Year: 1877

production: capital Win It's increase !


the exclusive product of its hand. Viii


out the remuneration which comes frol


the product Of labor alone, capital mu.


perish from exhaustion; without III


means and opportunity of employment


which capital alone can furnish, labo
must perish from inaction and wan


Whatever is destructive of either is fats


to the other; without the co-operatio


of each, both must anguish and di'


Since then the interest and prosperit


Of each are inseparable to those of tn


other, is it not the part of wisdom to de


wise and apply some method of inter


management, which, without trenchinj
upon the separate rights of either, sha'
secure the harmonious corporation {
both; which, without disturbing thei
existing relations, shall repress antago
nisms and secure the common effort
of each in the common protection an,
advancement of all? To this suggestion
there can be but one rational answer
Yes.


Is such method of finter-managemen
practicable or possible? Much reflection
and the experience ofothers tell me it is
The whole embarrassment arises out O
the question of compensation. Capita
prescribes fixed rate, changing it a
pleasure; labor feels thai it is insufficient
A sense of injury and injustice is begot-
ten; whether it be real or imaginary
the result is the same. Dissatisfaction
ripens into open discomfort until the
slumbering volcano bursts forth. Can
this be ayerted without arms and the
shedding of blood? | am persuaded il
can. How? By adopting and apply
ing in our great industrial enterprises a
graduated scale of compensation, condi-
toned on net earnings. viii this vest
labor with any proprietary interest or
property right in the capital employed!
Certainly it cannot, any more than a
fixed compensation can vest it with such
right Shall it be brought about by
compulsory legislation? No. For either
capital or labor to invoke this, would BE-
to place its head in the lions jaws, even
if the Government had authority to as
sumo jurisdiction of the subject; but it
has nosuch authority. Freedom to con-
tract is the highest liberty of the citizen.
Subordinate this liberty to legislative
control, and he at once becomes the
slave of INSCRIPTIONS power and polit-
ical corruption.


How, then, may it be accomplished? I?
Let the capitalist prescribe reasonable
minimum rate of compensation to be
paid at all events, and in addition there
to assume to distribute among his labor
ers at the end of stated periods an agreed
or specified percentage Of his net earn
ings for the same time; if his business
prosper, the laborer, from whose toll it
has sprung, would share his prosperity;
if not he would acquiesce with content
ment in receiving all that it was in the
power of a considerate employer to give


Methods of graduated compensation
similar to this have been adopted in
Europe, in this country, and in our own
State: and my information is that in no
single instance have lock-outs or strikes
occurred in any industrial establishment
where adopted. My judgment, there
fore, is that their application in the
management of our railway and other
great industrial investments would be
attended with like satisfactory results.


These opinions are neither new nor
hastily formed; whether capital can be
persuaded to adopt them, the future will
determine. l have heretofore expressed
my confidence in their correctness and
practical efficiency, and now repeat that
if |, as manager of a colliery or railway
line, had the power to try the expert
ment, would test the principle with a
confident assurance of successful iSsUe.
The highest considerations of interest
and security impel to its adoption by
the managers of these great industries.
The employe being interested in aug
menting receipts, would have the strong
est motive to prevent whatever was cal
culated to defeat these results. Instead
of the discontented striker, he becomes
the yigilant guardian and loyal protector
ofthe interests and the property confided
to his charge.


But does this concern the public?
Most deeply. Industrial enterprise has
converted the noble cities which dot our
State from the Ohio to the Cuyahoga
into marts of manufacture, dependent
for their supplies of fuel upon the pro-
ducts of the mine, and the facilities OF
railway transportation. Let combined
and concerted revolt from Scranton to
Lawreneeburg interrupt these supplies
at critical juncture, even for a brief
period, and imagination fails TO fathom
the suffering attendant upon the result
ing coal famine. The internal commerce
of the continent is dependent on our
grand system of railways On the mus
cles of railway labor, the mighty pro-
ducts of the Nations industry are borne
to market. Let this refuse the burden,
even for little while, and the country
isparalyzed. A more efficient conserv-
ator of social order than armed police,
a more inexpensive and less dangerous
protector of public safety than military
force, are contented employment and
bread. Let these be secured by the ap-
pliances of peace, and the growing cloud
of peril, at first scarce larger than a
mans hand, rather than be permitted to
develop into the hurricane of destruc-
ton, may yet be dispelled, and the dan
ger of military government and stand
ing army be averted. 1t does concern
the public; deeply, profoundly.


1t was because of this concern that the
Cleveland Convention took action on
the subject and brought it permanently
forward for discussion. 1t was unwilling
that the public mind, aroused by recent
events TO sense of the magnitude and
great importance of the question, should
relapse into repose without recommend
ing the creation of tribunal commits
stoned to search out the causes of these
events and suggested peaceful methods
for their removal. To this end, it re-
commended the creation of a National