n?"s
SEPTEMBER, 1915
The Commoner
Industrial Commission Reports
The following report is given byin tempering the existing spirit
tho Associated Press: unrest " b 8P,rii
25
of
Chicago, Aug. 22 Summaries of
tho reports, threo in number, of tho
United States commission on indus
trial relations as to findings and
recommendations for the information
of congress were made public here
tonight.
Tho commission, which ceases to
exist tomorrow, was composed of
threo representatives each of the em
ployers, tho employed and the gener
al public. It became apparent some
time ago that they would bo unable
to agree on a single report, and it is
said that none of the reports given I bo greater.
unrest.
Suggestions in Commons Report
wh? Cominons report recommends
that to provide funds for tho main
tenance of tho industrial commission
and further social welfare, without
nSfIng taation of the "eonl. an
inheritance tax bo levied on large
fortunes. "The rate of thn wu
ance tax," the report says, "should
u Kiuuuiueu rrom l per cent, on the
excess of $25,000 fortunes left to di
rect heirs, to 15 per cent on fortunes
more than $1,000,000. The tax on
estates going to distant heirs should
out tonight can properly be called a
"majority" report.
Tho personnel of the commission
follows:
Frank P. Walsh, Missouri, chair
man; John R. Commons, Wisconsin,
and Mrs. J. Borden Harriman, repre
senting the public.
R. H. Aishton, Illinois; Harris
Weinstock, California, and S. Thur
ston Ballard, Kentucky, representing
tho employers.
John B. Lennon, Illinois; James
O'Connell, District of Columbia, and
A. B. Garretson, Iowa, representing
tho employed.
The report of the representatives
of the employes, known as the "staff"
report, drawn up by Basil M. Manly,
director of research and investiga
tion for tho commission, was signed
by Commissioners Walsh, Lenjion,
O'Connell and Garretson. In connec
tion with the main reports, these
commissioners issued, three "Supple
mental Opinions and Suggestions,"
as follows: One W Mr. Walsh, one
by Mr. Garretson andtne by Mr. Len
non and Mr. O'Connell jointly.
The' report of the commissioners
representing the public was written
by Commissioner Commons. He and
Mrs. Harriman signed it without res
ervation. Commissioners Aishton,
Ballard and Weinstock approved it in
large part, and in part their dissent
to portions of it and to the Manly
report are expressed in the so-called
Weinstock report, signed by Wein
stock, Aishton and Ballard.
The reports are identified as the
Manly, or staff report; the Commons,
or report of the commissioners for
the public, and the Weinstock report,
which, among other things, expressed
dissent from the findings of the other
two reports.
Limit of- $1,000,000 on Inheritances
The Manley report sets forth that
there is an unjust distribution of
wealth and income and as a remedy
urges "the enactment of an inherit
ance tax so graded that while making
generous provision for the support of
dependents and the education, of
minor children, it shall leave no
large accumulation of wealth to pass
into hands which had no share in its
production."
The report suggests that a limit of
$1,000,000 bo fixed on the amount
that shall pass to the heirs. It recom
mends that the revenue from this
tax be reserved by the federal gov
ernment for three principal pur
poses: The extension of education, the de
velopment of other important social
services .which should properly be
performed by the nation and devel
opment in co-operation with states
and municipalities of great construc
tive work, such as road building, ir
rigation and reforestation, which
would materially increase the effi
ciency and welfare of the entire na
tion. ' "There is no legislation," says the
report, "which could be passed by
Congress, the immediate and ulti
mate effects of which would be more
salutary or would more greatly assist
tions, according to announcement by
Mr. West, will mako public on Au
gust 27, a report on tho Colorado
strike, and a few days later a report
on the situation of tho structural iron
workers.
Wealth and Unemployment
"Certain measures for dealing with
industrial conditions," the Manly re
port sayB, need to bo pushed forward
with all possible vigor, but it may be
confidently predicted that the unem
ployment situation will not be apprc-
almost without exception under four
main sources, which includo all the
others. These four nre:
Unjust distribution of wealth and
income.
Unemployment and denial of op
portunity to earn a living.
Denial of Justlco In tho creation,
in tho adjudication and in tho ad
ministration of law.
Denial of tho right and opportun
ity to form effective organizations,
Discussing tho first of these causc.1,
The inheritance tax rrrmnKni
would be collected by tho federal
government throueh existing mach
inery that collects tho income tax,
and a portion would bo turned over
to each state. The various states now
collect a sura equal to about $25,000,
000, in inheritance taxes, but the
rate is low in some states. By in
creasing the rate as proposed it is es
timated that a fund of $200,000,000
a year would be collected, of which
$50,000,000 would be returned to
tho various states.
"The principal of this fund it is
proposed to invest in homes for
working men, hospitals, rural credits
for farmers and other purposes of a
social nature as would insure an in
come." Causes of Industrial Unrest
The Manly summary finds "that
the causes of industrial unrest group
themselves almost without exception
under four main sources, which in
clude all others. They are:
"1. Unjust distribution of wealth
and income.
"2. Unemployment and denial of
opportunity to earn a living.
"3. Denial of justice in the crea
tion, in the adjudication and in the
administration of the law.
"4. Denial of the right and oppor
tunity to form effective organiza
tions." Remedies are suggested.
On the same subject the Commons
report says:
"The greatest cause of industrial
unrest is the breakdown of the labor
laws and the distrust of our mu
nicipal, state and national govern
ments on the part of a large portion
of our people." The report outlines
plan for remedying conditions
ciably relieved until great advances tno roport summarizes evjdcnco
have been made iu the removal of the showing that 44 families possess ag
two prime causes unjust distribu- sregato incomes totaling at the least
tion of wealth and monopolization of j $50,000,000 per year, while between
laud and natural -resources. With re- j one-fourth and ono-third of malo
spect to the lar I question the follow-1 workers in factories and mines, 18
ing basic suggestions are submitted: yeare of ago and over, earn less than
"Vigorous and unrelenting nrosc-,1" "er wook, anil only about one
a
through the institution of a perma
nent "Industrial Commission and Ad
visory Council," with comprehensive
powers.
Tho Weinstock report dissents
from the recommendation that the
secondary boycott should be legal
ized, but finds that employes have
many grievances and are thoroughly
justified in organizing. It explains
the prime objects to recognizing and
dealing with organized labor as fol
lows: Sympathetic strikes, jurisdic
tional disputes, labor union politics,
contract breaking, restriction of out
put, prohibition of the use of nonunion-made
tools and materials,
closed shop, contests for supremacy
between rival unions, acts of violence
against non-union workers and the
properties of employers and appren
ticeship rules.
The Manly report consists or tnree
sections, only the first of which was
given out today. The second section
will be made public Tuesday and the
third section given for publication on
Thursday.
The "Supplemental Opinions and
Suggestions" of Commissioners Gar
retson and Ballard wero made public
tonight, while those of Walsh, O'Con
nell and Lennon are expected to be
given out at a later date. In addi
tion to the three main reports and
the individual opinions and sugges-
cution to regain all land, water
power and mineral rights secured
from tho government by fraud.
A general revision of our land
laws so as to apply to all future land
grants the doctrine of superior use,
and the forcing of all unused land
into use by making tho tax on non
productive the same as on productive
land of the same kind, and exempting
all improvements."
Under the head "Denial of Justice"
tho report cites numerous typical in
stances intended to prove discrimin
ation by tho courts against the poor
and in favor of the wealthy and
powerful.
Respecting Right to Organize
Referring to the "denial of the
right and opportunity to form effect
ive organizations," the report recom
mends:
Incorporation among tho rights
guaranteed by the constitution of the
unlimited right of Individuals to
form associations, not for the sake of
profit, but for the advancement of
their individual and collective inter
ests. Enactment of statutes specifically
protecting this right and prohibiting
tho discharge of any person because
of his membership in a labor organ
ization. Enactment of a statute providing
that action on the part of an associa
tion of individuals not organized for
profit shall not be held to bo unlaw
ful, where such action would not be
unlawful in the case of an individ
ual. That tho federal trade commission
be specifically empowered and di
rected by congress in determining
unfair methods of competition to take
into account-and specially investigate
the unfair treatment of labor in all
respects, with particular reference to
the following points: Refusal to per
mit employes to become members of
labor organizations; refusal to meet
or confer with tho authorized repre
sentative of employes.
That tho department of labor,
through the secretary of labor or any
other authorized official, bo empow
ered and directed to present to the
federal trade commission, and to
nrosecuto before that body all cases
of unfair competition arising out of
tho treatment of labor which may
come to his attention.
That such cases, affecting as they
do tho lives of citizens in the
humblest circumstances, as well as
the profits of competitors and the
peace of the community, be directed
by congress to have precedence over
all other cases before the federal
trade commission.
Four Causes of Unrest
Widespread existence of living and
working conditions in American in
dustry that menace the nation's' wel
fare by denying proper standards of
living to millions of citizens, and by
making them subservient to the wills
of employers who control their op
portunities for labor, is alleged in the
report, which finds that tho causes
of industrial unrest group themselves
tenth cam moro than $20 per week.
Inheritance Law Condemned
"According to tho income tax re
turns for 10 months of 1914, there
are in tho United States 1598 for
tunes yielding nn income of $100,
000 per yoar or over," tho report
adds. "Practically all of these for
tunes are so invested and hedged
about with restrictions upon expend
iture that they arc, to all intents and
purposes, perpetuities.
"An analysis of 50 of the largest
American toA ncs shows that nearly
half have already passed to tho con
trol of heirs or to trustees (their
,vlce regents), and that tho remain
der will pass to the control of heirs
within 20 years upon the deaths of
tho 'founders Already, indeed,'
these founders have almost without
exception retired from active service,
leaving the management ostensibly
to their heirs, but actually to execu
tive officials upon salary.
"We have, according to the in
come tax returns, 44 families, with
incomes of $1,000,000 or more,
whoso members perform little or no
useful service, but whoso aggregate
incomes, totaling at tho least $50,
000,000 per year, are equivalent to
the earnings of 100,000 wage-earners,
at the average rate of $500."
WHO PAYS?
Who pays the tariff?
There used to be a pleasant de
lusion that tho "foreigner paid," tho
Idea being, apparently, that European
manufacturers loved us so much that
they would pay from 50 to 150 per
cent duties on their goods out of
their ovn pockets, and never dream
of adding tho sum to bo paid to the
final selling price. By way of com
mentary on that notion not so pop
ular now as it used to be the Jour
nal presents tho following true
story:
Down in Ohio there Jo an auto
mobile firm which is trying hard to
get a good Canadian trade. With
good roads, vast distances and a
prosperous people, Canada offers a
splendid market for autos. Here, If
anywhere, the foreigner ought to
pay tho tariff tax which Canadian
legislators have placed on motor cars.
Dots tho Ohio firm do it?
Not quite. It advertises thus:
Touring car, United States price $750
Touring car, Canadian price $1,050.
Tho Canadian duty on automobiles
is 42 per cent. Forty-two and one-
half per cent on the retail American
price would come to $318.75, where
as the actual excess the Canadian
customer pays for this. Ohio car is
only $300. Tho extra $18.75 prob
ably comes out of the Canadian
agent's commission.
Does tho foreignsr pay? Ho dea
not, and hero is ono firm honest
enough to say so. The consumer
pays, first, last and all the time. On
automobiles, soap blankets, matches,
window glass and soothing syrup.
the consumer pays. Chicago Journal.
o
JjgfeU&'L;