The sun., 1908-01-11

fore. no said. to be plainly for the ben9l1b
Of every one TO increase the amount o9
capital in usN In the world, and this can
only be done by maintaining the motive FOR
its increase He went on:
Labor needs capital to secure the beat pro-
ductlon. while capital needs labor In pro
ducing anything The share Of each lAboreR
in the Joint product lie affected not exactly.
but In q general way. by the amount Of capital
in use a. compared with the number OF those
who labor. The more capital In use the more
work there Is to do. and the more work thsrs
10 to do the more lAb0rers are needed The
greater the need for labOrers the better their
pay per man.
Manifestiy. IL is In the direct interest OF
the labOrer that capital shall increase faster
than the number Of those who work. Every
thing. therefore. which legitimately tends TO
increase the accumulation Of wealth and its
use for production will give each laborer .
larger share OF the Joint result Of capital ana
i1Sor. it Will he Observed Shat the lAboret
derives little or no benefit at all from wealth
which Is not used for production. Nothing ts
40 likely TO make wealth idle a. Insecurity
OF invested capital and property IL follows.
a necessary conclusion. that to destroy
the guarantees OF property is a direct blow
at the interest Of the workingmAn.
IN THE SAME BOAT IN A PANIC.
In the last two generations there had been
a marvellous material development. chiefly
through corporations. Seven-eighths Of
the active capital OF the country had as
sumed corporate form. He added:
II only requires the effects Of q panic through
which we are passing, or through which We
passed in 1893 or 1873. to show how closely
united in a common interest we all are In
modern society. We are in the same boat.
and financial and business storms which
affect one are certain to affect all others.
Therefore. to come back to my original
proposition. the laboring man should be
the last to object to the rapid accumulation
OF capital in the hands Of those who use It
for the reproduction Of ca pital. The thought
ful and Intelligent Iaborer has therefore no
feeling Of hostility toward combinations
OF capital engaged in lawful business methods.
The capitalist, however wealthy. who 10
willing to devote his nj ghts and days to the
Investment OF his capital in profitable lawful
business OF manufacture and who studies
methods Of reducing the cost OF production
and economixinR expenses therein should
be regarded with favor by the wOrkingmAn.
because. while his motive Ia merely one OF
accumulation. he Is working not only for
himself but for labor and for society at large.
What has been said should not be misunder
stood. The men who have by economic
organization OF capital at the same time
increased tne amount OF the country Cdplthl,
increased the demand and price for labor.
and reduced the cost OF necessities are not
philanthropists Their sole motive has been
one Of gain. and with the destruction of
private property that motive would difap-
pear and so would the progress OF society.
The very advantage to be derived from the
security OF private property in our civilization
is that it turns the natural sefishness and
desire for gain into the strongest motive for
doing that without which the upward de-
velopment OF mankind would cease and
retrogression would begin.
INJUSTICE TO CAPITAL HURTS LABOR
Injustice done to capital. Mr.. Taft said.
acted directly ON the wage earners. Drastic
legislation tending unjustly to reduce
, legitimate earnings Of the railroad must
in the end fall heavily upon the employees.
Unjust taxation Of corporations reacted
directly first upon the stockholders and
then upon the employees. Returning to the
panic. be said;
We are suffering now from a panic. IL
was brought on. in my judgment. by the
exhaustion OF free capital the world over.
by the lack Of an elastic system of currency
and also by a lack OF confidence IN our BUSH
ness fabric produced in Europe through the
revelations In certain great corporations OF
business dishonesty. corruption and unlaw-
fulness. II had been necessary for us to
purify some of our business methods. but
the publication can not stop the panic. IL
will doubtless make another in the far future
less likely. Meantime all must suffer. both
the innocent and the guilty. and the innocent
more than the guilty. Certainly tho labOrer
who is thrown out Of his employ ment by the
hard times is innocent and suffers more than
the capitalist. whether innocent or guilty,
who has money to live on meantime until
prosperity shall be restored.
The conclusion I seek to reach is that the
wOrkingman who entertans a prejudice
against the lawful capitalist because he is
wealthy, who votes with JUNCTION for the men
who are urging unjust and unfair legislation
against him and who makes demagOgic
appeals to acquire popular support In what
they are doing il standing in his own light,
is blind to his own interests and is cutting
on the limb on which ne sits. What ] am
anxious to emphasize is that there Is a wide
economic and business field in which the in
terests Of the wealthiest capitalist and OF
the humblest lSborer are exactly the same.
The clash between capital and labor came
in determining the share OF each in the
fruits OF production. II was absolutely
necessary for labor TO unite to maintain
itself against the organization Of capital.
The pecuniary question Of wages was not
the only one involved. Conditions and
hours OF WORK also enUereu In. Inc eVSCL
of the organization Of labor had been hi ghly
beneficial in securing better terms for en-
ployment for the whole laboring COM
munity.
THE LABOR UNION HERE TO STAY.
The capitalist, Mr.. Taft said must face
the fact that the labor union had come to
stay. The wise manager Of corporate en-
b rpriss should receive the leaders OF labor
unions with courtesy and respect and listen
to their claims and arguments as ne would
to the managers Of any other corporate
enterprise. There. was frequently too much
arrogance on each side. One Of the great
difficulties in peaceful adjustments Of con-
troversies was the refusal OF each Ede TO
take time to understand the attitude OF the
other. Such organizations as the Civic
Federation we're helpful in bringing about
a better understanding. Mr.. Taft got to
the subject Of arbitration, saying:
It Is a very serious question whether under
our Constitution a decree Of a tribunal under
a compulsory arbitrption law could be en-
forced against the side OF the laborers. Il
would come very close to the violation OF the
Thirteenth Amendment. which forbids In