The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1919-08-01
AN INDUSTRIAL DEMOCRACY

Among interesting experiments IN ih7
dustrial organization is the industrial
democracy Of William Dcmuth & Co..
tobacco pipe manufacturers. OF New
York. This concern employs about SVo
men and women and has organized an
elaborate form of government moaeleo
after the government OF the lniteo
States. II has president and caoNet'
conoposcd Of the head OF the concern
and it's executive officers. senate com
posed OF various shop foremen' ana
house Of representatives. composed OF
individuals elected by workers IN the
various branches of the plant The SEN
Ate and house Of representatives meet
weekly to consider questions OF factory
rr.naxcmcnt and shop policy. The pow
ers Of these various bodies have oeea
developed experlmentally. and apparently
an aeac,,yc working system has been
bull, NJ. stimulating production. increas-
ing tho efficiency Of the plant and in
creasin.; the returns TO the workers. In
An address delivered before the Person
ncI Managers club Of the Chamber OF
Comm -rcc Of New York City, Mr.. +. l..
Fcunrbsch. factory manager of the De-
ruth Company. described the operations
Of thc industrial democracy IN detail. ~
its conclusion. n" said: a
Frankly. wo cannot Say specifically
whether or not industrial democracy has
reduced the costs Of production during
the last two years.
Our costs nave risen. "a We expected
they would. due u III" same war conan
tlons which affected everyone else we
did not. IN the beginning. haI" any ilIu-
sion that industrial democracy wouid
keep our costs down 10 pr"-war OASIS.
How much lower they have been than
would have been il VIZ had not had m
dustrial democracy is largely matter
Of speculation We honestly feel that
Nc have benefited distinctly from this
point Of view.
We arc convinced that under the old
system We would have had much
more rapidly rising scale Of wages. con-
sideI able difficulty with our employees.
all Of which would have increased costs
far beyond the point to which they did
rise.
. VIC would almost be inclined 70 feel
That IL our new form Of government
were not TO increase our profit BY sin
gle dnllar, II would stitl b" worth the
money.
I, has made life more worth the lir-
ms. in that both our employees and our
selves. as employers. now occupy tn"
most happy kind OF relationship to each
other Antagontsm between us has been
eliminated entirely We believe in the
employees, and they believe in us.
With that kind Of foundation. II seems
20 us that almost any kind oe accom-
plishm mt within reason Ia possible. We
are At least fortified by tn" knowledge
that in whatever We attempt 10 do IN a
constructive way. We hav" the whole
soulcd spirit and good ~ Of our en-
ployes.
whether the form Of industrial d"moc-
racy established by tho Demuth Com
pany presents practical solution Of the
labor problem may be determined by
time. What may work we'll in some
cases may not work well in others.
However. it is clear that a gradually in
creasing interest in management and di-
section OF industrial properties Is going
20 be exercised by employees. How far
legislative bodies can effectively cHcr-
else executive control is question. 1t
is an axiom that debating ciuLs get no.
where. Wise employers arc gradually
irving t. interest valuable employees in
their properties. Tho United States
association has found plan in the gen.
cral sale OF stock to it's workm"n. and
the experience Of some fifteen years
shows that the Steel association. whll'
no, necessarily a model. has had large
measure Of success.