Evening Star Newspaper, December 16, 1923, Page 51

WARNS SMALL-PAY MEN OUT OF STOCK MARKET Exchange President Says Persons of Limited Means Should Put . Money in Banks, By EDWARD F. ROBERTS. JALL-SALARIED MEN Take Warning — Keep Out of the Stock Market. That emphatic counsel is giv- en by a man whose authority to give it will not be questioned—Seymour L. Cromwell, president of the New York Stock Exchange. I went to Mr. Cromwell with a problem which is periodically pre- sented to the American public through flaring headlines in the newspapers which read pomething like this: “Brokerage Houss Falls for $10,000,000—Thousands of In- vestors Lose All—District Attorney Promises Investigation.” 1 put this problem before Mr. Cromwell in the form of these three questions: Three Questions Asked. How can tife American public be protected against bucket-shop op- erators, fake stock swindlers and similar gold-brick artists whose depredations, according to the dls- trict attorney for New York city, amounted to $3,000,000,000 since the war What responsibility has the stock exchange In the matter and what is it _doing about it? 1¢¥ hat can our legislatures do about Mr. Cromwell countered to my first uestion with a question of his own: ‘Who are the victims of the bucket- shop swindlers and the fake stock promoters? he asked, and without Wwaiting for me to reply he went on: The great majority of the people who are robbed by these crooks are clerks and others on small salaries; school teachers, small merchants, professional people with meager in- comes and men and women®generally whose savings are little, but who are obsessed by the dream of an easy Toad to wealth Should Not Speculate. These people have no business in the stock market under any circum- stances. Reputable brokers nefther seek mnor deslre their business, but the universal longing to get some- thing for nothing makes them an oasy prey for crooks. The man with the small salary should put his money in the bank. “Granting the folly of the bucket- #hop vietim,” I said, “it must still be a matter of self-interest to the stock exchange to put the bucket-shop vperator out of business?” S “It most certainly fs,” replied Mr. Cromwell, “and we have waged war on_these crooks for vears and with very considerable success. too. One of our troubles i« that the average yman does not seem to be able to distinguish between the stock e change and the horde of gamblers and swindlers who call themselves stock brokers and who have no more to do with the exchange than a drug peddler with a reputable physician. Great Primary Market. The stock exchange is simply a great primary market and an essen- tial part of our economic system. It is exactly the same as any other primary market in Its functions, the only difference being that it estab- lishes the prices for securities instead of for cotton, wool, grain or some other merchandise. “We have 1.100 members and even with the addition of our branch offices the number remains relatively small compared with the number of brokers and promoters who our organization and over whom we have no supervision. As far as our own membership s concerned, we en- force what I belleve to be the strict- est code of business conduct ever adopted by any similar organization in the world. ~All our members are pledged particularly to discourage the man with small means from specu- latipg, and any firm that infringes this' rule is promptly called to ac- count. Since I have been presldent 1 know of at least two firms who were ealled before our business con- duct committee to explain reports that they had accepted as clients people who were earning only small salaries.” “How can these outside brokers be controlled then?” 1 asked. “How operate outside | about the proposal to license them?” “Sounds plausible, but wouldn't work. Any kind of state license is too easy to get. The crook with a known record might be kept out, but he is easy to handle, anyway. It is the shady operator who manages to keep just outside the law's clutches that does most of the damage, and he would laugh at any kind of licensing system. That kind of fellow can al- ways scrape acquaintance with promi- nent men, whose names he uses and upon whom he often imposes. Just what that means I can illustrate by a recent experience of my own. ‘Some time ago the directors of the exchange decided that a firm of brok- ers who got our service were engaged in questionable practices. We order- ed the stock exchange tickers taken out of their offic Within twenty- | force them. four hours a regular barrage was lald down upon us to have them put back. Prominent men flocked to see us. You may apptreciate the pressure we were under when I tell you that among our callers were men holding political offices high enough to make them na- tionally known. Another advocate was one of our biggest bankers. Declares Men Mixled. knew that these men did not really understand the situation, but had been misled, and we refused to yield. Within a few momths the firm in question had failed, with nominal assets avallable for its creditors. No state licensing bureau could ever have resisted the pressure we were under, and that is not an unusual case, but a typical one.” That brought me to the third of my three questions, the query as to whether there was any legislative ac- tion which would help to put stock swindlers out of commission. When I repeatéd it, Mr. Cromwell smiled rueful “Laws, laws and always more laws,” ho said. “Whenever anything goes wrong the invariable demand is for the passage of some law about it. Lack of laws is not our trouble, but lack of officials who will en- If the laws which have been on our statute books for years were honestly and strictly applied they would be ample to deal with any form of fraud that was ever committed. But they are not en- forced, and the public does not know So one ldle law is piled on another until even lawyers are unable to keep track of them.” Recommends Ome Law. “Then is it useless to look to the legislatures for help?” I persisted. “I would not go quite that fa sald Mr. Cromwell. “There is one law which should be enacted. This would require a sworn with the i{ssuance of securities glv- ing adequate information about the flotation and the financlal position of the issuing companies or parties. This statement would also give de- talls regarding the issuing com- Such a law would strike a vital blow against fake brokers, as it would get the jump on them at the start.” “Can you suggest any remedy in addition to legal actlon?” I asked. “Better business bureaus,” replied | Mr. Cromwell promptly. “There | should he a bureau of this kind in| every city of the country. As vou| know, this movement was started by the Advertising Clubs of the World | with the initial purpose of cleaning | up the advertising field. The stock exchange saw {itsa value on much broader lines and voted $100.000 to finance it. If the business men of every community would. organize a better business bureau, every man Women’s Equal Started With Verbal Barrages (Continued from First Page.) accomplished done away through a constitutional amendment, which they belleve would lay itself open to endless {nterpretations by the Supreme Court. Laws for protecting working moth- crs, the enti-constitutional amend- ment element believes, would be nul- Jified through a constitutional amend- ment. But the National Woman's Party does not agree. The mother is protected, or the widow is paid a pension, they argue, not because she is a woman, but because she is a mother or a widow. A veteran is glven 8 bonus, or a pension, not be- cause he is & man. but because he is a veteran. Both forms of com- pensation are given in recognition of a service to the state, and not because of the sex of the recipient. The opponents of the constitutional amendment fear for the life of the Sheppard-Towner maternity legisla- tlon ‘under a constitutional amend- ment. Says the National Woman's Party: This is educational legisla- tlon which does not apply to women, but to mothers. Let Congress edu- cate postman, or policeman, if it wants to, and the constitutional nraendment will not deprive it of the privilege. Issues Are Debated. For the sake of brevity, let those opposing the constitutional amend- ment be known as and those in favor as “B” and this debate might follow: “A”: The umendment 1s vague and general. “B": The proposed amendment. is not vague, but states a principle in languege which everybody can un- derstand. It is general because the natlonal Constitution deals with gen- eral principles and not with specific details. “A™; The proposed amendment is not supported by any national or- ganization except the one that has proposed It; namely, the National League of Women Voters, *“B"”; This is not an argument against the righteousness of the amendment. When Susan B. Anthony introduced the national suffrage amendment, in 1878, few women sup- ported it. “A”: Existing Inequalities in the law affecting men and women as such are 80 complicated in character that only specific legislation can reach them effectively. “B”: The natiopal amendment would override all existing law dis- criminating against women, no mat- ter how complicated in character, and would prevent discriminatory Jaws from being enacted by any state ja the future, because the national Constitution is the supreme Jaw_of would have ready at hand a place where he could get Information and sound advice about any investment, and there would be no excuse for him being duped by fakirs. “Of course,” continued Mr. Crom- well, “as long as men persist in gambling they will get stung, and as long as men go hunting for an easy road to wealth there will be ewindlers offering to build it for! them.” 1 Rights War | in most cases that they even exist. | statement | panies’ operations and earnings and | | would have to be filed semi-annually. ~THE ' SUNDAY STAR, - WASHINGTON, ‘D.- ¢, - DECEMBER--16,~ 1923—PART 2. - The Story the Week Has Told BY HENRY W. BUNN. HE following is a brief summary of most important news of the world for the seven days ended December 15: The British Empire.—Premier Baldwin has decided not to resign before the assembling of the new parliament, which will take place on January 8. The interval is sufficient for establishment of understandings or forma- tion of a coalition which might stave off the unwished-for day of new general elections. None of the three parties could carry on without pledges of support from outside its ranks on important issues. Unemployment i{s the most important prob- lem before the country, and since the solu- tion for that problem proposed by the con- servative movement (namely, a general policy of protection) was the occasion of its recent disaster, it might seem Inevitable that the new parliament should at once vote it out of office. But fear of a labor government might concelvably win the support of a con- siderable number of liberals of the right to # conservative program which, while defl- nitely renouncing a general poilcy of protec- tion, should propose specific temporary and emergent extensions of the provisions of the safeguarding of industries act should stress the deslirability of continuance of the present foreign policy, particularly with reference to Germany and Russia. Another concelvable development {s formation of a coalition much Illke the one disrupted a year ago. It is to be apprehended, however, that in such a coali- tion Lloyd George would be, if not the leader, the dominant personality, and there is reason for thinking that the reckless manner of his recent attacks on the French government and on the foreign 'Pollcy of the conserva- tives has not tended to win for him con- servative esteem or confidence. It should be remarked, however, that the (at least) nominal chief of the united liberals i{s Mr. Asquith and that in the recent elections the one-time partisans of Lloyd George (former national liberals) were far less successful than the one-time partisans of Asquith (Independent liberals). A promise to tender friendship with France might concillate conservative support, but it might also alienate liberals of the left and prevent adhesion of certain members of the labor party, an adhesion otherwise possible because of their disllke of labor's capital levy and nationalization planks. A labor-liberal coalition would be possi- ble, would indeed be most likely, if labor would consent to pledge for the period a coalition in action on its capital Jevy and nationalization Issues. Some of the labor leaders would like to do this, but the in- transigeants, who regard the issues mentioned as pre-eminently important ani urgent, are too strong, and coalition, therefore, seems out of the question. The labor party and the liberals are at one on many matters, such as de jure recognition of Russia and strength- ening of the league of nations. and many liberals of the left are as pro-German (en effet) as the laborites. ‘What might be called tha normal course of events would be defeat in parliament and resignation of the conservative government, its supersessfon by a labor government, the prompt defeat of the latter, the new general elections. = Unless the British genius for politics has fatally degenerated it cannot be long before the British vwill take steps effectively to check that tendency toward the group system which has been the curse of the parliaments of con- tinental Europe. It is just now of supreme {mportance that the British forelgn poli be definite, consistent and continuous. It cannot be so if there is to be frequent change and precarfous tenure of government. * ok k& Germany.—Chancellor Marx's tion” bill passed the relchstag by a good majority. The absurd idea of a “special advisory committee” of tweuty-eight reichstag members seems to have been dropped. Appar- ently the political atmosphere is less fogEY than it has been for a long tim “authoriza- In my summary of December 1 I spoke of the decision of the reparations commisaion to appoint (under article, 234 of the Ver- sallles treaty) two committees of experts, to consist of representatives of the “allied and assoclated powers.” One.of these committees Wwould seek to discover how the German budget may be balanced and the German currency stabilized, while the other would seek to discover ‘the amounts and whereabouts of expatriated German assets and how to re- patriate them. Of course, as the committees are creatures of the treaty, our government cannot officially be represented thereon with- out special authorization from Congress, which the administration is not disposed to seek, but on Decamber 11 a statement was issued from the White House declaring that “this gov- ernment belleves that the proposed inquiry will be of great value.” Wherefore, and in view of its direct interest as a creditor and of the importance of the economic recupera- tion of Europe, our government “would view with favor the acceptance by America” of seats on the two committees. v The White House statement, moreover, con- tains the following important sentence: “The inquiry of ‘the first committee would com- prehend all the conditions to be realized and the measures to be taken to accomplish the results desired.” Only a few days ago Poincare was stand- ing out for the most damning limitations on the scope of inquiry of a very similar pro- posed committee and as for the impossibllity of official American representation, no doubt the reparations committee will find means to satisfy itwelf that the Americans invited are persons by whom the Washington govern- ment would be glad to be officlally repre- sented, were officlal representation possible. Having cut our way through the verbal diplo- matic entanglement, we arrive at the {m- portant fact that the White House statement in all probability marks the definite begin- ning toward seitlement of the reparation problem. The German government wishes to float a forelgn private loan of the equivalent of $70.000,000 in the form of credits for food- stuffs and has asked the required permission of the reparations commission to make flota- tion possible, and that the bonds thereof be given procedence of reparation dues. No doubt the reparations commission has full information concerning food conditions in the reich and no doubt it will grant per- mission (with priority) to float as large a loan as may be necessary to relleve acute distress, even though the French and Bel- gian members may be convinced that the necessity is due entireiy to the criminal folly of past German governments and the un- ampled rapacity of the German industrial magnates, who, In their view, have ample credits abroad for relief of their victims. Meantime, American funds for German re- lief are mounting rapidly and American food purchased therefrom is pouring into Ger- many for the German children, to be dis- pensed by the admirable relief organization of American Quakers. i The German government has ratified the agreement between the occupying authorities and the authorities of the German state rail- rond. It is hinted from a semi-official German source that the German government may throw itself on the mercy of the league of nations, begging the league to save Germany by methods similar to those by which Austria has been saved. This sounds plausible and, if Germany would behave as squarely as Austria_has behaved, no doubt she could b: saved that way. Chancellor Marx declares that his government is for an out-and-out policy of fulfillment. . * ¥ ¥ ¥ Italy.—The Italian camera has been dis- missed and it is thought, though it has not officially been so announced, that dissolution and new elections will soon follow. It would seem that the latter may almost be taken for granted, since the camera’'s grant to Mussolin! of full economic and bureaucratic power lapscs on December 31, and he has not usked for an extension. The present consti- tution of the camera !{s anomalous, since having been elected when the fascista party had scarce been organized, it contains only ©8 fascista deputiex (or thereabout) in = total of 585. Mussolini has been a good deal criticized for not going to the country immedi- ately on the passage, some months ago, of his somewhat curious amendment to the elec- toral law which provides that the party gain- ing a plurality of votes at general eiections hall have three-fift%s of the seats In the amera. Thero ha~e been many to hint that Mussolini postpozm»d p dissolution in the fear that a camera made up mostly of fascisti might not pruve us complalsant as the pres- ent brow-beaten aggregation. No daubt such a consideration influenced Mussolin, but not at all to his discredit. Presumably his main object in postponing dis- solution was to furnish an adequate demon- stration of his policies, especially his domestic ones, before ®oing to the country. To this end “a still longer postponement would be desirable, but Mussolini had to strike a bal- ance of 'consideration, and though only the event can show his behavior in the connec- tion, it seems to exhibit that mixture of boldness and discretion which marks the true statesman. But to assert that Mussolini has dropped the role of dictator and will hence- forth eschew extra legal methods is going a little fast, * ok % China.—The other day Sun Yat Sen, presi- dent of the so-called Canton republic, made 2 notsy threat' to seize and administer the Canton customshouse, proposing to deduct 13 per cent of the unhypothecated receipts for the expenses of his government and to forward the remainder to Peking. He accom- panied this threat by a further threat that if the capitalistic governments should offer any difficulty he might call in Russia. There- upon, a perfect flock of gunboats and destroy- ers of the capitalistic powers went to Canton. * %k % % Mexico—The Mexican rebellion is im- portant, but dispatches differ greatly as to the degree of its importance and as to its territorfal spread. It would seem that the chief military concentrations of rebels have been in the states of Vera Cruz and Jalisco, that from west and east considerable rebel forces are moving toward Mexico City and that government forces have gone to mest them. President Obregon, himself a_ soldler of great bravery and deserved prestige, has taken the field. The political aspects of the struggle are obscure and will probably always remain so My understanding is that the president clajms to champion the interests of the common people, asserting that the rebel chiefs repre- sent reaction. According to the latest re. ports fighting has begun in the vieipity of the important rallroad junction of San Marcos. * kK ok United States of America.—Secretary Denby's annual report calls for a program of “fleet modernization” involving construction of eight 10.000-ton cruisers, three cruiser-type sub- marines and six gunboats, development of naval and alr bases, naval aviation develop- ment, including increase of personnel and new materfal, and the modification of turret gun carriages, etc. Secretary Denby declares that the modifications last mentioned would not contravene the letter or spirit of the Wash- ington naval treaty. Presumably an old dis- cussion will be revised by his proposal and statement. The President’s message to Con- gress transmitting the budget for the fiscal year 1825 is a very interesting and edifying document. Its most interesting features are its proposal ef reduction of taxes by about $300.000,000, an amount well within the esti- mated surplus, and its argument against a soldier bonus. The reader has doubtless noted how re- markably Senator Lenroot's world court reso- lution differs from the resolution embodying President Harding’s recommendations for our adhesion to the court, which was shelved by the Sixty-seventh Congress. On submission of the new resolution to the Senate a stranger sound was heard. It was identified as “sweet laughter” on Olympus. Our government has again requested the Canadian government to give consideration to the project of,a channel for ocean-going ships between the great lakes and the sea via St. Lawrenc iganizations generally for an authori- New Government P NCLE SAM has a “Commerce Yearbook” just coming out of the bindery at the govern- ment printing office. This book was prepared in response to requests from American business men, bankers, economists, trade asso- ciation executives and business or- tative review of the economic vear throughout the world, prepared from the land and national and st: lation must conform to it ate:tent “A”: The amendment would endan- Ber existing statutes providing for a forty-eight-hour week, eight or nine hours a day and other Industrial standards governing the employment of women. ‘B”: The amendment would not af- fect existing labor legislation, except to establish the principle that indus- trial legislation should apply to all workers, both men and women, in any given occupation, and not to working women alone. There are ex- amples of state laws which already apply to both sexes. ‘The amendment would endan- ger mothers’ pension laws. “B": The amendment would not en- danger mothers' pension laws, but would simply establish the principle that these laws, which are intended for the benefit of the child, should epply to either parent, either father or mother, who is unable from pov- erty to support the child. Colorado is a state which has & law of this *kind. And so the argument goes. Penal- ties for attacks on women, say the opponents, would be endangered. Not 80, say those in favor, but the pen- alty would be applicable to either man or woman, or, in other words, the guilty party. In some states, say the opponents, the father of an {l- ligimate child cannot be held respon- sible. Would not the mother, also, escape the penalty under a constitu- tional amendment? Both, reply those in favor of an amendment, should be held equally responsible in this case. Discrimination Cited. The National Woman's Party qnotes discriminatory laws by the bushel which would be.obliterated through an amendment to the Constitution. In many states, for instance, women do not have equal control with fathers over the children: women cannot con- trol or own property; women cannot control their own earnings; women cannot make contracts; women can- not choose thelr own citizenshy women cannot inherit propert: Wwomen cannot enter professions or industries on the same terms as me; women are not eligible to office in national, state and local govern- ments; women cannot obtain higher po- sitions in government service. True, emphatically and sadly true, say those who oppose an amendment. But {n their opinion the enactment of the amendment would be somewhat analogous to the procedure of cutting off your nose to gpite your face, the point of view of American indus- try and commerce. This valuable edition to business bibliography is to be published annu- ally to meet the need not merely for a reference source of specific facts on the recent past of business, but for general commercial information and for a survey of the most important economic @evelopments of the year. Alds in Looking Akead. It s designed to be of ald in laying out long-range programs for the sta- bilization of business and industry, so as to minimize the economic losses resulting from the recurrent extremes of the business cycle. The outstanding facts of trade, pro- duction, price changes and market conditions are conveniently tabulated and analyzed in relation to one an- other so that their interdependence may be readily recognigzed. Sum- marles are included of the principal manufacturing, mining and forestry industries, of sgriculture, construc- tion, transportation, communication, finance, prices and domestic and for. l oign trade of the United States, with reviews of the commercial and indus: trial developments in the principa orelgn countries. “The Commerce Yearbook” is fn- tended to serve as a companion vol ume of the ‘Statistical Abstract, which is a basic source book for a wider range of eskential statistics in detail and for longer periods than covered in the yearbook. Subjects Treated. Among some of the important sub- fects treated in the 700 pages of the yearbook are the following: A {;n; eral review of business; Industria production; prices, stocks and market conditions; employment and wages, the business cycle and unemployment, roviews of the major manufacturing and mining Industries; construction enterprises; production of and trade in agricultural products; transporta- tion; finance and banking, exchange and securities; foreign trade; interna- tlonal trade, and economic review and statistical abstract of each important foreign country. This yearbook shows that11922 was a year of marked recovery in industry and siness, but ulture still lagged in recu; Fre spectan Impitise. to- ward recovery, aside from the cyclic swing from acute depression, un- doubtedly lay in the shortage of con- struction during the war and the stimulation given to other industries by the activity of the bullding and construction trades in the period which followed the war's close. Pro- duction of manufactured goods was one-fifth greater than in 1921 and only slightly less than in the boom years of 1919 and 1920. Demand for Goeds. The increased demand for goods led to an advance in prices, though ‘far less sharp than the preceding drop trom the abnormal levels of the war and immediate post-yar years. Whole- sale prices for 1922 as a whole aver- aged only a trifie higher than for 1921, but the general index at the close of the year was 13 per cent above that at the beginning. The' low_prices of farm products during ration. COMMERCE YEAR BOOK SHOWS BUSINESS TREND ublication Provides Convenient Handbook and Gives Facts as Basis for Predictions. 1921 had been one of the contributing. cauges of the general depression of business. The prices of theke prod- ucts rose nearly 20 per cent during 22, and this advance helped In con- siderable measure to restore the bu; ing power of the great agricultural community, and thus to promote gen- eral prosperity. Retail prices, which respond less quickly to changes in general business conditions, averaged slightly lower in 1922 than in 1921, and rose but little during the course of the year. Good Year for Labor. The revival of business was benefl- cial to labor. Unemployment fell to a minimum and wages in many in- dustries advanced. That the trade of the United States with the world in 1922 was more nor- mal and better balanced than in any other recent year is shown in this commerce yearbook. It was the fir: calendar year since the war in which the trend of both exports and im- ports was free throughout the whole of the year from the markedly er- ratic_movements both of quantities and prices attending the rise to and the slump from post-war, trade-boom levels, Both exports and imports seem to have passed the low point of their decline from the abnormally high levels of 1919 and 1820. The month-to-month trend of imports has been upward since the middle of 1921, and although the low point in export trade was not reached until February, 1922, by far the greater part of the decline had taken place in 1921 and the trend in 1922 was upward. This growth, however, has been gradual and refiects a still more grad- ual increase in both prices and quan tities. While these non-spectacular upward tendencies cannot be made the basis for a sure forecast even for the immediate future, they do ap- parently indicate a degree of sta- bilization, a more normal, a healthier trade, following the disturbing post- war readjustments. Leaders in Business To Combat Radicals (Continued from First Page.) have been unable to find much simi- larity between some of the pending measures and the 1920 declarations of principles. See Bomus Defeat. As far as the soldier bonus bill is concerned, some of the chief business men of the country believe that it has been stopped. They expect its enactment by Congress at a com- paratively early date and its veto by the President. They expect a vig- orous effort to override the Presi- dent's veto, but are quite certain that, while this may be accomplished in the House, the attempt will fail by & narrow margin in the Senate. These men, who help largely to finance political campaigns and ‘who, in addition, control the donations of many other men allled In & business way with them, are studying the records of individual representatives and senators. One-third of the mem- bership of the Senate, or thirty-two senators, come up for re-election next fall. The entire membership of the House also fs to be elected. Those members of Senate and House who work now for soldier bonus ind against tax reduction undoubted- Iy will have dificulty next year in convincing their present financial sponsors that other contributions should be forthcoming. As the situation shapes up at pres. ont, getting funds for some candi- dates in the mext political campaign is going to be one of the hardest Jobs open to-eargest aspirants, By JAMES M. LYNCH, Former President of the Interna- jonal Typegraphical Unfon; Former .'l'w York State Industrial Commis- omer. ARTICLE IX HERE are a number of inter- national unions operating in the United States and Canada that have their beginnings in the first half of the last century. It will be my aim in these articles to teview the history of some of these organizations. Thelr early struggles and their obstacles and problems and the manner in which they were over- come should be of the greatest in- terest to the men and women of to- day, especially to tnose who on en- tering organized {ndustry found wages and condidtions made to order for them, and who frequently give little or no credit to the pioneers who suffered and persevered. Rome was not bullt in a day, and the work- ing rules and remuneration now o taining in the industries in which the members of these older unions operate are not the creation of a month or of a year. They were pa- uently and with infinite toil and planning built up as the result of many years of struggle and sacrifice. The history and the gradual success of these unions, now constituting a pleture of enthralling interest, are sufficlent answer to the element that promises to lead the wage earners to an industrial heaven, if only it is given power. 4 |, The structure that organized labor has built is strong, tested and found 50 on many occasions, under tried and capable leadership, but it is not strong enough to bear the experi- | mentation of the doctrinaires. After | they had failed there would be many more years of sacrifice and effort before the conditions that now ob- tain could be restored. The super- radicals would have had their day, and perhaps their objective, but the wage earners who had permitted the quackery would eventually pay the rice. It would be a dearly bought esson. Increased Rapidly. The iron molding Industry In America is said to date back to 1820, By 1830 the number of establish- ments had greatly increased, and many journeymen molders were em- ployed In Albany, Troy, Philadelphia, New York and other places. Work- ing hours of the early molders were long and Indefinite. Heats were fre- quently run all day and all night, it is said, because the cupola had not yet been introduced, and workmen often slept beside their furnaces. Wages were low. Payment was partly in money and partly in store orders, An association of molders existed in Philadelphia in 1853. Mr. John P. Frey, editor of the Iron Molders' Journal, says that the sarly history of the industry in the United States is & record of attempts to form mill- tant organizations. There are def- inite records of individual molders’ unions as far back as 1836, and there are reasons for belleving that a num- ber of molders’ unions existed pre- vious to that time. The International Molders' Union of North America was organized in 1859. It now cavers the United States and Canada, and in- cludes stove molders, all gray iron and malleable iron, steel, brass and other mixed metal molders and core makers. The present membership Is ‘more than 65,000. It is impossible, according to Mr. Frey, to. ascertain when the first or- #anization of stove manufacturers was AS A UNION MAN SEES IT, ISMS WORKERS’ CHIEF FOE| Labor Organizations Built .on Strong; Foundation, But New Doc- trines Are Menace. O formed, but the records indicate that there was such an_ organization in Al- bany as early as 1859. Now the em- ployers are represented by the Stove Founders' National Defense Assoclation, organized in 1886 as an offshoot of & then existing association. Suspicion General. ‘A marked spirit of suspicion and hostility existed from the first ben\‘-‘-n( the two groups in the industry, as is} evident from the'record of strikes and lockouts which occurred repeatedly in the same foundries and localities. Molders and manufacturers wers alter- nately successful in these disputes and nothing in the natura of a permanent settlement or an assured prospect of peace was realized. A defeat for either side often meant only a determination not to abide by the result, but to re- organize and then retaliate at the first fayorable opportunity.” The panic of 1857 was followed by re- ductions in wages, and In the succeed- ing year three strikes for the restora- tion ‘of the wage rate previously paid were noted, although in some of these strikes questions relating to apprentices and payment In kind were injected. | A great number of disputes occurred | in 1865 and 1866. In 1866 the employ- ers organized the Iron Founders' Asso- ciation and brought about the great lockout of that year. Disputes in 1867 were more bitter than those of the pre- vious year. Strikes in the following years were generally lost by the unions. The prosperous times of 1872 led to a recurrence of fairly successful strikes, but the period from 1874 to 1880 was quiet. Beginning with the latter year there was a revival of activities among the stove molders' unions with fre- quent strikes and lockouts. The dis- pute which led directly to collective bargaining was that of 1887, which had its beginning In St. Louls with a de- mand for increased wages, and ended | in & general lockout by the employers. Both Sides Suffered. As a result of these disturbances the | workmen and the employers suffered | severely. ‘Efforts were then made by both sides to bring about an under- standing on the merits rather than through resort to economic strength. In 1866 the president of the union sug- gested to the employers’ assoclation that there should be a conference be. tween representatives of both associa- tions. The reply to the suggestion was not favorable and took the form of posting of deflant notices in the work es of the employers. In 1876 the molders’ union suggested & policy of arbitration, but again the employers did not respond and the ef- fort to secure arbitration was aban- doned. There was, however, a condi- tion that helped the way to an under- standing, and that was that some of the foundry owners had been journeymen molders and understood that there were hardships and injustices that should be remedied. On the part of the union the character of its representative had much to do with reaching an un- ?‘Mu between the contending forces. Strike Adjusted. In August, 180, a strike in Pitts- burgh was adjusted by the employers’ officers on the basis of a written’ agreement with the local union. The operation of this agreement proved satistactory to the owners and the men and made it evident that if an agreement could be reached after a strike it was possible to reach such an understanding before a strike was permitted to occur. So in 1890 the executive board of the union was directed by the molders' convention to communicate with the represent: tives of the stove manufacturers lassociation with the object of meeting in conference and discussing points of ifix i 8" |GERMANY NOW LOOKS FOR A NEW BISMARCK Nationalism Is Increasing—War of Seces- sion Is Discounted—New Leader Must Be Democratic. BY FRANCIS J. WAHLEN, Former London Editor of De Maas bode, of Rotterdam, an Impor- tant Daily of the Nether- lands. ANY people, even otherwise well informed, look with no little skepticism upon the conclusions of personal ob- | servers and students of the et | day soclal and economic disorders in Germany, when thése conclusions all tend to point out the imminent climax of a situation unbearable for the German people. “The Germans are a rather mentall doclle people,” said FI. G. Wells. An Marcel Ray, a well known French publicist, reiterates this, only this October, in a Paris monthly. Many observers, endeavoring to be impar- tial In their summing-up of the Ger- man facts, whatever the causes or motives may be, distinguish between the German people as a_whole, and the Berlin Government, the group of German_industrialists, the Stinnes- Krupp-Thyssen group, and other d facto “powers” in the German lands. The Berlin government, resting upon such a precarfous parliamentary com- bination, almost a deadlock, that ef- fective governing seems fairly im- possible, is bent upon preserving th unity of the refch at all costs. The great industrial group, which quite recently made its own agreement with Gen. Degoutte, commander in chief of i the French-Belgian troops of cccup: tion, faced as they were by indus- trial ruin and the fear of having the properties confiscated, constitutes (in fact) another power, the economic ruling force. And then there are the various separatist and mon chist groups, with their aggregal millions of open, or secret adepts. Honeycombed with Secret Socleties. The whole of the German-speaking lands are now simply honeycombed with secret societles. There are the | national-socialist organizations, di- vided {n their “Hundertschaften” (or oups of hundred), with their trac- tor-colonnes and automobile sections There are the active and numerous students—groups, mostly monarchis- And the Swastika society, the Orgesh, the Young Bagles, the Young Deutchland, the German Legion, th Old_Soldfers, the “Friends of Bis- marck”; not to speak of the numerous regional organizations in Bavaria, Saxony, for “the defense of Rhine- land,” and such_ltke. Americans wi]l remember the his- toric lesson of the secret American societies just before the war of in- dependence. . No government could possibly stamp out such a nationwide mo ment of intense nationalism, eve should there exist anywhere a gov crnment willing to undertake such a Job. i General Prostration of People. The French observer, Marcel Ray akes pertinent conclusions. “The city people, who are hungry, have a mind which is the product of hunger, mute rage and of fear. The ci who have eaten today, but who will not eat perhaps tomorrow, have only fear in their mind. Those who have too much to eat are also full of fear, which occasionally becomes pani Then they begin hurriedly to load thelr limousines with packages, bun- dles of shares and stocks, as well as with jewel-boxes. And they dart to- ward the Polish or e Danish fron- tier. Or perhaps, because the fro icrs are guarded, they take refug some hotel palace, where their limousines stand ready to flee at the first alarin. Fear, hunger and ran- cour, without any precise object to prostration, apathy—all these combine to form the soul of the great cities. Far away, in the placid stretch of plne forests and potato fields, are the villages, in which the hostfle, well fed faces of the peas- ants 160k forth from behind their machine-guns. They do not mix in politics, but are resolved to protect their possessions." The French writer of the above- cited discounts, however, the pow- erful nationalism, the ' patriotism which is an integral part of the w know romanticism of the German. Increasifz Teutonfe Natioralism. He admits of the bitter hatred for France, even as it flares up in so- cialist and communist circles, as well as in the organs of the center- and the groups of the right. man soclalists and communists may use in the Vorwaerts or in the na- tional-socialist Volkische Boebachter of Munich the bitterest invectives against “the industrialists, finan- clers, profiteers of all sorts, these drainers of German wealth toward foreign banks, these saboteurs of the money and the tax svstems,” as they have "it; the economic readustment of the German social order remains for them, nevertheless, a domestic affair. The protection of & common country, their nationality and civiliza- flon would, at the psychological mo- ment. reunite Germans, at least for the common defense, against an attempt by forelgn influences to divide the refch difference. The overtures of the union were favorably recelved and the conference was held in Chicago in 1891. The joint committee ap- pointed by the conference outlined a plan_for settling disputes between the molders and the foundry owners. First of all provision was made for a conference committee consisting of six members—three from the molders and three from the owners. It was provided that any dispute between the parties should be referred to the presidents of the two associations jand they, failing to reach an adjust- ment, were to summon the conference committee, whose decision by ma- jority yote should be final and bind- ing.” An important feature of the plan was that neither party to a @ pute might cease work pending its settlement by the method provided. The making of this first trade agree- ment was recognized by both parties to it as the turning point in their re- lations. The question of hours of labor has Dbeen a subject of discussion since the first conference. In 1808 an agree- ment established a seven-hour day for actual molding: in 1910 the hours were made six and one-half, and the actual working day In the foundry eight to eight and one-half hours, as much work had to be done after the pouring of the molds; and in 1918 an agreement established the eight- Four working day, with payment for overtime at the rate of time and one- half. Method Satistactory. Summing up the working out of the conference method, Mr. Frey says that it has been most satisfactory. Com- parison of the progress made by groups of employers and employes who have adopted this method since that time and those who have had recourss to the principle of arbitra- tion under which a third party is the determining factor would seemingly indicate that the method adopted in the stove industry has proved the more efficient. “Among other things, it has compelled both sides to rel upon themselves and to assume re- sponsibility. It has compelled the joint representatives to realize that they must find the common ground upon which both ean stand. It has prevented the methods and the at- mosphere implied in overstatement of facts and_irrelevant material for purpose of infiyencing a judge or jury { centri izens, | nto a number of Separatism must 1o fear Marcel Ray man nationalism. tional sentiment, Afty years behin of “welding the into one many of separatist slates, be confused, as has done, with Ger- The cnormoffy na- grown in the last Bismarck's life task us German states stat the Ger- smembrance has been powerfully fortified by the eco nomic expansion of the empire, even into a promising colonial dominion dur ing Bismarc chaneellorship. well known_policy of R and Louis XIV, of the Emperor Napo- leon (yho erecfed Bavaria into a King- dom, & a counter-weight against Prus- sia) and of Napoleon 111, to divide the north from the southern German st will find no backer in present-day Ger- many. The interests of dynasties, pow erful as they stiil are, in the mind o such a conservative prople as the Teu- tons, nor the interests of caste, or the interests of the mighty industrialists, and of material wealth ill no longe prevail against the growing natlona of Germany. No German Secession-War, . One does not need to be a prophet to foresee that the internal travail under hich Germany now labors seeking to bring forth a German L coln,—a modernized Blsmarck, per- haps—must ultimately go toward the strengthening of the historic e lutton that direction of the litical development of the Ger: history sin Frederick the G After the German revolution of 1848, and from that time to 1914. the re- adjustment of the map central rope went towards a mor democratic, ifled Germ wher i hors e, began to take part in the politics of his native state | Prussia. Karl Marx 515-83) a Ger- man Jew of remarkable scholarly at- tainments, bej to propound his first Marxfan generalizations, and otherwise the dominant liberal ideas of the ntury f nd their way German_lands, as through all th Europe. A overthrown the cstablished republ monarchy t was called | res man, Cavour 1 ntly 1 » begin t and unifica- tion of modern It Hungary, afte the Ttalian stat Austria, and against the Plus licans in then that Prussla. Look fo his Pope ht from the repu Rome. It appeared rek Modernized Bismarck From settled marck vea squlre mighty in the of con- of Eu rope was that of the Bism stz esident forard the pr beit that the (@erman 1 ¥ much mora or_even after Napoleon T as velopnier ditions is dri dencies. Com i its stro sery br adicalism the Berlin gov- pair sounding ent, seems to be genui wugh. AS & well known author had it, speaking of the Germar revolution of 1848 “Profound doub of the system of government and of the lberties of many forms of property i the economic svstem spread through- out the social body.” So it is again to- day New and 01d Ideas. After 1 ng war e gre in impossible t range of the these se estimate the power and cumulated new ideas of since the last German K, So s his biographer, could regard the whole democratic movement in the German lands as so much midsummer madness, and throughout remained faithful to monarchical authority as the one thir needful for the Prussian stat modernized new Bismarck will have to be a democrat, even if a monarchis “Prussians we are and Prus: will remain,” as was Bismarck’ is quite impossible toduy: it will have to be: Germ: Something modern, ment years in The spirit of C by befogging the issue from plaving a part in the solution of the prol lems which could only be settled, first by the ascertaining of facts, and, sec ondly, by the kuowledge that any agreement based upon these facts must be binding upon both part and just in its operation if friendl relations were to continue, In Operation Thirty Years. “The general experiment be ' ]‘.\rarcn. 1891, has been in operation for over thirty years. It has elim: nated strikes and lockouts in tie stove industry. It has guaranteed as large a measure of justice as were capable of applying to themi- | selves as foundry owners and mold- ers. It has successfully weathered { depressions in trade and busy times: it has passed through the trying pe- riod of the war and the still more difficult times which have affected industry within the last vear or so. It has successfully stood all the tests Which have been applied. Cvery Step Beset, Despite its record and the overcoming set forth above, the union has been beset with all the “isms” and fancies that have afflicted the labor move- ment generally. At every step in its onward march some member or group of members has tried to graft on the organization some cure for all indus- trial ills. These nostrums have at- tracted the attention and enlisted the support of some members more or less, in proportion to the plating that sarnished forth the particular reme- dy, but the vast majority of the affillates have continued serenely on their upward path, stepping slowly perhaps, but none the less surely in time with their officers. They have not been among those unfortunates jwho have taken the (only to discover that on the thorns appeared. Yes, indeed, the history of the - ternational Iron Molders' Union of North America may be studied with profit by the reckle: impatient ones In both the older and the newer unfons. (Copyright, 1923, by the McClure Newspaper i Sydicate.) men of achievement of obstacles as primrose path littie farther