Mr. Brandeis opened the conference with these words: "Gentlemen, we have come together in a matter which we must all recognize is a very serious and an important business—not only to settle this strike, but to create a relation which will prevent similar strikes in the future. That work is one which, it seems to me, is approached in a spirit that makes the situation a very hopeful one, and I am sure, from my conferences with counsel of both parties[ [27]] and with individual members whom they represent, that those who are here are all here with that desire."

Up to a certain point in the conference, which lasted for three days, this seemed to be true. The manufacturers agreed to abolish home work, to abolish subcontracting, to give a weekly half-holiday, besides the Jewish Sabbath, during June, July, and August, and to limit overtime work to two hours and a half a day during the busy season, with no work permitted after half past eight at night, or before eight in the morning. Beyond this, the question of hours was left to arbitration. Also, the question of wages was left to arbitration.

The last subject to be dealt with at the Brandeis conference was the general method of enforcing agreements between the Manufacturers' Association and the Union. It was in this discussion that the question of the closed shop and the open shop came before the conference.

Though the Union leaders had agreed to eliminate the discussion of the closed shop before they entered into negotiations, it was almost impossible for them to refrain from suggesting it as a means of enforcing agreements. As one of the cloak makers, one of the old leaders of the labor movement in America, said: "This organization of cloak makers in the city of New York can only control the situation where Union people are employed. They have absolutely no control of the situation where non-union people are employed. They cannot enforce any rules, nor any discipline of any kind, shape, or description, and if we are to coöperate in any way that will be absolutely effective, then the ... Manufacturers' Association, ... it seems to me, should see that the necessary first step is that they shall run Union shops." [[28]]

The Union shop the speaker had in mind, the Union shop advocated by the Vorwärts and desired, as it proved, by a majority of the workers, was a different matter from the closed shop, which constitutes a trade monopoly by limiting the membership of a trade to a certain comparatively small number of workers.

The institution of the closed shop is by intention autocratic and exclusive. The institution of the Union shop is by intention democratic and inclusive. With the cloak makers' organization, entrance into the Union was almost a matter of form. There were no prohibitive initiation fees, or dues, as in other unions. They offered every non-union man and woman an opportunity to join their ranks.

The manufacturers contended that they had no objection to the voluntary enlistment of non-union men in Union ranks; but they would not insist that all their workers belong to the Union.

This deadlock was reached on the third day of the conference. At this point Mr. Brandeis brought before the meeting the opinion that "an effective coöperation between the manufacturers and the Union ... would involve, ... of necessity, a strong Union." "I realize," he said, ... "from a consideration of ... general Union questions, that in the ordinary open shop, where that prevails, there is great difficulty in building up the Union. I felt, therefore, particularly in view of the fact that so many of the members of the Garment Workers' Union are recent members, that to make an effective Union it was necessary that you should be aided ... by the manufacturers, ... and that aid could be effectively ... given by providing that the manufacturers should, in the employment of labor hereafter, give preference to Union men, where the Union men were equal in efficiency to any non-union applicants.... That presented in the rough what seemed to me a proper basis for coming together.... I think, if such an arrangement as we have discussed can be accomplished, it will be the greatest advance, not only that unionism has made in this country, but it would be one of the greatest advances that has generally been made in improving the condition of the working-man, for which unionism is merely an instrument."

This, then, was the first public presentation of the idea of the preferential shop. Mr. Brandeis, as a result of close study of labor disputes and a rich experience in settling strikes, had reached the conclusion that the position of the adherents of the closed as well as those of the open shop was economically and socially untenable. The inherent objection to the closed shop, he contends, is that it creates an uncontrolled and irresponsible monopoly of labor.

On the other hand, the so-called open shop, even if conducted with fairness and honesty on the part of the employer, is apt to result in a disintegration of the Union. It has been a frequent experience of organized labor that, even after a strike has been won, men drop out of the Union and leave the burden of Union obligation to the loyal minority, who, weakened in numbers, face not only a loss of what the strike has gained, but a retrogression of those Union standards that have been the result of past struggles and sacrifices.