Smyrna times., 1908-01-15
taft DISCUSSES
CAPITAL AND LABOR
The Secretary Declares One is De-
pendent on the Other.
lDVOCATES LABOR UNIONS

New York. Jan. 11.-For the first
,me since he became a recognized |
.ondidate for the Republican presi-
ssntisl nomination, Secretary of War
Uilliam H. Taft faced a New York
,udience, set forth in detail his stand
an the pertinent question of the rela-
i've interests and rights of labor and
oapital. and in turn submitted to a
amid fire attack from the audience
ybich quizzed him keenly and in a
,omewhat controversial spirit, accord.
ing to the practice of the Peoples In
ctitute whose guest he was.
In his prepared address the secre-
tary pointed out the dependence, one
mon the other, of capital and labor
He declared that great aggregations
of wealth properly employed widened
the field of labor and were to be well
comed while wealth improperly used
vas TO be condemned. He advocated
unionism insofar as sympathy and
the resultant cooperation made for
the common good. Continuing Mr..
Taft said:
II only requires the effects of a panic
through which we are passing, or through
which we passed in 1893 or 1873 to show
now 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, 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 repro
5uctiOn of capital The thoughtful and
intelligent labOrer has therefore no feel
Ing of hostility toward combinations of
capital engaged in lawful business
methods.
The capitalist. however wealthy who is
willing to devote his nights and days to
the investment of his capital in profitable
lawful business or manufacture. and who
studies methods of reducing the cost of
production and economizing expenses
therein should be regarded with favor by
the workingman. because, while his mo-
tive Is mercy one of accumulation, he is
working not only for himself. but for
labor and for society at large. The wealth
they accumulate is not wrested from la
bor but it is only a part of that which
has been added to the general stock by
the ingenuity, industry, judgment and
ability of those who enjoy it, If, with the
Of man is to improve. new ways for the
use of capital to better advantage must
be devised. which shall at the same time
increase capital more rapidly than the
population and reduce the cost of living.
1t is greatly in the interest of the work
ingman that corporate capital should be
fairly treated. Any injustice done to it
acts directly upon the wage-earners that
must look to corporate wealth for their
employment. Take the large body OF
railroad employees. Any drastic legislation
which tends unjustly to reduce the legitl-
mate earnings of the railroad must in
the end fall with heavy weight upon the
employees of that railroad, because th5
manager will ultimately turn toward
wages as the place where economy can
be effected. So in respect to taxation. il
the corporation is made to bear more
than its share of the public burdens. il
reacts directly, first upon it's stockholders
and then upon it's employees.
But while il is in the common interest
Of labor and capital to increase the fruits
Of production. yet in determining the
share of each in the product. their in
tarests are plainly opposed. Though th'
law Of supply and demand will doubles:
in the end be the most potent influence
IN fixing this division, yet during thu
gradual adjustment to the changing mar
kets and the varying financial conditions
capital will surely have the advantage
unless labor takes united action. Durint
the betterment of business conditions
organized labor. if acting with reason
able discretion. can secure much create
promptness in the advance of wages thai
If It were left to the slower operation 0
natural laws. and in the same way, a
hard times come on, the too eager EN-
ployer may be restrained from undu
haste in reducing wages. The organiza
ton of capital into corporations with tn
position of advantage which this gives
In a dispute with single labOrers owe
wages, makes absolutely necessary TO
labor to unite to maintain itself.
Arguing that the effect of the Of
ganizatiOn of labor has been beneficis
in securing better terms for the Who'll
laboring community, and brough
about an amelioration of the cOnditio
Of laborers in another way, Secretar
Taft declared that the attention give
by labor unions to remedial legislt
ton has been of more direct interef
than even that of the philanthropist
What the capitalist. who is the en-
ployer Of i.tor, must face is that the o.
ganizatiOn Of labor-the labor union-is
permanent condition in the industri
world 1t has come to stay. II the en-
plOyer must consult MS own interest !
must admit this and act on it, Under e.
sting conditions the blindest course th'
an employer of labor can pursue Is
decline to recognize labor unions as Il
controlling influence in the labor mark
and to insist upon dealing only with h
particular employees.
The time has passed in which that a
titude can be assumed with any hope
successfully maintaining It, What Il
wise manager of any corporate ente
prise employing large numbers or Lahore
will do is 20 receive the leaders OF lap
unions with courtesy and respect and Ii
ten to their claims and arguments as tn
would TO the managers of any other co
pOrate enterprise with whom they we
to make an important contract anectl
the business between them. The propo'
tions from labor unions sometimes are
exorbitant in respect to the terms of ei
poyment as literally to deprive the ma
ager Of the control which he ought TO
tain over the laborers employed m
business This is to be expected In
comparatively new movement and Is r
to be made a ground for condemning II
On the other hand. the arrogance IS r
confined TO one side. We all OF US kn'
that there are q number of employ'
to IF intolerance