“But does not this convict labor compete with the labor of the masses?” asked Cobb.
“How can it? If the government needs a million dollars’ worth of manufactured articles, one of two courses must be pursued to obtain them: either to buy or manufacture. If they are bought, the people are taxed to pay for them; if they are manufactured by convict labor, the tax-payers save just that amount of money, while a punishment is inflicted upon the worthless class by causing it to labor without reward.”
“True; but in my time the people howled and railed against convict competition. Now, turning from the subject, tell me if there are many labor troubles at the present day.”
“None worthy of the name. A great and just law was advocated, in 1920, by that eminent jurist, Attorney-General William Bean, of Pennsylvania, and passed the next year, that it should be unlawful for any firm or corporation carrying on any manufacture, to accumulate in any one calendar year a profit in excess of twenty per cent. on the actual money invested, and exclusive of that invested in the plant. Full provision was made in the bill for examination of accounts, books, etc. The bill further provided that each person, firm, etc., should regulate the price of the labor employed by them. Then further laws were enacted against combined strikes, intimidation of the employed, etc. It was a wise bill, and has worked advantageously ever since it was passed by Congress.”
“But I fail to see its benefits to the laborer,” dubiously returned Cobb.
“In this way, Junius. Twenty per cent. interest on the money invested is enough to satisfy any man, and cause him to advance capital and embark in manufactures. Now, if the wages of his laborers are fixed by him, he can increase them just as much as his income is greater than twenty per cent.; he must do it or cut down supply. He actually divides the surplus over twenty per cent. among his men. If competition is great and the profits less, he must cut the wages or increase the output to save his percentage; but if he is willing to accept fifteen per cent., or ten per cent., then the wages remain the same as before. But if he desires to cut the wages, it is his right by the law; the laborer may work for it, or not. As a truth, though, wages are better now than ever, while the price of articles has fallen nearly twenty-five per cent. below that of 1920.”
“Are there any laws relating to the holding of real estate?” Cobb asked. “I remember quite an agitation on that subject during the ’80s.”
“Yes; one general law only: no individual not a citizen can hold land in the United States; and no one citizen can hold, in his own name, more than 640 acres, or one square mile.”
“A good and wise law. In my time, vast tracts of land were held by individuals and corporations, both domestic and foreign.”