the industrial efficiency of a country be maintained if the human values of its workers are diminished or destroyed. The delicate adjustment required to reconcile the two principles named must be made. Peace and progress depend upon complete loyalty in the effort to reconcile them.

We, therefore, find:

I. Under the present competitive system the principle of industrial efficiency requires that the employer shall be free and unhampered in the performance of the administrative functions which belong to him, and this must be taken to include:

(a) That he is entirely free to select his employees at his discretion. (b) That he is free to discharge the incompetent, the insubordinate, the inefficient, those unsuited to the shop or those unfaithful to their obligations.

(c) That he is free in good faith to reorganize his shop whenever, in his judgment, the conditions of business should make it necessary for him to do so. (d) That he is free to assign work requiring a superior or special kind of skill to those employees who possess the requisite skill.

(e) That while it is the dictate of common sense, as well as common humanity, in the slack season to distribute work as far as possible equally among wage earners of the same level and character of skill, this practice can not be held to imply the right to a permanent tenure of employment, either in a given shop or even in the industry as a whole. A clear distinction must be drawn between an ideal aim and a present right.

The constant fluctuations-the alternate expansions and contractions to which the cloak-making industry is so peculiarly subject, and its highly competitive character, enforce this distinction. But an ideal aim is not therefore to be stigmatized as utopian, nor does it exclude substantial approximations to it in the near future. Such approximations are within the scope of achievement, by means of earnest efforts to regularize employment and by such increase of wages as will secure an average adequate for the maintenance of a decent standard of living throughout the year. The attempt, however, to impose the ideal of a permanent tenure of employment upon the cloak-making industry in its present transitional stage is impracticable, calculated to produce needless irritation and injurious to all concerned.

II. In accordance with the rule above laid down that the principle of efficiency and that of respect for the human rights of the workers must be held jointly and inseparably, we lay down

(a) That the workers have an inalienable right to associate and organize themselves for the purpose of maintaining the highest feasible standard as to wages, hours, and conditions, and of still further raising the standards already reached.

(b) That no employee shall be discharged or discriminated against on the ground that he is participating directly or indirectly in union activities.

(c) That the employees shall be duly safeguarded against oppressive exercise by the employer of his functions in connection with discharge and in all other dealings with the workers. It is to be carefully noted that the phrase “oppressive exercise of functions" need not imply a reflection on the character and intentions of the high-minded employer.

An action may be oppressive in fact, even though inspired by the most benevolent purpose. This has been amply demonstrated by experience. No human being is wise enough to be able to trust his sole judgment in decisions that affect the welfare of others; he needs to be protected, and if he is truly wise will welcome protection against the errors to which he is liable in common with his kind, as well as against the inspirations of passion or selfishness.

For this reason a tribunal of some kind is necessary, in case either of the parties to this covenant believes itself to be unjustly aggrieved. And because the construction of such a tribunal is a delicate and difficult task, demanding the greatest care, lest on one hand the movements of industry be clogged by excessive litigation, and lest on the other hand the door of redress be closed against even the most real and justified complaint, therefore,

III. In accordance with these general principles the council propose that an agreement be entered into by the Cloak, Suit and Skirt Manufacturers' Protective Association, and the International Ladies' Garment Workers' Union and the joint board of cloak and skirt makers' unions embodying these principles and providing the following:

(a) Every complaint from either organization to the other shall be in writing, and shall specify the facts which, in the opinion of the complaining organization, constitute the alleged grievance, and warrant its presentation by one organization to the other. Such complaints shall be investigated in the first instance by the representatives of the two associations, chosen for the purpose, it being impressed upon them that they use and exhaust every legitimate effort to bring about an adjustment in an informal manner. In case, however, an adjustment by them be not reached, the matters in dispute shall be referred for final decision to a

(b) Trial board of three, consisting of one employer, one worker, and one impartial person, the latter to be selected by both organizations, to serve at joint expense and to be a standing member in all cases brought before the board. The remaining two members shall be selected as follows:

The association and the union shall each make up a list of ten persons, to be approved by the other. From these two lists, as each case arises, each party shall select one person.

IV. The articles of the protocol numbered first, second, third, fourth, fifth, sixth, seventh, eighth, ninth, tenth, eleventh, twelfth, thirteenth, fourteenth, and fifteenth are hereby incorporated in this agreement, except as herein expressly revised and except as hereafter modified after the recommendations of the council.

Sections 1 to 15 of Protocol.

First. So far as practicable, and by December 31, 1910, electric power be installed for the operation of machines, and that no charge for power be made against any of the employees of the manufacturers.

Second. No charge shall be made against any employee of the manufacturers for material except in the event of the negligence or wrongful act of the employee resulting in loss or injury to the employer.

Third. A uniform deposit system, with uniform deposit receipts, shall be adopted by the manufacturers, and the manufacturers will adopt rules and regulations for enforcing the prompt return of all deposits to employees entitled thereto. The amount of deposit shall be $1.

Fourth. No work shall be given to or taken to employees to be performed at their homes.

Fifth. In the future there shall be no time contracts with individual shop employees, except foremen, designers, and pattern graders.

Sixth. The manufacturers will discipline any member thereof proven guilty of unfair discrimination among his employees.

Seventh. Employees shall not be required to work during the ten legal holidays as established by the laws of the State of New York; and no employee shall be permitted to work more than six days in each week, those observing

Saturday to be permitted to work Sunday in lieu thereof; all week workers to receive pay for legal holidays.

Eighth. The manufacturers will establish a regular weekly pay day and they will pay for labor in cash, and each pieceworker will be paid for all work delivered as soon as his work is inspected and approved, which shall be within a reasonable time.

Ninth. All subcontracting within shops shall be abolished.

Section 10 as Modified.

Tenth. The following schedule of the standard minimum weekly scale of wages shall be observed:

Buttonhole makers, class A, a minimum of $1.30 per 100
buttonholes. Class B, a minimum of 90 cents per 100 but-
tonholes.

As to piecework, the price to be paid is to be agreed upon by a committee of the employees in each shop and their employer. The chairman of said price committee of the employees shall act as the representative of the employees in their dealings with the employer.

The weekly hours of labor shall consist of 50 hours in 6 working days, to wit, 9 hours on all days except the sixth day, which shall consist of 5 hours only.

Eleventh. No overtime work shall be permitted between the 15th day of November and the 15th day of January or during the months of June and July, except upon samples.

Twelfth. No overtime work shall be permitted on Saturdays except to workers not working on Saturdays, nor on any day for more than two and one-half hours, nor before 8 a. m. nor after 8.30 p. m.

Thirteenth. For overtime work all week workers shall receive double the usual pay.

Fourteenth. Each member of the manufacturers is to maintain a union shop, a "union shop" being understood to refer to a shop where union standards as to working conditions, hours of labor, and rates of wages as herein stipulated prevail, and where, when hiring help, union men are preferred, it being recognized that, since there are differences in degrees of skill among those employed in the trade, employers shall have freedom of selection as between one union man and another, and shall not be confined to any list, nor bound to follow any prescribed order whatever.

It is further understood that all existing agreements and obligations of the employer, including those to present employees, shall be respected; the manufacturers, however, declare their belief in the union, and that all who desire its benefits should share in its burdens.

Fifteenth. The parties hereby establish a joint board of sanitary control, to consist of seven members, composed of two nominees of the manufacturers, two nominees of the unions, and three who are to represent the public, the latter to be named by Meyer London, esq., and Julius Henry Cohen, esq., and in the event of their inability to agree, by Louis Marshall, esq.

Council to Continue Its Investigations.

V. This council has been requested by the mayor to continue as a commission to investigate thoroughly the fundamental problems of regularization, standards of wages, and enforcement of standards throughout the industry, of trade education, and a more thorough organization of the industry, and on the basis of such investigation it shall submit a constructive policy to both organizations. VI. Wages.

1. As a temporary arrangement until a maturer study of the industry shall lead to a final adjustment, the standard observed for pieceworkers in fixing piecework rates shall be at the rate of 70 cents an hour for each hour of continuous work for operators and piece tailors, and 50 cents an hour for each hour of continuous work for finishers, taking the worker of average skill as the basis of computation, and making no allowance for idleness.

Piece prices shall be settled between the employer and a price committee. If the parties can not agree, they shall call in price adjusters furnished by both sides.

Wages for week workers shall be as follows:

Skirt finishers, $11, provided each department be permitted to have
one learner to six finishers.

Reefer pressers and under pressers to be paid as other pressers
providing the unions prove their contention that such wages have
been paid outside of the association houses.

Piece prices for buttonhole makers: Class A, $1.30 per hundred but-
tonholes; class B, 90 cents per hundred.

VII. For determination by arbitration.

That the following questions shall be submitted to the arbitration of this council, their decision to be rendered within 30 days, and to be accepted as final and binding:

(a) Whether the pressers and pieceworkers shall during eight weeks in each season be permitted to work overtime on Saturdays until 4 o'clock.

(b) What legal holidays shall be observed in the cloak, suit, and skirt industry, and under what conditions they shall be observed.

VIII. It is distinctly understood that there shall be no shop strike nor general strike, nor individual nor general lockout during the term of this agreement. IX. The union and the association, with the assistance of the council, will, as soon as practicable, create a joint board of supervision and enforcement of standards throughout the industry.

X. Since the council will continue in existence for study and constructive recommendations, it will be available whenever the parties desire to consult with it, and if either organization feels aggrieved against the other such organization may address the council upon the subject, and the council will do the best it can to assist.

Finally, since peace in industry, as in families and among States, is the offspring of good will, and since no peace can be sound or enduring that is not based on this indispensable prerequisite, it is agreed that the leaders on both sides shall exert their utmost endeavors to create a spirit of mutual good will among the members of their respective organizations, such good will taking the specific form of a disposition to recognize the inherent difficulties which each side has to meet-a spirit of large patience under strain, and withal, a belief in the better elements which exist in human nature, be it among employers or wage earners, and the faith that an appeal to these elements will always produce beneficient results. These recommendations, when accepted by both parties, shall constitute the agreement between them.

This agreement to enter into force on the date hereof and to continue for the period of two years, and thereafter for like periods of two years, unless terminated by either party on two months' notice.

Any modification of the terms of the agreement, requested by either party, shall be presented to the other at least two months before the termination of any period.

COMPULSORY ARBITRATION IN DENMARK.

Denmark stands alone among European countries as having a limited compulsory arbitration law, recognizing about the same principles of State interference in the settlement of labor disputes as do the arbitration laws of Australia. The permanent arbitration court was established by the law of April 12, 1910. It consists of 12 members (6 associates and their alternates), a president, a vice president, and a secretary. Three associates and their alternates are elected annually by the Association of Danish Employers and Masters (Dansk Arbejdgiver-og Mesterforening); the other three and their alternates are chosen by the Danish Federation of Labor (De Samvirkende Fagforbund), as long as these organizations represent the majority of employers and workmen on either side, and when they cease to do so, steps are to be taken for a change in the law. The associate justices select a president and vice president, while the Minister of the Interior appoints the secretary.

The court may be cited by either of the above organizations in the cases following: (1) When an employers' association acts in violation of an agreement with the labor organization; (2) when by one or more members of an employers' association an act is committed which violates an agreement entered into by the association