New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-24
Organized Labor Fooled
by Big Trusts, Declares
Industrial Expert.
DEMOCRACY PLAN HIS
REMEDY FOR UNREST
Bares Dictatorship Flaws;
John D., Jr., to Face Com
mission Tomorrow.

duStrlal relations Jul tuV Wy -.
The commission adjourned ior 'ne
day at ] p. m. Il viii reconNehe a. ~
o'clock tomorrow morning, 9nd John
ID Rockefeller. ir. viii be the hrSt
Sir Brandcis said he had found
decided trend toward the improvement
Of the workngman' physical suIrounu-
inrs the large corporations taxing 'ne
lcs5 ir This though many Of the small
az concerns were working up 70 IT,
"Bpt." he said. "the increase IN
wages has not been as rapid as i thihA
10 should have been
"Have YOU found Chairman + RANK
2 Walsh asked him. that the great m
dustrial corporations have operated 90 ~,
prevent the growth Of trade unions
The steel Trust, the Tobacco rust
the sugar trust and other large cor
porations." Ny. Brandels repheo' nave
noesessed power which, IN tho MAIN
organized labor has struggled Ass'nSS
IN vain. Other corporations not rs
lsrre. but having the same desires ana
-be same economic views. but without
the mower have been unable TO resist
for long. They were not different from
tho large corporations except IN Size
Their motives were the same
"Have Won observed the extent 10
,rbirb .bfs potential control was eNer-
cised In labor matters 90 he was ASKED
"WeU. the report OF the Stanley com
rriftee shows TO what extent II was
used" said Mr.. Brandeis.
For Industrial Democracy.
aWbst is YOUR view Of the cause Of
industrial unrest. -,n
There are many causes. l lhlnh the
fundamental cause is the contrast pc
tween political liberties and industrlaI
absolutism. The worker mas voice IN
the determination Of most OF what al +.
fects him politically. but IN lnaps'rlai
matters his situation is quite the re-
verse. il isn't merely the question OF
an individual employe against an IN
dividual employer. g,
eve are democracy. first OF all,
and we must have, above all tnlngs'
men We must develop manhood be,
fore we do anything else. So the END
10 which we must move is an lnduStrlal
democracy. The problems are not
alone for the employer any more tnan
they are alone for the employe. Ohe
cannot shift the problem 10 the other,
"In solving this question no possi oie
degree of profit sharing however nd
oral. can meet this situation. There
"a
we'll as profits The emplOye must have
a part I'm saving how the business is "a
be run. and he must also bear the con
SEQUENCES of a fatal mistake quite as
much as the employer
sTo some extent we are getting thai
result in smaller business. Inc grea'
trouble lies in remote directOrshlps anc
the delegation Of the work OF dealing
personally with labor 10 stewards.
"For labor conditions absentee own
ers must be held absolutely respon-
sible. And / want 20 say that there IS
10 such thing as an innocent stock
holder He NAV be innocent IN TACT
hut he cannot be held innocent. for he
reaps the reward of a system. There IS
this one exception. in my opinion, and
that is created when q stakeholder en-
deavors 90 produce change IN condl-
tions butts overruled.'
Control Vested in Position.
"What Is the average holding Of a
.mau in control Of large corporation -
81 have known cases where control
.was had by men holding. no stock--oi
y Just enough 20 qualify. ] recall an In
stance where outsiders wanted 20 buy
controlling stock The president Of the
company had 20 buy the five qualifying
these corporations are not controlled
by stockholdinC They are controlled
very largely By position. That is the
almost inevitable result Of wide dis
trbution Of stock. And the stock.
holders DO not seem 10 realize It. A
stakeholder having 400 shares will
grow discouraged IN his desire 10 ef-
feet a change because he does not know
the actual holdings Of the heads Of the
corporations. Tie does not understand
that the purpose can easily be &C
complished by uniting
wide distribution of stock. instead
Of being a blessing, ls great evil. il
is absentee landlordism of the wOrs;
kind"
Sir. Brandeis said that the Democrat.
zation Of such large corporations as the
United States Steel Corporation was
impossible
I'VE are driving toward democracy
and the development OF manhood in tn,
worker. You may give the employ'
comfortable surroundings, a share II
the profits. increased wages and short
or hours you may give him all 0.
these things. but he viii still be Z
slave He must be given a directing
voice in his business"
what is your opinion Of such foun
dations as the Rockefeller and sag
foundations
Favors a Minimum Wage.
Il have never questioned that thes'
foundations were based on the high
est motives Of faith and Jealous de
sire with a purpose. But in view o.
our democracy, / have great apprehen
sions Of what may result when the!
mass out Of the hands now directing
them. We DO not know into VIVA
hands this power may fall or how i
will be used.
con the whole. 10 seems inconsistent
with our democratic aspirations. They
are ali right if they are subjected tC
governmental control 20 counterac'
possible bad effects. In that way n
would be possible for them 20 achieve
great good for humanity"
Glow would YOU minimize industrial
unrest"
"The fundamental remedy is indus
trial democracy With that ] should
adopt arbitration, mediation, conclha-
ton, profit sharing and minimum
wage scale
Speaking Of good and bad unions
and good and bad corporations, Mr.
Brandeis said every time an employer
WAS unfair he hurt all the other en-
ployers, and that this applied TO IN
dividual and organized labor.
Mr.. BRANDED could see no sense IN
incorporating labor.
Rockefeller 10 Testify.
Touching on the statement Of Samuel
Tntermyer that certain few banking
groups controlled all Of the railroads
which Jacob II. Schih pronounced nom