In this matter the left and right wings of the Fabians joined hands in opposition to the centre. Members who came into the movement when Marxism was supreme, like Walter Crane, those who worked largely with the I.L.P., such as J. Ramsay Macdonald, S.G. Hobson, and G.N. Barnes (later M.P. and Chairman of the Labour Party), were joined by others who were then associated with the Liberals, such as Dr. F. Lawson Dodd, Will Crooks (later Labour M.P.), Clement Edwards (later Liberal M.P.), and Dr. John Clifford. On the other side were the older leaders of the Society, who took the view that the members had come together for the purpose of promoting Socialism, that the question at issue was one "which Socialism cannot solve and does not touch,"[32] and that whilst each member was entitled to hold and work for his own opinion, it was not necessary for the Society in its corporate capacity to adopt a formal policy with the result of excluding the large minority which would have objected to whatever decision was arrived at.

The first round in the contest was at a business meeting on October 13th, 1899, when on the advice of the Executive the members present rejected a motion of urgency for the discussion of a resolution expressing sympathy with the Boers.

It was however agreed that the matter could not end thus, and a members' meeting was fixed for December 8th, at Clifford's Inn Hall, when S.G. Hobson moved a long resolution declaring it essential that the attitude of the Society in regard to the war should be clearly asserted, and concluding: "The Fabian Society therefore formally dissociates itself from the Imperialism of Capitalism and vainglorious Nationalism and pledges itself to support the expansion of the Empire only in so far as it may be compatible with the expansion of that higher social organisation which this Society was founded to promote."

Bernard Shaw, on behalf of the Executive Committee, moved a long reasoned amendment declaring that a parliamentary vote was not worth fighting about, demanding that at the conclusion of the war measures be taken for securing the value of the Transvaal mines for the public, and that the interests of the miners be safeguarded. The amendment was barely relevant to the issue, and notwithstanding influential support it was defeated by 58 to 27. Thereupon the "previous question" was moved and carried by 59 to 50. This inconclusive result revealed a great diversity of opinion in the Society, and the Executive Committee, for the first and, so far, the only time, availed itself of the rule which authorised it to submit any question to a postal referendum of all the members.

The question submitted in February, 1900, was this: "Are you in favour of an official pronouncement being made now by the Fabian Society on Imperialism in relation to the War?" and on the paper published in the "News" were printed four reasons on one side and five on the other, drafted by those members of the Executive who advocated each policy. On the one hand it was argued that the Society should resist aggressive capitalism and militarism, thus putting itself into line with international socialism, and that expenditure on the war would postpone social reform. On the other it was contended that the question was outside the province of the Society, that a resolution by the Society would carry no weight, would not stop the war, and might have a serious effect on the solidarity of the Society itself. The vote excited great interest: an appeal to the electorate to vote Yes, worded with much moderation, was issued by Walter Crane, S.G. Hobson, Charles Charrington, F. Lawson Dodd, J. Frederick Green, George N. Barnes, Will Crooks, Henry S. Salt, Dr. John Clifford, Mrs. Mallet, Clement Edwards, Mrs. J.R. Macdonald and others; to which a reply was sent, signed only by members of the Executive, Bernard Shaw, Sidney Webb, Hubert Bland, J.F. Oakeshott, H.W. Macrosty and one or two others. Finally a rejoinder by the signatories of the first circular was issued in the course of the poll which extended over nearly a month. The membership at the time was about 800, of whom 50 lived abroad, and in all only 476 votes were cast, 217 in favour of a pronouncement and 259 against.

It was said at the time, and has constantly been alleged since, that the Society had voted its approval of the South African War and had supported imperialist aggression and anti-democratic militarism. As will be seen from the foregoing, no such statement is correct. A vote on the policy of the Government would have given an overwhelming adverse majority, but it would have destroyed the Society. In early days we had drawn a clear line between Socialism and politics: we had put on one side such problems as Home Rule and Church Disestablishment as of the nature of red herrings, matters of no real importance in comparison with the economic enfranchisement which we advocated. In the early eighties Parliament spent futile and fruitless months discussing whether Mr. Bradlaugh should take the oath, and whether an extension of the franchise should or should not be accompanied by redistribution. We wanted to make the working classes pay less attention to these party questions and more attention to their own social conditions. We thought, or at any rate said, that the Liberal and Conservative leaders kept the party ball rolling in order to distract the workers from the iniquity of the distribution of wealth. We insisted that Socialism was an economic doctrine, and had nothing to do with other problems. Later on we realised that the form of government is scarcely less important than its content: that the unit of administration, whether imperial, national, or local, is germane to the question of the services to be administered; that if the governmental machine is to be used for industry, that machine must be modern and efficient: and that in fact no clear line of distinction can be drawn between the problems of constitutional structure which concern Socialism and those, if any, which do not concern it. In the case of the South African war it was mainly the instinct of self-preservation that actuated us; it is certain that any other decision would have destroyed the Society. The passions of that period were extraordinarily bitter. The Pro-Boers were mobbed and howled down, their actions were misrepresented, and their motives disparaged: they retaliated by accusing the British troops of incredible atrocities, by rejoicing over every disaster which befell our arms, and by prophesying all sorts of calamities however the war ended. There was never any question of the Society issuing a pronouncement justifying the war. Only a very few of our members went as far as that. But many others, all or nearly all who were now beginning to be called the "old gang," on whom from first to last the initiative and stability of the Society has depended, would have declined to be associated with what they regarded as the anti-patriotic excesses of certain of the Liberals, and would have resigned their membership, or at any rate their official positions in the Society, had it adopted at that time the same policy as the I.L.P. Happily tolerance prevailed, and although an attempt was made to get up a big secession, only about fifteen members resigned in a group when the result of the poll was declared. These, however, included a few important names, J. Ramsay Macdonald and J. Frederick Green, of the Executive Committee, George N. Barnes and Pete Curran, future Labour Members of Parliament, Walter Crane, H.S. Salt, Mrs. J.R. Macdonald, and Mrs. Pankhurst.

At the election of the Executive Committee in April, 1900, the Society by another vote confirmed the previous decision. All the old members were re-elected, and those of the majority party polled the heaviest votes. The two seats vacated by resignation were filled by "Pro-Boers," and the only new candidate who supported the majority was defeated. It was clear, therefore, that the voting was not strictly on party lines—one of the opposition, Charles Charrington, was fourth on the poll—but that the Society as a whole approved of the non-committal policy. The Executive Committee had been elected since 1894 by a postal ballot of the whole Society, and on this occasion 509 members, over 62 per cent of the whole, recorded their votes.

The Executive had resolved at the beginning of the war to issue a tract on Imperialism, and at the Annual Meeting in May, 1900, a resolution was passed that it prepare for submission to the members "a constructive criticism from the Socialist standpoint of the actions and programmes of the various political parties."

Needless to say, Bernard Shaw undertook the difficult job, for at this period all the official pronouncements of the Executive were drafted by him. At the beginning of September it was announced as nearly ready, and later in the month a proof was sent to every member for criticism, and a meeting was called for the 25th to discuss it. This was the extreme example of the practice at that time habitual, of inviting the co-operation of every member in our publications. No less than 134 members returned amended proofs or wrote letters of criticism; and it is recorded that only one of these was opposed to the whole thing, whilst only nine preferred to have no manifesto at all; and another nine objected to material portions. The great majority were cordial in approval.

Bernard Shaw is fond of posing as the most conceited of persons, but those who have had to do with him in literary matters are aware that no pose was ever more preposterous. When he has acted as the literary expert of the Fabian Society he has considered every criticism with unruffled courtesy, and dealt with the many fools who always find their way into extreme parties, not according to their folly, but with the careful consideration properly accorded to eminent wisdom. The business of examining over a hundred marked proofs of a document of 20,000 words, every line of which was more or less controversial, was an immense one, but the author gave every criticism its proper weight, and accepted every useful amendment. Then came the meeting. It was held at Clifford's Inn, and between 130 and 140 members were present, each of whom was entitled to move any amendment on any of the 20,000 words, or any addition to or deletion of them. Nearly three hours were occupied partly in discussing the controversial portion and partly with the general question of publication. Only eighteen voted for omitting the part about Imperialism, and the minority against the publication numbered no more than fourteen. By this time the controversy over the war had reached an intensity which those who cannot recollect it will find difficult to believe, and nobody but the author could have written an effective document on the war so skilfully as to satisfy the great majority of the supporters of both parties in the Society. Bernard Shaw has accomplished many difficult feats, but none of them, in my opinion, excels that of drafting for the Society and carrying through the manifesto called "Fabianism and the Empire."