MONOPOLIES IN THE LABOR MARKET.

It should be said at the outset of this chapter that, in a very true

sense, practically all men are laborers. That into which a man puts his

energy and by which he earns his living, is his labor, whether it be

work of the hand or the head. But the labor we are to consider in this

chapter is that of the men who work for wages; and we will also make the

arbitrary distinction that it is that of the men who work for wages in

some branch of manufacturing, mining, trade, or transportation, the

great divisions of modern industry which we have thus far considered.

Almost all these monopolies employ large amounts of capital in carrying

on their business; and in the popular speech, "monopolist" and

"capitalist" are often used interchangeably. It is a very common belief

that monopolies are confined to the capitalized industries of

production, transportation, and trade, which we have already considered;

but we are now confronted by the fact that the wage-workers in the

various trades of the country are engaged in exactly the same

monopolistic schemes, in which they have exactly the same ends in view

as have the monopolists who combine millions of dollars' worth of

capital to effect their purposes. On the one hand we have the Standard

Oil Trust and the Railroad pools and the hundreds of other capitalistic

combinations striving to benefit the producer at the expense of the

consumer; while among those whose only capital is their strength and

skill, we find the workers in all the various trades, and even some of

the lower grades of laborers firmly banded together with the avowed

purpose of raising their wages above those which they would receive if

competition alone determined the rate. And they are successful, too.

Notwithstanding the fact that they deal with tens of thousands of

producing units where the combiner of capitalized interests deals with

tens, the success achieved by the combinations of labor is quite

comparable with that reached by combinations of capital. It speaks

volumes for the intelligence and ability of the wage-workers of the

present day--yes, and for the growth of the spirit of fraternity; that

in the advancement of what they deem a just and righteous cause, they

should voluntarily put themselves under discipline and endure patiently

the untold hardships of uncounted strikes, often brought on in the

unselfish work of aiding their brother laborers against what they deem a

common enemy.

The modes in which the combinations of skilled laborers attain their

desired ends are akin to those which obtain in a well organized

manufacturers' trust. The former allow only a certain number of

apprentices to learn their trade. The latter permit the establishment of

only such additional mills as shall not unduly increase the market

supply. The former fix a standard scale of wages below which no member

of the union shall work; the latter fix a minimum price for the goods

sold in the market. If there are more laborers in the union than can be

employed at the advanced rate of wages, some must be idle. If there are

more mills in the trust than the lessened demand for the goods will keep

busy, some must be shut down. The trade-union boycotts competing workmen

outside its ranks, and stigmatizes them as "scabs." The trusts endeavor

to punish every outside manufacturer, sometimes by forcing upon him such

a competition as shall cause his ruin; sometimes by means as illegal and

criminal as are the riotous acts of a mob of hungry workmen, and far

less defensible. But let us not yet bring up the question of relative

blame. The main point which must impress every candid observer is that

the means employed for the monopolies of capital and the monopolies of

labor are identical in principle and motive. Nor are we confined to

manufacturers' trusts to show that the spirit of rule or ruin

characterizes capital as well as labor. Railroad monopolies, in the

words of the president of one of the greatest corporations of the

country, "strive eagerly to protect themselves while entirely

indifferent as to what shall befall their rivals." How many weak

corporations have been deliberately ruined by the cut rates of stronger

competitors? If the laborer has "scab" in his vocabulary, has not the

railroad manager his "scalper" and "guerilla"?

The close relationship, viewed in many different aspects, of the

monopolies of labor and the monopolies in production generally has

hardly received the notice its importance deserves. Still, it is an

evidence that people are thinking of and discussing the matter when such

a writer as W. D. Howells, who is popularly supposed to cater to the

tastes of those who have very little in common with the laboring

classes, puts into the mouth of one of his characters a defence of

workingmen for executing a boycott on a non-union workingman, on the

ground that they "did only once just what the big manufacturing trusts

do every day."

Perhaps it was never so forcibly realized how thoroughly effective these

labor combinations have become, and how completely they hold the country

at their mercy, as in the strike of the locomotive engineers on the

Chicago, Burlington and Quincy Railroad system in March, 1888. Here

were, perhaps two thirds of the men in the country qualified for the

responsible and onerous work of running a locomotive engine, firmly

banded together to advance their own interests and secure assent to

their demands. Granted the will, the courage, the discipline, and it was

possible, yes, easy, for them to have obliged the railroads to raise the

wages of every engineer in the brotherhood to $10.00 per day, for on a

refusal they could have enforced the extreme penalty of bringing down a

total paralysis upon the business of the country. It speaks volumes for

the good sense, the honesty and moderation of the men and their leaders,

that, notwithstanding the fact that their demands were not immoderate,

and that the failure which came permanently deprived of a remunerative

position a thousand members of their brotherhood, they refrained from

the extreme to which they might easily have gone, and permitted

themselves to be defeated, when they had the power to have forced a

different result.

Organized workers in many trades have the power to force wages much

higher than they have done. Would that the Sugar Refineries Company, and

some other monopolies of production, were as moderate in their demands

upon the public as are the workingmen. But though their demands are in

one sense moderate, it is yet true that in so far as they exceed the

amount which the laborer would receive when the market for labor is

open to free competition, they are the direct result of the artificial

monopoly which the laborers have created by their combination, and, in

effect, levy a tax upon the community. To illustrate: let us suppose

that if every man were permitted to follow the trade of bricklaying who

wished to do so, the equilibrium between supply and demand would be

found at a rate of wages of $3.00 per day. At that rate, if the price

rose, more men would wish to follow the trade and at the same time less

people could afford to build houses, thus raising the supply above the

demand. If the price fell, some of the men would prefer to work at some

other trade and more people would conclude they could afford to build

houses. But when the rate, which, without prejudice, we call the natural

rate, is at $3.00 per day, suppose the men belonging to the trade form a

union and resolve to charge $5.00 a day for their work. Then it is very

evident that the cost of building is increased, and every one has to pay

more for construction and ask a higher rent to repay himself afterward.

Evidently, then, by this action of the bricklayers every man in the

trade receives $2.00 more per day for each day's work, which must be

paid, directly by their employers, but indirectly by the whole

community. It would be easy to prove that the tax on the community when

the wages are raised in any trade, affects the whole public as well as

those directly employing the workers in that trade; but it seems too

plain to require proof. The main point we now wish to show, is that any

increase in the wages of labor over that received under ordinary

competition must be paid by the community, just as much as any increase

in the price of coal, iron, copper, wood, wheat, or any other commodity

must be paid by consumers at large. Nor does the injury to the

community stop here, by any means. We saw that the advance of prices by

the linseed oil trust was an injury to all those who, on that account,

were obliged to forego painting; and that it thus caused a further

injury to painters, paint-makers, and even those employed in the

building trade. But the increase in the price of the bricklayers' work

has results no less important. Not only is injury done to those who

build and have to pay more for their buildings, but many are prevented

from building on account of the increased cost. If we argue according to

a prevalent method, we may say that this reduced activity in the

building trade will cause stagnation among allied trades with

corresponding loss of employment. Again, as a less number of houses are

built, and those which are built are more expensive, rents are certain

to rise, which means that the poor man must pay out a still greater part

of his earnings for his shelter, or else must put up with poorer and

meaner quarters.

It is a strange thing to trace, in connection with this, the history of

labor, and see how recent it is that the natural right of a man to sell

his services for such a price as he could obtain has been acknowledged.

History shows that until modern times, compulsory personal servitude has

been in every age and country the lot of a large part of the human race.

And when wages began to be paid for service, conditions were not much

improved. In England, in the fourteenth century, in the reign of Edward

III., a pestilence seriously depopulated the country, and reduced the

supply of laborers so much that it was not equal to the demand for

labor, and wages began to rise. Laws were therefore enacted that each

able-bodied man and woman in the realm, not over three score, "not

living in merchandise, nor exercising any craft, nor having of his own

whereof to live, nor land about whose tillage he might employ himself,

nor serving any other," should be bound to serve at the wages accustomed

to be given five years previously. No persons were allowed to pay an

advance on these wages, on pain of forfeiting to the Crown double what

they had paid. Previous to the fifteenth century, workmen in various

occupations were impressed into the service of the king at wages

regardless of their will as to the terms and place of employment.

Indeed, all through the fifteenth and sixteenth centuries, there were

continual attempts to fix the rate of wages arbitrarily by law, and also

the hours of labor. These, by one old statute, were decreed to last from

5 A.M. to 7 or 8 P.M.

These acts, and others of similar nature, were intended for the

subjugation of laborers and the benefit of the employers of labor. It is

only since the era of popular government that legislation for an

opposite purpose has come in vogue. Gradually the right of the

workingman to have the price of his labor fixed as is the price of other

commodities, by the law of supply and demand, came to be recognized,

although the progress was pitifully slow. The old ideas of the relation

between "master" and "servant" were very tenacious of life, and the

substitution of the terms "workman" and "employer" is a change which has

taken place in England during the present generation.

It was the petty tyranny and the grinding extortion which the laborers

had begun to feel, even though they were far better paid and better

treated than their fathers, that caused the formation of the original

trade unions. Laborers saw that each was helpless alone, but that

combined they were a power which their employers need not despise. The

old craft guilds furnished them an example of effective combination

among those engaged in the same trade; and as men everywhere in every

age, when a common danger or misfortune has confronted them, have come

together for mutual help and defence, these ignorant laborers, in

violation of stringent statutes, but following blindly their human

instincts of self-defence, came together and organized the first trade

unions.

The common law has always held trade unions to be "illegal combinations

in restraint of trade." Between the reigns of Edward I. and George IV.,

the common law was affirmed and made more effective by the passage of

over thirty acts of Parliament, all intended to abolish the trade

unions. In 1800 a stringent law was passed, by which all persons

combining to advance their wages or decrease the quantity of their work,

or in any way affect or control those who carried on the business in

which they were employed, might be committed to jail by a justice for

not more than three months, or to work in the house of correction for

not more than two months. Not till 1824 was an act passed slightly

ameliorating this stringent law, and even then the trade unions remained

for the most part secret organizations. At last, in 1871 and 1876, laws

were passed under which no person can be prosecuted for conspiracy to

commit an act which would not be criminal if committed by him singly;

and the trade unions, thus legalized, were taken in common with other

benefit societies under the protection of the law.

We have already pointed out the main fact that the chief end and aim of

the trade unions is the advancement of wages by securing a monopoly of

the supply of labor in some particular trade. It is now fair to explain,

as we have for other monopolies, the labor monopoly from the standpoint

of the laborer himself.

It is a sound axiom of business that a forced sale is apt to be an

unprofitable one to the seller; and that when a man's needs are so great

that he is absolutely obliged to sell at any price, he is quite certain

not to get the full worth of his goods. Now it is an undeniable fact

that the condition of many of the wage-workers of the country

approximates to this: They must have food, shelter, and clothing for

themselves and their families, and the only thing they can offer in

exchange for it is their labor. Suppose an honest and industrious man

has some misfortune, as an accident, or illness, and loses employment.

When once more able to work, he finds his old place filled and new

places hard to find; but at last he finds a mercenary employer who

agrees to give him half wages. Disheartened at his prospects, he thinks

half a loaf is better than no bread, especially when those dearest to

him are hungry, and so takes the place. But his employer takes care that

his constant work shall leave him no time to hunt for a better position.

Indeed, by a few judicious threats from his employer, the man may be put

in terror of losing the pittance he already has, and seeing those

dependent on him in absolute starvation. Such cases are amply provided

for by the trade union. Ill treatment of any one of its members may be

avenged by the organization as a whole, on the principle, whose spirit

of fraternity and self-sacrifice all must admire, that "an injury to one

is the concern of all." More than this, by means of the benefit feature

of the fraternity, the member unfortunate, or in distress, is properly

cared for. No member is obliged to feel, when seeking for employment,

that his food or shelter is at stake if his attempts fail, and he need

never be at the mercy of employers who drive sharp bargains.

It is often charged as an evil of trade-unions interfering with wages,

that they tend to bring all their members to the same level, and are

opposed to the payment of wages in proportion to the varying abilities

of the men working at the same employment. But with unorganized labor,

and employers who were none too just in their ideas, it was not uncommon

to see the necessity of the laborer, or his inability to drive a good

bargain, taken advantage of. Thus the workmen whose necessities were

greatest, and who were the most docile and obedient, received lower

wages than the men who were not particular whether they were busy or

idle, and were inclined to pay more attention to their own rights and

prerogatives than to the work for which they were hired. While the

tendency toward non-recognition of the varying abilities and ambitions

of workmen by the trade unions must be deprecated, it has largely grown

from the reform of this worse abuse.

There is another benefit which the organization of labor has effected

which may, perhaps, be thought an evil by some, but which every broad

and generous man must gratefully recognize as a gain to the whole

community; and in a self-governed nation like our own, it is a benefit

whose importance it is difficult to over-estimate. This is the

maintenance of the laborer's dignity and self-respect. We have but to

look back to the times we have already mentioned, to see the laborer

hardly better than a dog, a cringing dependent, kicked and beaten on

slight pretext, and with almost every vestige of manhood worked and

bullied out of him. We have come upon far happier times to-day, and

there are few corners of the civilized world where conditions so evil

prevail now. But without the organization of labor, the status of

workingmen would be much farther removed from what is just and right

than it now is. Every employer who is wise and honest, and who has the

true spirit of a gentleman, will see that his workmen are treated with

the respect that is their just due. Discipline there must be, but it is

a wrong view of discipline that makes it consist of oaths and brutal

insults delivered according to the prevalent good temper or ugliness of

the overseer. Unfortunately, not every man who is placed in authority is

wise, honest, and a gentleman. Bodily violence is no longer permitted by

law, but too often the curses and insults which are heaped on men with

no due cause are a violence which is more severe to many a man than

actual cuffs and kicks. No man can take such treatment without

resentment, and maintain his dignity and self-respect. Yet in how many

places is petty tyranny of this sort still active, and its victims are

cowed into submission for fear of taking the bread from their children's

mouths.

But the member of a strong labor organization need not be cowed or

tamely accept insult. He has the right to resent it, and has the power

of his fraternity to support him. He knows this, and his employer knows

it. Overseers, big with their importance, and inclined to show it by

attacking the self-respect of the men under them are no longer in

demand.

It is very unfortunate that many people misconstrue this result of the

organization of labor as a move toward the abolition of all social ranks

and grades. It is nothing of the kind. Social gradations cannot be

created or brushed away by any legislative enactment, or the acts of

any single class. The combination of the workmen to secure their right

to protect themselves from insult is indeed a movement toward making

them better and nobler men, just as the abolition of slavery in all its

forms was a move in this direction. But no man is truly free if he is

not secure in his right to immunity from personal insult as well as from

bodily violence. It is not strange, however, that the workman, conscious

of the strength of the fraternity behind him, sometimes grows arrogant

and insolent toward those who must necessarily be in authority over him.

Unaccustomed for generations past to other government than fear of one

sort or other, he is all unused to self-control. But it is hardly

possible that this should be a great evil. The body of workmen will,

eventually, if not now, refuse to sanction and defend their members in

any thing which their innate sense of justice must teach them is wrong.

Few workingmen will causelessly ask their brotherhood to undertake the

hardships and loss of prestige which accompany a strike. And even when

insolence is shown toward employers or overseers, they have at least

equal power to resent it, and are not, as was the laborer of a

half-century ago, forced to submit to insults with outward humility.

We have already noticed the condition of the laws in reference to the

laborer in former times: but the repeal of the laws oppressing the

workman, and making him a servant to a master instead of a workman for

an employer, has been largely due to the organized efforts of the trade

unions. To them, also, we owe the passage of many acts like those for

the guarding of machinery in factories, the restrictions upon the

employment of child labor, and the proper care for the health, comfort,

and convenience of employés in general. It cannot be said that the

labor interests have always shown great wisdom in all their advocacy of

new legislation, and too many acts, like those in reference to the

employment of convict labor, show a lamentable retrogression. On the

whole, however, there is every reason to believe that the general course

of justice has been aided by the influence of the trade

unions--something which can be said of very few special interests for

whose benefit our legislatures have enacted laws.

All the above facts we must admit in defence of the organizations which

have, to a large degree, killed competition in the labor market. But in

defence of the especial action of the labor monopolists in forcing wages

up to a point above that which competition alone would determine, there

is also much to be said. Those who are unwilling to concede that there

is any justice in the claim of the wage-workers that full justice is not

yet awarded them, are accustomed to expand on the theme of the improved

condition of the laborer over that in which he was a century ago. How

this can be taken for argument is a mystery. No one thinks of disputing

or diminifying the well-known fact that many workmen of to-day have more

comforts than the princes of the Middle Ages. The single point in

dispute is this: Of the total wealth which is being produced in the

world to-day, is the laborer receiving his fair share? There are not

wanting men of judgment and ability who answer this question with a

decided No. And the greater share of the blame for this injustice they

lay upon the monopolies which we have been discussing. They charge, and

they verify their charge with ample and sound testimony, that of the

wealth which the united brains, and strength, and skill of the world

daily produces, the lion's share is taken by men who render the world no

proportionate service. This is partly due to existing laws, which the

public is not yet wise enough to better; partly to the inertia of public

opinion, which is still prone to cling in many points to the idea of

past generations that the workman was necessarily a slave; and partly to

the narrow selfishness and grasping ambition of many men in the business

world. This is not arguing for the reduction of all to a dead level, as

is so often absurdly claimed. It is arguing that the inequalities which

exist at the present day are not held securely in place by agreement

with the inflexible laws of justice and right. Instead they are abrupt

and uneven, and contrary to these laws; and there is great danger that

the readjustment, which must inevitably take place to bring them in

accord with these laws, will come, not as a gradual change, but as a

series of terrible social catastrophes, involving us in a wreck which

will require a century of civilization to repair.

Only fanatics preach absolute equality. As men differ in their ability

and their power to serve the world, so is it just that the reward which

the world metes out to them should differ in like proportion. But if we

stretch to the utmost the benefit which we conceive the world to derive

from the life of many of its men who reap the richest harvest from its

production, we cannot in any way make out that their services are so

valuable as to deserve such munificent reward. Indeed, it is not very

far from the truth to say of some of our most wealthy men that their

wealth was won instead of earned; and many place a much worse term in

the place of "won."

The workman sums up his case with the argument that as he is confessedly

not getting his just share of the results of his work, he is only

getting his due, or part of it, if by combination with his fellows to

crush out competition, he is able to put up the price of his labor above

the natural rate. Finally, as a last defence for the labor monopolies,

he calls attention to the trusts and pools and monopolies which are

taxing him at every hand for the necessaries of life, and declares that

if he, working on the same principle as the wealthy capitalists, is able

to combine his tens of thousands of fellows into an effective monopoly,

surely he should not be condemned for following the example of the men

who are, or are supposed to be, his social, moral, and intellectual

superiors.

Such is the strong case which the labor organizations present in defence

of the unions which they have formed to kill competition in the labor

market. The investigation we have pursued in the preceding chapters

enables us to add to this a statement of the case more comprehensive and

striking even, than the narrower views which have preceded. In the

chapter on the monopolies in trade, reference was made to the fact that

the competition among purchasers tends to keep prices up, just as

competition among sellers tends to keep them down. Now labor is a

commodity whose price in the market is governed by the same laws of

supply and demand that regulate the prices of all other things that are

bought and sold. But it has this peculiar difference, that the _sellers_

of labor are many, while the _purchasers_ are few, as compared with the

relative proportion of sellers and buyers of goods in general. Then,

wherever there is little competition among purchasers of labor, we shall

expect to find low wages; and where competition to secure workmen is

active, high wages will be the rule. This is so obviously true, in the

light of every one's experience, that we need not stop to prove it.

Now, in the days when manufacturing was carried on in small workshops,

there was a great number of purchasers of labor. The concentration of

manufacturing in great establishments where thousands of workmen are

employed has lessened the number of employers greatly; has it not also

lessened competition among them? It is a well-known fact that in many

great industries, as, for instance, the mining of coal or the

manufacture of iron, there is one rate of wages paid all through one

district, and the employers fix that rate through their associations.

The makers of trusts have sometimes defended them, on the ground that

they enabled the employer to pay his laborers higher wages; but it is

plain that when all the firms in a trade are united in one combination,

there can be no competition between them for the employment of labor.

They will pay them only such wages as they choose; and the bulk of

evidence seems to show that, notwithstanding the vast profits which the

monopolies are reaping, they have been far from showing any general

disposition to share their profits with their employés. It seems almost

unquestionable that we have here the real reason for the extraordinary

increase of labor monopolies within the past quarter century. This

period has witnessed a rapid growth of consolidation and combination in

all our industries, lessening thus the number of employers of labor. The

wage-worker found himself confronted with the fact that he was soon to

lose entirely the benefit of competition for the purchase of his work,

and felt that his only salvation from practical slavery was to prevent

the competition between himself and his comrades from forcing his wages

down to the starvation point. He met the monopoly that threatened to

lower his wages by forming another monopoly that could meet the first on

equal terms.

We have given little space in this chapter to the consideration of the

limit of the power of labor monopolies; but it is obvious that this is

very clearly defined. In the first place, while there are certain

attempts at combination among unskilled laborers, and those not working

at trades, these attempts cannot, as a general rule, be at all

successful. Any man out of employment may be a competitor for the work

which they do, and it seems practically impossible that any organization

can combine, under effective discipline, even a majority of the

workingmen of the country not skilled in a trade. The only ways in which

attempts to kill competition in unskilled labor can be successful, then,

are by the use of force or the boycott, or similar means, and these can

never come into vogue as permanent agents in the world's industry. The

labor monopolies which exist, and which promise, if let alone, to enjoy

continued success, are principally combinations of the workers in

skilled trades, and certain of those employed in manufacturing, mining,

trade, and transportation.

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