New-York tribune., 1919-04-12
Hunaniziing the
Differences of
The Workshop
Joint Committee Plan of Adj
justing Labor Questions
Adopted by Shipyards
Suggests Wage Dividends
Workers Also Should Share
Management of Corpora
tions, g.. p. Steinmetz Saws

Men Of business who spoke yesterday
at the editorial conference of the New
York Publishers Association at the
Hotel Astor struck hammer blows at
the underlying problems of industry
The speakers showed no hesitancy in
entering delicate and controversial
fields, but offered their advice for the
building of a better, stronger economic
foundation with zeal and forcefulness.
V. Everitt Macy, president of the
National Civic Federation, gave the set
ting for the discussion, when, in con-
Guiding his address on the settlement
of labor disputes, he said
"The time has come when the indi-
vidual must take a stand, either for
law and organized, orderly develop
ment. or for the use Of force. or
anarchy Arbitrary, reactonary en-
ployers are as dangerous to society as
revolutionary labor agitators. Must
we suffer further catastrophes before
adopting organized lawful methods of
dealing with all human problems ?"
Proposes Wage Dividends
Charles P Steinmetz, consulting en-
gineer Of the General Electric Com
pany' carried the idea of industrial
cooperation furthest. In his address
he suggested the payment of wage div
idends to workers and giving them the
right to participate in the election of
directors of corporations. Mr.. Stein
metz started his argument with the
assumption that both capital and la
Dor play integral parts in industry to-
day and that capital should get fair
interest return and labor fair wage.
and that the surplus remaining should
be divided, after necessary reductions.
into capital stock dividends and wape
dlvldends, the latter being based on
the yearly remuneration O the
workers. The engineer said that the
wage dividend plan, which provided
for division of the profits with work
ers, was already in operation in sew
eral large corporations, but urged that
the principle be extended by permit
tIng the workers to have a voice in
to vote for directors.
Mr.. Macy sketched the background
or the new approach to the labor prob
lem, saying:
employers and employees must come
TO realize that their first responsible
lty IS to society as whole, and that
any interruption in production causes
loss to all elements. No ones bust
ness can therefore longer remain his
own to do with as he chooses. As con-
suhers we must be taught that we
q
price to allow the purchases we mako
% be made under proper conditions.
Employers must be content to make
'nelr pronts by means of their cXccu
tive ability and not through the nav
ing OF low wages or the artificial con
'rol OF prices. Employees must learn
mat wages and standards Of living can
continue to rise only by increased pro
ductivlty, and if one does not produce
m any gwen period as much in value
AS the wage received he is iniurinp
society. There seems to be penerni per,I.i !
ldea that tho government has some
mysterious way of meeting deficits
ana that If the government operated
all industry the number of hours
WORKED could be much reduced and
the pay largely increased. The funda.
mental principle that no industry car
be run at deficit indefinitely seems
70 nave been lost sight of. From m,
experience during the war I woulc
say that both employers and emnIova.
seem TO feel that if the government
pays the bills who should care. We
seem 70 forget the fact that the gov
ernment ls only ourselves in anotbe,
form. "'o'''e'
Labor Administrators Needed
ut is Of utmost Importance for tb,
peaceful development of industry tha
poth employers and employees shoul,
% thoroughiy organized in order tha
s'aoe agreements may be worked on
between them. Before this can h,
successfully accomplished, however
employers must place in the hands O
oroad- minded. experienced men the re
sponsioillty Of formulating and carry
ing out their labor policies. Suc]
men might be called labor advisers
administrators, and engineers.
group of such men rcpresentino roorr
1acturers of an industry should moo
with the international president q
tne unions employed and in confer
ence reach an agreement covering tn
questions OF wages and hours for Nh
enure industry and for districts. Lo
zeal boards, on which the emnlovar
should have equal representation
should then be set up for the purpos
OF establishing local, or distric,
working conditions, and for the in
depreciation of the detailed appli
cation of the wage scale to indiyidua
plants.
In each plant OF any size tber
should be labor adviser or enginee,
and the workers in each craft em
ployed in the plant should elect
committee from their number to rep
resent their craft. The chairman O
this craft committee should be a mem
Der Of general shop committee, com
posed Of the various craft chairmer
1T IS encouraging to know that thos
engaged in the shipbuilding industr
are about to establish three board
similar TO those described here, on
for the Atlantic Coast, one for tn
Great Lakes and one for the Pacif
Coast
John Calder. consulting engineer. il
discussing the psychology Of the indus
trial worker, said: Our chief gain ii
industrial management has been bet
ter understanding Of the worker. nj
fears, ambitions, attitudes and achieve
inents. Most scientific studies in in
dustry have dealt essentially will
purely mechanical elements, the EN-
pioyes being regarded chiefly as 81
many hands available at all times as ,
matter of course 10 carry out the will
end intention Of the inventor, dcsiene,
and bueiness planncr on schemes fol
using them effectively; schemes some
times quite meritorious, but with n,
provision for obtaining the consent q