It was not till the next day that we sat down together again to continuethe conversation. Remembering what the ship healer had said, Harod began:
"In sketching for you the history of that age of activity and change inour career, I was in such fear of wearying you with dry details that Ihurried along and omitted the very things to which you refer, ship healer.This people did try all the experiments that suggested themselves,and if you think your patience will endure it I will speak of a few ofthem."
We both assured him that we would gladly listen, and that we consideredourselves fortunate in having such an instructor. He was merely tellingus about a certain period in the history of Mars, but if he had knownhow nearly he had been coming to the course of events on the earth hewould not have wondered that we were so eager to hear all he had to say.
"Quite early in the labor difficulties," he resumed, "state arbitrationhad its day; a short one, however, for the appointment of thearbitrators soon became a matter of partisan politics, and theirinfluence was gone. Whichever side was in power could appoint a boardthat would be prejudiced in favor of that side from the start, and whenthe trouble came the other party would not have confidence enough intheir judgment to accept their decision.
"Next, laws were passed making arbitration compulsory, but allowing thearbitrators to be chosen at the time of the strike, the employer to nameone, the workmen one, and these two to find the third. This did somegood as long as only first class men were selected, but a few flagrantcases occurred where the arbitrators, who were allowed to inspect thebooks of the concern, made public the private affairs of the business,to the great injury of the owners. This brought the law into disfavor,and, as there was no provision for enforcing the decisions, it came topass that they were often disregarded, and so, before long, this plan ofsettling disputes was also abandoned.
"For a good many years no other subject so completely filled the publicmind as this very troublesome one, and people of all professions werecontinually suggesting remedies. It was held by many to be a goodworking theory that the employees in every business, whether industrial,mercantile, or financial, were entitled to some share in the profitsover and above their compensation in wages. This was disputed by thelarge majority of the employers, who claimed that their contract withthe workmen was a simple one, by which they agreed to work so many hoursfor so much pay, and as this was their due even if the business proveda losing one, so they had no just claim to anything more if it weresuccessful the employees had nothing to do or say about the questionof profits. On the other hand, where a number of men had, by long andfaithful service, a strict regard for the welfare of the business, andloyalty to all of the employer's interests, helped to build up a greatindustry, an increasing number of people, not only the wage earners butmany others not directly interested, felt that the workmen hadfairly gained, if not a share in the proprietorship, at least someconsideration from the owners. This feeling was especially strong incases where the laws of the land had materially aided the success of thebusiness, and where the profits were unusually large.
"I want to say, in passing, that it is by such indications as theexistence of this sentiment that we can see, all through those troubloustimes, the gradual improvement of the race.
"As some of the employers came to be impressed with the same thought,they began in a quiet way trying the experiment of giving their men abonus at the end of the year, proportioned to the amount of wages theyearned. In some cases this gave place after a time to the plan of makingthe workmen regular partners, and giving them a certain percentage ofthe profits in lieu of wages. But when a time of general depression cameand the percentage did not amount to as much as their old pay had been,the men felt as though they had been led into a trap, and after they hadendured the situation for a time they were glad to return to the formersystem.
"Another scheme that was extensively tried was cooperation among theworkingmen, both in manufacturing and mercantile business. The argument,which was a plausible one, was that the expense of big salaries formanagement, together with the enormous profits, would all be availablefor dividends. The results showed that in the long run the profits, inall but exceptional cases, were not more than a fair interest on theinvestment, and as to the salaries, it was found that financial andbusiness ability was scarce and costly, and yet necessary to success.The associations of workingmen were willing to put their money intobuildings, machinery, and stock, and the men were ready to work hardthemselves, but they were not willing to pay for skill in management,and so their failure was inevitable. At the same time they still heldto the opinion, which was at the bottom of these experiments, that underthe old system the owners and managers of the business got too muchof the profits and the operatives too little. Is there anything else,ship healer, that you think these people might have tried?"
"I am not satisfied," the ship healer answered, "with their effortsat profit-sharing. It seems to me that that scheme, under propermanagement, ought to have brought the two classes together by givingthem a common interest in every enterprise, and so to have graduallydone away with all bitterness and strife. Employers might have used apart of their surplus profits in building better houses for their men,in giving them instruction as to a nobler way of living, in openinglibraries and bath-houses and cooking schools and savings banks, inkeeping them insured against sickness and death, and in doing a thousandthings to show the men that they were thoughtful of their comfort andwelfare. If the workmen could discover by such means that the employerswere really their friends, I think it must have disarmed their hatredand antagonism. Then if, with these benefits, they could have receivedin money a small percentage above their usual wages, they wouldcertainly have repaid such friendliness by a service so faithful and anindustry so constant as to more than make up, in increased profits, forall the philanthropic expenditures."