The labor world. [volume] (Duluth, Minn.) 1896-current, 1921-07-30


the result that accomplished yes.
terday in four hours, am entitled
to get the benefit of it. and If, through
improved intelligence and skill bet.
ter the quality Of the service I ar,
rendering, am entitled to get the
benefit of that, and if I can make
in two hours what I formerly made
in four hours. why should I work
four hours continuously? These are
my rights as producer.
Two Equal Halves.
'In all industry there are two
equal halves. two equal elements You
probably think I am going to say
capital and labor. I am not: they
never are equal. capital never equals
labor. But we do have two equal sle-
ments in every form of production
There is the producing element and
the consuming element On the pro-
ductive side of industry we have two
factors, capital and labor, for capital
and labor Joined together make up
the productive side of industry.
again, labor, or human effort, is
composed of two factors. management
that directs and so-called labor that
performs. They are all one thing
human effort---but we are accustomed
to dividing them in that way, so T
will accept that division for the time
being. So we have management. la
Dor and capital on the productive side.
These three factors have to contrib
ute together to the total sum of pro-
6n0fiNr1
their contributions you have the total
cost of production. wages paid to
labor, salaries paid to management,
interest paid to capital invested.
The Industry Dies.
Now, the consuming element has
got to contribute to that Industry a
sum equal to the contributions of
these three producing factorss If they
don't, the industry dies. Those for
whom the industry exists must pay
in the price charged them enough
to compensate capital. labor aud the
management, so that the consumer
contributes an amount exactly equal
to the amount contributed by the pro-
Queer. He has to contribute a lit
tie over that ii, the industry is to
prosper. He has to contribute. a. mar
gin of profit sufficient to furnish the
new capital required by expanding
business. That comes from the con-
sumner. He pays it in prices.
Nov, if the consumer is one-hal If
of industry and the producer is the
other halt. it management, labor and
capital make up the producing side
Of industry and we are to give them
governmental grant to conduct in
dustry-and under the bill of rights
that grant can only be made for the
common good and not for the profit
OF class-then that grant must pro-
tect the rights of the consumer in
price; it must secure the rights Of
capital in protection of It's investment
and interest. and it must secure to
labor a like protection of it's invest
ment.
What Is Capital?.
What Is capital? The unexpend-
ed surplus Of past labor. We all agree
on that. What is labor? The amount
OF capital expended in productive pro-
cesses-nothing else. The amount Of
wealth consumed in productive pro-
cesses measures the. value Of labor.
Nov I am going to surprise you.
Fifty years ago, in nearly every con-
stltution in this. country. the right
OF labor to participate in corporate
organizations in an equality with cap
1tal was written into the foundations
OF our state governments. In the
state of Colorado, back in the centen-
NAL year. they wrote into their con-
stitution this provision-and it is al
most universal: NO corporation shall
issue It's stock or bonds except for
money, labor Or property actually re-
celved and applied to the purpose for
winch the corporation was created
What Is Labor?
Nov, capital. money and property
is put into the corporation in order
to provide a plant. tools and facil-
ltles Labor goes in to perform the
processes of production. Labor en-
ployed by a corporation in its pro-
cesses Of production is just as much
LABOR received for the purposes of
the corporation as the capital put in
that bought the machinery, and that
labor so employed is entitled, to be
represented by securities on an equal
lty with capital. :" But we never have
done It,
There is constitutional provision
we have forgotten, we have over
looked. If we are to secure democ-
racy In industry, then we must Sc
cure to labor all the rights, privi-
leses and immunities enjoyed by the
man who owns stored UP labor. The
man who commands present labor
must be put on q par with the man
VINO controls dead labor. Living labor
is just as sacred as dead labor.
Labor Living Capital.
Gan we do it,? Suppose that we
were to'provide that such corporations
We're to recognize the employee as the
investor of capital N.Y. friend down
mere has $4,000 worth of capital,
the surplus Of past labor, which he
invests in the railroads, and on that
capital he gets a secured return of
per cent. or a thousand dollars a.
year. That measures the value of
his contribution. My friend over here
IS an engineer who is employed by
the railroads. He puts In the 1--we
capital, his human effort and in re-
turn Tor that he is paid thousand
collars year. The service he has
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