John D. Rockefeller, Jr.

The experience through which our country has passed in the months of war, exhibiting as it has the willingness of all Americans without distinction of race, creed, or class to sacrifice personal ends for a great ideal and to work together in a spirit of brotherhood and coöperation, has been a revelation to our own people, and a cause for congratulations to us all. Now that the stimulus of the war is over the question which confronts our nation is how can these high levels of unselfish devotion to the common good be maintained and extended to the civic life of the nation in times of peace.

We have been called together to consider the industrial problem. Only as each of us discharges his duties as a member of this conference in the same high spirit of patriotism, of unselfish allegiance to right and justice, of devotion to the principles of democracy and brotherhood with which we approached the problems of the war, can we hope for success in the solution of the industrial problem which is no less vital to the life of the nation. There are pessimists who say that there is no solution short of revolution and the overturn of the existing social order. Surely the men and women who have shown themselves capable of such lofty sacrifice, who have actually given themselves so freely, gladly, unreservedly, as the people of this great country have during these past years, will stand together as unselfishly in solving this great industrial problem as they did in dealing with the problems of the war if only right is made clear and the way to a solution pointed out.

The world position which our country holds to-day is due to the wide vision of the statesmen who founded these United States and to the daring and indomitable persistence of the great industrial leaders, together with the myriads of men who with faith in their leadership have coöperated to rear the marvelous industrial structure of which our country is justly so proud. This result has been produced by the coöperation of the four factors in industry, labor, capital, management and the public, the last represented by the consumer and by organized government. No one of these groups can alone claim credit for what has been accomplished. Just what is the relative importance of the contribution made to the success of industry by these several factors and what their relative rewards should be are debatable questions. But however views may differ on these questions it is clear that the common interest cannot be advanced by the effort of any one party to dominate the other, to dictate arbitrarily the terms on which alone it will coöperate, to threaten to withdraw if any attempt is made to thwart the enforcement of its will. Such a position is as un-American as it is intolerable.

Almost countless are the suggested solutions of the industrial problem which have been brought forth since industry first began to be a problem. Most of these are impracticable; some are unjust; some are selfish and therefore unworthy; some of them have merit and should be carefully studied. None can be looked to as a panacea. There are those who believe that legislation is the cure-all for every social, economic, political, and industrial ill. Much can be done by legislation to prevent injustice and encourage right tendencies, but legislation will never solve the industrial problem. Its solution can be brought about only by the introduction of a new spirit into the relationship between the parties to industry--a spirit of justice and brotherhood.

The personal relationship which existed in bygone days is essential to the development of this new spirit. It must be reÎstablished; if not in its original form at least as nearly so as possible. In the early days of the development of industry, the employer and capital investor were frequently one. Daily contact was had between him and his employees, who were his friends and neighbors. Any questions which arose on either side were taken up at once and readily adjusted. A feeling of genuine friendliness, mutual confidence, and stimulating interest in the common enterprise was the result. How different is the situation to-day! Because of the proportions which modern industry has attained, employers and employees are too often strangers to each other. Personal contact, so vital to the success of any enterprise, is practically unknown, and naturally, misunderstanding, suspicion, distrust, and too often hatred have developed, bringing in their train all the industrial ills which have become far too common. Where men are strangers and have no points of contact, this is the usual outcome. On the other hand, where men meet frequently about a table, rub elbows, exchange views and discuss matters of common interest, almost invariably it happens that the vast majority of their differences quickly disappear and friendly relations are established. Much of the strife and bitterness in industrial relations results from lack of ability or willingness on the part of both labor and capital to view their common problems each from the other's point of view.

A man who recently devoted some months to studying the industrial problem and who came in contact with thousands of workmen in various industries throughout the country has said that it was obvious to him from the outset that the working men were seeking for something, which at first he thought to be higher wages. As his touch with them extended, he came to the conclusion, however, that not higher wages but recognition as men was what they really sought. What joy can there be in life, what interest can a man take in his work, what enthusiasm can he be expected to develop on behalf of his employer, when he is regarded as a number on a payroll, a cog in a wheel, a mere "hand"? Who would not earnestly seek to gain recognition of his manhood and the right to be heard and treated as a human being, not as a machine?

While obviously under present conditions those who invest their capital in an industry, often numbered by the thousand, cannot have personal acquaintance with the thousands and tens of thousands of those who invest their labor, contact between these two parties in interest can and must be established, if not directly then through their respective representatives. The resumption of such personal relation through frequent conference and current meetings, held for the consideration of matters of common interest such as terms of employment, and working and living conditions, is essential in order to restore a spirit of mutual confidence, good will, and coöperation. Personal relations can be revived under modern conditions only through the adequate representation of the employees. Representation is a principle which is fundamentally just and vital to the successful conduct of industry. This is the principle upon which the democratic government of our country is founded. On the battlefields of France this nation poured out its blood freely in order that democracy might be maintained at home and that its beneficent institutions might become available in other lands as well. Surely it is not consistent for us as Americans to demand democracy in government and practice autocracy in industry.

What can this conference do to further the establishment of democracy in industry and lay a sure and solid foundation for the permanent development of coöperation, good-will, and industrial well being? To undertake to agree on the details of plans and methods is apt to lead to endless controversy without constructive result. Can we not, however, unite in the adoption of the principle of representation, and the agreement to make every effort to secure the endorsement and acceptance of this principle by all chambers of commerce, industrial and commercial bodies, and all organizations of labor? Such action I feel confident would be overwhelmingly backed by public opinion and cordially approved by the federal government. The assurance thus given of a closer relationship between the parties to industry would further justice, promote good-will, and help to bridge the gulf between capital and labor.

It is not for this or any other body to undertake to determine for industry at large what form representation shall take. Once having adopted the principle of representation, it is obviously wise that the method to be employed should be left in each specific instance to be determined by the parties in interest. If there is to be peace and good will between the several parties in industry, it will surely not be brought about by the enforcement upon unwilling groups of a method which in their judgment is not adapted to their peculiar needs. In this as in all else, persuasion is an essential element in bringing about conviction. With the developments in industry what they are to-day there is sure to come a progressive evolution from autocratic single control, whether by capital, labor, or the state, to democratic coöperative control by all three. The whole movement is evolutionary. That which is fundamental is the idea of representation, and that idea must find expression in those forms which will serve it best, with conditions, forces, and times, what they are.