The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1902-12-13

er Galtlsha, A. Grow, the father OF the
American Congress, defining his care
fully matured convictions as to the re-
latons which should exist between cap
ital and labor. IT is the last address
which he will make in the Congress
which he has so long and so honorably
adorned:
OF all the baneful influences which
lead to national decay, the most per-
nicious is a policy that degrades or inn
poverishes labor. The real strength Of
a nation consists not alone in fleets and
armies, but in the manly spirit of an in
dependent yeomanry, and in the INTEL
ligence, comfort and happiness of its
laboring people.
OF all industrial questions. the one
that most directly affects the general
welfare is the relation of American la
Dor to capital. In the prosecution Of
business Of any magnitude three things
are necessary-capital, supervision and
labor. For success, wise supervision Is
quite as important as either. without
capital and wise supervision it would be
impossible for labor alone to accom-
plish any great result. Yet labor.
whether of brain or muscle, is entitled
to receive out of the accumulations of
wealth in proportion to what it con-
tributes toward the accumulation.
While this theory is just, the difficulty
in reducing it to practice is to devise
Il satisfactory method by which it could
be done.
Copartnerships in all cases are based
on the principle that whoever shares in
net profits must in the same proportion
be responsible for losses. But profit or
loss in business cannot be ascertained
until after the expiration of a period
in the business. Yet labor must be paid
in current expenses whether there is
any net profit or not. Statistics show
that a large percentage of all kinds of
business ends in bankruptcy, thus sink
ing the amount of capital invested. In
such cases it is clear that labor re-
peives all that it could possibly be en-
titled to under any theory Of profit
sharing. AS wages are paid in current
expenses, and capital takes all risks Of
losses, some method ought to be pro-
vided for the repayment of the capital
invested. Even in successful business
there would be no additional accumu-
lation of capital until the money al
ready invested should be repaid.
Copartnerships between the owner of
the capital in any business and it's la
borers would not he practicable, for the
risk of losses and investment of money
would all be on one side, without in
vestment or responsibility on the other.
Tncorporat or associations of labor
Celld not change these conditions. In
cooperating individuals or associations
without capital would he mere fiction
Of law, like John Doe and Richard Roe
i'll legal proceedings. Business cannot
be prosecuted successfully on mere
legal fictiOns. Therefore corporations
or associations for business must be
based on actual capital.
To work is a right Of every self-sup-
porting, law-abiding person under any
form of government, and the highest
duty of free government is to protect
individuals in this right. To invest
money or not to invest is the right of
the owner of capital. But whenever it
is invested In business or any lawful
pursuit it is entitled to the protection of
law the same as labor is entitled to
protection for its rights.
Law cannot create or compel the in
"estment of capital any more than it
can compel labor to work. outside of
Rflldi anu cIldlitS lHStltutlOllS but UNI
iyise legislation can prevent the invest
ment of capital and may destroy it.
Unreasonable demands by labor upon
capital, If persisted in, can do the same
thing.
Arbitration No Real Remedy.
Voluntary arbitration of Disagree
ments between employer and empoye,
ever the existing dispute, which may
occur again in the same on different
form, as often as the old disagreement
may have been settled.
Compulsory arbitration between en-
ployer and employe would be a usur-
patton of the inherent rights of both
by the awmaking power. And could
ii lawfully be done. the tendency
would be. on one side, to prevent the in-
vestment of capital, and ON the other
TO a final establishment by law of
system of peonage of all labor. Law
can no more compel capital to pay to
labor a specified rate of wages than 1t
can compel labor to work at IA fixed
rate of wages.
= But If the proportion that ought to
be paid to labor out of net profits in
business could be ascertained with
mathematical eXactness. it would not
be determination of the real relation
OF American labor to capital. The great
question in this country. in addition to
that of profit sharing, is to determine
how high the wages of labor can go
without destroying labor itself.
The higher the wages of labor and re-
tain the market for Its products, the
better it is for everybody. To that
point in all cases the employer can go.
But beyond that point II is an impos-
sibility. For labor cannot be paid in
the production of an article more than
the article itself will sell for in the
market. The market price for an ar
tiele and the wages Of labor in it's pro-
duction are not fixed by this country
alone. In respect to both market price
and wages, this country is In competi-
tion with the markets and the labor of
The world. A wise adjustment of tariff
duties ON the importations of the pro-
duets of foreign labor can. TO a certain
extent, prevent the reduction of prices
In this country to point ruinous to la
bor. But the wages of labor can reach
50 high as to be beyond the power OF
tariff duties to overcome the compete
tion OF the poorly paid labor of the