The record-union., 1899-04-25
binding the under dog, by reason of his


turn was followed by an era Of free
contract. The idea Of freedom is not
the mere absence of restraint, but it
is the existence of positive opportunities
to develop or unfold ones powers, to
make the best of ones self in the
| world, and to contribute, according to
ones alb lily and inclinations to the eco
nomic good and welfare While the
state restraints certain activities of men,
in the interest of the general welfare,
and while this may appear at first
brush as a curtailment of freedom, the
state is really the organ of liberty, the
oretically, at least, commanding what
IS right and forbidding what is wrong.
The generous and progressive state re-
ally opens up a vast field for personal
activity, within the bounds of civil lib
erty' thereby fostering economic devel-
opment. 1t is shown that industrial
progress means the greater dependence
OF man on man. While it might be
supposed that this would result in the
slavery Of each to all, it really enlarges
freedom, by making each man respect
the r1ghtsitof all others. In all civilized
iands the increasing multiplication of
economic relations has resulted in an
largely to guarantee freedom.
Section 10 treats of competition and
bargaining, which are marked features
OF the modern industrial era. In the
larger economic sense competition sm-
ply means the struggle of conflicting
economic interests, on the basis of the
existing legal and social order. The
standard of legitimate competition
" q 9Tfi.a ~
crimes of practices that were once held
to be fair competition. 1t has not been
many decades since force was regarded
as fair. The theory back of competi-
ton is that il finally puts every man
IN the right place in the industrial
world This, however is but another
way of stating that the f1ttest survive.
fIttest for what? might be asked-but
pohtlcal economy has not yet replied
to that question.
In the narrower sense, competition is
struggle for an economic advantage
over one engaged in a like occupation
as the competition of carpenter with
carpenter, blacksmith with blacksmith.
etc Like completes with like; labor
with labor, capital with capital, com
modify with commodity. However. ex-
ceptionally high wages in one trade
may draw to it men from other trades.
and in this roundabout way we may
nave competition between differing in
terests. In Sacramento natural gas
competes with electric lights. with coal
and wood.
IN the larger sense, competition in
Guides bargaining, and in this light en-
ployer and employe are competitors
When workmen cease to compete with
one another, and when capit italist ceases
TO compete with capitalist, we have or
ganization-and this often leads to in
dtstrlal warfare, strikes, riots and all
the labor troubles known to civilization.
Section IL treats of the division of Ia
| Dor, and of exchanges. Division of la
| Dor is shown to be a necessary result
of the features Of modern Industrial So
clety, with its complex relationships of
men, Division of lab Dor means specia,i
cation in the economic field. and sne-
c1allzation is the marked tendency of
the age. Lawyers devote their energies
to some one branch of their profession
and doctors treat one line Of diseases to
the exclusion of all others Thus the
specialization net only separates men
into various callings, but it divides one
business into many branches
Division of labor also means a largo
| increase in the productive energies of
the world. Adam Smith set forth this
fact clearly in his great book .aThe
Wealth of Nations Under division of
! labor economic energies are used more
fully than they could be under anv
other system; all tools are in use. but
| II one man made an entire piano, for ex-
| ample, much capital would lie idle
locked up in machines that were used
only part of the time, or in idle tools
In the making Of a piano there are six
ty or seventy distinct processes. and ev
| cry tool is constantly in USE one man
making one part, another making an
other.
Out of the division of labor arises a
multiplication of exchanges, and great
| er exchange has necessitated modern
means OF transportation and communi-
cation-railroads, telegraph lines, etc.
| Section II sets forth, the fact that the
era OF machinery and vast production
calls for large capitalization. Private
corporations We're devised as a power
ful scheme for getting together large
| masses OF capital, and the ownership
of capital has become a function in pro-
ductlon and such ownership of capital
| IS often separate from direct manage
ment. PFVate corporations were for
merry looked upon with disfavor and
suspicion, and they could not be organ
| lzed without special act of the Legis-
| lature. To-day they may be formed
| under the general laws, and the Secre-
| tary Of State of California issues an
average of five articles of incorporation
| eacn DAY. New York and New Jersey
are now competing with each other to
! lnduce corporations to organize in their
territories. To get still further levera ge
corporations have lately combined into
trusts, Which have vast powers for
! Sood or evil. Trusts are managed by
board, which holds the property of
various corporations in trust for their
stockholders. The increasing size OF
the business unit is a marked feature
OF the times, and there are those who
say that modern production could not
| be carried on but for such combinations
as trusts.
On the other hand labor organiza-
tions are marked feature of the times.
Ihey seem to be as necessary a part Of
the evolution of industrial society as
are combinations of capital: so when
differences arise nowadays between
capital and labor, each speaks and acts
as unit that represents thousands of
separate interests, corporations, or in
dividuals. Labor organizations are now
extending their powers beyond the
States to the union. and beyond the un-
ion to international organizations. They
| began as village combinations, but they
are now confederated all over the CIV