7. The right of employees to be consulted prior to a decision of management adversely affecting their wages or working conditions shall be agreed to by the management. This right of participation shall be deemed adequately complied with, if and when the representatives of a majority of the employees of each of the several classes directly affected shall have conferred with the management.

8. No employee shall be disciplined without a fair hearing by a designated officer of the carrier. Suspension in proper cases pending a hearing, which shall be prompt, shall not be deemed a violation of this principle. At a reasonable time prior to the hearing he is entitled to be apprised of the precise charge against him. He shall have reasonable opportunity to secure the presence of necessary witnesses and shall have the right to be there represented by a counsel of his choosing. If the judgment shall be in his favor, he shall be compensated for the wage lost, if any, suffered by him.

9. Proper classification of employees and a reasonable definition of the work to be done by each class for which just and reasonable wages are to be paid is necessary but shall not vnduly impose uneconomical conditions upon the carriers.

10. Regularity of hours or days during which the employee is to serve or hold himself in readiness to serve is desirable.

11. The principle of seniority long applied to the railroad service is sound and should be adhered to. It should be so applied as not to cause undue impairment of the service.

12. The board approves the principie of the eight-hour day, but believes it should be limited to work requiring practically continuous application during eight hours. For eight hours' pay eight hours' work should be performed by all railroad employees except engine and train service employees, regulated in the Adamson Act, who are paid generally on a mileage basis as well as on an hourly basis.

13. The health and safety of employees should be reasonably protected.

14. The carriers and the several crafts and classes of railroad employees have a substantial interest in the competency of apprentices or persons under training. Opportunity to learn any craft or occupation shall not be unduly restricted.

15. The majority of any craft or class of employees shall have the right to determine what organization shall represent members of such craft or class. Such organization shall have the right to make an agreement which shall apply to all employees in such craft or class. No such agreement shall infringe however, upon the majority to pre

sent grievances either in person or by representatives of their own choice.

16. Employees called or required to report for work, and reporting but not used, should be paid reasonable compensation therefor.

SUGGESTED READINGS

ADAMS, T. S. AND H. L. SUMNER.-Labor Problems.

BROOKS, J. G.-The Social Unrest.

CARLTON, F. T.-The History and Problems of Organized Labor.

CLARK, L. D.-The Law of the Employment of Labor.

COMMONS, J. R.-Trade Unionism and Labor Problems.

(ed.) Doc

umentary History of American Industrial Society. (10 vols.)

ELY, R. T.-The Labor Movement of America.

GILMAN, N. P.-Methods of Industrial Peace.

HOLLANDER, J. H. AND G. E. BARNETT (eds.)-Studies in American Trade Unionism.

HUTCHINS, B. L. AND A. HARRISON.-A History of Factory Legislation. LAIDLER, H. W.-Boycotts and the Labor Struggle.

LEVASSEUR, E.-The American Workman.

MITCHELL, JOHN.-Organized Labor.

PIGOU, A. C.-Principles and Methods of Industrial Peace.

TAUSSIG, F. W.-Principles of Economics.

WEBB, SIDNEY AND BEATRICE.-History of Trade Unionism. Industrial Democracy.

CHAPTER XXI

SOCIALISM

I. The growth of socialism.

A. The antithesis of the economic organization under which society has progressed, is socialism. The foundation upon which our social structure has been erected is private property, in income and in kind. It is to replace the individual ownership of the instruments of production, to socialize capital, that is contemplated by this economic doctrine. The adherents to the faith believe that the evils of modern society spring from the human breast, and that he who is able to control the instruments of production rules mankind. They maintain that no power is more destructive to humanity than that which the capitalist is able to exercise. To labor belongs the wealth of the earth, for man alone is able to create wealth. No individual has the right of exclusive ownership to productive instruments which he did not create by his own unaided labor. Wealth is a social institution that does not exist in the abstract; and capital as a part of wealth derives its form and usefulness because man fashioned by his efforts tools in order to live, and found certain instruments, contributed by nature, to be helpful. Hence man is active, and land and capital are but passive factors in production. All things are for the use of society, therefore, in

order to insure their equitable disposition, among all members, as well as the advantages which flow from their use, ownership must be vested in the collective association. Give to the guardianship of the state what labor alone can create, the instruments of production.

B. It remained for the modern age of industrialism to crystallize into an organized social movement, a sentiment that has long provoked the concern of society. So long as the family dominated, by the mutual affection of its members, the industry of the state, there was no occasion for the economic superiority of a few. A domestic economy is based upon the family. A national economy is based upon the state. In the one there is a measure of self-sufficiency, independence, and economic cohesion; in the other there is disintegration, individual dependence, and the supplanting of pride and interest in accomplishment, by the separation of the worker from the product of his labors.

Socialism, in the form it manifests itself today, is the product of conditions that are comparatively recent. This is not, however, a characteristic of the past two centuries. It is to be found in the ancient world. Lycurgus formed a plan of making an equal distribution of all the lands of Sparta, among the citizens. He also sought to banish luxury, avarice and conflict, by abolishing the use of money. He accomplished his end. and actually leveled the population of the commonwealth. The unusual feature of this project was that it did not cease to exist when Lycurgus passed away, but continued for ages afterward,

until the reign of Agis when through conquest the country again overflowed with gold.

The Industrial Revolution emphasized the weaknesses of labor and the power of capital, which at the beginning was so conspicuous that it led Karl Marx, Ferdinand Lasalle and others to establish a new labor philosophy. Since that time socialism has grown in extent, until today it is the most widespread of all the revolutionary economic movements. Revolutionary in purpose, rather than in method.

Economic readjustments are always accompanied by consequences that are unevenly distributed, and usually these changes have the greatest effect upon the distribution of population. With the introduction of the factory system, and the concentration of wealth in a few places, cities developed rapidly. A movement set in that seriously threatened to disrupt industry altogether. Within the past ten years there has been an unprecedented movement from the country to the cities, which was greatly accelerated by the war. With the passing of economic supremacy from agriculture with its decentralized control, to commerce with its centralized control, it was inevitable that the distance between the laborer and the capitalist should become wider. This is a condition that is wholly social. It is neither the responsibility of capital, nor of labor.

As an adaptation of industry to meet the demands of society, private enterprise has contributed far more to human development than any other single factor. It is unavoidable that a few should gain abnormally and a few more