orwaerts_ (Milwaukee), Feb. 3, 1898.

CHAPTER V

COMPULSORY ARBITRATION

So far I have spoken only of the constructive side of the new
capitalism's labor program, its purpose to produce healthy and
industrially efficient laborers so as to increase profits. "State
Socialism" gives the workingman as a citizen certain carefully measured
political rights, and legislates actively in his behalf as a
profit-producing employee at work, but its policy is reversed the moment
it deals with him and his organizations _as owners and sellers of
labor_.

Towards the individual workers, who are completely powerless either
politically or economically until they are organized, the new capitalism
is, on the whole, both benevolent and actually beneficent. But it does
not propose that organized labor shall obtain a power either in industry
or in government in any way comparable to that of organized capital.

"Successful State Socialism," as Victor S. Clark says in writing of the
Australian experiments, "depends largely upon perfecting public control
over the individual."[72] But compulsory arbitration of labor disputes
which reaches the wage earners' organizations, is far more important to
"State Socialism" than any other form of control over individual. A
considerable measure of individual liberty may be allowed without
endangering this new social polity, and it is even intended
systematically to encourage the more able among the workers by some form
of individual or piece wages--or at least a high degree of
classification of the workers--and by a scheme of promotion that will
utilize the most able in superior positions, and incidentally remove
them out of the way as possible leaders of discontent.

Nor is it intended to use any compulsion on labor organizations beyond
that which is essential to prevent them from securing a power in society
in any way comparable to that of property and capital. For this purpose
compulsory arbitration is the direct and perfect tool. It can be
limited in its application to those industries where the unions really
occupy a position of strategic importance like railroads and coal mines,
and it can be used to attach to the government those employees that are
unable to help themselves. I have mentioned those weaker groups of
employees who would be unable to improve their condition very materially
except by government aid, and, even when so raised to a somewhat higher
level, have no power to harm ca