
ernment. In the field of private gov- 
ernment, —the government of the 
large corporate enterprises, we, al- 
most invariably, find the lawyer sit- 
ting at the throne or ruling as the 
power behind the throne. Attend 
most any important meeting involy- 
ing politics, finance or business and 
you will find a lawyer dominating the 
group. Prominent bankers and in- 
dustrialists may at times appear con- 
spicuous in front but if they are not 


themselves lawyers, it is the lawyers 
who guide them, mold their attitudes 
and design their standards. 

It is apparent that the lawyers are 
a compelling force in the political and 
economic affairs of our nation. Nor 
is it unusual to find them so com- 
pletely dominating the American 
scene. To a large extent this situa- 
tion applies to democratic govern- 
ments throughout the world. The ex- 
planation is quite simple. Govern- 
ment is founded upon law. At least 
in theory, law is the material basis 
for man’s conduct towards his fellow 
men. What is more natural than that 
the law trained mind should be relied 
on to steer the machinery of govern- 
ment ? 

But we, the people, being occupants 
of an economic structure managed 
and controlled through laws, must 
now inquire as to what these lawyers 
know about this structure and to what 
extent their legislative and judicial 
decisions are influenced by a lack of 
understanding of the new and compli- 
cated mechanism in that structure? 
The inquiry is exceedingly important 
for our social order depends upon the 
nature of our government which, in 
turn, depends upon the character of 
its laws,—laws enacted by lawyers, 
interpreted by lawyers and adminis- 
tered by lawyers. 

The inquiry will readily disclose 
that lawyers have not sufficiently pre- 
vared themselves for their great re- 
sponsibility. Their training for lead- 
ership is woefully inadequate. They 
have not kept pace with society’s 
changing needs and objectives. 


Primitive government was a rela- 
tively simple affair. It was organized 


primarily to protect the weak,—the 
physically weak, from oppression by 
those who possessed greater brute 
strength. In the days of the cave- 
man one’s physical strength was the 
basis for personal power. The puny 
were at the mercy of the strong until 
“government” in its simplest form 
was organized to restrict their “lib- 
erty” to terrorize and oppress the 
weaker members of the community. 
That simple objective of a primitive 
society is no longer sufficient in our 

There are many who, resenting in- 
creased governmental interference 
and growing tax burdens, urge that 
the state is assuming too much power; 
that it should confine itself more 
nearly to the simple purposes of an- 
cient governments, — the prevention 
of crime and the adjudication of civil 
disputes. Grudgingly they will con- 
cede the need of a few other services 
such as health and traffic regulations 
and limited educational facilities. 
Their view, however, ignores the fact 
that economic and scientific develop- 
ments during the past centuries have 
brought about a vast change in the re- 
lations of man towards his fellow 
men. Brute strength is no longer an 
important element in society. In per- 
sonal combat, a small revolver in the 
hands of a frail woman will over- 
power a physical giant. Human phys- 
ical strength has long ceased to be a 
threat to the community. 

However, in man’s contest to forge 
ahead of his fellows, the superior 
physical strength of the individual as 
a basis for personal power, has given 
way to a more formidable weapon,— 
mental ingenuity. Today our prob- 
lem is to control the power of the 
human brain rather than the muscle, 

an ea 


and to restrain the use of that brain 
power for oppressive ends. Thus, we 
see that the essential purpose of gov- 
ernment today is the same as that in 
a primitive society,—the protection 
of the weak. But there is this notable 
difference: To protect its members 
against physical invasions was far 
more simple than government’s pres- 
ent task of protecting them from op- 
pression by those numerous and vary- 
ing devices which the active and subtle 
human brain may conceive. 

To illustrate the added difficulties 
encountered in guarding against the 
power of the ingenious mind, let us 
take, for example, the matter of 
fraud. Think of the many thousands 
of ways in which people are de- 
frauded each year, each day in fact. 
Can the State simply issue an injunc- 
tion against the commission of fraud 
as is done with physical violations 
like assault, murder, or theft? What 
is “fraud”? The courts do not even 
dare to define the term for fear that 
as soon as they do, some cunning brain 
will devise a means of accomplishing 
its evil purpose and yet remain be- 
yond the bounds of the definition. 
The inventions of the human mind to 
“get around”’ the law in order to pro- 
mote self interest at the expense of 
others, are beyond calculation. More 
government, much more, is needed to 
curb and control the mischief that 
may be produced by the alert brain 
than is required to subdue or control 
physical force. It is safe to assume 
that because of this, the functions of 
government will continue to expand 
as new schemes and devices are in- 
vented by man to frustrate the pur- 
poses of government. 

Passing for the moment into the 
field of modern industrial organiza- 

tion, we find that here too the phys- 
ical strength of the individual is no 
longer a potent influence. The phys- 
ical giant is now helpless. His per- 
sonal strength and skill were once the 
basis for his economic independence. 
He was self sufficient. He sustained 
himself and his family by his own ef- 
forts, aided at times by an exchange 
of services with his neighbors. Since 
then, land, the sole source of his food 
and raw materials, has passed into 
private ownership. His physical 
strength has become unimportant, for 
it is insignificant when compared to 
the power generated by even a small 
dynamo; and his skill has become ob- 
solete or its importance diminished 
to the vanishing point by modern 
mechanical devices. Our present 
power supply being virtually unlim- 
ited, he must now depend mainly, not 
on his muscle, but on his mental ef- 
forts, his trading acumen. Daily he 
must match wits with his fellows, 
whether it be in the matter of selling 
his feeble efforts or trading the pro- 
ceeds thereof for sustenance. In this 
trading process, some are keener 
than others, for men are unequally 
endowed with brain power as well as 
muscle. More than that, others are 
already established in positions of 
strategic advantage through the con- 
trol of land and capital, so that his 
“liberty to contract” is now an illu- 
sion. He is for all practical purposes 
dependent upon a mechanism which is 
entirely beyond his control. If he has 
not been reduced to the level of the 
slave, it is only because government, 
through various social devices, has 
exercised a control over the mecha- 
nism. That control by government can 
never be relaxed so long as we retain 
an order under which most of its 


citizens are dependent upon others 
for their livelihood. As the degree 
of dependence increases, the area of 
governmental control must necessa- 
rily increase if democracy is to sur- 
vive; for political freedom would be 
meaningless in a land populated 
mainly by economic slaves. 

Have the lawyers been trained to 
follow and understand the economic 
transitions as they occur; the many 
forms of monopoly and tyranny de- 
vised by the cunning brain, disguised 
and concealed from public view? 
These are invisible parasites against 
whom individuals are helpless unless 
aided by government. The steady 
concentration of wealth under the 
control of a small group and the per- 
sistence of want despite an abun- 
dance, is conclusive evidence that gov- 
ernment has not yet plugged up all the 
holes and that the area of its opera- 
tions must be broadened. Until law- 
yers learn to detect and plug these 
holes, they are not competent to serve 
as leaders in the field of government. 


There are some who deplore the 
unequal distribution of wealth. And 
yet the unequal distribution is not the 
real evil. We know that the rewards 
of life can never be equally divided. 
Varying ambitions and exertions are 
themselves sufficient to create such 
inequalities, let alone the variations 
in talent or skill. Material rewards 
are still needed as a spur in most 
fields of endeavor. Even so, our im- 
mediate goal must be to limit these 
rewards in proportion to accomplish- 
ments; to exclude the important roles 
played by chance and cunning, the fac- 
tors which have created the real evil 
of our time. That evil lies, not in 


the unequal distribution of existing 
wealth, but in the frightful waste we 
commit, waste of wealth and lives 
through forced idleness of millions 
of humans eager to do useful work, 
waste committed by innumerable 
wealth producing machines which are 
being kept idle and are rusting for lack 
of use, waste resulting from the sup- 
pression of useful inventions and dis- 
coveries in order to protect invested 
capital, and waste in the form of wil- 
ful destruction of products to main- 
tain a price level. This enormous 
waste which we tolerate will go down 
as the folly of our generation. It is 
added proof that our economic ma- 
chine requires the constant and vig- 
ilant supervision of governmental au- 

Thanks to science and technology, 
we have, during the present century, 
graduated from the age of scarcity to 
the age of potential abundance. We 
now have tools, which if properly em- 
ployed at their full capacity, could 
provide us with just about enough of 
all our material needs. The full use of 
these tools would solve our most im- 
portant problems and cure most of 
our social ailments, for these are un- 
deniably rooted in economic waste 
and the resulting poverty and inse- 
curity which follow in its wake. But 
instead of utilizing these tools for 
our mutual comfort, we suppress 
them either wilfully or through mis- 
management. We destroy wealth, 
actual and potential, despite the needs 
of somany. We observe the spectacle 
of idle hordes suffering from want 
and insecurity, while, alongside them, 
others resort to the destruction and 
forced nonproduction of the very 
products they hunger for,—a para- 
dox that would invite laughter were 


it not so tragic in its consequence. 
Truly, we blunderers are misusing 
the fruits of our civilization of plenty 
to poison our social system. To what 
extent is all this waste, inefiiciency and 
injustice attributable to the lawyers 
who, though serving as our guides, 
have neglected to study the workings 
of our new industrial machine? 


The major share of the blame for 
the present confused state of affairs 
must be laid at the door of the legal 
fraternity. As the most powerful in- 
fluence in the affairs of state, they 
have failed to qualify themselves for 
their position by suitable education 
and training. Their ties to the past, 
their passion for adherence to estab- 
lished patterns, have been a definite 
hindrance to social progress. Their 
veneration for precedent has obscured 
their vision and impaired their ef- 
ficiency for leadership. If they are to 
continue to rule us, it is essential that 
they take inventory and acquaint 
themselves with the new factual evi- 
dence before them so that they may 
reconcile the purposes of government 
with the new conditions of life. 

Considering his past training and 
his role in life as guardian of the ex- 
isting control, this will be no easy 
task for the lawyer. The true scien- 
tist is curious. He explores and ex- 
periments. He measures and com- 
pares. He courageously pioneers and 
investigates, and thus he discovers. 
These are his recognized paths 
towards progress. Not so with the 
lawyer. He has been raised in an 
atmosphere of reverence for tradition 
and precedent. The dead past has 
been his chief guide and inspiration. 
His professional career is most often 


directed towards the objective of 
safeguarding ‘‘vested rights” against 
encroachment, to preserve and per- 
petuate existing advantages, to hold 
fast to the status quo. Loyalty to 
these purposes have become part of 
him. Considering the nature of his 
duty to his clients, this may be quite 
understandable. But it often par- 
alyzes his capacity to diagnose new 
developments and their social effects. 

The “police power’ may be defined 
as government’s broad reserve power 
to adopt laws or measures needed for 
the public welfare even when they im- 
pair private rights. The police power 
is society’s most formidable weapon 
against tyranny, oppression and in- 
justice. The history of mankind has 
been one long and continuous strug- 
gle between two conflicting forces,— 
the effort to extend that police power 
as against the effort to preserve and 
protect property rights and the exist- 
ing status. In this historic contest the 
lawyers, except for the few rebels in 
their ranks, were usually aligned with 
their patron saints in the defense of 
the existing order. They were the able 
strategists who zealously guarded the 
line of defense against the growing 
scope of the police power. Whenever 
the dam of pent-up anger and pres- 
sure burst their fortifications they, un- 
daunted, built new fortifications, a bit 
further back, each a temporary bar- 
rier finally penetrated by the waves of 
mass protest. Thus was social prog- 
ress made. 

This historic class struggle had al- 
ways revolved around the determina- 
tion of each side to get a larger share 
of the scant supply which was then 
available for their material welfare. 
Now we are passing through a crucial 
period in this struggle,—crucial be- 


cause the issues and the original mo- 
tives behind it no longer exist, and yet 
the contestants seem to continue to 
fight on seemingly unaware that they 
no longer have the same incentives. 
For we have at last mastered the 
physical problem of scarcity. It is no 
longer a contest as to who shall re- 
ceive the insufficient supply of our 
material needs, but as to how we shall 
regulate our industrial machine so 
that it may function smoothly and so 
that its huge output may reach all 
who are willing to contribute towards 
its operation. Unless we pause to 
survey the new situation we may, 
from sheer force of habit, find our- 
selves continuing the old battle over 
a non-existent issue until we are all 
exhausted. Already we see demo- 
cratic institutions all around us tum- 
bling on this battlefield. The hand- 
writing is on the wall. Democracies 
must recognize the changed conditions 
of life. They must put a halt to the 
useless strife that is wearing us down. 
They will become efficient or perish. 
The basic reason for the old con- 
flict having been removed, to what 
extent do we need a change in the 
rules to meet the new condition? 
What ought we to do to prevent the 
constant jamming of our industrial 
machine which now takes place, not 
because its capacity is insufficient for 
our needs, but strangely enough, be- 
cause we have not learned how to 
move its rapid flow of products out 
of the way towards consumers fast 
enough to avoid clogging the machin- 
ery? The solution of this new prob- 
lem requires a new approach. 
Lawyers and judges hold the bal- 
ance of power. They make the 
rules. Their decisions in the various 


branches of our government must nec- 
essarily be influenced by their knowl- 
edge or lack of knowledge of the fun- 
damental factors which affect our 
economy. The functions of govern- 
ment are so closely related to those 
of the existing economic order that 
one must understand both to under- 
stand either. We cannot afford to 
have those who have never explored 
the field of economics, pass binding 
judgments on issues of such vital im- 
portance to our welfare. 

The value of precedent as a guide 
for us has declined to the same degree 
that changes in our economy have 
taken place. Lawyers must therefore 
transfer their old allegiances. It be- 
hooves them to study our present 
economic structure and the evidence 
gathered together concerning its op- 
erations. The solution of our social 
problems may not be easy, but it could 
be hastened a great deal if we could 
assemble the facts. The evidence and 
theories of Veblen, Keynes, Henry 
George, Moulton, Chase and others 
percolating among the legal profes- 
sion will present issues which, to say 
the least, furnish a far more useful 
basis for judgments to a legislator or 
a judge than will the ancient rule laid 
down in Shelly’s case. After all, the 
theory of the law is that it represents 
the perfection of human reasoning. 
The reasoning, however, must be ap- 
plied not to a mythical hypothesis but 
to an existing set of facts. It was that 
far-seeing statesman, Abraham Lin- 
coln, who forcefully emphasized this 
when, referring to the Dred Scott 
case, he pointed out the dangers to 
democratic government which lie in 
judicial conclusions based on assumed 


historical facts which are no longer 

A political institution cannot en- 
dure unless it learns to adjust itself to 
changing conditions. Its leaders must 


recognize these new conditions. If 
lawyers are to continue at the helm 
of our government, we must educate 
them to understand our new economic 
structure and its functions. 


Our earth is not entailed—it does not pass 
Like duchies down from first-born to first-born. 
You are co-heirs of it, O lad and lass, 

Too small as yet for pity or for scorn. 

See to it, seedlings, that you own your furrow, 
Ah, has a lady-bird its stem on lease 

Or is a hare constrained to rent its burrow? 

I tell you that in freehold lies your peace 

And that is not a dream; it is a right. 

Your elders now who in the dark are groping 
Will be content to wander in this night 

If justice brings to you the fruit of hoping. 
This charity is not that reckless love 

Which was enjoined upon the rich young man 
Nor is it like the manna from above— 

It is but wrung as law and statute can 

From givers quick to clamp a surly fist. 

With you it lies to spurn conscripted offers, 
To keep with toil our ancient, honored tryst 
And stint the usurers of brimming coffers. 
Call justice in to conquer avarice 

And your sons’ sons her glory will inherit; 
She will restore the power of sacrifice 

Which is the naked splendor of the spirit! 

Catholic World 



1937, the Court of Appeals 

of the State of New York 
rendered a decision of the utmost 
importance to trade unions. The four 
opinions of the Judges of the Court 
rendered in this singular case evoked 
widespread attention in the news and 
editorial columns of all the papers in 
New York City and perhaps through- 
out the country. The case has a back- 
ground, however, not reflected in the 
newspaper comments, nor in some re- 
spects even in the several opinions of 
the Judges of the Court. 

For many years up to July, 1933, 
all the kosher delicatessen products 
were manufactured and processed in 
the City of New York by Union 
labor. Up to then every kosher pro- 
vision house was operating under an 
agreement with Butchers Union Local 
174 or Butchers Union Local 211 
(since merged with Local 174), af- 
filiates of the Amalgamated Meat 
Cutters and Butcher Workmen of 
North America of the America Fed- 
eration of Labor. All kosher pro- 
vision houses in the City strictly main- 
tained a closed shop and paid uni- 
formly high wages with good work- 
ing conditions. 

In July, 1933, Walter and Irving 
Blumenthal, a partnership, doing 
business as “W. & I. Blumenthal,” 
opened a kosher provision product 
plant and sold delicatessen products 
which were known as “Ukor” prod- 
ucts. The union immediately de- 
manded that the Blumenthals union- 

Oo’ TUESDAY, December 7, 

ize this plant and sign an agreement 
similar to that in force with the other 
kosher provision manufacturers. The 
Blumenthals refused to do so. 

The Blumenthal firm, the union 
pointed out during the various stages 
of the long litigation between 1934 
and 1937, was itself but a subsidiary 
of the United Dressed Beef Com- 
pany, a large meat packer, which in 
turn is closely connected with Swift & 
Company, the largest meat packer in 
the world. 

When the union was unsuccessful 
in its direct negotiations with the 
Blumenthals, it was immediately 
realized that Ukor products consti- 
tuted a menace to the standards the 
Union had established in all the other 
kosher provision houses in the City. 
The Blumenthals, refusing to enter 
into any Union agreements, were at 
liberty to pay whatever wages they 
pleased, and operating at lower wage 
scales could undersell the Union 
houses which were bound to pay the 
higher wage scale. As Judge Finch, 
speaking for the Court of Appeals, 

“W. & I. Blumenthal manufacture 
Kosher meat products which are sold 
under the name ‘Ukor.’ The ‘Ukor’ 
products are the only non-union made 
Kosher provisions sold in the City of 
New York, and the salaries paid by 
this company range from 50 to 75 
cents an hour as compared with the 
Union scale of 95 cents to $1.25 an 
hour. * * * Where a manufacturer 
pays less than union wages, both it 


~~ mem cewsemes 


and the retailers who sell its products 
are in a position to undersell competi- 
tors who pay the higher scale and 
this may result in unfair reduction of 
the wages of union members.” 

Thus, late in 1933, the Union com- 
menced a campaign against Ukor 
products. In connection with this 
campaign the Union at various times 
issued circulars calling upon the pub- 
lic not to buy these non-union made 
goods. It sent its committees to prac- 
tically every retail delicatessen store 
in the City and outside the City too. 
It urged the storekeepers not to 
handle Ukor products. 

The response from the storekeep- 
ers to the Union’s appeals was in 
most cases favorable. But as is likely 
to occur in matters of this kind, many 
shopkeepers refused to heed the ap- 
peal of the Union’s committees and 
persisted in handling Ukor products. 
In these cases the Union appealed 
directly to the consumer, the patrons 
of the retail stores. This appeal was 
carried out by placing pickets who 
walked up and down in front of those 
retail stores which continued to han- 
dle Ukor products with placards call- 
ing upon the public not te purchase 
such products. A typical set of plac- 
ards used by the Union bore the 
legends: “‘This store sells delicatessen 
that is made in a non-union factory” 
and “Ukor Provision Company is un- 
fair to Union labor. Please buy 
Union-made delicatessen only.” 

The Blumenthals, of course, re- 
sisted the campaign of the Union. 
Their resort was to the Courts. In 
all, four actions were instituted for 
the purpose of obtaining an injunction 
to stop the Union’s campaign. In the 
Spring of 1934, the Blumenthals 
started the first of their injunction 

cases against the Union and their 
application for a preliminary injunc- 
tion came up before Supreme Court 
Justice Aaron J. Levy, who held that 
they were not entitled to a prelim- 
inary injunction as against the Union 
because they had failed to serve the 
proper officers of the Union, and that 
as to the business agent who had been 
served with the papers no case was 
made out against him. The Blumen- 
thals immediately commenced a new 
action against the Union, and this 
time the Union waived any question 
of the propriety of the service of the 
papers. The motion for a preliminary 
injunction came up before Supreme 
Court Justice Edward S. Dore. He 
denied the application of the Blumen- 
thals and said: 

“Here there is no evidence or effort 
to intimidate or injure the customers 
(referring to the storekeepers), nor 
are the customers’ names mentioned 
on the placards. The union has a 
right to appeal to the public not to 
buy non-union goods, and that it hap- 
pens in this case by a coincidence that 
the only such goods are the plaintiffs 
does not make the appeal an illegal 
secondary boycott. None of the cus- 
tomers object as they apparently sell 
union as well as non-union goods sold 
by plaintiffs, who by the differential 
created by lower wages and longer 
working hours, are apparently able to 
undersell the rest of the trade, which 
consists of small union shops.” 

Both of these two cases were dis- 
continued by the Blumenthals just be- 
fore they were about to be reached 
for trial, and a third action was com- 
menced by them against the Union. 
This time their motion for a prelim- 
inary injunction came up before Su- 
preme Court Justice John E. Me- 


Geehan. For the third time a pre- 
liminary injunction was denied. In a 
most clear cut opinion, Judge Mc- 
Geehan said: 

“The pickets do not attempt to in- 
terfere in any way with the general 
business of plaintiff's customers. 
Peaceably they try to persuade shop- 
keepers not to buy non-union goods. 
When the shopkeeper insists on deal- 
ing in non-union goods they appeal to 
the consumers and urge them not to 
buy. Not only is there no attempt to 
injure the shopkeeper, but there is an 
express plea to buy union goods, 
whether from that shopkeeper or an- 
other and a list of the goods that are 
union. Picketing is not illegal because 
of the place where it is carried on. 
Where can the union better urge peo- 
ple not to buy non-union goods than 
the place where non-union goods are 
sold? There is nothing illegal in that. 
If the consumer draws the inference 
that the seller of non-union goods is 
either hostile or indifferent to the ob- 
jects of the union, why is not that a 
true inference? These papers do not 
establish a secondary boycott any 
more than those on the two former 
motions. The motion is denied.” 

This third action was also discon- 
tinued just at about the time it was to 
be reached for trial. 

Then the Blumenthals made a most 
startling move. The Union, of course, 
expected that a fourth action would 
be instituted. But when the sum- 
mons and complaint and other papers 
in the fourth action were served, the 
plaintiff was not the Blumenthal firm, 
but one Isaac Goldfinger, a retail deli- 
catessen storekeeper of 50 Avenue C, 
New York City, who handled Ukor 
products and who was among the 
dozens of storekeepers in front of 
whose places of business the Union 

had posted its pickets. The Union 
contended that Goldfinger was but a 
pawn of the Blumenthals who oper- 
ate in New York City for Swift, and 
in support of this contention showed 
that Goldfinger’s attorneys were the 
same who had appeared theretofore 
for the Blumenthals; that these attor- 
neys were retained and were being 
paid by the Blumenthals; that though 
Goldfinger himself had a son, an at- 
torney, he was not the attorney in the 
case; the Union, moreover, adduced 
evidence tending to show that the 
Blumenthals had promised to indem- 
nify Goldfinger against any losses he 
might sustain by reason of the picket- 
ing. It was admitted that Goldfinger 
displayed a large sign in his store 
window advertising Ukor products. 
Despite all this Isaac Goldfinger was 
heralded in the editorial and news 
columns of the press as the innocent 
neutral in a labor dispute between the 
Union and the manufacturer. 

The Goldfinger case was fought by 
the Union at every stage of the liti- 
gation. The case came up for trial 
before Supreme Court Justice Wil- 
liam T. Collins and Justice Collins 
rendered a lengthy opinion holding 
that picketing need not be confined to 
the Blumenthals’ place of business, 
and that even though Goldfinger was 
a neutral, peaceful picketing in front 
of his store was not an unlawful co- 
ercion, but a proper appeal to con- 
sumers : 

“If this plaintiff has rights, so have 
the members of the defendant union. 
The plaintiff is not prohibited from 
dealing in Ukor products. The law 
does not assume to dictate what prod- 
ucts he should or should not handle. 
He is at liberty to handle non-union 
goods. But neither does the law for- 

a ee ee 

ene eee wes 

ae Senate tetcie ne neta 


bid the defendant from peacefully 
and truthfully informing the public 
that the plaintiff sells non-union deli- 
catessen. Not infrequently what 
serves as an advantage to one oper- 
ates to the detriment of another. 
When one loses, another usually 
gains. Quite obviously, it is to the 
disadvantage of the plaintiff that his 
store be picketed; but it is equally ob- 
vious that the defendant union might 
be done a greater injury if the picket- 
ing is forbidden. As the plaintiff ap- 
plies for equitable relief the equities 
are to be weighed and measured, and 
judgment rendered accordingly.” 

Justice Collins’ decision was a 
sweeping victory for the Union and 
for the Union’s contention that pick- 
eting could be carried on against non- 
union products in front of the retail 
storekeeper’s place of business. The 
Blumenthals, realizing this, financed 
an appeal to the Appellate Division, 
First Department. During the pend- 
ency of this appeal the campaign of 
the Union continued and was so ef- 
fective that in September, 1936, the 
Blumenthals discontinued the manu- 
facture of Ukor products, and thus 
once again all kosher delicatessen pro- 
visions manufactured in the City were 
only union made. 

In March, 1937, the Appellate Di- 
vision of the Supreme Court, First 
Department, without opinion, re- 
versed the judgment of Supreme 
Court Justice Collins and granted 
Goldfinger a sweeping injunction re- 
straining all picketing in front of his 
store. The reversal was by a vote of 
three to two, with Justices Edward 
J. Glennon and the late Justice John 
V. McAvoy dissenting. It must be 
noted that the Appellate Division re- 
versed not only Justice Collins’ con- 
clusion of law to the effect that picket- 

ing before Goldfinger’s store was law- 
ful, but also Justice Collins’ findings 
of fact to the effect that the picketing 
had been carried on peacefully with- 
out force, violence, fraud or intimi- 

The issue raised by the case, how- 
ever, namely, the right of a trade 
union to condemn non-union products 
and picket in front of retail stores 
was of such tremendous importance 
that it was deemed vital to carry the 
case to the highest Courts. And so 
the Union immediately appealed to 
the Court of Appeals at Albany. The 
appeal was argued on October 12, 
1937, and exactly eight weeks later 
the Court of Appeals rendered its 

As was expected the seven judges 
of the Court of Appeals were not 
unanimous. Judge Hubbs dissented 
from the view adopted by the other 
six judges and voted to affirm the Ap- 
pellate Division’s injunction upon the 
ground that the Union had conducted 
a secondary boycott which he deemed 
“illegal and against public policy.” 
Judge Finch wrote the prevailing 
opinion of the Court and held that 
peaceful picketing could be carried on 
at the place of business of the store- 
keeper against non-union products, 
and that the Appellate Division’s 
sweeping injunction must be modified 
to allow such peaceful picketing. 
Chief Judge Crane concurred in this 
opinion. Judges O’Brien and Rippey 
concurred in the resuit. Judge Leh- 
man wrote a separate opinion, con- 
curred in by Judge Loughran, in 
which he agreed that peaceful picket- 
ing before the storekeeper’s place of 
business against non-union products 
was Jawful and proper. Judge Leh- 
man also went further and said that 

the Appellate Division erred in ac- 
cepting Goldfinger’s evidence that 
there was any force or violence used 
by the Union and voted to reverse 
the Appellate Division and to re- 
instate the judgment of the Special 
Term, by which the case would be 

Thus, six of the seven judges of 
the Court of Appeals agreed that 
peaceful picketing could be carried on 
in front of a retailer of non-union 
products provided the picketing was 
directed only against the products. 
Obviously without any application to 
the particular facts in the Goldfinger 
case, and presumably having in mind 
the highly dramatized newspaper de- 
scriptions of the manner in which the 
Automat strikers were carrying on 
picketing by the use of large numbers 
of strikers and sympathizers and 
were lying on the sidewalk, the Court 
cautioned against picketing which in- 
volved violence, force and disorderly 
conduct, against picketing where a 
large crowd gathers in a mass forma- 
tion, where there is shouting or the 
use of loud speakers, and where the 
sidewalk or entrance is obstructed by 
parading around in a circle or lying 
on the sidewalk. 

The Court also cautioned against 
picketing which was directed to the 
general business of one not a party to 
the dispute between the Union and 
the employer, and held that when the 
Union pickets in front of a retail 
storekeeper not himself a party to the 
dispute, it should specify the non- 
union product sold by the retailer. 
Judge Finch said: 

“Within the limits of peaceful pick- 
eting, however, picketing may be car- 
ried on not only against the manufac- 
turer, but against a non-union product 


sold by one in unity of interest with 
the manufacturer who is in the same 
business for profit. Where a manu- 
facturer pays less than union wages, 
both it and the retailers who sell its 
products are in a position to undersell 
competitors who pay the higher scale 
and this may result in unfair reduc- 
tion of the wages of union members. 
Concededly the defendant union 
would be entitled to picket peacefully 
the plant of the manufacturer. Where 
the manufacturer disposes of the 
product through retailers in unity of 
interest with it, unless the union may 
follow the product to the place where 
it is sold and peacefully ask the public 
to refrain from purchasing it, the 
union would be deprived of a fair and 
proper means of bringing its plea to 
the attention of the public.” 

He also said: 

“We do not hold more than that 
where a retailer is in unity of interest 
with the manufacturer, the union may 
follow the non-union goods and seek 
to persuade by peaceful picketing the 
consuming public to refrain from 
purchasing the non-union product, 
whether that is at the plant of the 
manufacturer or at the store of the 
retailer in the same line of business 
and in unity of interest with the man- 
ufacturer. * * * If a union may re- 
quest its members not to work upon 
or with materials bought from a non- 
union shop or call a strike for such 
reasons it is difficult to see why, under 
the law of this State, it may not peace- 
fully state the grievance by placards 
similar to those used here. In other 
words it may, in a proper manner and 
in a peaceful way, ask the public to 
refrain from purchasing products 
made by non-union labor and state 
where the same is sold.” 

Likewise of importance in the 
Court of Appeals ruling was a further 



holding to the effect that the Labor 
Anti-Injunction Statute enacted in 
1935, Section 876-A of the Civil 
Practice Act, was not only constitu- 
tional under the Fourteenth Amend- 
ment of the United States Constitu- 
tion, but also under the Constitution 
of the State of New York; and that, 
moreover, this statute was applicable 
to the controversy between Goldfin- 
ger and the Union. In connection 
with the Anti-Injunction Statute, the 
Court said: 

“Whether this statute is merely an 
expression or an extension of the prin- 
ciples of the common law and equity 
as applied to labor injunctions and 
stated in the opinions of this Court, 
need not now be considered. The con- 
stitutionality under the Fourteenth 
Amendment of the United States 
Constitution of the portions of the 


statute herein applicable does not 
seem in doubt. * * * Nor can the 
plaintiff successfully contend that 
these portions of the statute herein 
involved violate the Constitution of 
New York State. 

““* * * Controversy has arisen out 
of an attempt by the defendant to 
represent the employees of W. & I. 
Blumenthal, in fixing the terms or 
conditions of employment. W. & I. 
Blumenthal, the defendant union, and 
the plaintiff are all engaged in the 
same industry. The only ground that 
could be advanced for contending 
that the statute is not applicable, is 
that the plaintiff is not the employer 
of the men whom the defendant seeks 
to represent; but the statute expressly 
provides that it is applicable to parties 
in the same industry, ‘regardless of 
whether or not the disputants stand 
in the relation of employer and em- 
ployee.’ ” 


In Gethsemane, no spark 
Permeates the awful dark. 

When for each, some hidden fate 
Turns the lock and seals the gate. 

Neither soothing hand nor speech 
Through its heavy walls may reach... 

Eager youth, and withered crone, 
Must keep the bitter watch alone. 



Why Should Trade Unions Incorporate? 

Myrick H. Sus etre, Pu.D. 

College of Saint Teresa, Winona, Minn. 

RIME Minister Balfour in the 
House of Commons once re- 
ferred to trade unions as cor- 

porations. “Trade unions are not 
corporations,” objected a distin- 
guished lawyer on the opposition 
benches. “I know that,” retorted 
Mr. Balfour, “I am talking English, 
not law.” 

Popular belief to the contrary, 
the incorporation of a trade union 
does not increase its legal responsibil- 
ity. Collective liability arises from 
the substantive nature of the associa- 
tion and not from its artificial legal 

Of course there are plenty of de- 
cided cases in which the existence or 
non-existence of a corporate charter 
has made a difference in the outcome. 
Some of these cases rest upon the 
failure of the judges to understand 
the nature of corporate personality; 
and some of them rest upon the fail- 
ure of the lawyers to observe the 
proper rules of procedure. For ex- 
ample, they may have used the wrong 
words to indicate the names of the 
parties to the action. 

As long ago as the year 1245 Pope 
Innocent IV recognized clearly the 
fictitious nature of the corporate per- 
sonality. The question of excom- 
municating a college (or corpora- 
tion) was presented before the Coun- 
cil of Lyons. The Pope ruled that 2 
college could not be excommunicated 
because, he said, excommunication 


touches the soul and a corporation 
has no soul. This decision is an early 
example of what lawyers now refer to 
as “piercing the corporate veil.” Ul- 
timately it is the acts of the members 
of an association that are significant, 
their agreement and economic rela- 
tions, and not the collective name by 
which it may be called. 

A Massachusetts case illustrates a 
miscarriage of justice resulting from 
the failure to see the fictitious nature 
of legal personality. An automobile 
registered in the name of an unincor- 
porated trade union was being driven 
upon the highway by the union’s presi- 
dent when it was damaged in a col- 
lision with another car driven negli- 
gently by the defendant. The state 
law required that every motor vehicle 
should be registered in the name of 
its owner. When suit was brought 
against the negligent driver, the de- 
fense attorneys argued that registra- 
tion of the plaintiff’s car in the name 
of an unincorporated union was no 
registration at all; therefore, the au- 
tomobile was an outlaw on the high- 
way. This legalistic view of asso- 
ciation personality prevailed so that 
the trade union president failed to 
recover damages (Hanley v. Amer- 
ican Railway Express Company, 244 
Mass. 248, 138 N. E. 323—1923). 

Another case decided in Illinois is 
even more astounding because the de- 
cision involved the guilt or innocence 
of a man charged with a felony. One 

ee neon 

Re ee 



Wallace was indicted for larceny. 
The charge alleged that the defend- 
ant had stolen the property of the 
“American Merchants’ Union Ex- 
press Company,” but the indictment 
did not state that this was an incor- 
porated company. The defendant 
was found guilty. His case was ap- 
pealed to the highest court of the 
state. On appeal, the convicted man’s 
lawyer argued that since the Ameri- 
can Merchants’ Union Express Com- 
pany was not incorporated it was not 
a legal person; therefore, his client 
was charged with stealing from no- 
body. The Supreme Court of Illinois 
upheld the lawyer’s contention and 
reversed the judgment of the trial 
court (Wallace v. The People, 73 IIl. 

The two foregoing cases are excep- 
tions. American courts have gener- 
ally distinguished between procedural 
and substantive matters and have 
“pierced the corporate veil” when- 
ever the corporate fiction should be 
disregarded. It is uniformly held, 
for example, that the sole stockholder 
and his corporation are one and the 
same person when the stockholder 
sets fire to the corporate property in 
an effort to profit from fire insurance 
carried by the corporation. 

There is an interesting case of a 
French labor union which caused in- 
jury to a member by putting him on 
the “index.” In an effort to avoid 
legal responsibility the union dis- 
solved, surrendered its charter, and 
reorganized, claiming that the new 
personality was not liable for the acts 
of the other association. The Tri- 
bunal of the Seine held that this was 
no place for claiming a distinction be- 
tween the members and the body. 

The directors of the old syndicate 
were held responsible. 

There is a popular illusion that un- 
incorporated trade unions in America 
are not legally responsible for the acts 
of members and officers. Unincor- 
porated associations in England and 
America have always been legally re- 
sponsible for association contracts 
and tort obligations (until Parlia- 
ment by statute granted immunity to 
trade unions in England). The sub- 
stantive obligations of unincorpo- 
rated associations are the same as 
those of incorporated societies. Mr. 
Edwin E. Witte reports that up to 
1931 there had been in the United 
States at least sixty-six successful dam- 
age suits brought against unincorpo- 
rated trade unions or their members. 
Between incorporated and unincorpo- 
rated trade unions there is a difference 
in the legal procedure to be followed; 
but these differences are not nearly as 
great as is popularly supposed. 

There are hundreds of American 
cases holding that unincorporated as- 
sociations are not legal persons and 
can not be parties to actions. This 
does not mean that such associations 
can not be held legally responsible. 
It means that the name of an unin- 
corporated association may not be 
used as a party defendant (nor as 
plaintiff). Responsibility can be en- 
forced by suing all the members, using 
the names of all the members instead 
of the collective name. By joining 
all the members, collective responsi- 
bility can be enforced just as if the 
action were in the name of the associ- 
ation. If the members are so num- 
erous that it is impossible or very dif- 
ficult to include all the names in the 
title to the action, the same result may 


be obtained by suing the officers or a 
few of the members as “representa- 
tive” of all the members. This is 
known in equity as the “doctrine of 
representative suits.” This is an old 
English rule of equity still followed in 
England and America. 

The misunderstanding of the na- 
ture of legal responsibility of trade 
unions has come from popular mis- 
conceptions of the famous English 
Taff Vale decision and its American 
counterpart, the Coronado Coal Com- 
pany case. In both these cases, the 
question was of procedure and not of 
substantive law. The question was 
whether the unincorporated unions 
could be sued at law in the collective 
name or whether it would be neces- 
sary to bring action against all the 
members collectively (or sue a few of 
them in equity as representative of 

In the Taff Vale case, Lord Lind- 
ley said that he had no doubt what- 
ever that if the trade union could not 
be sued in its registered name, some 
of its members (namely, its executive 
committee) could be sued on behalf of 
themselves and the other members of 
the society; and that therefore the 
question whether the name of the 
trade union ought to be struck out of 
the writ was a question of compara- 
tively small importance—a question 
not of substance, but of mere form. 
(Taff Vale Ry. Co. v. Amalgamated 
Society of Railway Servants, 1901 A. 
C. 426). Parliament later over- 
turned this decision and granted ac- 
tual substantive immunity to trade 
unions. Such immunity has not been 
granted by legislatures in the United 

It is also admitted by all legal au- 

thorities that the American case, 
United Mine Workers of America v. 
Coronado Coal Company (259 U. S. 
344—1922), was also a matter of 
substantive law. In both the English 
and American cases, the courts found 
statutory authorization for using the 
name of unincorporated unions as 
parties defendant so that it was not 
necessary for the plaintiffs to change 
the title of the case. In other words, 
a statute had simplified the equitable 
doctrine of representative suits so that 
the union name might be used instead 
of using the names of a few represen- 
tative members. 

The distinction between trade 
unions and business corporations is 
not the distinction between incorpo- 
rated and unincorporated associa- 
tions. It is the distinction between 
associations for profit and associa- 
tions not for profit. A business cor- 
poration or partnership is a device for 
collective ownership and unified man- 
agement of property in such a way as 
to result in common profits or losses 
to be shared among the members ac- 
cording to agreement. Unlike the 
medieval gilds and early English reg- 
ulated companies, the members of 
modern business corporations are not 
independent contractors trading on 
their own account. The buying and 
selling is a collective responsibility. 
Membership interests in business cor- 
porations are transferable. Upon 
the death of a stockholder his interest 
passes to those who take his personal 

Membership in a trade union, on 
the other hand, is not so much a device 
for unified management of property 
as it is a loose association giving the 
members certain bargaining privileges 




as each member sells his labor on his 
own account. Memberships are not 
transferable. Upon the death of a 
member, his interest does not pass to 
his next of kin according to the laws 
of descent, but to the surviving mem- 
bers of the society. 

The incorporation of a church does 
not substantially change the legal ob- 
ligations of the members toward one 
another nor to outside parties. The 
same is true of trade unions and other 
non-profit associations. The Supreme 
Court of Iowa has held that an incor- 
porated communistic society is not dif- 
ferent in its powers from an unin- 
corporated society (State of Iowa v. 
The Amana Society, 132 lowa 304— 
1906.). Ina Texas case, it was held 
that the incorporation of a liquor club 
does not alter the legal relations be- 
tween the members and the club (110 
Texas 40—1I919). 

It is well known that the incorpo- 
ration of an association gives the 
members the advantages of limited 
liability for the debts of the associa- 
tion. This means that members are 
not individually liable for the collec- 
tive obligations. To this extent the 
incorporation of a trade union would 
deprive third parties of the right to 
reach beyond the association property 
in the satisfaction of judgments 
against the union as such. Incorpora- 
tion thus tends to reduce the legal re- 
sponsibility of the members. 

Courts have frequently held that 
trade union contracts are not enforce- 
able because they lack mutuality. 
That is to say, the union members do 
not agree to provide a definite amount 
of work; they do not promise to de- 
liver anything. The employer’s un- 
dertaking in the trade agreement is to 

pay an agreed scale of wages when he 
employs members of the union. He 
does not necessarily agree to employ 
menatall. His promise is contingent 
upon employing somebody. The ab- 
sence of mutuality would exist 
whether the union is incorporated or 
not. In order to make a good con- 
tract between two parties (whether 
individuals Or groups) each party 
must promise to do something (or not 
to do something). An unincorporated 
trade union could make itself legally 
responsible by agreeing to deliver a 
definite amount of work at an agreed 
price in exchange for a promise of the 
employer to offer employment in a 
definite or ascertainable amount. 

If trade unions are to be made le- 
gally responsible in the same manner 
as business corporations, it will be nec- 
essary to change the nature of the as- 
sociation. ‘There must be a different 
legal relationship between the mem- 
bers and the union and between the 
union and the employers. A union 
of plumbers, for example, might be- 
come a cooperative organization for 
the purpose of providing plumbing 
services. Each member would derive 
his income from salaries or dividends 
paid by the union. The union would 
sell the labor just as a public utility 
corporation delivers electric power. 
The matter of incorporation would 
be of minor importance. No doubt 
the members would desire the advan- 
tages of limited liability. 

It is not impossible that unions of 
the future might thus radically change 
their structure. Social security of the 
worker would come from the perma- 
nency of his relationship with his 
union and the solvency of the union. 



NE of the largest and perhaps 
best known of the Finnish im- 
migrant cooperatives in the 
United States was the North Star 
Cooperative Store (Pohjan Tahti 
Osuuskauppa) of Fairport, Ohio. 
The main outlines of its history sug- 
gest the familiar theme of humble 
birth and struggle, prosperity and 
reckless expansion, the hour of reck- 
oning and insolvency. 

The doctrines of consumer cooper- 
ation began to take hold among the 
Finns residing in Fairport about 
1908. In March of that year, for ex- 
ample, a group of interested persons 
met at the Kasvi Temperance Hall to 
discuss the formation of a coopera- 
tive; nothing, however, came of the 
meeting.’ Three years later the body 
of followers had been greatly in- 
creased and by the fall of 1911 steps 
were being taken to inaugurate the 
cooperative movement in the large 
Finnish settlement. On December 26 
of that year, Samuel Kallio, Matti 
Lahti, Niilo Killinen, Matti Pitkanen, 
and Nikolai Saari petitioned for arti- 
cles of incorporation for the North 
Star Cooperative Store Company.’ 

+Proceedings of the Fairport Kasvi Temper- 
ance Society, March 15, 1908, MSS. 

* Proceedings of the North Star Stockholders, 
January 31, 1912, MSS. ‘The cooperative fea- 
tures of the organization’s constitution and by- 
laws (4th rvd. ed.) were: “No person shall be 
eligible to hold more than 60 shares in this 
organization and no stockholder shall be entitled 
to more than one vote regardless of the number 
of shares owned by him”; “This cooperative so- 
ciety will pay an annual dividend of 6% on 
capital stock. The net profits sha!l be divided 
among the consumers in accordance to their 
purchases after 30% has been placed in the re- 
serve fund and 10% in the advisory fund.” 


The subscription books for the $3000 
corporation were opened on January 
II, 1912, at Pitkanen’s residence in 
Fairport. Twelve persons took sixty- 
two shares that evening, including 
thirty by Victor Lindberg, ten by 
Isaac Mattson, four by Kustaa Ka- 
sari, and two each by Pitkanen, Kal- 
lio, Isaac Ringman, Matti Lahti, W. 
Lahti, N. Saari, N. Killinen, Matti 
Hietanen, and John O. Koski. By the 
time of the stockholders’ first meet- 
ing, held at Kasvi Hall on January 
31, the number of shares subscribed 
had risen to 112 and the number of 
shareholders to thirty-eight. 

In the spring of 1912 the North 
Star Cooperative embarked upon its 
course as a small grocery, managed 
by John Ritari with N. Saari, M. 
Palo, and N. Killinen on the directing 
staff. The early history of the cooper- 
ative thoroughly tested the mettle of 
its sponsors. On January 25, 1913, 
for example, a company of sad faced 
stockholders seriously considered, in 
the face of chronic deficits, abandon- 
ing the venture. It was decided, how- 
ever, to postpone final decision until 
March first; at that time, “if the fu- 
ture . . . seemed brighter than to- 
day,” the cooperators swore to “‘carry 
on the business with renewed vigor.” ® 
On March 8 the Finns reconvened; 
the financial statement prepared for 
them indicated that the past seven 
weeks had increased the deficit by 
nearly $150, or at a rate of $3.44 per 
day. Confronted by such discourag- 

* Proceedings of the Stockholders, January 25, 


catia nee ot 

— allie Naneiaionn a irene 


* Ibid., August 23, 1913. 

ing statistics, the stockholders decided 
to forsake their progeny by a vote 
of sixteen to six. The manager was 
asked to remain at his work for an- 
other two weeks in order to wind up 
the grocery’s affairs. But there were 
a few resolute cooperators who re- 
fused to relinquish the enterprise with- 
out a struggle. By assiduous propa- 
ganda and appeal, they were suc- 
cessful in reviving the drooping spirits 
of their colleagues; and at a special 
meeting on March 10 the defeatist 
decrees of the previous evening were 
rescinded. The North Star Coopera- 
tive thus passed safely through its 
first crisis. Sales shortly began to in- 
crease and by June, 1913, the treas- 
urer was able to report only a small 
deficit for the past quarter. In Aug- 
ust of the same year the quarter re- 
view showed a profit of $327; the co- 
operative was “going forward.” * 
After this stumbling start the 
North Star Cooperative enjoyed a re- 
markable growth. By January, 1914, 
business was good enough to warrant 
the appointment of a committee to 
make inquiries for a building site; in 
August, 1916, the cooperators pur- 
chased such a site on Eagle and Sixth 
Streets at a price of $1000. In Feb- 
ruary, 1917, the capitalization of the 
rapidly developing institution was 
raised from $3000 to $25,000; 
shortly before this, nearly $2500 
worth of stock had been distributed 
among the consumers, leaving but 
twenty shares unsubscribed of the 
original capitalization. In the mean- 
time, the cooperators, greatly im- 
pressed with the phenomenal growth 
of their enterprise, had begun to en- 
tertain ideas of expanding into other 



lines of merchandising. The proposal 
to add a dairy to their activity was 
thoroughly examined by the share- 
holders on July 21, 1917; the prevail- 
ing point of view was favorable to 
expansion, one enthusiast asserting, 
“The broader we make the coopera- 
tive movement, the greater will be our 
benefits.” ° A mass meeting of the 
Finnish residents on December 14 at 
Kasvi Hall further encouraged the 
cooperators to proceed with their 
plans. In March, 1918, the construc- 
tion of a dairy was begun and before 
long, cooperative milk was being dis- 
tributed throughout the community. 
The new enterprise received excellent 
support from the public; its gross in- 
come for the first year was nearly 

Having established their grocery 
and dairy on successful footing, the 
Fairport cooperators set out on a stu- 
pendous program of expansion dur- 
ing the second decade of the century. 
First of all, a monument to the co- 
operative movement—in the form of 
a modern edifice—had to be erected 
on the Eagle and Sixth Streets site. 
The board of directors decided on 
January 26, 1920, although it would 
necessitate a loan of $15,000, to push 
the scheme of immediate construc- 
tion. The stockholders, moreover, 
were equally determined to have a 
new home; when a proposal was made 
at a special meeting on April 14 seek- 
ing to delay construction, the ma- 
jority view was “not to speak a word 
of postponement but to build, build, 
build!” * The Lake County Loan 
Company furnished the $15,000, at a 
profitable rate of interest, for meet- 

5 Ibid., July 21, December 14, 28, 1917. 

*Ibid., April 14, 1920. 


ing the building costs; by the end of 
November, 1920, the edifice was ap- 
proaching completion. It was opened 
to the public, who had been informed 
of the gala event through advertise- 
ments “so large that they could be 
seen without glasses,” * on December 
6. The High Street store, where the 
North Star Cooperative had been 
heretofore located, was closed on De- 
cember 18 and its stock transferred 
to the new and elaborate quarters. 
Upon completion of the structure, 
the directors turned their attention to 
other avenues of expansion. On De- 
cember 20, 1921, the board voted to 
propose to the stockholders that a 
clothing and shoe department be 
added to the cooperative’s program; 
the stockholders, convening on the 
following January 14, resolved with- 
out a dissenting voice to put the pro- 
posal into effect. A short term loan 
of $2000, needed to buy the neces- 
sary stock, was negotiated. By April, 
1922, the department reported a 
daily average sale of $50 worth of 
mail order suits and shoes. At the 
January 14 meeting of the coopera- 
tors the matter of entering the coal 
business was also discussed. The 
board informed the shareholders that 
it had already bought a site from 
which coal might be retailed. Shortly 
afterward, the North Star Coopera- 
tive became a provider of warmth as 
well as of subsistence and clothing.° 
After a breathing spell of three 
years the directors resumed their ex- 
pansion program. In July, 1925, the 
board leased the grocery of J. Mylly- 

™Proceedings of the Directors, November 14, 

® Proceedings of the Stockholders, January 14, 

*Ibid. See also January 27, 1923. 


koski for a term of ten years, under- 
taking to pay a monthly rental of fifty 
dollars as well as to buy the stock out- 
right; the latter item, involving over 
$2500, was carried at six per cent in- 
terest charges after a cash payment 
of $600 had been made. This grocery 
was known as store No. 2. Less than 
five months later, in November, the 
directors voted to lease a second 
store, located in the “valikyla”’ sec- 
tion of Painesville, promising to meet 
a monthly rental of thirty dollars. In 
June, 1926, however, the board bor- 
rowed $5000 for the construction of 
its own building in Painesville; this 
branch became known as store No. 3. 
The stockholders sanctioned at every 
turn the actions of their directors.*° 
The aggrandizement of the cooper- 
ative movement was not yet at an end. 
In August, 1926, the familiar cooper- 
ative institution, the bakery, was 
added to the North Star organiza- 
tion. To be sure, the question of a 
bakery had been discussed long be- 
fore. As early as December, 1919, 
the directors studied the feasibility of 
buying the local Suonio Bakery and 
appointed a committee to bring the 
matter to the attention of the stock- 
holders. While the latter voted 
twenty-four to sixteen in favor of pur- 
chase, the directors shortly decided 
to postpone the matter inasmuch as 
their interest now became centered 
upon the erection of a new building.” 
A little more than a year later, the 
new manager declared that over $20,- 
000 worth of baked goods could be 
sold annually in Fairport and vicinity; 

* Proceedings of the Directors, July 13, No- 

vember 25, 1925; February 22, 1926. 

“ Ibid., December 2, 22, 1919; January 26, 
1920. Proceedings of the Stockholders, January 
17, 1920. 



the directors, having already that eve- 
ning voted to initiate a clothing de- 
partment, promised to introduce the 
matter at the forthcoming annual 
meeting of the stockholders. The 
question of the bakery was reviewed 
from all angles at the meetings of 
January 14 and 22; at both sessions 
an energetic minority opposed the es- 
tablishment or purchase of a bakery, 
arguing that it would be better to 
retire the present heavy debt struc- 
ture than to add to it. While the co- 
operators nevertheless voted thirty- 
nine to nine in favor of entering the 
baking goods field, nothing material- 
ized at this time.** The proposal was 
reintroduced at the semi-annual meet- 
ing on July 29, 1925; sixteen voted to 
continue the drive for a bakery while 
fifteen asserted that the matter ought 
to be tabled indefinitely. The expan- 
sionist forces derived new strength 
when it was learned that the large 
Tuuri Bakery was for sale; at a meet- 
ing on August 21, 1926, the coopera- 
tors voted fifty-five to seven to buy 
the establishment for $25,000. A 
mortgage for $8500 was immediately 
secured on the building and in Septem- 
ber of the following year a further 
sum of $10,000 was borrowed, this 
time offering as security the central 
edifice, to finance the North Star’s 
many undertakings.”* 

The last step in the spread of the 
North Star Cooperative was taken in 
1931. In the summer of that year 
the cooperators, in desperation, estab- 

“Proceedings of the Stockholders, January 
14, 22, 1922. Proceedings of the Directors, De- 
cember 20, 1921. 

* Proceedings of the Stockholders, July 29, 
1925; January 30, 1926; August 21, 1926. Pro- 
ceedings of the Directors, September 27, 1926; 
September 30, 1927. 

lished their branch store No. 4 which 
was to sell goods for cash only and 
at as low prices as possible.** By 
this means they hoped to realize 
enough cash with which to carry the 
organization through the deflation 

An examination of the North Star 
Cooperative’s financial condition as 
of December 31, 1929, reveals its 
vulnerability. In the first place, 
the program of expansion had been 
financed through borrowings and an- 
ticipated earnings rather than through 
actualincome. As a result, there was 
$25,750 in mortgages at the close of 
1929 and an additional sum of $9546 
in promissory notes. The carrying 
charges, to say nothing of amortiza- 
tion, of this debt structure required 
a goodly share of each year’s gross 
income. The turnover in 1929, for 
example, reached $465,259; yet, 
partly due to this indebtedness, the 
year ended with a net loss of $171.° 
A second and heavy drain upon the 
cooperative’s funds was in the re- 
demption of capital stock. Although 
not obliged to buy back its stocks, 
the organization had for a great part 
of its history redeemed stock, giving 
cash or merchandise in return. The 
flow of stock back into and the flow 
of money out of the corporation was 
heavy; eighty-six shares, for example, 
were presented for redemption at a 

“Proceedings of the Stockholders, August 15, 
1931. This branch, along with the dairy, was 
the only store to show a net profit, for example, 
during the year 1933: 

Store No. 1: net loss of $5245; Bakery: net loss 
of $1403. Store No. 2: net loss of $2066; Dairy: 
net profit of $2093. Store No. 3: net loss of 
$1822; Dry Goods: net loss of $395. Store No. 
4: net profit of $14; Coal Yard: net loss of $564. 

% Ibid., February 8, 1930. Financial Statement 
as of December 31, 1929. 


single meeting. The funds used for 
this purpose could have been more 
wisely applied, as one auditor sug- 
gested, to the reduction of contracted 
liabilities. Untimely distribution of 
paper profits, moreover, impoverished 
the cooperative. On one occasion, 
in February, 1929, the board of direc- 
tors borrowed $5000 in order that 
the consumers might enjoy the bless- 
ings of the “cooperative’s profits.” ** 
Trading had been done, despite the 
oft-repeated warnings of the more 
farsighted cooperators, on credit; of 
the 1929 turnover in goods, for ex- 
ample, over $322,000 had been in 
credit sales. To be sure, selling for 
credit was not in itself a fatal practice 
if a special reserve had been set up for 
bad accounts and if rigorous limits 
had been imposed on the amount of 
credit which each individual might 
enjoy. Unfortunately the Fairport 
cooperators had not been wise in 
either respect; there was no special 
reserve and some of the accounts 
receivable had been permitted to rise 
as high as $500."" In 1929 there were 
over $28,000 of such accounts; they 
were not, of course, all bad accounts, 
but good or bad, they were extremely 
hard to transform into cash if and 
when, as after 1929, a need for funds 
presented itself. On the other hand, 
the accounts payable increased an- 
nually; by 1929 the North Star Co- 
operative owed over $27,000 in 

* Proceedings of the Directors, February 14, 
1929. An executive of the cooperative roughly 
computed that the North Star had returned some 
$92,000 of its profits to consumers during the 
years 1912-35. 

* Fourteen out of twenty-seven large accounts 
receivable considered at a directors’ meeting on 
August 9, 1926, were over $100 each. Indeed, 
two of the accounts were for $1739.19 and 
$2643.00 respectively. 


accounts payable to wholesalers and 
merchandisers. One year later the 
total sum of accounts payable ex- 
ceeded the assets of the corporation 
by $11,140, this in spite of the fact 
that its constitution clearly stated: 
“This cooperative society shall not 
assume liabilities in excess of its 
assets.” 7 

In such financial state, the North 
Star Cooperative could not weather 
the storms of the depression period. 
Successive annual net losses of $7076 
in 1931; $8805 in 1932; $9390 in 
1933; and $10,393 in 1934 smashed 
the cooperative.*® In the meantime, 
the branch stores were dropped one 
by one. In March, 1933, the clothing 
store was ordered to be sold “‘at what- 
ever price.” In June of the same 
year the coal business was discon- 
tinued; stores No. 2 and 3 followed 
shortly. In 1934 the bakery and the 
dairy passed out of the hands of the 
North Star Cooperative, leaving only 
a grocery store on Eagle Street in 
its possession. Despite a last minute 
change to cash sales, the frantic stock- 
holders could not save the enterprise. 
On September 19, 1935, the North 
Star Cooperative, once the toast of 
the American Finnish cooperators, 
passed into the hands of a receiver. 

There were, to be sure, a few zeal- 
ous fighters who refused to believe 
that the North Star Cooperative was 
beyond resuscitation. At their insti- 
gation, several mass meetings were 
held at Kasvi Hall in December, 1935, 
and during the first three months of 
1936; at each of these sessions the 

* This clause was added to the by-laws in 
March, 1922. 

* Proceedings of the Stockholders, passim. 
Profit and Loss Statements for 1931-34. 


Finns were exhorted to reunite under 
the banner of cooperation. The name 
of the reorganized institution was to 
be, appropriately enough, the New 

Star. But the fall of the North Star 
was too vividly fixed in the minds of 
the public; the New Star never ap- 
peared on the cooperative horizon. 


Beneath the burden of this splintered tree 

I, too, have fallen where sharp heights begin, 
Wine-red the shadow that withholds from me 

Peace that the turtle’s nest keeps safe within. 

When did I hear Him in the straining wind— 

Reach His firm fingers in the lengths of rain? 

(The bright blood beats upon the fettered mind— 
The heart’s fierce challenge whose fixed law is pain.) 
Then in the blackness where the bat-wing turns 
From many voices comes a hopeful cry: 

“Look toward the morning—see the Day Star burns! 
Rise, like the mountains, for we shall not die.” 
Christ, we are still a race of little men— 

Gather our world into Your hands again. 





State University of Iowa 

OLUMES of literature deal- 

ing with unionism and the 

practices and methodologies 
of unions have appeared in the last 
few years. In this literature varied 
attitudes are expressed. Some writers 
treat the problem of unionism as 
being rather simple, and therefore 
readily solved by any person regard- 
less of his competency and maturity 
of judgment. Other authors view 
these phenomena sympathetically 
and assume that unionism has been an 
important factor in economic prog- 
ress, and consequently the right of 
collective bargaining should be ex- 
tended to all laborers. Still other 
writers are hostile to labor unions and 
their practices, and argue that these 
organizations of workers are sinister 
influences which will ultimately de- 
stroy the sacred economic institutions. 
Unions, according to this approach, 
have retarded the establishment of 
peaceful relationships between the 
employee and employer, and as a re- 
sult should be curbed, if not com- 
pletely annihilated. While there may 
be some validity in both of these 
latter interpretations, in general, 
they descend into propaganda, and 
rarely add anything to an intelligent 
understanding of unions and their 

The purpose of this paper is to 
treat unionism and its practices ob- 
jectively, that is, to avoid evaluations 
and to show the role of these phenom- 
ena in the industrial conflict. To the 


objective scholar in the field of labor 
whether unions are good or bad is 
not his concern. To be sure, this nor- 
mative approach is important but it 
is reserved for the ethicist. The as- 
sumption is made in this discussion 
that labor unions, like all other insti- 
tutions, are the products of the inter- 
action of certain forces within the 
social process, and therefore they can 
be interpreted naturalistically. It is 
also assumed that the practices of 
labor unions, such as strikes, picket- 
ing, etc., are the products of forces 
within the environment, and that they 
too can be approached from the scien- 
tific or naturalistic point of view. The 
task of the scholar in the field of labor 
economics is to discover and analyze 
the process and the forces in the situ- 
ation that determine the rise of unions 
and their practices. 

It is further assumed that the in- 
terests of capital and labor, in the 
main, are not identical but they are 
opposed to each other. In other 
words, the industrial struggle repre- 
sents a conflict of interests; a conflict 
of attitudes and values. In the ideal 
and theoretical sense the interests of 
the workers and employers may be 
harmonious, if not identical, but in 
concrete and realistic situations the 
interests and activities of the em- 
ployers often infringe upon the inter- 
ests of employees and vice versa. 

It is well known that the factors of 
production, land, labor, and capital, 
cooperate in the economic process to 


produce goods. After the goods are 
finished then comes the conflict over 
the proper allocation of these prod- 
ucts to the various factors of produc- 
tion. The failure of capital and labor 
to agree on their respective shares has 
led to some maladjustments in the 
economic process, and constitutes the 

most vital problem in the field of in-' 
dustry. This has resulted not only in’ 

a struggle for the values produced 
but also for the control of industry. 
An analysis of the distributive process 
has led to the conclusion that the 
main problems in this field are the 
determination of how much each fac- 
tor of production should receive, and 
the developing of adequate techniques 
to assure each this amount. These 
problems are of a delicate nature and 
do not respond so easily to treatment. 
Because of this most of the criticisms 
directed against our economic system 
are usually concerned with the in- 
equitable distribution of wealth. 

Opinions differ as to the proper 
amounts that should go to the various 
factors of production. Karl Marx 
and his disciples proclaim that labor 
is the most important factor, if not 
the only factor, in the process of pro- 
duction, and is, as a consequence en- 
titled to the largest share. The pres- 
ent capitalistic system assumes, at 
least in practice, that capital should 
receive the greatest proportion. 
Most of our modern economists argue 
that scarcity of the agents of pro- 
duction determines the share each will 
get. That is, if land is scarce rent 
will be high and the largest units will 
go to the land-owner. Apparently 
none of these explanations satisfy all 
parties in the conflict and so the strug- 
gle between capital and labor still 


The industrial attitudes of both 
the workers and the employers, as re- 
gards their share of production, are 
developed in a social and economic 
environment over which they have 
little control. Certain values are as- 
sumed to be sacred by society and the 
whole educational system is designed 
to create a favorable reaction to these 
values. For example, the acquiring 
of wealth which brings recognition 
and prestige is of major importance. 
The general attitude toward wealth 
is that it brings success and deter- 
mines the social standing of the per- 
sons inthe group. The placing of the 
emphasis here rather than upon serv- 
ice to others has enhanced the indus- 
trial conflict. Laborers are trying to 
gain more money in order to elevate 
their status, while the owners of in- 
dustry struggle either to maintain the 
present social stratification, or to ac- 
cumulate more wealth for themselves. 
Therefore, the reaction of the em- 
ployers towards labor unions, col- 
lective bargaining, unemployment in- 
surance, etc., will be determined by 
the effect that these activities will 
have upon profits. When business is 
good the employer is willing to recog- 
nize labor because he wants to pro- 
duce goods while there is a demand 
for his commodities, but when times 
are bad and labor fights to retain the 
prevailing wage, and thus makes in- 
roads on the profits, the employer 
becomes more hostile to labor unions. 
The same reaction comes from the 
laborers when they are asked to con- 
sider changes in industry. Laborers 
have criticized scientific management 
because it has led to more inequitable 
distribution of wealth, and they are 
often opposed to schemes that will 


deduct even a small percentage from 
their wages. 

Out of this struggle between the 
employers and the employees over the 
wealth produced in the economic 
process unions and their practices 
have emerged. They came into exist- 
ence to satisfy such definite needs of 
the working group as the preserva- 
tion of life and the maintenance of 
this life on a higher level. In an at- 
tempt to satisfy these needs behavior 
patterns have arisen and have as- 
sumed the institutional form. Unions 
as they exist today are institutions 
with both definite and indefinite con- 
cepts or philosophies and with struc- 
tural devices to realize these ideals. 
These industrial organizations, with 
the practices involved, are contro! 
techniques or devices to govern the 
workers’ activity in the industrial 
struggle. In other words, they repre- 
sent the wage earners’ way out of a 
conflict situation which, in the main, 
centers around the attempt to raise 
their scale of living. 

* Unions function to develop group 
unity and stability by creating a com- 
munity of interest on the part of the 
workers, that is they create and com- 
municate labor consciousness. This 
increases the bargaining power of the 
workers and assists materially in the 
gaining of economic security which, 
from the laborer’s point of view, in- 
volves more voice in industry, less risk 
in the matter of unemployment, and 
the curtailing of other factors that 
have endangered the security of labor. 
- As has been implied unions are, in 
general, conflict groups, that is the 
predominate form of interaction or 
relationship between the members of 
the union and those of other groups 
is conflict. This becomes especially 


significant when we discern the atti- 
tudes of the industrial proletariate 
toward the employer’s associations. 
These latter organizations have par- 
alled the development of labor 
unions and have resulted from the 
struggle with labor over the control 
of industry under our present capital- 
istic regime. Employer’s associations 
are organizations of employers that 
function, in the main, to check labor 
unions or any other factions that are 
threatening their power. 
Competition and conflict in any 
realm result in the creation of de- 
fensive techniques on the part of the 
participants. In the biological world 
competition has resulted in adapta- 
tion and specialization in order to 
enable the species to live in a given 
environment. The desert plant has 
conserved the limited supply of water 
by a modification of the leaf structure. 
Among the animals each species has 
some specialized ability such as speed, 
odor, protective coloration, quills, 
horns, talons, etc., which enables it to 
live and perpetuate its kind. In the 
social world human beings -vho are 
struggling for goals will devise 
means, such as lying and rationaliza- 
tion, to gain their ends and relieve the 
pressure on their personalities. Sim- 
ilarly, in this industrial conflict, both 
labor and capital have devised tech- 
niques to gain their objectives, which 
mainly center around the desire to 
elevate their status. The methods 
used by the worker to gain his ends 
are collective bargaining, restriction 
of labor supply, restriction of output, 
the unfair list, the union label, picket- 
ing, boycott, strikes, sabotage, and 
violence. On the other hand, the em- ' 
ployers resort to such behavior as in- 
junctions, lockouts, blacklist, strike- 


breaking, etc., in order to restrain 
labor, and to get more of a share of 
what is produced. 

A survey of the field indicates that 
new methods used by unions continu- 
ously make their appearance. Some 
of the old devices are curtailed or 
made impotent either by changes in 
the economic environment or because 
of legal restrictions. This is in the 
main true of the secondary boycott 
which has often involved labor unions 
in much difficulty. It is also recog- 
nized that picketing has lost some of 
its vitality. As these weapons of 
labor become obsolete and lose their 
significance other ones are created. 
Examples of this tendency are found 
in the present use of women in strikes 
and the sit-down strike. When it be- 
came difficult, if not dangerous, for 
men to picket women were called into 
service. Because of our moral and 
chivalrous attitudes women were al- 
lowed more privileges on the picket 
line. Later women were subjected to 
the same treatment as men and their 
use in the unions has changed. Now 
women are organized into auxiliaries 
and become an integral part of the 
laborer movement. Recently two mil- 
lion women, mainly wives of laborers, 
agreed not to purchase any commod- 
ities unless the union label was evi- 
dent. The sit-down strike has been 
employed because of the relative in- 
effectiveness of the old type of strike. 
When the sit-down strike occurs pro- 
duction is stopped because the strikers 
occupy the plants and prevent the use 
of strikebreakers. 

While these practices are generally 
criticized, to the scholar in the field 
of labor relations they are normal 
reactions in certain situations. Take 
for instance, the matter of the vio- 


lence that often occurs in an industrial 
strike. When the worker strikes he 
does not leave his position perma- 
nently but ceases work temporarily 
in order to force the employer to 
grant certain demands. The strike- 
breaker may have a different attitude 
toward the job. He feels that the 
striker has no right to the position 
because he has quit his work. The 
striker then feels that the strike- 
breaker is a scab and that he is an 
enemy of society and should be elim- 
inated. When attitudes toward values 
clash as in this case overt struggle is 
almost inevitable. 

Perhaps it is generally known that 
conflicts can not continue indefinitely 
because of the intense strain upon the 
personality and upon group relations. 
Conflict by nature is intermittent and 
occasional, and is followed by adjust- 
ments and resolutions. In this per- 
ennial struggle between capital and 
labor one or both of the antagonistic 
groups either become exhausted, or 
recognize the futility of the struggle, 
and make overtures for peace. Such 
movements as employee representa- 
tion, profit sharing, employee stock 
ownership, and union - management 
schemes, initiated in the main by em- 
ployers, represent offers of peace or 
solutions to the problems in the field 
of industrial relations. While some 
of these arise out of altruistic mo- 
tives, usually the employer originates 
and concedes to these plans because 
circumstances force him, and because 
he realizes that his own economic se- 
curity depends upon the satisfaction 
of the masses of workers. A study of 
these proposals shows that the em- 
ployer groups reluctantly relinquish 
any of their profits or their control 


over industry. It is true that these 
schemes operate within a limited field 
and are often used as indirect meth- 
ods to defeat unionism, yet they dem- 
onstrate that factors in the economic 
environment are forcing the employer 
to allow the worker more oppor- 
tunities for participation in industry 
in order to mitigate the conflict. 

By way of summary it might be 
said that unions and their practices 
are devices used in the struggle of 

the working man for a living. They 
are the products of historical develop- 
ment. Unions with all their schemes 
and devices will exist as long as the 
forces responsible for their origin and 
development are present and active. 
Intelligent control, then, lies not in 
the field of coercion, and perhaps not 
in the field of moral and legal activ- 
ities, but in a thorough understanding 
of the forces responsible for these 
union institutions. 


I know that Thou hast never turned from me, 

I know that Thou hast never let me go; 

That when I am most ignorant of Thee, 
Thou art more near than whiteness is to snow! 
But I have followed close upon the wind, 
Regarding not the compass and the star; 

In blinded ways and devious, have sinned ; 
Have made my fate of shattered mast and spar. 

I cannot yet in formal penance kneel 

Among the throng by daily habit led; 

But let me to the outer edges steal 

Of that great light which from Thy throne is shed ; 
My slow redemption having thus begun, 

Be as a seedling working toward the sun. 


a NT staan teccsnacn 




made to enable Robert J. Watt 

to attend sessions of the Gov- 
erning Body as representative of the 
Workers’ Group of the International 
Labor Organization. The regular at- 
tendance of Workers’ representatives 
on the Governing Body is highly desir- 
able. The initiative and driving power 
of the Workers’ Group has more than 
once proven the decisive factor in the 
development of I.L.O. programs. 
Initiative and leadership can come 
only through experience and veteran 
service. Heretofore, such experience 
and service have been limited to the 
European labor leaders. Men like 
Corneille Mertens of Belgium and 
Léon Jauhaux of France have been 
attending sessions of the Interna- 
tional Labor Conference and of the 
Governing Body ever since the I.L.O. 
began, and through their attendance 
of both Sessions of the Conference 
and the Governing Body, they have 
been able to bring to the Workers’ 
Group such breadth and continuity 
of experience as to make them in- 
valuable as leaders. If the American 
worker elected to the Governing Body 
is to play an equally helpful part in 
the work of the Organization, he also 
must arrange for regular attendance 
at Sessions of the Conference and 
Governing Body. That has been done 
for Mr. Watt and is an attestation of 
the interest and vision with which 
American labor is now dealing with 

the I.L.O. 

A\ nse toenabieR have been 


Italy and the I.L.O. 

Italy has resigned from the I.L.O. 
As was stated in these pages last 
month, such a development could 
have been expected from Italy’s resig- 
nation from the League of Nations. 
Nevertheless, it is highly regrettable 
that a government should withdraw 
its cooperation from an institution 
whose objective is to improve the well- 
being of the masses of the people and 
whose methods of functioning have 
proved so successful in realizing this 
objective. True, the United States for 
years refused to cooperate with the 
I.L.O. But it is almost incredible that, 
once the value of the I.L.O. has been 
recognized by a government, that 
government should surrender mem- 
bership for a mess of imperialistic 

Italy’s resignation, as we pointed 
out last month, was prompted solely 
by political considerations. This 
should give some serious thought to 
leaders in the International Labor 
Organization. It again raises the 
question whether the I.L.O. can really 
be isolated from general political 
and economic conditions. Many peo- 
ple within the I.L.O. have so insisted. 
But the resignations of Germany and 
Italy are only the more conspicuous 
incidents which question the validity 
of such a contention. General con- 
ditions affect the work of the I.L.O. 
in a number of ways, and very vitally, 
as for instance: 

(1) Membership. The resigna- 
tions of Germany and Italy are 


(2) Finances. In the years 1922- 
1924, for instance, the general eco- 
nomic situation compelled a severe 
retrenchment in the I.L.O.’s person- 
nel and work at a time when the 
I.L.O. was struggling to build up 
a competent staff and was getting 
some of its most important programs 
under way. 

(3) Development and Ratification 
of Conventions. The Hours Conven- 
tions are opposed by many countries 
because of their internal economic 
conditions and, more recently, because 
of the re-armament race. 

(4) Observance of Conventions. 
War, for instance, results in a break- 
down of labor standards, and war, in 
turn, often originates from economic 
conditions. A case in point is the pres- 
ent Japanese invasion of China, which 
has greatly set back the slow improve- 
ment of labor standards in both China 
and Japan. 

(5) Effective cooperation of labor 
and employers with the I.L.O. In- 
complete delegations to the Interna- 
tional Labor Conference are still a 
curse to the I.L.O. Governments 
claim they cannot afford to send com- 
plete delegations. If general eco- 
nomic and financial conditions were 
better, there would be fewer incom- 
plete delegations. 

Economic conditions must inevi- 
tably influence the policy of countries. 
For this reason, as Albert Thomas 
once pointed out, all international in- 
stitutions ‘“‘are affected to an equal 
extent by changes in public opinion 
and by general political and economic 
circumstances. When the utility of 
the International Labor Organization 

*For a discussion of this see Report of the 
Director, 1924, pp. 48-76. 


is questioned, when attempts are made 
to restrain its activity and lower its 
moral credit, it is not long before the 
Secretariat of the League of Nations 
and the other associated organiza- 
tions suffer in the same way. The 
courses of these organizations are all 
alike affected by the same tides of 
fortune as those of heavy, locked 
barges by the eddies and current of a 
great river.’”” 

The resignation of Italy leaves 61 countries 
members of the I.L.O. These countries are: 

Afghanistan Irish Free State 
Albania Japan 
Argentina Latvia 
Australia Liberia 

Austria Lithuania 
Belgium Luxemburg 
Bolivia Mexico 

Brazil Netherlands 
British Empire New Zealand 
Bulgaria Nicaragua 
Canada Norway 

Chile Panama 

China Paraguay 
Colombia Peru 

Cuba Poland 
Czechoslovakia Portugal 
Denmark Rumania 
Dominican Republic Salvador 
Ecuador Siam 

Egypt Spain 

Estonia Sweden 
Ethiopia Switzerland 
Finland Turkey 

France Union of South Africa 
Greece Union of Soviet Social- 
Guatemala ist Republics 
Haiti United States of 
Honduras America 
Hungary Uruguay 

India Venezuela 

Iran Yugoslavia 

It will be noted that the above list 
of 61 countries includes Ethiopia. 
While Ethiopia is still not recognized 
as a part of the Italian Empire by 
most governments, for all practical 
purposes Ethiopia has ceased as a 

* Ibid, p. 80. 

“Te cemmneninctst eeeeneanilie 


member of the I.L.O. The actively 
participating countries members of 
the I.L.O. are therefore 60. 

Japan and the I.L.O. 
Withdrawal from the I.L.O. of 

two countries which have run into 
difficulties because of violations of 
their international obligations as- 
sumed through membership in the 
League of Nations naturally raises a 
question concerning the status of 
Japan. As will be remembered, fol- 
lowing the incident of September 18, 
1931, the Japanese army and navy 
were employed in extensive opera- 
tions against China. A commission 
of inquiry appointed by the League 
of Nations and sent to the Far East 
for investigations on the spot con- 
cluded that the military operations of 
the Japanese troops on September 18 
could not be regarded as measures of 
legitimate self-defense.* Though the 
condemnation of Japan was world- 
wide, it was crystallized by the 
League of Nations as the only body 
offering any chance that something 
might be done, and the Japanese gov- 
ernment accordingly, in February, 
1933, notified the League of its resig- 

Recognizing the autonomous char- 
acter of the I.L.O., the Japanese Gov- 
ernment did not adopt the course of 
the German and Italian Governments 
and resign also from the I.L.O. In- 
stead, it has consistently participated 
in the work of the Organization; and 
I think it can be truthfully said that 
there has been no more loyal member 

* Manchuria: Report of the Commission of 
Enquiry Appointed by the League of Nations 
(United States Government Printing Office, 
Washington: 1932). 

of the Organization since 1933, or in- 
deed before, than the Japanese Gov- 

Interest in the I.L.O. has increased 
year by year in Japan. Unlike the 
United States which felt for years 
it had no need of an International 
Labor Organization, Japan has taken 
an interest in the Organization’s work 
since its beginning. In response to the 
interest taken in the I.L.O. by Japan, 
the I.L.O. on January 1, 1924, estab- 
lished an office of National Corre- 
spondent in Tokyo. At that time the 
I.L.O. had established this office only 
in five countries: France, Italy, Ger- 
many, Great Britain and the United 
States. Japan was the first country 
in the Far East to have such an office. 

The office of National Correspond- 
ent is established by the I.L.O. to fol- 
low the movement of economic and 
social affairs in important countries, 
to keep in touch with workers and 
employers’ organizations, and to pro- 
vide an easily accessible source of in- 
formation concerning the work of the 
I.L.O. As was stated at the time by 
the Director, the office was estab- 
lished in Japan for the following 
reasons: “The work of the Interna- 
tional Labor Office is arousing the 
greatest interest in the industrial 
world of Japan. The selection of 
Delegates to the Conference, particu- 
larly the Workers’ Delegates, has 
always given rise to keen discussion. 
It is necessary, therefore, that the 
objects and work of the Office should 
be explained and defined as clearly as 
possible. Japan is one of the coun- 
tries where industry is at present de- 
veloping in the most rapid and strik- 
ing way and there are few countries 
where the development of interna- 


tional labor legislation is studied with 
more profound interest.’’* 

As good an indication as any of the 
efforts, from the beginning, of the 
Japanese Government to meet loyally 
the requirements of its membership in 
the I.L.O. has been the selection of 
the Japanese workers’ delegates to 
Sessions of the International Labor 
Conference. Labor unions virtually 
did not exist in Japan in 1919. Vari- 
ous systems of selecting the workers’ 
delegates were tried, all of which met 
with criticism from the Workers’ 
Group in the I.L.O., and, responsive 
to these criticisms, the Japanese Gov- 
ernment finally evolved a method 
which was acceptable.° Today, the 
Japanese workers’ delegate votes and 
acts in the I.L.O. as independently of 
his Government as do the workers’ 
delegates of any western country. 
This has been a big step forward. 

It is very much hoped that the col- 
laboration of Japan with the I.L.O. 
will not be interrupted by the exploits 
of the Japanese military and naval 
forces. It is well known that the Jap- 
anese Government has opposed these 
exploits. Unfortunately, the army 
and navy of Japan are not subject to 
the control of the civil government, 
as is true in western countries. 

Universality of the I.L.O. 

In 1936, in response to an invita- 
tion from the Government of Chili, 
the I.L.O. held at Santiago, Chile, a 
conference of the countries of Amer- 
ica, to study labor problems of this 
continent. In 1937, on the suggestion 
of President Roosevelt, the I.L.O. 
convened at Washington in April, a 

‘Report of the Director, 1924, page 57. 
"Ibid, pages 38-39. 


Textile Conference to discuss all the 
social and economic aspects of this 
world-wide industry. On this occa- 
sion the active collaboration of the 
United States, which has been a mem- 
ber of the Organization since 1934, 
was particularly marked. Twenty-six 
countries, members of the Organiza- 
tion, were represented at the Con- 
ference, and Germany, although no 
longer belonging to the Organization, 
sent an observer. 

These two Conferences, held far 
from Geneva, first in South America 
and then in North America, testify to 
the effort made to place the facilities 
of the I.L.O. at the disposal of every 
region of the world and also demon- 
strate that, at least with regard to 
the improvement of conditions of 
work and life, there exists a funda- 
mental understanding between con- 
tinents as well as between nations. 
But these two Conferences are only 
two instances within recent months 
which indicate the universal useful- 
ness and activity of the I.L.O. 

In October 1937, on the invitation 
of the Czechoslovak Government, the 
Governing Body held its regular quar- 
terly Session at Prague. Last May at 
Vienna, a Conference of Labor In- 
spectors met at the call of the I.L.O. 
The Director of the International 
Labor Office recently set out on a 
visit to the Netherlands Indies, Ma- 
laya, India, and Egypt. The Gov- 
erning Body has recently decided to 
send a delegation to South Africa in 
1938. Numerous missions of officials 
of the Office to various parts of the 
world and the addition of experts 
from South and North America to 
the technical commissions of the 

I.L.O. still further testify to the 



= enone ee meant C 


aaa ii hn aL. 


vigor and extent of the I.L.O.’s ac- 
Investment of Social Insurance Funds 

On December 8, in Geneva, the 
I.L.O. convened a meeting of experts 
to study a question of great impor- 
tance to every country which has 
social insurance and funds arising 
from social insurance, viz., the invest- 
ment of these funds. These funds, 
which total a tremendous sum, must 
be invested in conditions offering the 
greatest guarantee of safety and in- 
come, in order to insure regular pay- 
ment to workers. 

In long-term insurance schemes 
(old age, invalidity, accident and 
widows’ and orphans’) the establish- 
ment of a sound investment policy is 
of special importance. Liabilities of 
such schemes grow the longer the 
schemes are in force, and the yield 
must be sufficient to maintain the rate 
of contribution unchanged in spite of 
the inevitable increase in benefit ex- 
penditure. Interested in this problem 
are workers and employers as well as 

The financing of social insurance is 
exposed to the same risks of economic 
and monetary instability as are pri- 
vate investments; and in selecting the 
securities to be purchased and their 
amounts, the bodies responsible for 
investment must consider safety of 
investment as well as the rate of re- 
turn. Furthermore, investment policy 

should contribute to the stabilization 
of economic conditions internation- 
ally as well as nationally. 

In recent years, the I.L.O. has been 
frequently requested to make a com- 
parative study of the regulations and 
the policies of various countries in 
the matter of the investment of funds 
of social insurance schemes. After a 
preliminary study, it decided to con- 
vene the December meeting of ex- 
perts in Geneva. Besides those spe- 
cially appointed by the Governing 
Body, qualified members of the Cor- 
respondence Committee for Social 
Insurance took part in the meeting. 
From the United States, went Frank 
Bane, as representative of the Social 
Security Board. The Bank of Inter- 
national Settlements and the Finan- 
cial Section of the League of Nations 
were also invited to send representa- 

Next Meeting of the Governing 

The next Session of the Governing 
Body will be held at Geneva in Feb- 
ruary. Up for discussion at this Ses- 
sion will be the agenda of the 1939 
Session of the International Labor 
Conference. At its last Session, the 
Governing Body set the date of June 
2, 1938, as the opening of the 1938 
Session of the Conference. As usual, 
the 1938 Conference will meet in 




Shipping department of Dr. Derry’s Propucts, Inc. RALPH Woops 
and JAcK WESLEY are removing cases from one of the stacks and placing 
them on a hand truck. Birt KuTCHER, shipping clerk, is checking the serial 
numbers of the cases on a shipping bill as RALPH and JACK call out the 
numbers while they work. Suddenly RALPH stops and carefully weighs a 

case in his hands. 

Bill—(Glancing up.) What’s wrong, 

Ralph—(Still balancing the case.) 
This feels light. 

Bill—(Testily.) It’s those damn 
packing girls: They’re always 
leavin’ bottles out of the cases. 
(Lays shipping bill on some cases. ) 
If I had my way, I’d fire the whole 
gang of ’em. 

Ralph—Want me to open it up? 

Bill—(Impatiently.) Sure, go ahead! 

Ralph—(Sets case on half-loaded 
truck and tears it open.) This glue 
doesn’t feel very dry. Feels sticky 
—like it’s fresh. 

Bill—Aw, that’s some of that cheap 
paste the company’s been usin’. 
(Looks in open case.) How many 
bottles missin’? 


Bill—Hmm! That makes fifteen 
bottles all told missin’ out of four 
cases today. 

Ralph—Yeah, but the other cases 
were left open. This one’s been 
sealed up. A couple of light ones 
we found yesterday were sealed, 

Jack—Look bad, don’t it? 

Bill—(Thoughtfully.) Must be an 
organized clique workin’ round 
here. They’ve been at it for a 


coupla months. But this is the 
worst yet. (Scratches his head 
with pencil.) Well, I guess I'll 
have to report it to the big-shot. 
You fellahs take it easy till I hunt 
him up. (Walks off left.) 

Jack—(Anxiously.) What’s your 
idea of it, Ralph? 

Ralph—(Shrugs as he arranges some 
cases for a seat.) Somebody’s 
tryin’ to make some extra cash 
sellin’ hot goods. 

Jack—D’you have an idea who’s 
doin’ it? 

Ralph—(Stretches and slumps on im- 
provised seat.) I’ve got my sus- 

Jack—Who you suspect ? 

Ralph—As long as I ain’t sure, I’m 
not sayin’. 

Jack—Some guys sure take chances 
with their jobs. 

Ralph—Well, it’s their hard luck if 
they’re caught. Only I hate the 
idea of havin’ the boss call us in 
his office and givin’ us a grilling to 
find out who’s doin’ it. 

Jack—Gee, I’d die before I’d risk 
my job. I’ve got too much at stake. 
(Pause.) I didn’t tell you, but my 
kid’s sick again. I’m worryin’ my- 
self nutty tryin’ to save enough 
money to take him to a specialist. 


Ralph—(Sympathetically.) You’ve 
sure been gettin’ the tough breaks, 

Jack—(Nervously running his fingers 
through his hair.) I get so jittery 
about it sometimes I get scared of 
my own thoughts. (Laughs 
jerkily.) Maybe it’s ’cause I 
haven’t much to think with. 

Ralph—(Looks at him earnestly.) 
You ought to stop worryin’, fellah. 
Take things easy for a change. 

Jack—I can’t. Not in the fix I’m in. 

Ralph—(Looks away sadly.) I 
know. I guess I’d be the same way 
if I was in your shoes. 

Jack—Day and night the kid’s on my 
mind. His eyes keep starin’ at me 
for help. It’s hell tryin’ to keep 
my mind on my job. Someday I’m 
going to make a big-fool boner and 
get fired . . . that’s what takes 
the guts out of you! 

Ralph—(Thoughtfully.) It’s funny 
when you come right down to it, 
Jack. Here we are workin’ in a 
factory that produces stuff that’s 
supposed to make sick kids healthy. 
(Reaches in open case and pulls out 
bottle.) Listen to what the label 
says: Dr. Derry’s Baby Food, Na- 
ture’s Gift to the Kiddies! Scientif- 
ically Prepared Children’s Diet. 
This tasty, tonicky, pre-digested 
kiddie food is just the thing to build 
strong, sturdy little bodies. Do 
you want your child to be a livewire 
of radiant health lighting up your 
home? Then feed it Dr. Derry’s 
Baby Food regularly like any other 
food. Kiddies crave it: Price: 

Jack—(Painfully.) Cut it, Ralph. It 
goes clear through me. 


Ralph—( Putting bottle back). Sorry. 
I didn’t mean to have it strike you 
that way, Jack. 

Jack—(His voice becoming desper- 
ate.) If I could only do some- 
thing for the kid! It’s the waitin’ 
and scrimpin’ to get enough money 
that gets on my nerves! I can’t 
take it any longer! (Presses hand 
to his head, yelling.) I'll go nuts! 

Ralph—(Jumping up.) Hold on to 
yourself! If one of those watch- 
men hear you, they’ll think you’re 
one of the crooks. 

Jack—(Rubbing an arm across his 
face). I’m all right, now. (Looks 
up.) D’you think anybody heard 

Ralph—( After looking around.) No. 
But, for Chris’ sake, don’t do it 
again. Pull yourself together. 

Jack—I couldn’t help it. It just 
popped out. (Leans abjectly 
against stack of cases.) 

Ralph—(Slapping him on the back.) 
Come on, pal, snap out of it! What 
you need is a coupla good times to 
forget your troubles. 

Jack—Who can afford ’em? Not 

Ralph—You don’t have to afford it. 
Tonight you’re goin’ out with me. 
Get somebody to stay with the kid 
and bring your wife along. 

Jack—You couldn't drag my wife 
away from the kid with a steam- 

Ralph—All right, then’ll it'll be just 
us two. We'll have a coupla beers 
and take in a show. How about it? 

Jack—( Brightening.) Sounds okay. 

Ralph—Tomorrow you'll feel like a 
new man. You can bet your union 
suit on that. 

Jack—(Trying to smile.) Mine’s 
pretty much patched up and some 
of the buttons are off. 

Ralph—(Joking.) That bunch of 
crooks will be swipin’ your belly- 
button next! 

Jack—(Taking a playful poke at 
Ralph.) Aw, stop it! (Laughing 
uneasily, he glances off left. Then 
turns quickly to Tom and speaks 
in low voice.) Hey, here comes the 
boss with Bill and a watchman. 

Ralph—Who’s the watchman? 
“Squirt-gun” Kelly? 

(Jack nods and straightens. Ralph 
quickly replaces cases he has used 
for aseat. Presently Buck Murray, 
the boss, and Kelly, in a blue uni- 
form, enter left with Bill.) 

Murray—‘Lo, Ralph. How’s tricks? | 

Ralph—Not bad. 

Murray—And you, Jack? 

Jack—( Forcing an easy-going smile. ) 

Bill—( Attracting Murray’s attention 
to the opened case.) Here it is, 
Buck. What d’you make of it? 

Murray—(Examined it.) Huh! 
(Looks up.) This is getting to be 
an outrage! Enough bottles have 
been stolen in the last week to make 
twenty cases. That’s a loss of more 
than $200.00 to the company. It’s 
got to be stopped: (Turns to 
Ralph.) You’re the Union steward 
in this department, aren’t you? 

Ralph—Yes, sir. 

Murray—Well, why don’t you do 
something about it? 

Ralph—The Union doesn’t know 
who’s doin’ it. That’s reason 
enough, isn’t it? 

Murray—(Turning to Kelly.) 
Haven’t you got any suspicions 


Kelly—(Eyeing Ralph carefully.) 
Not yet, boss. 

Murray—Y ou’re about as useless as 
the tail of a hobby-horse! (Turns 
to Ralph abruptly.) You ought to 
know something about this. I can’t 
imagine anyone working in as close 
a contact with the men in this de- 
partment as you do— 

Ralph—(Flaring.) Wait a minute, 
Murray! Are you trying to accuse 
me of being in on this? 

Murray—(Crawfishing.) No. Only 
. . - Well, I’m not going to let 
this robbery go on any longer. It’s 
goin’ to stop! 

Ralph—The Union’s with you on 
that. But don’t try to put the blame 
on everybody in this department. 
Those crooks, whoever they are, 
are getting pretty bold. They’re 
goin’ to make a slip at the rate 
they’re goin’ now. They always do. 
Then you'll catch ’em red-handed. 
So let’s all hold our horses till they 

Murray—(His anger mounting.) 
Woods, I’ve made up my mind it’s 
goin’ to be stopped right now! 
(Hammers his fist on a case.) 
That’s my decision and I’m stick- 
ing to it! (Turns and addresses 
Bill.) How many men you got 
working under you? 


Murray—(Impatiently.) Well, 
where in the devil are the rest of 
them? Why don’t you call ’em in 

Bill—I didn’t know you wanted ’em. 
They’re loadin’ cars. 

Murray—lI don’t care if they’re load- 
ing cannon! Get’eminhere! (Bill 
hurries off left.) And you, Kelly, 
carry this short case over to my 
office. (Kelly quickly takes case 



SD tae. 


and moves off left. Bill’s voice can 
be heard off-stage summoning the 
rest of the department help into the 
shipping room. Ralph and Mur- 
ray face each other in grim silence 
until Bill and his men come strag- 
gling in with curious, sombre ex- 
pressions on their faces. Jack 
Wesley follows every movement 
about him with quick, alert glances. 
Everyone waits for Murray to be- 
gin speaking. He clears his throat.) 
Murray—Men, I’ve called you in 
here on serious business. There is 
a vicious ring of thieves operating 
in this department. Several hun- 
dred dollars worth of merchandise 
has been stolen in the last two 
months. The company’s lost almost 
a dozen of its best customers as a 
result of this state of affairs. Too 
many cases are short. It can’t go 
on! And the company doesn’t in- 
tend to let it go on! It refuses to 
run a society for crooks. Get that 
through your heads right now! 
The watchman has been keeping 
tab on everyone who enters this de- 
partment. He’s positive that no 
one except you men in here are 
guilty. So if any of you know who’s 
doing the dirty work, you’d better 
talk up. If you don’t, I’m going to 
fire the whole crew! I repeat, it’s 
your last chance to come clean. 
(Pulls out his watch.) I’m giving 
you one minute to talk! (Tense 
silence. Murray eyes the men 
fiercely. As the minute passes the 
workers look at each other, at 
Murray and then at Ralph with 
varying expressions. Ralph appears 
calm, set-jawed. At length Murray 
thrusts his watch back in pocket. 
Then bluntly.) Well? (Still 
silence.) Ten seconds left! Either 

talk or else—! (Silence continues. 
Anxiety shows on faces of men. 
Their eyes appeal to Ralph 
who stares straight ahead. Mur- 
ray’s expression becomes uncom- 
promisingly hard. Looks at watch 
again.) ll right, your time’s up! 
(With finality.) I’m suspending 
operations in this department. 
Punch out and get your checks. 
They'll be ready in half an hour. 
(Turns to Bill.) I’m giving you 
strict orders to hire a whole new 
crew. (Wheels brusquely and starts 
to leave.) 

Ralph—(As if a statue snapped into 
life.) Just a minute, Murray! 
Murray—(Making a right-about 
face.) You’ve had your chance to 
talk, Woods! You're no longer an 


Ralph—That’s for us to decide! 

Murray—What do you mean—it’s 
for us to decide? I’m warning 
you, there’ll be no sit-downs in this 

Ralph—Who’s tryin’ to pull a sit- 
down? We’re standing up for our 
rights! If you’ll let that steaming 
kraut-head of yours cool off, maybe 
we can get somewhere. 

Murray—(Booming.) I’m asking 
you for the last time to get out of 
this plant and stay out! 

Ralph—(With a strange, threaten- 
ing gentleness in his voice.) Listen, 
Murray, every man here has in- 
vested a lot of time, hard labor 
and what little brains he’s got to 
make the organization in this part 

of the plant click, so together we’re 

takin’ our sweet time to set things 
straight. Don’t forget, we’ve bar- 

gained for these jobs. We've got a 

contract with the company. So far 

we've kept our part of the bargain. 


There hasn’t been any trouble. 
(His voice rises.) But this whole- 
sale firing is a company sit-down, 
crack-down or whatever you call 
it! It’s just as much of a crazy 
stunt to discharge a whole shift of 
men because there’s a coupla crooks 
in it as it would be for us to walk- 
out or sit-down over a grievance 
of a coupla men. Where will it 
get you? What’ll happen to those 
of us who’re white? Here’s Jack! 
Over there’s Ted! And there’s 
Sam and the rest of them! They’ve 
got women and kids at home to 
look after. What’s gona become 
of ’em? Everybody, even their own 
kiddies, will say they got fired for 
stealin’! It'll be thrown in their 
face every time they ask for a job. 
Get this straight, Murray, the 
Union’s standing pat! We're stick- 
ing on the job! 
Murray—(Sputtering.) Ill report 
this to the management, Woods! 
Ralph—Sooner the better. (Kelly 
enters left.) 
Murray—(Gruffly to Kelly.) Show 
these men out. 
Kelly—Come on, fellahs! 
movin’ ! 
Ralph—(Addressing the men.) 
Don’t pay any attention to the tin 
soldier! You heard what I just 
told the boss. We're sticking on 
the job. Only we're still on the 
spot, fellahs. We didn’t put our- 
selves there, but we’re there 
whether we like it or not. Some 
of us are crooks, that’s a gut! It’s 
one of those funny situations life 
gets us in sometimes when we’re 
crooked-looking innocents ’cause 
we happened to be around some 
innocent-looking crooks. Now if 
you innocent-looking crooks have 



got a speck of decency left in you, 
you'll come clean. We’re not goin’ 
to take the rap for you. And you’! 
lose your jobs, that’s a cinch! But 
it’ll show one thing—that you ain’t 
past the man stage yet! Come on, 
whoever you are, and spit it out. 
Get it off your chest! You'll feel 
better! (Pause. No answer. The 
men wear concerned, sober expres- 
sions. Murray moves up to Ralph’s 
side and watches them with a pierc- 
ing gaze.) 

Murray—(With a sneering under- 
tone.) Well, Woods, seems as if 
your little spiel didn’t help, either. 

Ralph—lI'm not licked yet. 

Murray—My decision still stands. 

Ralph—Sorry, Murray, you’ve asked 
for it, so I’m goin’ to let you have 
it. You haven’t got a good reason 
for firing us. Just suspicions. And 
suspicions ain’t enough. Read the 
contract. You've got to have facts! 
Proof! Any way you look at it, 
the jobs are still ours! 

Murray—What kind of a strike are 
you trying to pull? 

Ralph—Call it a ‘working’ strike, if 
you like! (Turns to the men.) 
Come on, fellahs, let’s go back to 
work. The party’s over. (The 
men begin to stir. To Murray.) 
Thanks. We had a nice time at 
your doings. 

Murray—(Clinching his fist.) I dare 
you to do this. (The men stop to 
watch. ) 

Ralph—We'’re doing it, ain’t we? 
(Picks up case and puts it on 
truck. ) 

Murray—(Exploding.) Kelly! 

Kelly—(Jumping.) Yes, sir. 

Murray—Jerk this gang out of here! 
Call in the other watchmen! 


Kelly—(Grabbing Ralph by the 
arm.) Come on, big shot, you’re 
first | 

(Murray glares at the men waiting 
for a signal from Ralph.) 

Murray—Drag ’em out! 

Ralph—(To Kelly.) Take that dirty 
paw off me! 

Kelly—(Cringing a little, tugs at 
Ralph’s arm.) Easy, now. It 
won't hurt yuh. 

(In a flash Ralph socks him on the 
jaw. Kelly staggers against Ted 
and another worker. They hold 
him up as Murray gapes amaze- 
ment. ) 

Ralph—Let ’im flop, Ted. (Kelly is 
lowered to the floor.) Frisk him! 

(Everybody stares at Ralph incred- 
ulously. ) 

Ted—He’s got a bottle on ’im. I 
can feel it. 

Ralph—All right. Pull it out. 

(Ted unbuttons watchman’s shirt and 
pulls out bottle.) 

Ted—(Holding it up.) Look! 

(Murray is positively flabbergasted. 
He takes the bottle and stares at 
it as if unable to believe his eyes. 
Ralph grins slyly. Bill edges away 

Murray—I'll be damned! 

(Kelly stirs and blinks, then springs 
to his feet. Ted grabs and holds 
him. Bill has backed up against a 
stack of cases and stares around 
as if looking for a getaway. Kelly’s 
ratty, scared eyes fix on him. Bill 
sends back a don’t-you-squeal 
look. ) 

Kelly—(Stammering.) I ain’t the 
only one mixed up in this, boss. 
Murray—Who else is in on it? Spill 


Kelly—(Quavers.) Let me keep my 
job, boss! I'll tell! 


Murray—(Threateningly.) You'll 
tell, anyway. Either do it or I'll 
turn you over to the cops. 

Kelly—Bill’s in on it. He’s got some- 
body helpin’ him. 

Bill— (Suddenly plunging at. Kelly.) 
You dirty iiar! (The men seize 
Bill and pin his arms back. Bill 
hisses at Kelly.) You yellow 
skunk! I'll get you for this! 

Murray—(Shaking Kelly.) Who’s 
the other crook? 

Kelly—Jack Wesley. 

(There is a murmur of surprise. 
Ralph’s jaw drops. The men look 
at Jack whose eyes appear glazed, 
a far-away, unnatural expression 
in them. All color has drained out 
of his cheeks. He gives Ralph a 
quick, tragic glance and drops his 
head in his hands.) 

Ralph—(Goes to him and puts a 
hand on his shoulder.) Is Kelly 
tellin’ the truth, Jack? 

Jack—(Nodding, then throws him- 
self on Ralph.) You've got to help 
me, Ralph. I didn’t want to do it. 
I had to! I wasn’t makin’ enough 
money to save the kid. (Breaks 
away and appeals to the men.) I’m 
not a crook! Can’t you see, fel- 
lahs? I had to have money. I 
never stole a thing in my life be- 
fore. But I couldn’t see my kid die. 
(Breaks down in convulsive sobs.) 

Ralph—(Throwing an arm around 
Jack’s shoulders.) Take hold of 
yourself, Jack. (Looks at Mur- 
ray.) Has he got a chance? 

Murray— (Shaking his head sternly. ) 
He’ll be treated like the rest. All 
three of them can consider them- 
selves lucky the company doesn’t 
prosecute them. 


Ralph—(To Jack.) Another tough 
break for you, pal. Too bad you 
had to bring it on yourself. (Looks 
sadly into the distance.) But I 
know what a working-stiff’s up 

Murray—(To the men.) Take ’em 
out to the gate. (Kelly, Bill and 
Jack are led off left.) 

Ralph—See you to-night, Jack. 
(Jack seems not to hear.) 

Murray—(To Ralph.) What ever 
made you suspect Kelly? 

Ralph—(Staring after Jack.) His 
fingers stuck to my sleeve. He for- 
got to wash all the glue off. 




EARS ago there were two 

young men, and these two 

young men were brothers; one 
named Tom and the other named 
John. Tom was married and John 
was a bachelor. They each lived to 
eighty-five. When Tom was twenty- 
one and married, and John was 
twenty and unmarried, each inherited 
$10,000 cash from their father. 
When Tom was twenty-two, he had 
a son born, and bought a farm for 
$20,000, using his $10,000 inherit- 
ance and borrowing John’s $10,000 
at 6 per cent annual interest. When 
Tom’s son arrived at twenty years of 
age, he got a job at a minimum wage of 
40 cents per hour and maximum work 
week of forty hours per week. He 
worked for forty years continuously 
and never took a day’s vacation, mak- 
ing each year the wage of $16 per 
week, or $832 a year, and during his 
forty years, he made $33,250. When 
he was sixty years of age he was worn 
out and could work no longer. It had 
cost his father $400 a year, as per 
income tax exemption, or a total of 
$8,000, to bring him to twenty years 
of age when he was fit to become eco- 
nomic fodder for the capitalistic sys- 

tem. He never reimbursed the father 
for this expense because it took all 
he made during the next forty years 
to keep himself alive and go back to 
work the next day. 

Now Tom’s brother John took a 
job and during these sixty years he 
eked out an existence for himself by 
his labor here and there, each year 
receiving $600 interest from his 
brother Tom. Over the period of 
sixty years he received $36,000, and 
at the end of the sixty years he still 
had his $10,000 mortgage on his 
brother Tom’s farm, making a total 
of $46,000 that he had. 

Now these two brothers were talk- 
ing over their affairs, and Tom figures 
that he had farmed and done very 
hard work and had raised a son who 
never amounted to very much. That 
he was exactly where he had started, 
whereas John said that he now had 
$46,000. They had both worked and 
served the capitalistic system. One 
had helped keep up the human race, 
his son at times being subject to call 
in the defense of his country; whereas 
the other one had served the capital- 
istic system from his own standpoint 
and had accumulated $36,000 in ad- 


dition to his inheritance of $10,000. 
Tom looked to his brother John as 
a rather rich man in the community, 
and John looked down on his brother 
Tom as rather an unfortunate mem- 
ber of the family. This seemed to be 
the opinion of the neighborhood; that 
John was somewhat of a success, 
while Tom was not much to be proud 
of. In a talk among themselves, Tom 
ventured the opinion that there was 
something unfair about the deal, and 
that he thought the President was at- 
tempting to correct it, and that he 


had voted for the President. Whereas 
John thought the system was work- 
ing fine; had voted against the Presi- 
dent, and said he was dangerous to 
the country. 

Here are the results of these two 
American men: one died leaving a 
mortgaged farm to his wife and a 
worn-out son. The other one died 
leaving a mortgage on his sister-in- 
law’s farm and $36,000. One be- 
lieved in the President; the other be- 
lieved him dangerous. This is the 
working of the capitalistic system. 

(After an early drawing by Van Gogh) 

Down to Diurnal Hell 
they go, to find 

and powerfully compel 
Light for mankind. 

Daily the scapegoat bands, 
sun sold for candles, 

descend—jet-knuckled hands 
nailed to pick-handles. 

For us the Sons of Woman, 
morn after morn, 

bear on their brows a common 
crown of thorn. 




“Section 7. Employees shall have 
the right of self-organization, to 
form, join, or assist labor organiza- 
tions, to bargain collectively through 
representatives of their own choosing, 
and to engage in concerted activities, 
for the purpose of collective bargain- 
ing or other mutual aid or protec- 

HE Second Annual Report of 

the National Labor Relations 

Board recently published, re- 
views the principles established by the 
N.L.R.B. and carries the analysis of 
these principles through June 30, 

It is important for officers and 
members of unions who come in 
contact with cases arising under the 
National Labor Relations Act or 
who are actively engaged in pressing 
charges in behalf of their union with 
the Regional Director of the Board 
to familiarize themselves thoroughly 
with this analysis contained in the 
Board’s Report. Copies of the Second 
Annual Report of the National Labor 
Relations Board may be obtained by 
writing the Superintendent of Docu- 
ments, Washington, D. C. The re- 
mittance of twenty cents per copy by 
postal money order, by check or in 
cash should accompany the order. 

The following is a brief outline of 
the principles established by the Na- 
tional Labor Relations Board in cases 
arising under Section 8 of the Na- 
tional Labor Relations Act. 

1. Interference, restraint and co- 


“Sec. 8 (1). It shall be an unfair 
labor practice for an employer to 
interfere with, restrain, or coerce em- 
ployees in the exercise of the rights 
guaranteed in Section 7.” 

As we have pointed out in previous 
discussions of the Board’s decisions, 
Section 8(1) of the Act makes it an 
unfair labor practice for an employer 
to interfere with, restrain or coerce 
employees in the exercise of the rights 
guaranteed in Section 7. The Board 
has held that a violation by an em- 
ployer of any of the other four sub- 
divisions of Section 8 of the Act is by 
the same token a violation of Section 
8(1). In almost all of the cases in 
which the Board has found a viola- 
tion of Section 8(1) the principal 
offense charged fell within some other 
subdivision of Section 8. The follow- 
ing practices of the employer have 
been found to constitute interference, 
restraint and coercion, and therefore 
to be in violation of Section 8(1) : 

(a) Employment of professional 
spies and strikebreakers to propagan- 
dize, provoke and terrorize union 
members who incite violence in strikes 
and picketing to spy upon and other- 
wise intimidate union workers. 

(b) To spy upon the union activi- 
ties of his employees through the em- 
ployer’s own system of espionage by 
utilizing foremen, supervisors and 
regular employees of the company. 

(c) Union espionage by the em- 
ployer himself or the officials of a 

(d) All other forms of espionage 
but only when such espionage is 


carried on in an effort to discriminate 
against union members and leaders or 
otherwise connected with union ac- 

(e) Spreading propaganda against 
unions to prejudice the mind of work- 
ers against them or to indicate that 
the employer disapproves of unions 
and is prepared to make this disap- 
proval effective. 

(f) Recurrent threats to close or 
to move the plant or to go out of 
business if the union succeeds in or- 
ganizing the employees. 

(g) Threatening eviction, with- 
drawal of credit and other forms of 
coercion in communities where the em- 
ployer is in a position to resort to 
these means. 

(h) Efforts to discredit the union 
and deliberately bring it into disrepute 
by describing the union as a “racket” 
and making unfounded accusations of 
crookedness and corruption on the 
part of union organizers, officers or 

(i) Threats to discharge union 
members or to replace them with non- 
union employees or to refuse to give 
pay increases to employees who are 
members of the union. 

(j) Intimidation and coercion of 
individual employees by seeking to 
dissuade through interviews with indi- 
vidual workers, his employees from 
joining the union. 

(k) Framing and foisting indi- 
vidual contracts upon the employees 
to defeat any attempt at collective 

(1) Employer’s refusal to deal 
with representatives who are not in 
his employ thereby discouraging afili- 
ation with an outside union. 

(m) Refusal to negotiate with the 
union committee concerning the re- 


turn of strikers under the terms of a 
prior contract providing for the re- 
turn of such employees. 

(n) Activities which have the ef- 
fect of injuring the morale of union 
members such as arbitrary abroga- 
tion of a seniority rule established as 
a result of collective bargaining. 

2. Encouragement or discourage- 
ment of membership in a labor organ- 
ization by discrimination. 

“Sec. 8. “It shall be unfair labor 
practice for an employer—(3) By 
discrimination in regard to hire or 
tenure of employment or any term 
or condition of employment to en- 
courage or discourage membership in 
any labor organization”: 

In cases arising under Section 8 (3), 
the Board held that this section is not 
intended to interfere generally with 
the employer’s right to hire and dis- 
charge as he pleases. He may employ 
anyone or no one; he may transfer 
employees from task to task within 
the plant as he sees fit; he may dis- 
charge them in the interest of effici- 
ency or from sheer caprice. But in 
making these decisions, he must not 
differentiate between one of his em- 
ployees and another, and between 
his actual or his potential employees 
upon the grounds of union affiliation 
or activity. 

A. Discrimination with regard to hire 
or tenure of employment 

The employer engages in an unfair 
labor practice if he commits any of 
the following acts: 

(a) Openly discharges certain em- 
ployees for taking part in union ac- 


(b) Discharge of employees due 
to their refusal to sign a “‘yellow-dog” 
contract whereby the employee or 
prospective employee promises not to 
join a legitimate union or to join a 
company union as a condition of em- 

(c) Discharging an employee for 
union activity under the pretext that 
the discharge is for inefficiency, in- 
subordination, infraction of rules or 
other legitimate cause. 

In finding that such defences were 
not real, the Board said: 

“Experience has shown this Board 
that there is no field of employment 
where employers can so easily find 
means to cloak their real motives for 
discharging employees as in the em- 
ag se of bus or truck drivers. 

n practically every case which has 
come before us involving such em- 
ployees, it has been charged and 
proven that the discharged employees 
have exceeded the speed limit, left 
their route, or made stops not strictly 
in line with their duties. But from 
the very nature of the work of bus or 
truck drivers it is apparent that an 
employer has only to follow any truck 
or bus driver for a short time to find 
him guilty of many such violations. 
Weare, therefore, not impressed with 
the sincerity of an employer who ad- 
vances such reasons for a discharge, 
where he fails to show that such vio- 
lations are flagrant or repeated and 
where the surrounding circumstances 
indicated that the employee was active 
in union activities to which the em- 
ployer was opposed. 

“It is not the purpose of the act, 
or the intent of the Board in admin- 
istering the act, to curtail the normal 
right of an employer to discipline his 
employees. There is a duty, how- 
ever, as the Board sees it, to thrust 
subterfuge aside. Cause for dis- 


charge is a valid answer to the charge 
of discrimination when, judged by all 
the facts in the record, it is an honest 
answer. When cause, so judged, is 
found wanting, it may well be discrim- 
— within the meaning of the 

It is important to note that in such 
cases, the Board has held that an em- 
ployee need not actually be a union 
member or engaged in union activity 
for his discharge to be a violation of 
the Act. All that is necessary is that 
his discharge have the necessary effect 
of discouraging membership in the 

It is also important to note that 
discrimination need not include only 
cases of outright discharge but also 
demotions, temporary lay-offs, or fur- 
loughs where discriminatorily ap- 

B. Discriminatory Refusal to Rein- 
state Employees After a Shut- 
Down, Lock-out, or Strike 

A discharge or a lay-off for union 
activities, the Board has held, may 
violate section 8(3), whether or not 
it is accompanied by a discriminatory 
refusal to reinstate. Conversely, a 
refusal to reinstate certain employees 
because of their union affiliations has 
been held to violate the act, even 
though the original severance of em- 
ployment was entirely innocent, as in 
the case of a shut-down for lack of 
business, or was caused by the em- 
ployees themselves, as in the case of 
a strike. Ordinarily a refusal to rein- 
state has not been found in such cases 
unless the employees have applied for 
reinstatement either in person or 
through their representatives and 
been denied. Where, however, em- 
ployers have themselves taken the 


initiative in recalling certain em- 
ployees and it has been understood 
that only those so notified would be 
reemployed, application for reinstate- 
ment by the employees themselves 
has not been required. And where 
the original severence of employment 
was itself an unfair labor practice, the 
Board has held that the employer was 
under a duty to offer reinstatement 
to his employees and their failure 
to apply for it was immaterial. 

The Board has held it to be an un- 
fair labor practice for an employer 

(a) to offer reemployment con- 
ditioned upon the abandonment by 
the employee of his union activities 
and the renunciation of his rights 
under the Act; 

(b) black listing certain employees 
and letting it be understood that they 
would not be reemployed; 

(c) lock-out of a group of em- 
ployees for union activities and con- 
tracting out to other concerns in order 
to avoid reemployment of employees 
active in the union. 

C. Discrimination in Regard to Any 
Term or Condition of Employ- 

Such discrimination includes: 

(a) Any preference given to the 
members of a company-dominated 
union as against members of an out- 
side union. 

(b) Demotion of a foreman for 
giving a outside union man a good 

(c) Paying higher wages to com- 
pany union members than to outside 
union members for equivalent work. 

(d) Conditioning reemployment 


after strike upon membership in a 
company-dominated union. 

(e) Refusal to rehire striking em- 
ployees unless they renounce all their 
affiliations with labor organizations. 

D. The Closed Shop Proviso 

The provision in section 8 (3), per- 
mitting employees to require mem- 
bership in a labor organization as a 
condition of employment if such a 
labor organization is the representa- 
tive of the employees in the appropri- 
ate collective bargaining unit, is quali- 
fied in one important respect. The 
labor organization must not have 
been established, maintained, or as- 
sisted by any action defined in the act 
as an unfair labor practice. The pro- 
viso with its qualification has been in- 
terpreted by the Board in several 
cases. In Matter of Clinton Cotton 
Mills, the respondent, having shut 
down its plant, concluded a closed- 
shop contract with the “Clinton 
Friendship Association”, a labor or- 
ganization which it had caused to be 
organized among certain of the em- 
ployees at its plant. On reopening 
its mill, it posted a notice stating that 
pursuant to this contract only mem- 
bers of the Clinton Friendship Asso- 
ciation would henceforth be em- 
ployed. Ninety-six employees who 
refused to join the Friendship Asso- 
ciation were refused employment. 
The respondent urged that since a 
closed-shop contract was permitted 
by the proviso, its conduct did not 
constitute discrimination within the 
meaning of the act. The Board 
stated that as the Friendship Associa- 
tion had been established by acts de- 
fined in section 8(2) of the act as un- 
fair labor practices and hence came 


within the qualification of the pro- 
viso, the general provisions of section 
8(3), applied, and the respondent 
must be found to have engaged in a 
discriminatory refusal to reinstate the 
96 employees. The Board similarly 
condemned closed-shop contracts exe- 
cuted with company-dominated unions 
in Matter of Lion Shoe Company 
and in Matter of Hill Bus Co., Inc. 

Directions of Elections by the 
N. L. R. B. 

Dec. 15, 1937-Jan. 15, 1938 

Shick Dry Shaver Company, 
(Lodge No. 1557, International 
Association of Machinists.) R-263 
and R-264. December 15, 1937. 
Amendment to Decision and Di- 
rection of Elections, withdrawing 
name of United Electrical and 
Radio Workers of America from 
ballot and amending Direction of 
Election to ascertain if Lodge No. 
1557 of the International Associa- 
tion of Machinists will represent 
the remaining groups of employees. 

Pacific Greyhound Lines, 
(Brotherhood of Locomotive Fire- 
men and Enginemen.) R-195. Di- 
rected December 16, 1937; election 
to be held within 30 days from that 
date. This Direction of Election 
amended on December 23, 1937; 
extending the time to 50 days from 
the date of election. 

American Hardware Corporation, 
(United Electrical and Radio 
Workers of America.) R-271. 
Amendment to Decision and Direc- 
tion of Elections, December 17, 
1937. The United Radio and 
Electrical Workers of America are 


withdrawn from the ballot and the 
Direction of Election is amended 
to provide that the machinists, tool 
makers, and die makers, excluding 
foremen, will decide merely 
whether they desire to be repre- 
sented by the International Asso- 
ciation of Machinists. 

Showers Brothers Furniture Com- 

(The Upholsterers, Furniture, 
Carpet and Awning Workers, Lin- 
oleum Workers Union, Local No. 
184.) R-339. Direction of Elec- 
tion, December 17, 1937; election 
to be held within 15 days from that 
date. Amendment to Direction of 
Election December 29, 1937, fix- 
ing date of election to be held 
“within such time as may hereafter 
be determined.” Second Amend- 
ment to Direction of Election, De- 
cember 31, 1937, requiring that 
election be conducted within 30 
days from that date. 

Allis-Chalmers Manufacturing Com- 

(International Union, United 
Automobile Workers of America, 
Local No. 248.) R-215. Second 
Amendment to Direction of Elec- 
tion, December 22, 1927, extend- 
ing election to include all produc- 
tion clerks. 

Loose-Wiles Biscuit Co., Inc., 
(United Bakery and Confectionery 
Workers.) R-389. Direction of 
Election, December 23, 1937; elec- 
tion to be held within 15 days from 
that date. 

Walker Vehicle Company and the 
Automatic Transportation Com- 
pany, divisions of the Yale & 


Towne Manufacturing Com- 

pany, and, 
(Walker-Automatic Independent 
Labor Association.) R-319. Sec- 
ond Amendment to Direction of 
Election, December 31, 1937, 
amending title of Nira Lodge No. 
1328 of the Amalgamated Asso- 
ciation of Iron, Steel and Tin 
Workers of America, whose name 
appears on the election ballot. 

The Perry-Fay Company, 
(Lodge 1282, International Asso- 
ciation of Machinists.) R-393. 
Amendment to Direction of Elec- 
tion, December 23, 1937, directing 
that election be held within 40 days. 

Bishop & Company, Inc., 

(United Cracker, Bakery and Con- 
fectionery Workers, Local Indus- 
trial Union No. 212.) R-382. 
Amendment to Direction of Elec- 
tion, December 23, 1937, directing 
that election be conducted “fon or 
before January 8, 1938.” 

Interlake Iron Corporation, 
(Amalgamated Association of 
Iron, Steel and Tin Workers of 
North America, Local No. 1657.) 
R-316. Supplement to Direction 
of Election, December 28, 1937, 
denying motions made by Employ- 
ees Association of Interlake Iron 

Chase Brass and Copper Company, 
(Waterbury Brass Workers’ 
Union.) R-308. Supplemental De- 
cision and Order dismissing peti- 
tion of Waterbury Brass Work- 


ers’ Union No. 251 of the C.1.O., 
January 10, 1938. 

Greer Steel Company, 

(Tuscora Lodge No. 173, Amal- 
gamated Association of Iron, Steel 
and Tin Workers.) R-387. Sup- 
plemental Decision and Order, 
January 10, 1938, dismissing peti- 
tion of Lodge No. 173, Amalga- 
mated Association of Iron, Steel 
and Tin Workers. 

Fedders Manufacturing Company, 
(Lodge No. 1753, Amalgamated 
Association of Iron, Steel and Tin 
Workers of North America, 
through the Steel Workers Organ- 
izing Committee.) R-258. Direc- 
tion of Election, January 10, 1938, 
directing election to be held within 
20 days from that date. 

Kinnear Manufacturing Company, 
(Steel Workers Organizing Com- 
mittee.) R-359. Direction of Elec- 
tion, January 10, 1938, election to 
be held within 15 days from that 

Canadian Fur Trappers, 
(Retail Sales Clerks Union of New 
Jersey.) R-357. Direction of Elec- 
tion, January 13, 1938. Election 
to be held within 15 days of that 

American Sugar Refining Company, 
(Committee for Industrial Organi- 
zation.) R-363. (United Sugar 
Workers Union, Local No. 21023.) 
R-364. Direction of Election, Jan- 
uary 13, 1938. Election to be held 
within 15 days of that date. 

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Purchasing power translated into practical every-day words 
means what people have to spend to buy the things they want. When 
people buy in the retail stores, they start a chain of business activity 
that extends all through the system. Wage earners and their families 
constitute the great majority of those buying in retail stores. If 
wages are high and the wage envelope full, business activities in- 
crease; if wages drop, business becomes dull. Wages have a two-fold 
function in our economic structure: they represent the costs of the 
labor that goes into production and they constitute the majority part 
of purchasing demand for goods on the market. 

Any employer who cuts wages, is subtracting from the purchas- 
ing demand upon which he and other employers must depend in order 
to keep production moving. There is no point in producing goods that 
cannot be sold. 

Be on guard against this sort of thing which is happening in many 
places: Plants are shut down and after a brief interval the employer 
sends for the union representative saying he has a chance at a contract 
but at such prices and conditions that he must ask the union to accept 
lower wage rates. The choice as he puts it is to work at lower rates 
or no work. There are evidences that in many cases shutdowns are 
quite unnecessary but planned for the purpose of reducing wages. 

Upon each and every union rests responsibility for maintaining 
wages against proposals for reduction, and an equal responsibility 
for keeping wages expanding with production output. It is only by 
lowering the costs of the unit of production and maintaining and 
raising wages that standards of living rise and wage earners keep 
pace with social progress. 

The problem of preparation for negotiation of your union agree- 
ment is a constant one for union executives. Study your industry as 
well as your ownemployer. The Federation stands ready to help you. 

Be ccieten a number of local 

unions have asked our Research 
Division for reports on their 
industries covering wages, hours, pro- 
duction, prices and the outlook for the 


A Geo 

President, American Federation of Labor. 


immediate future. Such reports for 
use in wage negotiations have been 
furnished within the last month for 
sugar workers and winery workers in 
the west, wholesale grocery workers 


in the central states, knit goods work- 
ers in New York, rubber brush work- 
ers in the middle west, retail store and 
restaurant workers in New England, 
cement workers, bed and bedding 
workers and others, and a number of 
similar studies are under way for local 
unions in other industries. 

Local union executives who expect 
to meet with your employers in con- 
ference, want to know from the rec- 
ords whether your company is able to 
grant a wage increase, and how large 
an increase. You do not want to de- 
pend on your employers for this in- 
formation. If your employers are 
asking for a wage reduction, you want 
to know whether this is really neces- 
sary, whether there may not be some 
other way of saving expenses during 
a dull period so that your wage scale 
may be kept intact and members may 
benefit as soon as business picks up. 

The facts which Federation head- 
quarters can furnish for such nego- 
tiations are best illustrated by an ex- 
ample from one of our studies. 

Recently a request from sugar 
workers in California sent our Re- 
search Staff to the U. S. Department 
of Agriculture, the Tariff Commis- 
sion, the Labor Department, and 
other government agencies for facts 
on wages, hours, production and tech- 
nical advance in the industry, and to 
private investment services for infor- 
mation on profits and financial con- 
ditions of the companies concerned, 
location of plants, management, con- 
trol, and other information. 

Financial information on the com- 
panies concerned showed that organ- 
ized Sugar Refinery Workers are 
dealing with several of the industrial 


giants of our day—corporations 
whose network of plants extends 
throughout the Rocky Mountain and 
Pacific Coast States, and the beet rais- 
ing sections of the Great Plains; 
whose capital stock and surplus run 
up to ten or twenty millions and 
whose profits also are counted in the 
millions; whose operations cover 
every phase of sugar production— 
from growing the beets (and even the 
beet seeds), and irrigating the land, 
to refining the sugar and marketing 
the final product. 

These companies have branch 
plants in California, Colorado, Wyo- 
ming, Montana, Nebraska and states 
further east, and it was clear at once 
that if wage earners are to deal with 
them and establish uniform stand- 
ards, the trade union must follow the 
network of plants in each company. 
Lists of branch plants with their loca- 
tion and capacity were furnished to 
the local and to organizers. In all 
the states named organization is al- 
ready proceeding rapidly, agreements 
are being signed and work standards 
established. Research revealed the 
following standards already set up by 
agreement by unions affiliated with 
the American Federation of Labor in 
Colorado and Wyoming: 

Cents Cents 
per hour per hour 
NS 6 So) Ss a 55to80 6oto 80 
Knife setters, carbonaters, 
Witt tes aact cs cass 57% 60 
Sugar stackers and melters, 
COE TNE, BR. os... 5 05:0 0:0 57% 55 
Beet receivers, scales, sweep- 
EEE cp cmes asics 47% 50 
Clerical, custodians ........ 47% 50 



8 per day at all times 
40 per week in intercampaign season* 
56 per week in campaign season* 
Time and one-half for overtime 

Closed shop agreement. 


Two weeks with pay per year for 
year round employees. Other provisions 
cover seniority, safety, employees com- 
mittee, arbitration. 

All the sugar companies concerned 
were found to be in very strong finan- 
cial condition and able to pay liberal 
wages. Profits had been high; one 
company earned and paid dividends 
of 33 per cent on its common stock 
in the year ending October, 1937. 
This was made possible by a 41 per 
cent increase in the volume of sugar 
sales and an increase of 24 cents per 
100 lbs. in the price of sugar. An- 
other of these giant sugar corpora- 
tions had earned, in the year ending 
March, 1937, a profit of 25 per cent 
on its tangible net worth or 109 per 
cent on the book value of its common 
stock and paid common dividends of 
approximately $3.75 a share on 
shares with a book value of $5.00. A 
third and smaller company paid divi- 
dends of more than 10 per cent on 
common stock in 1936. 

The combined earnings of these 
three corporations in the year which 
included the 1936 season showed a 
profit of 15 per cent on their tangible 
net worth. Tangible net worth is capi- 
tal stock plus the surplus “ploughed 

1 The “sugar campaign” takes place in the fall 
of each year, lasting for about 3 months, when 
the beet crop is processed. In inter-campaign 
season companies employ a skeleton force. One 
concern employed 3,000 persons during the cam- 
paign, 600 of whom were year round workers. 


back” into the business from previous 
profits. Fifteen per cent on tangible 
net worth is a very high figure. Na- 
tional City Bank figures for earnings 
of 940 leading industrial corporations 
in the year 1936 showed only 10 per 
cent on tangible net worth. The com- 
bined figures for these three sugar 
refining corporations were: 

Tangible net worth....... $33,608,000 
Net earnings ............. 5,034,000 
Per cent earned .......... 15% 

Ordinarily six or at most eight per 
cent on capital stock is considered a 
“fair profit”.2 These companies’ 
combined income was 28 per cent on 
their capital stock: 

Casetet Siesk.....<...00.%. $18,098,000 
Net earnings ............. 

Per cent earned .......... 

Earnings such as these make pos- 
sible the so-called American Standard 
of living, with progress for workers 
from year to year as profits increase. 
But unless union negotiators have the 
facts well in hand, earnings will be 
diverted away from wage earners and 
union members will not secure the ad- 
vance in living standards to which 
such earnings entitle them. 

Furthermore, the sugar industry 
has benefited greatly by tariffs and the 
Government quota system which has 
made it possible for these companies 
to increase production, and thus cut 
unit operating costs and enjoy an in- 
creasing margin of profit. Regula- 
tions set up by the Federal Govern- 
ment should benefit all concerned in 
an industry and the employees, 
through their unions, should claim 
their fair share of the wealth created. 

A study of the technical advance in 

* Note hearings for railroads under Interstate 
Commerce Commission, provisions of consumers’ 
cooperatives, etc. 


the beet sugar industry, from records 
compiled by the Agricultural Adjust- 
ment Administration, showed a 7 per 
cent increase since predepression days 
in the volume of sugar produced per 
ton of beets. In the 5 years ending 
1930, each ton of beets yielded on the 
average 285 lbs. of sugar; in 1935, 
the yield per ton was 304 lbs. Amer- 
ican progress rests on the principle 
that workers shall share in the grow- 
ing wealth created by advancing in- 
dustrial techniques. These records 
show therefore that sugar workers’ 
wages should be above the 1929 level. 
Especially is this true in the Califor- 
nia and western districts where cor- 
porations are equipped with the best 
modern techniques. 

Actually however weekly wages in 
the sugar industry are below 1929. 
In 1935, when sugar produced per 
ton of beets was 7 per cent above 
1929, in the United States as a whole, 
weekly wages in California were 20 
per cent below 1929. Workers had 
gained something in shorter hours, 
but not nearly enough to compensate 
for the decline in wages, which had 
dropped from average $29.50 a week 
in 1929° to $20.00 in 1933 and had 
risen only to $23.60 by 1935. By 
1937, wages had risen further to 
$28.25 average,* but were still below 
the 1929 level. 

Organization in the sugar industry, 
which has taken place chiefly during 
1937, has already raised Sugar Work- 
ers’ income. Gains under agreements 
have ranged up to $15.00 a week in 
Colorado and Wyoming; and the av- 
erage hourly wage in California in 

* All these averages are for the last half year. 
Figures for the first half of 1929 could not be 

*Last 5 months. 


July and August, 1937, was 16 per 
cent above 1936 (same months), a 
greater gain than the average for 
manufacturing industry in the coun- 
try as a whole, which was 15 per cent 
for these months. 

The effect of organizing activities 
on sugar workers average weekly in- 
come in California was particularly 
striking. From 1935 to 1936—com- 
paring the last half year, the sugar 
campaign season, sugar workers’ 
weekly income declined by 70 cents 
per week although sugar companies 
increased their profits. In 1937, when 
workers were organizing, average 
weekly income increased by $5.65 
over 1936. The average figures for 
last half of each year were: 1935: 
$23.60; 1936: $22.90; 1937: $28.55. 

These reports show clearly the very 
profitable results of the last year’s 
operations and the importance of 
trade union organization if workers 
are to share in the increased wealth 
they are helping to create. 

The Research Division stands 
ready to provide similar reports for 
any local unions or organizers desir- 
ing them. It is not always possible to 
secure as complete information on 
operating results as those of the sugar 
companies, but useful information of 
various sorts—such as wages, prices, 
production, general condition of the 
companies concerned, location of 
plants—can always be found. 

Armed with the facts about their 
plant and industry, union officers are 
well equipped to meet their employers 
in negotiations. An agreement based 
on facts can give union members true 
partnership in their enterprise, so that 
they can contribute to its efficient op- 
eration and share in the income pro- 



Tuomas N. TayLor 
Organizer, American Federation of Labor 

General Instructions: 

No one can speak in the meeting 
until recognized by the Chairman. 

Three raps of the gavel calls all 
members to their feet. 

One rap with the gavel seats the 
members when standing. 

J.J. Kennedy: Presiding. 

Opens meeting strictly as outlined 
in Manual on pages 1 and 2. 

Calls for roll call of Officers by 
Recording Secretary. 

J. J. Kennedy, President 

John Nafe, Vice-President 

L. S. Stiegel, Recording Secretary 

Rose Critelli, Financial Secretary 

Dewey Smith, Treasurer 

Otto Freund, Guide. 


H. F. Padget 

Thomas Dunn 

E. C. Somerville 

L. S. Stiegel: Reads minutes of 
previous meeting. 

Rose Critelli, Dewey Smith: En- 
ters into conversation and is repri- 
manded by the Chairman, as every- 
body should pay attention to the 

Stiegel reads application for mem- 
bership of W. J. McHugh. Ballot is 
taken and he is accepted. 

Gerald Corkum: Reports as Chair- 
man of the Membership Committee. 

Kennedy: If no objections the re- 
port of the Organization Committee 
will be accepted. 

Kennedy: Instruct Guide Otto 
Freund to bring the candidate (Mc- 
Hugh) in for initiation. 


All Members: Must arise when 
candidate enters hall. 

Freund: Brother President, permit 
me to introduce Mr. McHugh, a 
wage worker of good character, and 
duly elected in regular meeting, who 
now comes of his own free will, to be 
admitted to the privilege of mem- 
bership in the American Federation 
of Labor. 

Kennedy: Administers the obliga- 
tion; as found on pages 4, 5 and 6 of 
the Manual. 

All Members: When the President 
says: “Do you thus promise?” and 
the candidate answers “I do” All 
members say, “We bear Witness”. 

John Nafe: Give final instruction 
to candidate as found on pages 6 and 
7 of Manual. 

Kennedy: Call on the Financial 
Secretary for report of Dues and 
Assessment for the past week. 

Rose Critelli: Have report ready. 

Kennedy: Call for report of Of- 
ficers and Committees. 

Padget: Report for Trustees: You 
have audited the books of the Finan- 
cial Secretary and Treasurer and find 
them correct. Also make report that 
the bond for the Financial Secretary 
has expired and move that a new 
bond be secured. 

Francis Thibeau: Reports on the 
Labor Day Celebration. 

Kennedy: You have heard the re- 
port of the Chairman of the Labor 
Day Committee, if no objections the 
report will be accepted and the Com- 
mittee be discharged with a vote of 
thanks of the Local. 


Stiegel: Read letter from National 
Council Member Manning, (to be 
written by Manning). Proper action 
taken on same. Read bill for Hall 
rent and after motion has been car- 
ried to pay the bill, make out voucher 
and have it signed by President au- 
thorizing Treasurer to pay the same. 

Kennedy: Good and Welfare. 

Wells: Discuss the necessity of 
prompt payment of dues. 

Miller: Discuss the attendance at 

Critelli: Gets up and starts to talk 
without getting permission from 
Chairman, and is called to order. 

Schwall: Speaks for independent 
political action and makes a motion 
to indorse a third party. 

Kennedy: Rules the motion out of 

McHugh: Appeals from the deci- 
sion of the chair. 

Nafe in Chair. 

McHugh: Discusses the reason for 
appealing from the decision of the 

Padget: Asks for the floor to dis- 
cuss the question before the meeting 
but is called to order by Vice Presi- 
dent Nafe, for the reason only the 
one taking the appeal and the one 
from whom the appeal is taken have 
a right to discuss it. 

Kennedy: On speaking on the ques- 
tion of why he ruled the motion out 
of order calls attention to Section 8 
of Article 3 of the Constitution of the 
American Federation of Labor. Also 
calls attention to the obligation just 
given to McHugh where it says: “An 
obligation of fidelity is required; but 
let me assure you that in this obliga- 
tion there is nothing contrary to your 
civil or religious belief.” 


Somerville: Makes report of a sick 

New Business. 

Stiegel: Speaks on Company Un- 

Nafe: Speaks on_ self-appointed 
leaders, who are advocating policies 
contrary to the American Federation 
of Labor. Suggesting they are assist- 
ing the employers. 

Corkum: Speaks for the special 
Committee appointed at the last meet- 
ing on, closer cooperation among the 
Local Unions. 

Kennedy: Close meeting as out- 
lined on page 7 of the Manual. 

Minutes of Local Union #100, 
Affiliated with the American Fed- 

eration of Labor. 

Meeting opened at 8 :06, President 
Kennedy in Chair. 

Roll Call of Officers showed all 
Officers present. 

Minutes of previous meeting read 
and approved. 

One application for membership 
was reported and voted favorable. 

Membership committee reported 
on their activities for the past week 
and their report was accepted. 

At this time candidate Smith was 

The Chairman announced that any 
one desiring to pay dues should con- 
sult the Financial Secretary. 

Under the report of Officers and 
Committees, Brother Padget repre- 
senting the Trustees reported that 
they had been looking for a different 
Hall in which to meet, but could only 
report progress at this time. The 
Special Committee, appointed to ar- 
range for a Labor Day Celebration, 

reported progress and the committee 
was continued. 

The question of company unions 
was discussed by several members 
and was finally laid over until our 
next meeting. Brother Stiegel was re- 
quested to give some thought to the 
subject, so that he may be able to 
speak on the subject at our next 

Under communications and bills 
the Secretary read a communication 
from the Research Department of 
the Detroit Office of the American 
Federation of Labor relative to pre- 
paring cases to be taken before the 
National Labor Relations Board. A 
communication was received from the 
National Council of United Chemical 
Workers relative to the need of closer 
cooperation among the Local Unions. 
This communication was turned over 
to a special committee composed of 



Corkum, Schwall and Thibeau, to re- 
port at our next meeting. 

A bill for hall rent was read and 
ordered paid. 

Under Good and Welfare, Sister 
Critelli spoke on the necessity of our 
members attending meetings and pay- 
ing their dues regularly. On motion, 
Brother Wells was requested to dis- 
cuss this question at our next meeting. 

Brother Somerville, Chairman of 
the Relief Committee, reported that 
no one was on the sick list. 

Financial Secretary, Sister Critelli, 
reported on the receipts and expenses 
for the past week, which report was 

There being no further business 
the meeting adjourned at 9:17 P. M. 

Recording Secretary. 
J. J. Kennepy, 


Pen and Pencil Workers’ Agreement 

This agreement is made and entered this 1st 
day of June, 1937, between the Parker Pen Com- 
pany of Janesville, Wisconsin, and Federal 
Labor Union No. 19593 at Janesville, Wisconsin. 

Rue I. The Parker Pen Company recog- 
nizes Federal Labor Union No. 19593 as the 
exclusive bargaining agency for its shop em- 
ployees. The Company agrees that if during 
the life of this agreement satisfactory relations 
are maintained with the Unioa, it will at the 
end of this period enter into an all-Union agree- 
ment with the Union, provided that a majority 
of the shop employees, in a secret election to be 
conducted by the Wisconsin Labor Relations 
Board, and to be held within thirty days before 
the expiration of this agreement, vote that they 
desire an all-Union agreement. The Company 
further agrees that in accordance with the Fed- 
eral and State Labor Relations Acts, it will not 
seek to influence such vote in any manner, and 
the Union agrees that it will not raise its initia- 
tion fees beyond the present rate of $2.00, and 
that its monthly dues shall remain uniform for 

all its members. To continue harmonious rela- 
tionships the Company will not attempt to pre- 
vent any of its shop employees joining the Union, 
and the Union agrees that its officers and mem- 
bers will not solicit membership during working 
hours. The term “shop employee” as used in 
this paragraph shall not include foremen, watch- 
men, or machinists, and nothing in this agree- 
ment shall apply to such employees. 

Rute II. There shall be an eight hour work 
day and a forty hour work week. Any work 
done in excess of eight hours in any one day, 
or forty hours in any one week, will be consid- 
ered as overtime, which shall be paid for at the 
rate of time and one-half, except on legal holi- 
days and Sundays, when double time should be 
paid. During any twelve weeks in the calendar 
period from July to December, inclusive, four 
additional hours per week may be worked at 
straight time rates. Legal holidays shall be New 
Year’s Day, Decoration Day, Fourth of July, 
Labor Day, Thanksgiving Day, and Christmas 

Rute III. Seniority: In lay-offs, filling va- 
cancies and in rehiring, length of service shall 


control, and the oldest in service shall be laid 
off last and shall be rehired first, subject only 
to other reasonable and proper considerations. 

Rute IV. The following increases in wages, 
and minimum rates will become effective June 
I, 1937: 

All non-productive labor to be increased seven 
(7) cents per hour. 

All productive labor to be increased four (4) 
cents per hour. 

The minimum rate for male employees, except 
new inexperienced help, shall be sixty (60) cents 
per hour. 

The starting rate for new inexperienced male 
help, who have not previously been employed by 
this Company, shall be forty-five cents per hour 
and shall be increased, at least two and one-half 
(2%) cents per hour every thirty days until 
brought up to the regular minimum rate. 

The minimum rate for women, except new in- 
experienced help, shall be forty (40) cents per 

The starting rate for new inexperienced 
women workers, who have not previously been 
employed by this Company, shall be thirty (30) 
cents per hour and shall be increased, at least 
two and one-half (2%4) cents per hour every 
thirty days, until brought up to the regular mini- 
mum rate. 

Rute V. The Company agrees to the follow- 
ing vacation plan: All employees who have been 
in the service of the company for one year or 
more, one weeks vacation with full pay. All 
employees who have been in the employ of the 
company for five years or more, two weeks vaca- 
tion with full pay. 

Rute VI. The Company agrees to post, 
throughout the shop, a list of Doctors, any of 
whom employees may go to in case of an injury 
that needs a Doctor’s attention. 

Rute VII. Should any employee covered by 
this agreement believe that he has been unjustly 
dealt with or that any of the provisions of this 
agreement have been violated, such employee 
shall take the matter up through the regular 
channels provided for by the Union through its 
committee with the company; namely such em- 
ployee shall take the matter up with the steward 
in his department who shall try to adjust the 
grievance with the foreman, and if such an 
adjustment cannot be made, the employee shall 
submit the grievance in writing to the Grievance 
Committee of the Union, who shall investigate 
the matter and then present it in writing to the 
Employment Manager for adjustment. Should 
the Committee and the management fail to 
agree, the grievance shall be submitted to the 
arbitration board composed of two representa- 
tives of the Union and two representatives of the 
Company. These four shall select a fifth party, 
a member of the Labor Relations Board shall act. 

If it is found that an employee has been un- 


justly dealt with he shall be restored to his 
former position and paid for time lost. 

Nothing in this rule shall be construed to 
prohibit any individual employee, or group of 
employees, te present grievances to the manage- 
ment in person or through representatives of 
their own choosing, as is provided in the Wis- 
consin Labor Relations Act, but the Company 
agrees that it wili not enter into any agreement 
with any other organization or group as to 
wages, hours, or working conditions. Adjust- 
ment of wages may be made by the Company in 
individual cases where inequalities exist. 

It is agreed that during the life of this agree- 
ment there shall be no strike or lockout. This 
agreement shall be in effect until June 1, 1938. 

Signed at Janesville, Wisconsin 1st day of 
June, 1937. 


Martin N. TuHompson, President 
RALPH J. TRICKEL, Secretary 

Carnation Company 

This Agreement, made and entered into this 
12th day of July, 1937, by and between the 
Carnation Company, party of the first part, 
hereinafter called “the Employer”, and Federal 
Labor Union Local No. 20710, party of the 
second part, hereinafter called “Union”, 


Section 1 

This Agreement is executed by the Union 
for and in behalf of itself and shall be binding 
upon them; and is executed by the Employer 
for the employees in its Coshocton Plant only, 
specifically excluding, however, the plant super- 
intendent, assistant plant superintendent, fore- 
men, fieldmen, clerical help, or any others hav- 
ing authority to hire or discharge and those 
holding membership in any other bona fide 
A. F. of L. craft organization. 

It is understood that the Employer will rec- 
ommend that all of its present employees will 
join Federal Labor Union Local No. 20710 
having jurisdiction, within sixty days. 

Section 2 

Employer has the privilege of employing and 
discharging any and all employees, provided 
that no employee shall be discharged because of 
union activities unless such activities interfere 
with his regular duties, and provided further 
that all new regular employees coming under 
the jurisdiction of the Union after the effective 
date of this Agreement shall apply for member- 
ship in the Union within thirty days. The 
Union agrees that all employees of the Em- 


ployer making application for membership shall 
be accepted as members at the regular group 

Section 3 

Employer and Union mutually agree that the 
employment of extra help will be permitted dur- 
ing periods of flush operations, and such extra 
help shall not be required to become members 
of the Union, provided employment does not 
exceed ninety days. Employer agrees to furnish 
Union with the names of all regular employees 
and dates of employment. 

Employer and Union mutually agree that the 
employment of student apprentice labor shall 
be permitted during periods of flush operations, 
and such students apprentices shall not be re- 
quired to become members of the Union, but 
Employer shall furnish the local Union with 
names of employees and dates of employment. 

It is understood that Employer shall have the 
right to adjust hours and wages in the case of 
any employee who because. of physical disability 
or old age is unable to accomplish a satisfactory 
day’s work, 

Section 4 

Employer may at any time employ two men 
in each plant who are learning the business 
and are bona fide apprentices for executive 
positions but who are not intended to remain 
permanently in the plant, provided, however, 
that such apprentices shall not displace regular 

Section 5 

Forty-four (44) hours shall constitute a week’s 
work, with time and one-half paid for overtime 
above nine (9) hours in any one day, or forty- 
nine (49) hours in any week, except for— 

1. Garage mechanics, truck drivers, mainte- 
nance crew, and construction crew. For 
these classifications forty-eight (48) hours 
shall constitute a weeks’ work, with time 
and one-half for overtime above nine (9) 
hours in any one day or forty-eight (48) 
hours in any one week. 

Provided, however, that any delays in trans- 
porting and processing the daily supply of milk 
or cream caused by the failure of machinery, 
or power, or other causes beyond the control 
of Employer shall not require the payment of 

There shall be no holidays recognized as such, 
and regular rates of pay shall apply, but the 
Employer agrees to minimize work as much as 
possible on Sundays and holidays. In so far as 
is practicable, relief days shall be rotated. 

In no case shall the minimum rate of pay 
herein established be higher than the minimum 
rate of pay of the same classifications provided 


for in any other contract between the Union 
and any other person, firm or corporation with 
which the Employer is in direct competition in 
this particular locality. 

Section 6 

The minimum hourly rate of pay shall be 
forty-eight (48) cents per hour for men, and 
forty (40) cents per hour for women, except 
during the first thirty (30) days of employment, 
during which period the rate of pay shall be 
five (5) cents per hour less. It is understood 
that these rates of pay shall apply at the Coshoc- 
ton plant only. There shall be a general in- 
crease of five (5) cents per hour for each 
present employee on the Coshocton Plant pay- 
roll as of July 11th, 1937. 

Section 7 

In laying off men or women employees be- 
cause of reduction in forces, the employees 
shortest in length of service shall be laid off 
first, provided those retained are capable of 
filling the jobs. In re-employing, those em- 
ployees having the greatest length of service 
shall be called back first, provided they are able 
to fill the jobs available. This seniority rule, 
however, shall not apply to the following em- 
ployees: processors, laboratory technicians, porch 
weighers, porch testers, filling machine opera- 
tors, and labeling machine operators, but sen- 
iority shall apply within each of these classifi- 

Section 8 

VacaTions—After one year’s continuous serv- 
ice, an employee is entitled to one week’s vaca- 
tion with pay, in accordance with the plan 
already submitted to each individual employee 
of the Employer. 

Section 9 

MepicaL EXAMINATIONS—The Employer shall 
have the right at any time to require any present 
employee or any applicant for employment to 
submit to physical and medical examination, at 
the expense of the Employer, by any medical 
practitioner chosen by the Employer, and the 
Employer shall not be required to employ or 
retain in its employment anyone found by this 
examination not to be physically fit. 

Section 10 

There shall be no strikes or lockouts during 
the life of this Agreement. The Union agrees 
to use its every effort to prevent cessation of 
work for any reason and particularly for the 
following reasons: 

(a) Union jurisdictional disputes; 
(b) The refusal to handle goods or commod- 
ities used in the operation of the business 


of the Employer the production or han- 
dling of which may be involved in labor 
controversy ; 

(c) The refusal of employees to handle any 
goods that may originate from non-union 

(d) Sympathetic strikes. 

Section 11 

It is understood that the customs of the in- 
dustry as regards operation of the plants, trans- 
portation of goods, duties of employees, and 
other accepted trade practices, are not changed 
by this Agreement. 

Section 12 

Should differences arise between the Employer 
and the Union or its members employed by the 
Employer, as to the meaning and application of 
this Agreement, or should trouble of any kind 
arise in the plant, there shall be no suspension 
of work, nor shall there be any suspension of 
work for any reason whatsoever, and an earnest 
effort shall be. made to settle any differences 
immediately, in the following manner: 

A joint labor relations committee shall be 
organized for each plant, which shall have 
authority to settle all controversies as to the 
interpretation and application of this Agree- 
ment. The committee shall be established in 
the following manner: 

(a) The Union shall select two of its mem- 
bers who shall be employees of the Em- 
ployer and citizens of the United States, 
and who shall have been in the con- 
tinuous employ of the Employer for at 
least one year preceding their selection; 
provided, however, that these two may 
enlist the services of an advisor who shall 
be permitted to meet with the committee, 
but such advisor shall under no circum- 
stances have the right to vote. 

(b) The Employer shall appoint two of its 
employees, who shall have the privilege 
of enlisting the services of an advisor 
who shall be permitted to meet with the 
committee but under no circumstances 
shall have the right to vote. 

In the event the four persons so appointed 
cannot agree, the two employees representing 
the Union shall appoint a third party, and the 
two employees representing the Employer shall 
appoint a third party, making a committee of 
six. In the event the six persons so appointed 
cannot agree they shall appoint a seventh who 
shall be disinterested. 

It is understood that such a committee or 


board of arbitration is not vested with power 
to change this Agreement in any of its particu- 
lars, but only to interpret same. 

Each party shall pay the expenses of its mem- 
bers of the committee, and the expenses of any 
seventh member shall be shared equally between 
both parties. 

Should any dispute, complaint, or grievance 
arise, same shall be immediately submitted to 
the labor relations committee, who shall promptly 
arrange a conference, and the decision of the 
committee shall be binding on all parties in- 

Section 13 

This Agreement shall become effective from 
the date of its execution by the parties hereto 
and shall remain in full force and effect until 
and including December 31st, 1939; provided, 
however, that said contract may be canceled 
and terminated on December 31st of any year 
by written notice given by either party to the 
other not less than thirty (30) days prior to 
December 31st of such year. 

In event this Agreement shall not have been 
previously terminated and in event no notice 
shall have been given by either party to the 
other on or before thirty (30) days prior to 
December 31st, 1939, then the terms of this 
Agreement shall automatically be extended for 
an additional period of one year, and there- 
after shall automatically be extended from year 
to year unless one of the parties shall give 
notice to the other of termination at least thirty 
(30) days prior to December 31st that the terms 
of such Agreement shall not be further extended. 

It is further agreed and understood that all 
new agreements shall be retroactive to the date 
of termination of this Agreement. 

This Agreement executed this 12th day of 
July, 1937, by the duly authorized agents and 
representatives of the parties hereto. 

By W. C. Cross, Vice Pres. 
By Vircit McCoy, 

By H. C. DEAverR, 
By Jack Horst, 
By James P. WALSH. 

By Ciype RUCKERT, 
By Frep Huser, Jr., 
By Eucene H. Burton. 


estimates show that 829,000 

workers lost their jobs in indus- 
try and agriculture from November 
15 to December 15, 1937, making a 
total of 1,700,000 laid off between 
September, 1937, when recession lay- 
offs began, and mid-December. 
Trade union figures for the end of 
December and the first part of Jan- 
uary show that heavy lay-offs have 
continued since December 15; the 
weighted figure from trade union re- 
ports shows that 2.4 per cent of the 
membership lost their jobs from De- 
cember to January, a rate of lay-off 
almost equal to the worst depression 
winter. The preliminary figure for 
January (weighted) shows 16.0 per 
cent of the membership out of work. 
This compares with 13.6 per cent 
unemployed in December, 9.3 per 
cent in September, before the lay-offs 
began, and 11.7 per cent in January, 

The Federation unemployment es- 
timate shows 9,355,000 unemployed 
in December, 1937, compared with 
8,479,000 in November, 1937. 

Lay-offs in December were par- 
ticularly severe in manufacturing 
and agriculture; factories dropped 
514,000 wage earners from their 
payrolls, and farmers laid off 379,000 
farm laborers. In both industries 
these were the sharpest December 
lay-offs since our estimates were 
started in 1929. The large lay-offs 
on farms were due, in part, at least, 
to sudden decline in farm prices, 
which fell 20 per cent from the April 
peak to December, forcing farmers 
to save every possible expense. Lay- 

F: DERATION unemployment 

offs in building (146,000) and on 
railroads (52,000) were larger than 
in any December since the early years 
of depression. 

In striking contrast to these sharp 
declines in major production and 
transportation industries were the 
employment gains in retail trade in 
the Christmas season. Retail stores 
usually take on temporary employes 
in December, and Christmas employ- 
ment this year was only slightly less 
than in 1935 and 1936, providing 
jobs for 330,000. The high level of 
business and employment in retail 
stores this fall shows that last 
spring’s wage increases have been a 
bulwark against further recession 
and further lay-offs. For in spite of 
the severe declines in production, De- 
cember payrolls in the industries 
where we have records were only 4.6 
per cent below last year, and retail 
trade has consistently held at un- 
expectedly high levels. Because of 
the relatively high level of retail 
trade, orders are now beginning to 
come through to manufacturers and 
should soon stimulate production. 

To provide work for those laid off 
by industry, WPA has added 226,000 
from November 27 to January 1, 
1938, increasing the WPA work 
force from 1,997,000 to 2,223,000. 
That is, approximately one job was 
provided by the government for 
every four persons laid off from in- 
dustry. Relief rolls are mounting; 
the following figures show the num- 
ber of families and individuals on 
relief rolls: 1,284,000 in October and 
1,377,000 in November; it is esti- 
mated that December figures will 



show 1,610,000 on relief. This com- 
pares with relief rolls of 1,400,000 
in November and 1,500,000 in De- 
cember last year, and with a WPA 
force of 3,000,000 in December, 
1936. Thus, with lay-offs affecting 
550,000 who had jobs last year, the 
government economy program has 
cut WPA rolls more than 770,000 
below last year, and relief is only 
providing for 110,000 more than last 

Figures just released by the Fed- 
eral Reserve Board show that in- 


dustrial production in the country as 
a whole in December 1937 was 31 
per cent below last year, while 
workers’ total income was not quite 
5 per cent lower. Trade unions have 
a master part to play in the economic 
drama of today, for, as it was their 
task to raise wages last spring, it 
is now their role to maintain wages 
and buying power until production is 
lifted back to last year’s levels. Wide- 
spread wage cutting would be a sure 
way to plunge the country back into 

Unemployment in Cities 

All Trades 
Per cent 
Per cent increase 
members (+) or 
unem- decrease 
ployed c~) 
January since 
1938 Dec.* 
ND fries wcckaaswaean 6 +24 
orn 18 +23 
DER. ekhadencweeones Io —12 
OER ee eet 15 +11 
DE sarsdveiseviensounes 20 +48 
ES Re stanaieradeasexes 20 +7 
Are 16 +57 
Se rrr 22 +15 
ee 13 +35 
Ee ee 14 + 4 
rere 14 +23 
Ee error 18 +15 
NS go vin'sp wieieture'saes 22 +46 
0 See eee 13 +20 
New York City. ......000- 3I + 8 
eee 13 +24 
Se re 19 +13 
Philadelphia. ............... 18 +19 
DE. hasedsnewediae II +19 
IDS io v:dcacwescwes 7 +15 
BE II. 56 6.0.45040-0 sin ore 15 +27 
IY ois cada pit svieus 15 + 4 
EY tre val awilwsstese acs 18 +18 
Washington, D. C........... 5 +11 

(a) Less than 1% increase or decrease. 

1 Comparing the same unions for these two months. 

Building Trades All Other Trades 
Per cent Per cent 
Percent increase Percent increase 
members (+) or members (+) or 
unem- decrease unem-_ decrease Part 
ployed (-—) ployed (—) time 
January since January since all 
1938 Dec.! 1938 Dec.! trades 
40 + 6 3 + 45 18 
28 + 27 16 + 22 20 
28 — 19 7 — 8 26 
33 + 16 Io + 4 21 
44 + 40 16 + 50 14 
42 + 2 13 + 12 23 
26 + 6 13 + 96 22 
55 + 16 12 + 11 24 
38 + 46 10 + 30 23 
24 —- § II + 7 16 
40 + 28 10 + 21 19 
23 > % 17 + 17 26 
39 + 20 18 + 64 20 
33 + 31 8 + 9 16 
51 + 3 27 + Io 27 
40 + 24 8 + 23 14 
59 — (a) 14 + 20 16 
36 + 36 16 + 16 18 
42 + 12 6 + 32 10 
33 + I9 5 + 12 II 
31 + 18 II + 31 17 
46 + 2 10 + 3 20 
42 + 26 13 + 12 13 
18 + 8 2 + 20 y 


Record for Nine Years 
Per Cent of Union Members Unemployed 

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Ave. 

Total 1928 8 118 «8 116 #313 «8f:«€©61206CU6G™UlCUT006ClCUQGlCUTO 6B) CIB 
All Trades 1929 1§ 1§ 14 12 J se ¢ &£ whe 2 eae Se S&S 
1999 290 22 2 2 «90~«6900«692~«(688 «688 668k 8g 

1931 27 27 26 25 25 25 26 26 2 2 27 30 26 

1932 3) 3 30,s-FBE BU 322 3H 3B_—«-|FZW_—-|H'T_——s«s23'2®_—sF3GZ_—s«GB 

1933 35 34 34 33 33 31 31 31 2 27 «+28 29 BI 

1934 28 26 25 2 2% 25 #28 28 25 2% 25 27 «426 

1935 2% 2% 23 #2 «8 «6230«87) «(62306«(« 20 ll 8B 23 

1936 «= 22st C8 7 C1717 4* «23 ks‘ OT 

19397 +15 #14 #=%F %d 1 1 %&S 3 2 13 | 17 33 

1938 20* 
Total 1928 3% 309 3 32 2 2 % 19: 22 «68h 8g 87 
Building Trades 1929 30 (33) «O34 i29'—sE—itg:«C«iaGs—C‘<iaTB OT Os dgR_esié«ét8'S 

19390 6-338 «43 C4 40s 337s 37-39-39 38 3B DS 40 
1931 51 §2 §2 50 48 48 50 SI 52 53 54 59 §2 
1932 62 63 63 65 61 62 64 64 65 65 67 65 6% 
1933 70 71 72 71 68 66 67 6 63 62 63 62 67 
1934 58 55 55 58 57 55 57 60 58 56 56 57 57 
1935 60 6: 59 57 54 5t 5% 48 45 47 46 48 52 
1936 50 52 49 40 34 28 27 25 2% 21 23 26 33 
1937 29 31 2 27 #22 2 22 22 23 +23 «428 «36f 26 

1938 40* 
Total 1928 «618 «C16 16 12 S12 «io s *F¥8 > = = 
Metal Trades 1929 8 S$ - sg 5 5 6 7 97 8 8 7 


1930 15 1 18 I9 I9 I9 2% 20 23 #25 25 #+%25 20 
1931 28 29 «27 20 «628 :«6©3l O32 ~=«(30 
1932 34 37 37 39 39 42 #45 #45 #46 46 46 46 42 
1933 47 50 49 49 46 45 45 42 39 36 36 36 43 
1934 35 34 30 28 2§ 22 2 25 25 27 27 26 27 
1935 se eee ewe seeeOSeelClUhtOlhlUCUOhlUC(i D!?hC<C SSC 
1936 17 7 #17 '§ 1% «+2 «+I «2 12 WU 10 10 133 
1997 «OCéSTk:Ciat hClglC« CSC 6 7 7 to W Ist 9g 

1938 18* 
Total 1928 6 e¢@eteee@esé&#ste#st*eéss 
Printing Trades 1999 4 5 § 4 3 3 4 4 3 4 4 4 4 
1990 5 § 6 6 6 6 7 8 8 7 8 9 7 
1931 io 10 = %& %&H %f% 13 % 1 OM «Ss«COTS IG 
1932 17 1 317 + 18 41 21 #22 20 2 I9 #2 I9 

1933 20 22 22 22 23 #23 «#«»239«22 «922 «©2506 (20 «6g (8 
1934 ig 19 «18 «©618:~«€617)0«(«17)«17)—«(«8— (617): O17, a7, i 6s«a¥8 
1935 17 15 5 14 %4 %%4 %I5§ #%I %§ %% 113 4 I§ 
1936 a a a a: a: i, a i a | 
1937 Io 10 10 9 9 9g 10 10 10 10 10 Io 10 

1938 11* 
Total 1928 io 10 1 9 9 8 8 6 6 7 8 4 9g 
All Other Trades 1929 12 11 8 ee ae ee ee ee 

1930 12 13 #13 #+'12 «+13 «40«©61606 1606 6H CUR CUS: «OS CG 
1931 19 17 16 16 15 16 17 16 16 16 18 20 17 
1932 21 I9 18 18 2 2 #23 «22 «#42 18 Ig 2 2 
1933 22 2% 22 20 22 21 2 19 #22 #16 #18 2 20 
1934 I9 17 #16 16 16 I9 22 «22 «17 «16~«6I9:)«62t 618 
1935 20 17 #15 #4 116 I9 #22 I9 16 1§ 16 I9 17 
1936 118 «17 #17 «+15 «+14 #+%I§S 16 12 IF 10 10 12 1% 
1937 12 I 10 99 9Q 9 10 9 10 I 13 = «Io 
1938 16* 

* Preliminary. t Revised. 

American Federation of Labor Unemployment Trade Union 
Estimates! Records? 
Per Cent of Union 
Gainful Number Number ployed Part 
Yearly Average Workers Employed Unemployed (Weighted) Time 
| SS ee ART ie re Pere 51,191, 283 4°, 539,049 10,652,234 18.5 22 
er eee ee rr ee 51,758,980 42, 364,426 9,394,553 13.3 21 
ee ee er ee §2, 283,038 44,094, 503 8,188,535 10.5 20 
Monthly Average 
| EER ee erent ere 50,943,884 39,248,684 11,695,200 21.0 23 
IES hor re rer 50,988,243 39, 568,850 11,419,393 20.0 22 
EE ers eee ere meee 51,032, 594 39,799, 568 11,233,026 19.4 23 
Rs one ate townie pana eas 51,077,148 40,201,014 10,876,134 18.7 22 
ME aia dc aek ves badass ees s se 51,121,875 40, 301,939 10,819,936 18.3 22 
a Beene eres eee rer 51, 166,827 40,408 ,648 10,758,179 18.5 23 
Re cy JNip Noe eb Aoes oben sain 51,212,041 40,453,052 10,758,989 19.4 21 
RRS Ss hci Gxt rdindeteeuee 51,257, 563 40,765,339 10,492,224 18.4 23 
NE 63s badeyancedasees 51,303, 899 41,273,232 10,030, 667 17.9 21 
ae reer er 51,350,814 41,575,945 9,774, 869 17.3 21 
Ne Scr whi dnvacalaipnadie wet 51,397,017 41,436,242 9,960,775 16.7 22 
NI soc adem Sraveepra care acare iors 51,443,491 41,436,073 10,007,418 16.9 22 
I So andres iaclenierecewere sn 51,490, 330 40, $38,209 10,952,121 17.2 22 
Eee eee Pees ere 51,537,969 40,676,197 10, 861,772 16.7 21 
EN cic: ar ane acunierene euasioge 51,585,756 41, 103,260 10,482,496 16.2 21 
EE heh cule vas ease bea 51,634, 208 41,815,233 9,818,975 15.1 21 
MPEG «che eivintewtaarnnearaiceaimeniae 51,682,410 42,126,613 9,555,797 ‘9 22 
BS cians ad eid iv Aa V wanna wine ROR 51,731,096 42,311,760 9,419,336 12.8 23 
Ni dicwereraedetoumeseennas 51,780,432 42,399,079 9,381,353 12.3 19 
cea i scabesaweou men 51,830,764 42,803,381 9,027, 383 11.7 22 
DN SS cerescidessstacnes 51,881,952 43,383,551 8,498,401 11.2 21 
REO te lee ire ee 51,933,521 43,757,161 8,176,360 II.0 20 
155) odteatinawasm banana 51,984,475 43,697,789 8,286,686 10.7 20 
DE Cece decaveaneugensine 52,034, 844 43,760, 882 8,273,962 2t.2 21 
PE Cstinivartepenstaee antes 52,040,012 42,799,135 9,240,877 $t.97 21 
EPR ene ap eee ee §2,089, 521 43,129,498 8,960,023 11.9 21 
SS kon ig ine oreitele saaeee ee $2,138,624 43, 534,730 8,603,894 10.9 I9 
Each eihisipawa ete P eed wens $2,187,456 43,874,628 8,312,828 9.8 20 
lds Sia ins vig ese ark K wk AU DRI $2,236,322 44,326,941 7,909, 381 9.7 20 
SA AGT ps aiesle ret eece tases 52,283,748 44,460, 236 7,823, 512 9.6 20 
cee ndo pata ia tere 52,332,552 44, 550,066 7,782,486 9.3 20 
Es C2 ig's3 reaeaedas nee-se6 52,381,996 44,636,113 7,745 , 883 9-3 20 
CE cictatsaetiiaswtaess 52,428,196 44,915,142 7,513,054 9.3 20 
RSS Syne rere $2,474,396 44,768,190 7,706,206 9.6 19 
EE tr hz doth vacie Galea ae 52,520, 596 44,041,973 8,478,623 11.2 20 
NE cvticesawerwsedewass 52,568,344 43,213,139 9,355,205 13.6T 20 
DN Gt te CA diieed, ceaheewdwa | \ssesdicieso  sicesaes 16.0* 21 

1 For monthly unemployment estimates 1929 through 1933 see January 1936 Federationist, page 71. 
Note: Monthly figures for 1934 not yet revised. 

2 For monthly figures 1930 through 1934 for trade unions see January 1937 Federationist, page 76. 

* Preliminary. Revised. 

War, By Eugene Staley. Council 
on Foreign Relations, N. Y., 1937; 
326 pages, price $3.00. Reviewed 
by C. R. Whittlesey, Princeton 

Professor Staley, now of the Flet- 
cher Graduate School of Law and 
Diplomacy, is the author of a well 
known study of the political aspects 
of international capital movements.* 
In the present volume he makes a no 
less important contribution to the 
study of the political ramifications of 
the problem of raw materials. 

The principal conclusions of the 
book are summarized in the final chap- 
ter: “The international raw material 
problem is an armaments problem. 
. .. Because of the political insecurity 
felt by every nation, governments 
must neglect standard of living con- 
siderations and seek national military 
power above all else. . . . So long as 
national power is the real issue... 
no peaceful solution is possible” (p. 
234). If a reasonable degree of se- 
curity against war could be attained, 
much of the friction over raw ma- 
terials would simply disappear. In 
any event, “there can be no solution 
of raw material difficulties through 
the shifting of political boundaries. 
On the contrary, the only remedy is 
to reduce the economic significance of 

* War and the Private Investor. Doubleday, 
Doran & Co., N. Y., 1935. 

political boundaries” by liberating in- 
ternational trade (p. 186). 

The discussion of our trade policy 
toward warring nations is particu- 
larly timely. The author argues that 
an announced policy of indiscrimi- 
nately imposing an embargo on raw 
material shipments to all belligerents 
would strengthen the trend toward 
economic nationalism. It would be 
likely to aid aggression since the ag- 
gressor would, at least at first, be 
better stocked with supplies than its 
victim. It is improbable, moreover, 
that such a policy would keep this 
country out of war. The wisest course 
for keeping both the United States 
and the world at peace would be to 
declare our intention of cooperating 
with other countries in imposing raw 
material sanctions against an aggres- 

The problem of raw materials is 
closely inter-twined with the problem 
of foreign investments. Investments 
involving ownership by nationals of a 
foreign country are likely to lead to 
friction, to charges of penetration on 
the one side and of unfair treatment 
on the other, which may provoke 
armed intervention or the conflict of 
rival powers. The solution for this 
problem is that nations should give up 
some of their alleged rights to “pro- 
tect” citizens and their property 
abroad, and that improved interna- 
tional machinery should be developed 



to provide impartial safeguards for 
both lenders and borrowers. 

Professor Staley believes that three 
types of measures are needed if the 
issues relating to raw materials are 
to be settled. The first are those di- 
rected toward establishing collective 
security against war; the second are 
those designed to reduce economic 
nationalism; and the third are those 
aimed at specific raw material prob- 
lems, such as monopolies, control 
schemes, and the protection of alien 
investors and enterprisers and of the 
countries where they operate. Great 
Britain and the United States control 
the largest shares of the world’s raw 
material resources and they are also 
the most important consumers of raw 
materials. Thus these two countries 
have at once the greatest influence 
and the greatest stake in the attain- 
ment of an equitable and effective 
solution of this problem. 

The competence of the author and 
the distinction of the Council on For- 
eign Relations, under whose auspices 
the study was prepared, are sufficient 
guarantees of its authoritative char- 
acter. In addition, the book is so 
clearly organized and so interestingly 
and forthrightly written that it is a 
pleasure to read. 

omy, By Oswald Von Nell-Breun- 
ing, S. J. Translated from the 
German by Bernard W. Dempsey, 
S. J. Bruce. Price $3.50. Re- 
viewed by Rev. Edmund J. Brock, 
Catholic University of America. 

This is not an unimportant book, 
either in size or substance. It is a 
360-page commentary on Pope Pius 
XI’s 48-page Encyclical, “Forty Years 


After, Reconstructing the Social 
Order,” and is the work of Father 
Von Nell-Breuning, well-known Ger- 
man moral theologian and economist, 
now at the University of St. George, 
Frankfurt-am-Main. He gives not 
only “an introduction to the Encyclical 
sufficient for general information and 
for practical use’’ but also a profound 
analysis of the causes of contem- 
porary economic chaos and a program 
for their correction. Labor officials 
and those interested in labor problems 
will find in the work a mine of basic 
information and practical directives. 
Democratic industry through organ- 
ized democratic cooperation is the 
keynote of the work. 

Following the program of the En- 
cyclical, paragraph by paragraph, the 
commentator points out that reason 
is the tool to determine the structure 
and organization of society, the rela- 
tion of persons one to another within 
this structure and the purpose of the 
productive process—seeing that a suf- 
ficiency and even an abundance of 
goods is produced for all. This he fol- 
lows with an enlightening exposition 
of the difficult question of the relation 
of economics to religion. The two 
main topics of the Encyclical are then 
discussed, namely, the place of the in- 
dividual in society, especially with 
reference to his property and wage 
rights, and the two-fold reform, that 
of social institutions and moral prac- 
tices. Needless to say, failure to 
reorganize the social aspects both of 
ownership and labor has been the 
root cause of widespread economic 
injustice. It is sufficient to recall the 
tyrannies of the existing “despotic 
economic domination,” to use Pius 

XI’s phrase. 


Three matters discussed in the 
book are of special interest to work- 
ing people. The first has to do with 
wages. Following the Encyclical, Von 
Nell-Breuning affirms that three 
elements should go into the determi- 
nation of a just wage: maintenance 
of the worker and his family, condi- 
tion of the employer’s business and, 
what is of paramount importance, 
the public economic good. The last 
named element calls for the fixing of 
wages at the point where maximum 
employment will result. The impor- 
tance of this concept can hardly be 

Another item is the position taken 
by the Encyclical that workers are to 
be free in choosing their representa- 
tives. Choice is not to be limited to 
the employer’s payroll as is the case 
in the typical company union, nor to 
“hand-me-down” representatives ap- 
pointed by a political dictator. 

A final matter has to do with the 
evil of price fixing and restriction of 
output. Many high sounding names 
are in vogue today to cover the evil 
of monopolized prices—rigid prices, 
controlled prices, administered prices. 
But they all come to the same thing, 
namely, price fixing by private groups 
acting in their own interest inde- 
pendently of public control. 

The Encyclical, as Father Von 
Nell-Breuning is careful to show, pro- 
vides a remedy to meet this evil. It 
is the occupational organization of 
society. Occupational guilds or voca- 
tional associations officered by freely 
chosen representatives selected by the 
groups they represent form the frame- 
work of a rejuvenated, just and 
humane social order. This machinery 
operating through democratically 
chosen representatives deriving their 


strength from the organized pressure 
of their groups, will see that wages 
and hours are maintained at proper 
levels in each industry and between 
all industries. Also it will see that 
the proper balance of wages and prices 
is maintained between various eco- 
nomic groups. In a word, it will use 
organization to effect social justice. 
The function of government in the 
entire plan is essentially that of an 
arbiter or “presiding officer.” At the 
present time government has the obli- 
gation of paving the way for the 
establishment of a democratically or-! 
ganized economic society. 

This is the blueprint for a system 
of organized social justice. Inasmuch 
as the whole scheme rests on the foun- 
dation of a free, untrammeled choice 
of representatives and in view of the 
fact that only a small minority of 
American workers have succeeded in 
winning recognition for bona fide 
unions, a long road will have to be 
traveled before the occupational or- 
ganization plan is a reality. 

Institutional reform, however, is 
not sufficient of itself. It is to be 
accompanied by moral renovation. 
Only if the institutions of public and 
social life are imbued with a spirit 
of justice can social order prevail. 
Social justice is ultimately a spiritual 
and intellectual guiding rule requiring 
of each and all, private citizens and 
public officials, to contribute accord- 
ing to their ability to the public weal. 
But even social justice is not enough. 
It must be buttressed by social charity 
deriving its energy and driving force 
from religion. 

These are some of the ideas ana- 
lyzed in this thought-provoking book 
which should commend itself to 
thoughtful persons. 



Mobile.—Metal trades workers, building and 
common laborers, shipyard helpers and laborers, 
culinary workers, blacksmiths, cigar makers, and 
paper makers have organizing work under way. 
After considerable effort we secured the signa- 
ture of the local manufacturer of interior trim 
and mill work to the stipulation that he would 
recognize our local union as sole agent for bar- 
gaining purposes. Laundry workers and up- 
holsterers have presented wage agreemenis. We 
are initiating meetings for the officers of the 
various local unions for the purpose of con- 
sidering problems affecting union activities. A 
union of meat cutters and butcher workmen has 
been reorganized. Application has been made 
for a charter of culinary workers.——CHARLEs H. 


Fort Smith.—A union of electrical workers has 
been chartered and is composed of all electricians 
working in the largest shops in our city. A Fed- 
eral Labor Union of cannery workers has been 
organized in Van Buren and negotiations for a 
contract are under way. After picketing the 
Peoples Cafe for six weeks the cooks and waiters 
were successful in arriving at an agreement. 
Building work is very slack at present and 
several of the crafts in the building trades are 
idle. Efforts are being made to establish a 
Building Trades Council—something that is 
certainly needed here.—C. A. SWINK. 

Helena.—Due to a lack of orders the follow- 
ing companies are laying off workers and in 
some cases those employed get only three days 
a week of five hours each—the Pekins Auto 
Wood parts, Chicago Mill and Lumber Com- 
pany, and the Shannons Lumber Company. Most 
of our unions are ready to help members to get 
all benefits to which they are entitled when the 

* Data from Organizers’ Report for November, 

Social Security law becomes effective January 
1. Enough work projects are in progress to 
keep the present number of relief workers at 
work until about the first of June. As certified 
relief workers are laid off from private employ- 
ment they are taken on the relief rolls again. 
The State and Federal governments pay old age 
pensions from $8.00 to not over $10.00 per month, 
which is far from large enough to meet the 
needs. It is impossible to organize labor of 
any kind under present conditions, as no one 
has anything left after paying rent and food, 
etc—JoHn H. Gore. , 


Tuolumne.—The usual seasonal lay-off at the 
end of the yearly run has been made by the West 
Side Lumber Company. There are no provisions 
for relief or for work relief, except under the 
Works Progress. Our old age pension law only 
partially takes care of older persons who need 
relief. We have new legislation pending.— 
H. U. EnsIGNn. 

Ventura.—The writer is working to organize 
the sheet metal workers and office and ware- 
house workers. ‘The reorganization of the 
Building Trades Council is about complete. Con- 
tracts have been signed for the building crafts 
and by January 1 we expect to have these in- 
dustries 100 per cent. The Star Glove Company 
has expressed a desire to have their workers 
form a union. The Building Trades Council is 
buying some property for a permanent home for 
the Labor of Ventura County. A union of elec- 
trical workers has been organized.—Cuar_es J. 

Watsonville——Workers have been laid off in 
the lettuce and apple industries. This is a sea- 
sonal lay-off. Practically all crafts in the Build- 
ing Trades are having a temporary layoff. Work 
for these crafts will start around the first of the 
year and indications are that there will be an 
extensive building program beginning about 
March 1. Through our Central Labor Council 



committee we are preparing to assist members 
in presenting Social Security claims and are 
working in cooperation with the Pajaro Valley 
Chamber of Commerce which has been very 
fair to organized Labor in sponsoring meetings 
along this line. Those seeking relief or em- 
ployment must register with the National Re- 
employment Office. Our associations with those 
in charge of the office have been very favorable 
to organized labor. In the majority of cases 
our aged people are being taken care of. 
Printers are asking for an increase in wages 
beginning in March. Effective February 15 the 
carpenters will get $1.00 per day increase. Re- 
tail clerks are negotiating their agreement. A 
small increase in wages for the hod-carriers and 
common laborers has been obtained through 
Brother James T. Mann, business agent of the 
Building Trades.—HAZEL ROBINSON. 


Quebec.—Propaganda work has been started 
with the idea in view of unionizing the confec- 
tionery and pastry workers. With the idea of 
promoting union educational work open meetings 
are held for different classes of workers. Unions 
of teamsters and electricians have been char- 
tered.—JosEPH MATTE. 


Wilmington—The Wilson Line Inc. laid off 
forty truck drivers, helpers and platform men 
in the freight iine. It is evident that the move 
was made to get around the different unions 
within the organization. However, the freight 
men have been replaced with other companies 
who are hauling the freight the Wilson Line did 
haul and all these companies employ only union 
men. It is reported that the DuPont Company 
has laid off 1200 men in the past two weeks. 
Leather industries in this city have had up to 
90 per cent lay-offs. State relief is not granted 
to men holding union cards. Teamsters Local 
No. 107 has negotiated several agreements dur- 
ing the past few weeks in the building industry. 
The agreements give an increase of from 10 to 
25 cents to dump-truck drivers. The writer, 
with the assistance of Mr. Calvin, Secretary of 
the Metal Trades, and with Mr. Rowe and 
Mr. Ryan of the International Association of 
Machinists prevented the delivery of the C. I. O. 
charter to a group of electrical workers on the 
Pennsylvania Railroad. Reports are favorable 
for the unionization of 1500 men working for 
the Arundel Corporation.—RosBert W. HILL. 


Lewiston—The Potlatch Forests, Inc., have 
laid off their entire force in the woods and are 
working from one to two days per week at the 


sawmill. The Washington-Idaho Lime Products 
Company at Orofino, Idaho, is operating on 
about half time. But this is the usual procedure 
at this time of the year. Many small operators 
are laying off employees. The WPA is tak- 
ing care of many of the unemployed on road 
and sewer projects and in improvements to 
public places. A closed shop agreement was 
negotiated for the United Cement Workers Union 
at Orofino. The writer is working on agree- 
ments for the retail clerks, culinary workers, and 
butchers.—M. S. TAYLOR. 

Nampa.—The seasonal lay-offs are far greater 
this year than last. Only married men with 
dependents can get relief work. A local union 
of barbers has been chartered.—Haro_p C. MILEs. 


Breese.—In this vicinity the paper making in- 
dustry has shut down, shoe factories are working 
two days a week, coal mines are operating on 
half time, public and private construction is at 
a standstill and outside of the paper and coal 
industries the other mentioned industries are 
operating on a seasonal decline. We are at 
present negotiating with district WPA offi- 
cials and we think we have the arrangements 
completed whereby the members of the unions 
who are unemployed will be put to work on 
WPA projects at the union scale. Our state 
old age pension law takes care of older persons 
who need relief. We hope for a speedy settle- 
ment of the strike conducted by the hat, cap and 
millinery workers union at the Mexican Ameri- 
can Hat Company. Only one employee of the 
company attempted to go to work out of a total 
of 115 regular employees, and the writer has 
been personally handling the picket line together 
with the officers of the local union No. 78. The 
plant is completely shut down.—Epcar F. SMITH. 

Chicago——The Western Union, The DuPont 
Company, Department Stores, and Mail Order 
Houses are laying off workers. The relief situa- 
tion here is not in very good order; toc much 
local politics involved. A drive is on to or- 
ganize the workers in the chain and dep: rtment 
stores. We look for an early agreement with 
the National Tea Stores and with two Chicago 
Department Stores—R. L. REDCLIFFE. 

Danville—Work in general is far below last 
year. The city has taken pretty good care of 
our unemployed. Teamsters and chauffeurs 
initiated 35 taxi drivers recently and this makes 
their union 100 per cent. They will start work 
shortly on an agreement. General Organizer 
Lloyd Thrush is in our city and we are trying 
to organize several new crafts and revive the 
old ones. Meetings have been held with the 
office workers.—E. E. WAGNER. 

Decatur.—Staleys, Wabash, Muellers, Oakes 
Machinery and Mallable Iron Company are lay- 


ing off workers. Our unions are ready to help 
members present their claims for benefits under 
the Social Security Law. Our state old age 
pension law takes care of the older persons 
needing relief—ARTHUR KELLER. 

East St. Louis—The American Steel Mill is 
closing; the Aluminum Ore Company is cur- 
tailing to a three day week; Monsanto Chemical 
Company is laying off employees. In fact there 
is a general reduction in the working force in 
all local industries and on railroads. In the last 
30 days a serious situation has developed. 
We are in close contact with our members who 
are presenting claims for benefits under the 
Social Security Law. Requests for relief are 
pouring into the relief office and the WPA 
is the only refuge for the employables. The 
writer accompanied a committee from the Build- 
ing Trades Council who met with the city offi- 
cials regarding the housing project. The U. S. 
Housing authority has ear-marked $1,500,000.00 
for a local project in the city, but the city cannot 
furnish the required 10 per cent and we are 
assisting in working out details in this matter.— 
F, R, Raucu. 

Nashville——Due to weather conditions build- 
ing contractors have laid off workers in all 
crafts, There are very few people on relief. 
The chauffeurs are negotiating agreements with 
dairy operators that buy milk out of the county. 
Through the efforts of the hod-carriers and 
building laborers the county jail was built with 
union labor. The writer assisted the hod-car- 
riers in this undertaking and is now trying to 
reach an agreement with the contractor who is 
going to build a school—EvereTTe A. MAYER. 

Waukegan.—In the American Steel and Wire 
Company some departments are working from 
two to four days a week, while others are shut 
down completely. The Johns-Manville Corpora- 
tion is operating only three days a week and 
rumors are that the plant will shut down from 
December 21 until the first of the year. The 
Johnson Motors Company have reduced their 
force from 600 to 75. The Oakes Products 
Corporation, manufacturers of Automobile Ac- 
cessories are operating three days a week. As 
a whole business is slow in Waukegan and 
vicinity. The officers of our Central Labor Coun- 
cil are fully prepared to help our members or 
any one else who is not familiar with the work- 
ings of the Social Security Law. The WPA 
is taking care of all who are able to work. 
People with property are unable to get on 
WPA work or obtain relief. There should 
be some way of taking care of these people 
who own only a small home. Older persons 
needing relief are taken care of under state old 
age pension law, but the amount paid is inade- 
quate to meet their needs. The result of the 
election by the Regional Labor Board for the 


employees of the Johns-Manville Corporaticn as 
to whether they wanted the independent union 
or the American Federation of Labor union was 
won by a vote of 1511 to 507 in favor of an 
American Federation of Labor union. This vic- 
tory has, and will continue, to help in this com- 
munity.—GEORGE NorDsTROM, 


Connersville—The Automobile Parts Plants 
are laying off more workers than last year. 
This is the season for re-employment in other 
industries. This seasonal re-employment is as 
good as last year. This, together with a new 
Crosby plant at Richmond and with Cord- 
Auburn now entering job manufacturing fields, 
takes care of the lay-offs in other plants. The 
secretaries of the local unions and our Central 
Labor Union are ready to help members present 
their claims under the Social Security Act. Both 
Connersville and Richmond have government 
construction jobs to be done by WPA workers. 
A local union of painters was chartered at 
Richmond. The ten American Federation of 
Labor unions have organized a Central Labor 
Union and will apply for charter after January 
1. The wives of the union workmen will seek 
affiliation as a Ladies’ Auxiliary early in Jan- 
uary.—RoserT E. HALL. 

Evansville—Practically all truck companies 
are laying off more workers than usual. The 
Sunbeam Manufacturing Company is calling 
back employees, as is the Hoosier Lamp and 
Stamping Company. Part time jobs are secured 
for as many as possible on relief projects. Older 
persons needing relief receive a check each 
month. <A closed shop agreement has been 
signed by the Hayes Freight Lines. Butchers 
and retail clerks are making good progress. 
Efforts are under way to form a union of 
waitresses and culinary workers. We will con- 
centrate on the unionization of gasoline filling 
station attendants——MiIcHAEL J. ANGEL. 

Kokomo.—The majority of our large indus- 
tries are curtailing and laying off more than the 
usual number of workers. The trustee having 
charge of relief and work relief is doing a 
good job, and more persons are being con- 
stantly put to work under the WPA. Older 
persons needing relief are taken care of under 
the State Old-Age pension law but the relief 
given is inadequate. The pressmen have secured 
an agreement and stove-mounters are now 
negotiating for their agreement. Our Building 
Trades Council will start functioning February 
1.—H. E. VINcENT. 


Des Moines.—General building is slowing up 
and this was somewhat the cause for the lay- 


The following com- 
Des Moines Steel, 

off of building tradesmen. 
panies—Pittsburgh Steel, 
Motor Freight and Fresh Fruit Companies— 

are laying off employees. Our unions are 
ready to help members present their claims 
under the Social Security Act. Provisions for 
relief and work relief are WPA projects and 
direct relief from the County. To a certain ex- 
tent older persons needing relief are looked 
after. A number of agreements have been 
negotiated, all calling for closed shop conditions, 
fewer hours, and a substantial increase in wages. 
Cooks and waiters, bookkeepers and office help, 
retail clerks, and county, state and municipal 
employees are now organizing and before the 
winter is over we hope to have them negotiate 
signed contracts——JAMES W. SOUTTER. 

Ottumwa.—John Morrell and Company is lay- 
ing off workers. This is out of the ordinary as 
this is the busy season of the year. We have 
direct relief, WPA, and PWA to take care 
of those needing work. Two new local unions 
have been chartered—common laborers and 
city, county, state and municipal workers.— 
Henry F. Hoover. 


Leavenworth.—The writer is working to 
charter unions of electricians and plumbers. 
Efforts are being made to reorganize the Trades 
Council.—GeEorGcE J. SIEGWART. 


Louisville.—To the best of the writer’s knowl- 
edge practically every industry is laying off 
workers, and some industries do not plan on 
re-opening before January 1. The hardest hit 
are workers in the lumber mill and on the rail- 
roads. For those needing work we have the 
usual municipal relief work which is in conjunc- 
tion with the PWA and WPA projects. Due to 
rumors of decreased revenue it may be necessary 
to cut the pensions of the older people from $1 to 
$3 per month. Reports indicate the agency is 
rather slow in investigating new claims and that 
an unusual time elapses between application and 
pension payment. Brown Hotel is being picketed 
by firemen and oilers. Our legislative committee 
is working hard on various types of labor legis- 
lation to be offered at the next session of the 
State Legislature —J. T. Woopwarp. 


Monroe.—The Brown Paper Mill is running 
part time. The Louisiana Power & Light Com- 
pany is laying off workers. A one cent gasoline 
tax has been levied which is to be used for 
State relief. Work on WPA projects has ceased. 
—J. L. Conpirt. 


Shreveport—An agreement has been reached 
by auto mechanics with the Shreveport Auto- 
motive Trades Association, which includes about 
54 shops and garages, granting shorter hours, 
time and one half for overtime and recognition 
of the union. A verbal agreement has been 
reached with the Caddo Parish Highway De- 
partment covering mechanics and truck drivers 
through their respective organizations which 
carries an increase in wages of 10 per cent and 
union recognition. There is a recession in busi- 
ness conditions —W. H. Winko. 


Portland.—There is a general increase in un- 
employment, primarily due to seasonal activities, 
but with some added intensity because of a busi- 
ness recession. There is very little provision 
for relief work by State or private agencies. We 
are depending on WPA and other Government 
projects to assume the added burden of taking 
care of those out of work. There have been some 
gains in union membership and an agreement 
has been negotiated for coal truck drivers carry- 
ing a 13 per cent wage increase and other 
benefits—ALonzo F. Younc. 

Portland—There is a seasonal lay-off of 
bakery workers. Our unions stand ready to 
assist those applying for benefits under the So- 
cial Security Act. Our unemployment compensa- 
tion became effective December 1, 1937.—JAMES 


Cumberland.—Out of a normal work force 
of 2,500 at our celenese mill only 1,100 are 
working. The Taylortin Plate Mill has shut 
down, These are not seasonal lay-offs. Most 
of our unions cooperate in helping out our 
needy.—Paut F. LANNon. 


South Hadley Falls—The Textile Farr Al- 
paca Company, the Skinner Silk Company and 
the paper mill are on slack time. Work in 
small shops and building trades is slowing up. 
New relief projects are reported to start after 
January 1938. The Central Labor Union has 
been successful in defeating five out of seven 
aldermen who were opposed to organized la- 
bor.—MIcHAEL J. McLain. 


Kalamazoo.—The Kalamazoo Stove Com- 
pany has laid off since October 1 approximately 
500 workers. Other plants in general have 
laid off workers and are operating part time 
and no information is available when they will 


go again on full time. Our central union 
committee is successful in having our relief 
agency look after the unemployed. Efforts are 
being made to organize the retail clerks. —LesTer 

Menominee.—Electricians at the Signal Elec- 
tric Company are being organized by the Inter- 
national Brotherhood of Electrical Workers. 
Teamsters, chauffeurs and dairy workers have 
signed an agreement with the Phestigo Dairy 
calling for the closed shop and wage increases. 
Classes are being sponsored by the central body 
in conjunction with the Wisconsin Extension 
University —James A. DesPIns. 


Crookston—Pay increases are being nego- 
tiated with the Minnesota Highway Department. 
The writer is endeavoring to form a central 
labor union and also to form a union of general 
drivers.—CLiFrrorp M. SCULLY. 

Faribault.—Acrobat Shoes, Inc., closed Novem- 
ber 20 throwing 75 out of employment. The 
chances of ever reopening are very remote. 
The Faribault Woolen Mills have virtually 
shut down on account of no orders. The Wil- 
son Company, packers, is laying off men. Up 
to date relief cases have been taken care of. 
However, if the present trend of unemploy- 
ment continues I am afraid the situation will 
become critical, We are putting forth every 
effort to hold together those unions whose mem- 
bers for the most part are unemployed.—HeEr- 

International Falls—A federal labor union 
has been organized at Littlefork and a union 
of carpenters has been chartered at Birchdale. 
Laundry workers are negotiating an agreement. 
We have a union cooperative store—W. E. 


McComb.—The Berthadale, McComb and Van 
Dyke Mills have all gone on short time with 
about half the employees being laid off. This 
is much more than usual. The Railroad is 
laying off more than usual. Work in the build- 
ing trades is slack and although business is 
dull we are holding our own. The only pro- 
vision for relief is the WPA projects and there 
are not many of them. Federal Labor Union 
No. 20673 has spent about $2,000 on relief since 
the lay-off began. All the contractors in the 
county have signed up with the building trades. 
Unions of retail clerks and common laborers 
have been chartered. After the clerks and hod 
carriers affiliate with the Central Labor Union 
we will have a membership of around 2,000 or 
more.—J. C. BULLOCK, 



Kansas City.—Planing mills, cabinet shops, 
fixture plants are laying off workers. This is 
seasonal and a little in excess of last year. 
Aside from the Federal Emergency Relief the 
county and city provide materials and the WPA 
defray the cost of labor to provide clothing for 
the needy. A few unions attempt to take care 
of their out-of-work members. We have a 2 
per cent sales tax which is divided among 
several state charitable institutions and the old 
age pension fund. We are making a drive on 
the paint manufacturing industry with a poten- 
tial membership of about 2,000. Organization 
of wholesale liquor workers is under way. A 
very good agreement with the Louis Denebeim 
Distilling Company calls for a union shop, 
vacations with pay, wage increases ranging 
from $3.00 to $4.00 per week and other improved 
conditions:x—HArry S. HELGESEN. 

Springfield—Organization work is under way 
among machinists, Federal employees, culinary 
workers, retail clerks, office workers and gar- 
ment workers. Operating engineers have signed 
several new contracts with creameries and 
bakeries. Bakery and confectionery workers 
have signed new agreements. United Garment 
Workers have a closed shop agreement and 
a provision to carry the label.—J. R. ANDREWS. 


Lewistown.—The Railroads, Gypsum Plant 
and other industries have laid off workers. We 
still have the WPA here and some building 
and all are working who want it. Conditions 
are fair here. Little store buying people are 
purchasing on a very close basis. Three hun- 
dred Christmas baskets were sent out by the 
different Orders——CHARLES COLEMAN. 


Lincoln.—Most companies have laid off work- 
ers. January 1 we had 19,000 on WPA roll 
and this number will be increased to about 
22,000. We have one WPA project that is 
taking care of the union building tradesmen, 
except carpenters and laborers. We are doing 
our best to have the monthly pension for the 
old-age persons increased.—Britr Pryor. 

Lincoln—The fruit companies are laying off 
more men than is usual for this time of the year. 
Truck line operators are not giving full time 
employment to those far down on seniority list. 
Several unions have women’s auxiliaries in 
process of organization. Unions are cooperating 
in enforcing the “we don’t patronize list”. Ef- 
fort is being made to sign up unfair contractors 
and to reorganize the Building Trades Coun- 
cil—WiLLtiamM W. MorpHew. 




I think many people have only a vague idea of how our company functions 
within the Bell System, and how a unique business philosophy is operating to 
make your telephone service increasingly dependable and economical. This adver- 
tisement is the briefest possible statement of the philosophy. that guides the 


Western Electric Company. 

In 1882 the Bell System became convinced that the best way to assure uniformity 
of equipment necessary for universal telephone service was to control its manu- 
facture through one organization. To this end it acquired the Western Electric 
Company, which operates under this three-fold policy: 

1. To make telephone appa- 
ratus of high quality. 

This in itself is not unusual. What és 
unusual is that every item of equip- 
ment in the vast network of the Bell 
System must coordinate so perfectly that 
from any Bell telephone you can talk 
clearly with any one of the millions of 
others. Can you think of any other 
product which must meet such an ex- 
traordinary test? 

2. To work for efficiency and 
lower costs. 

Whether it be in purchasing materials 
— or in manufacturing the 43,000 items 
of telephone apparatus—or in distrib- 
uting all this equipment to the Bell 
companies, Western Electric is always 
seeking the better way. As a result it 

has a progressive record of methods 
developed, products improved, econo- 
mies effected, and costs lowered. 

3. To keep prices at the lowest 
possible level consistent with 
financial safety. 

Western Electric furnishes most of the 
telephone equipment used by the opera- 
ting companies of the System. By com- 
bining their requirements it is able to 
manufacture more economically; and it 
eliminates selling expenses and credit 
losses. The resulting savings it passes 
along to its telephone customers in the 
form of lower prices. 

On these sales the policy of the 
Company is to set the lowest prices 
which will enable it to pay fair wages 
to its employees, to earn a fair return 
on the money invested in the business, 

and to maintain the Company's finan- 
cial stability. 

This policy of voluntarily limiting 
profits is reflected in the Company's 
financial record. In recent years it has 
earned on its investment a rate of re- 
turn only about half as iarge as that of 
a representative group of comparable 
manufacturers, and over a period of 
twenty years this rate has averaged 
less than 7%. 


This set-up within the Bell System re- 
sults in low costs to your Telephone 
Company, and thus Western Electric 
contributes its part in making Bell Tele- 
phone service dependable and eco- 

Western Electric 




Cedar Knolls——All manufacturing companies 
are laying off workers. This is somewhat un- 
usual as in times past this is the busy season. 
Work in all lines has taken quite a drop. Wages 
are very uncertain due to unemployment. Work 
relief consists of a few days’ work at pauper 
wages and is very discouraging as enough 
money is not made to support a family. The 
various unions are trying for better wages. 
The CIO has been trying to organize in this 
locality but .is not making much headway.— 
Aaron B. Losey. 

Morris Plains.—The hosiery mills were never 
known to close in this locality before and all 
during the depression worked three eight-hour 
shifts. They are now working two shifts of 
twenty hours a week. The Manhattan Rubber 
Company is operating only part time. Work 
in all paper mills is practically at a standstill. 
Work relief provisions are good for unskilled 
and poor for skilled—Witt1am H. McGowan. 


Binghamton—The Endicott Johason Shoe 
Company has drastically cut its work force. Our 
unions are helping members present claims for 
benefits. Our state old age pension law takes 
care of older persons needing relief. Unions 
of butchers and gasoline station attendants have 
been chartered. We are presenting a new wage 
scale contract for cooks, waiters and bartenders. 
—Erwin Ear Cross. 

Massena.—The usual seasonal lay-off of about 
15 percent of their employees has been made by 
the St. Joseph’s Lead Company. Provisions for 
work relief are fair—HersperT H. MAcDowELL. 

Norfolk.—The St. Regis Paper Corporation 
closed its mill for one week during the month 
and on December 24 closed for the Christmas 
shutdown. This is not a seasonal lay-off. All 
relief workers are on PWA water and sewer 
projects. Our State old age pension law takes 
care of older persons needing relief. The Racket 
River Paper Corporation of Potsdam is oper- 
ating only two days a week.—JAy M. CLARKE. 

Olean.—Work in this territory is very slack 
with the Arvey Ware Factory shut down, 
the Dayatrim Factory almost 100 per cent closed, 
a large lay-off by Clark Brothers Machine 
Products together with reduced working hours 
and working force reduction by the Vacuum 
Oil Company. This condition is not seasonal. 
Our unions are ready to help members present 
their claims for unemployment benefits. Pro- 

visions for relief or relief work are not very 
promising, with relief cases rapidly on the in- 



Winston-Salem.—The R. J. Reynolds Tobacco 
Company is laying off workers due to the in- 
stallation of improved machinery. It is pos- 
sible now to make more products in 28 hours 
than it was in 40 hours a year ago. Hanes 
Hosiery and Hanes Knitting Company are cur- 
tailing working force. The entire city is run- 
ning about half time due to the recession in 
business. There is being set up at this time in 
the unemployment office a department wherein 
no one will be considered unless he is a union 
member. We are entering into negotiations 
with the Taylor Tobacco Corporation and are 
making a drive on several units here for organi- 
zation—Sam H. Scott. 

Elyria—All industries are laying off em- 
ployees. It is more than a seasonal lay-off—it 

is as bad or even worse than in 1929. We have 
been successful in getting recognition for Federal 
Labor Union No. 20932.—ALVA Kemp. 

Hamilton.—The lay-offs in the foundries and 
machine shops are more than usual for this 
time of the year. Patternmakers report they 
are all employed. Machinists are putting on 
a good organizing campaign for auto mechanics 
and are now negotiating an agreement for 
these workers.—JozE GALLAGHER. 

Newark.—The Florence Nehile Stove Com- 
pany and the Pharis Tire & Rubber Company 
are laying off workers. This is not a seasonal 
lay-off, as more men have been let out and com- 
panies are working fewer hours than at any 
time during the depression. The city is trying 
to care for the needy but is not financially able 
to do it adequately. The Newark Federation of 
Labor, realizing that the city and county are not 
financially able to take care of the needy, estab- 
lished a commissary to distribute foodstuffs to the 
needy. We have not confined this to just union 
people but to anyone who is in need and not on 
city relief rolls. At the present time we have 150 
families that we are taking care of, which means 
that we are feeding approximatety 650 people. 
The central body is financing this program with 
the assistance of the various local unions. New- 
ark has more unemployed people now than at 
any time during the depression —Epcar E. BAKER. 

Springfield—There has been more than a sea- 
sonal fluctuation in work in the last three months 
in this territory. The condition is expected to 
grow worse. A number of the plants employing 
100 or more have greatly curtailed working 
forces. Larger establishments likewise. How- 
ever, the index for the month of October shows 
a gain above 1929 and about the same as 1936. 
The State of Ohio is endeavoring to enact a law 
that will provide for payment of unemployment 


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benefits in 1938. It is now believed this can not 
be done before June, 1938. The Ohio State Fed- 
eration of Labor believes these payments can not 
be made in 1938 unless the Federal law is 
amended. It has expressed itself against the 
plan of the Governor of Ohio, because of ques- 
tion of legality. There is quite a bit of work 
relief. It is insufficient. The same is true of 
relief of those in need. Concerning the latter, 
much depends on legislation now pending before 
a special session of the Ohio General Assembly. 
We have many thousands of old persons in Ohio, 
including Springfield, who have been unable to 
get aid under the aid-for-the-aged law. This 
despite the fact that the Governor has ordered 
increased payments to those now on the rolls— 
an increase of 10 per cent. Service trades unions 
—chauffeurs, culinary workers, retail clerks, 
automobile salesmen, bartenders, etc.—continue 
their membership drives with fair success. Sub- 
stantial gain has been made in the building 
trades. In the metal and shop trades organiza- 
tion work continues. Some six or seven new con- 
tracts have been made in the last month in these 
trades.—C. W. RIcH. 


Bradford.—The Oil Fields are laying off men 
due to the cuts that have been given in the price 
of Pennsylvania oil. The work in the building 
trades has decreased but it is seasonal. The 
writer is a member of the State Employment 
Service and as such has been instructing the 
members as to the procedure of receiving such 
benefits. Our State Old Age Pension Law takes 
care of older persons needing relief.—JosEPH 

Carbondale.—The mining industry is laying 
off workers—this is not a seasonal lay-off. The 
Hudson Coal Company operating these mines is 
demoting superintendents to foremen and laying 
off miners, laborers and office workers. Painting 
and plastering are about the only trades that are 
quiet because of seasonal lay-offs. All other 
crafts are working. We have the WPA for 
relief. We are planning a banquet to be held 
in February. All our union meetings are well 
attended. Several clothing manufacturers are 
looking around to locate here—C. OMAR FiTCcu. 

Sharon.—Bartenders and waitresses are or- 
ganizing. Have secured a three year contract 
with the Colonial and Capitol Theatres at Far- 
rell which calls for four men in the machine 
room and a wage increase of 10 per cent. These 
theatres have been non-union for the past eight 
years. The United Labor League is discussing 
plans for the building of a new Labor Temple.— 

Strasburg.—Unions of cement workers and 
plasterers have been chartered. Teamsters have 
negotiated a contract calling for the eight-hour 


day, forty-eight hour week and wage increases 
os from 15 to 20 per cent together with the closed 
shop. Our Central Labor Union officers give 
weekly talks on new labor legislation, how it op- 
erates and its effects upon workers. Our central 
body has organized a Federal Credit Union. All 
unions are gaining members at this time. Pros- 
pects are not very promising for the winter as 
nearly all factories are laying off workers and 
putting rest on part time. Building tradesmen 
are about 80 per cent employed. WPA projects 
employ close to 1,000; over 2,000 are on direct 
relief. The situation is desperate and we must 
have more funds for WPA and direct relief if 
workers and families are to be cared for.—J. M. 


Amarillo.—Due to no crops conditions have 
been very quiet for the past several years. There 
is a housing shortage but no money to start a 
building program. We will attempt to establish 
a Housing Authority here if and when the law 
is amended to cover our situation. We have a 
very favorable city administration and we can 
count on them to get the most favorable condi- 
tions possible. We have direct relief only for 
those who are unable to work. An agreement 
has been negotiated between the new organiza- 
tion of grain mill and elevator operators and 
their employers. More money and better condi- 
tions were obtained.—C. R. SEars. 


Lynchburg.—Workers have been laid off by 
our two foundries, wagon factory, railroads, 
overall factories, shirt and shoe factories and 
textile mill. This is much more than a seasonal 
lay-off. Relief and work relief are handled 
through the Family Welfare Society. Our daily 
paper cites 1,000 on relief. A good deal of re- 
lief work has been cut off and times are bad 
here. Many unions have been organized in re- 
cent months.—SALLIE D. CLINEBELL. 

Norfolk—The Seaboard, Atlantic Coast Line, 
Chesapeake & Ohio and the Norfolk Southern 
Railway Company are laying off workers. Cen- 
tral Labor Union elected a new slate of officers 
in January. In the past six months from twelve 
to fifteen new locals have affiliated with the cen- 
tral body and we look for more activity next year 
by this body. Carpenters are holding the first 
series of meetings for workers in the woodwork- 
ing industries.—O. C. Moore. 


Welch.—An unusual number of miners are 
being laid off at this time. Outstanding com- 
panies laying off men are New River and Poca- 
hontas Coal Company, Primier Poca Coal Com- 
pany-U. S. C. C. Company, Gary Koppers Coal 


Company, Kinston Poca Coal Company, Hemp- 
hill, Pond Creek Pocahontas Company, Bartley, 
West Virginia, and many small companies as 
well. There is an adequate relief service provided 
in this county—also work relief. The state old age 
pension law makes provision for care of older 
persons, but my understanding is that sufficient 
money has not been appropriated to carry out 
the plan. A committee has been appointed by 
the Central Labor Union to assist membership of 
various local unions in presenting claims for 
benefits under the Social Security Act. Educa- 
tional work is being carried on amongst trade 
union members in behalf of union label.— 

Racine.—All industries are laying off workers. 
The City Council is promoting more WPA proj- 
ects. Also the County Board has issued more 


bonds for direct relief. The state old age pen- 
sion law provides relief for older persons, but is 
not entirely satisfactory. We hope to improve 
the law. Unions assist members in getting their 
unemployment compensation. Plumbers and 
steamfitters have just completed negotiations and 
secured a material increase in wages. Electrical 
workers have new agreement under way. A. F. 
of L. local of clerks is steadily building up mem- 
bership.— WILLIAM H. SoMMERS. 

Rothschild.—All companies and all industries 
are laying off help. Most of our unions have 
agreements and are getting along as well as can 
be expected. Clerks in the Winkleman depart- 
ment store are on strike but expect settlement 
soon. Rubber Workers Union No. 20617 has set- 
tled its strike and a decision is now being 
awaited from the Labor Board as to whether 
four members will be returned to work. Relief 
provisions remain about normal.—ALBerT R. 


On page 58 of the January issue the child labor provisions for Alabama and Arkansas 

should have been: 

In Arkansas fourteen is the minimum age for employment in any remunerative occupation 
except in vacations in occupations owned or controlled by the parent. Children between fourteen 
and sixteen years are required to have certificates for employment showing the completion of 

fourth grade. 

Night work is prohibited for children under sixteen. 

In Alabama fourteen is the minimum age for employment with exceptions for boys of twelve 

or over on vacation. 

years of age except in agriculture or domestic service. 
completed the eighth grade and show certificate of physical fitness. 

Employment certificates are required for children fourteen to seventeen 

Children under sixteen must have 
Night work is prohibited 

for children under sixteen except in agriculture and domestic service. 






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