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ders for printed envelops, and use such paper as the customer might select, but not below quired standard, and likewise print a return card thereon to his taste. The paper would be cut to prescribed sizes, according to the size of the en; velope desired, and the printing would be “gauged” or "cornered" to the proper place on the paper, as directed by the department.

The stock thus printed would be forwarded to the stamped envelop contractor to be made into embossed stamped envelops of the size desired, the completed stock to be forwarded, as now, to the customer free of postage. It is believed that under this scheme stamped envelops could be fur. nished to the customer at a price but little, if any, higher than present local quotations, exclusive of the stamps. The charge of the department would be for the value of the stamps imprinted upon the envelops, plus the stamped envelop contractor's charge at a rate to be agreed upon, and the ex: pense to the department for administration and for transportation of the envelops. The printer would be permitted to make such additional charge to his customers as might be agreed upon between them. Under this scheme the present legal re. strictions against advertising in the return card would be removed, and cuts and designs could be employed when desired. The use of specialrequest envelops would be greatly increased, to the advantage of the postal service, without socalled encroachment upon private business.

Another plan under consideration is to issue the regular stamped envelop paper in sheets, with post. age stamps embossed thereon, to be specially print: ed and made up into envelops by printers and manufacturers of commercial envelops for their customers.

Legislation to carry the foregoing into effect is proposed on page 26 of my annual report for the fiscal year 1908, a copy of which is enclosed herewith.

I should be pleased if the executive council of the International Typographical Union would consider carefully the plans outlined herein--giving attention to the interests of the public and of the postal service as well as of the trades concerned -and let the department have the benefit of the council's views upon the subject, with such perti. nent suggestions as occur to you.

Respectfully,

A. Ľ. LAWSHE, Third Assistant Postmaster-General.

postal service, it is believed that by another method of procedure results beneficial alike to the post. office department, the public, and the printing and paper trades may be achieved. The scheme suggested can only be perfected by legislation author. izing the department to emboss postage stamps upon envelop blanks furnished by the printer or consumer.

Under this plan any ordinary or special kind of paper not below a prescribed 'standard of quality could be selected by the printer or his customer, and any desired advertisement or cut could be printed or lithographed thereon, the paper thus prepared being shipped to the stamped-envelop factory, there to be stamped, cut, and either gummed and folded, or, if furnished by an envelop maker, returned to him for gumming and folding. The charge of the department would be for the value of the stamps imprinted upon the envelops, plus the contractor's charge at a rate to be agreed upon, and the expense to the department for administration and for distribution of the envelops. The printer or envelop manufacturer would be per. mitted to make such additional charge to his customer as might be agreed upon between them. This plan does not contemplate discontinuance of the present system, but to supplement it, giving the public its preference. It would largely increase the use of stamped envelops, to the benefit of the postal service and all concerned, while eliminating all cause for complaint of competition in this respect on the part of the department with private business. I respectfully recommend that the mat. ter be submitted to congress for consideration.

In order to accomplish the desired end, the act of congress as approved June 26, 1906, which reads as follows:

"Provided, That no envelops shall be sold by the government containing any lithographing or engraving nor any printing nor advertisement, except a printed request to return the letter to the writer.' Should be amended by adding the following:

And provided further, That under regulations to be prescribed by the postmastergeneral any per. son, firm or corporation may deliver or cause to be delivered to the stamped envelop agency paper of suitable quality, color, weight and finish with return request not exclusive of advertising there.

in lithographing, engraving, embossing, or printing, and have such paper embossed with the stamps used on government stamped envelops and made into envelops at the usual schedule price therefor less the cost of the paper, which would otherwise have been furnished by the postoffice department; and that paper in sheets, with stamps embossed thereon, for manufacture into stamped envelops, may be furnished to the public in lieu of stamped envelops and at the same schedule price. Provided further, That all orders for the manufacture of paper into stamped envelops and all orders for sheets embossed with stamps shall be made through the postoffice to which the person ordering the same makes his undeliverable mail returnable."

Special-request envelops are of great advantage to the business public and to the postal service, and the printing of return cards by the department very largely encourages and increases their use. The return card is a valuable part of an envelop, stamped or unstamped, as it insures the prompt return of an undelivered letter to the writer-often a matter of vital importance. Were the department to cease furnishing special-request envelops, undeliverable and unreturnable mail would vastly increase. Their use saves an enor. mous amount of work to the Division of Dead Letters. The return cards are printed without additional cost to the department and at trifling expense to the stamped envelop contractor, because the printing is done on one machine simultaneously with the embossing of the postage stamp. This is a direct saving to the user of the envelops, as hy law they must be supplied without any additional charge for the printing. Furthermore, stamped envelops mutilated or spoiled in addressing are redecmed from original purchasers at stamp value,

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In the report of the third assistant postmastergeneral he gives the number of stamped envelops and newspaper wrappers of all varieties issued by the government for the year ending June 30, 1908, as 1,266,002,599, of which 843,116,084 were what is known as special request envelops bearing printed return cards. This is 66.59 per cent of the entire issue, and shows to what extent the printing of return cards on envelops by the government is carried on.

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RECOMMENDATION WOULD HELP. On the subject of printing return cards stamped envelops, the third assistant postmastergeneral gives the following under the head of STAMPED ENVELOPS MADE OF PAPER SUPPLIED BY THE

PUBLIC. Opposition, more or less acute, has always existed among commercial envelop manufacturers, printers, lithographers, and their organizations, to the alleged competition of the special-request stamped envelop with private industry. So far as the printing is concerned, that is limited by law to a "request to return the letter to the writer,” the department being specially prohibited from placing any lithographing. 'engraving or advertising upon envelops it may furnish, While the interests of the trades mentioned are not believed to out. weigh the established advantages of the special. request envelop to the business public and to the

executive council may uphold the position which they take and thus in some degree humiliate the local organization. It is not the belief of the executive council that any member should be deprived of his just dues, but it does believe that the convention should express itself forcibly on the nature of cases which should be subject to appeal. The council should not be used as an avenue for seeking revenge either against the local union, its officers, committees, or the members of any chapel, and appeals should be confined strictly to questions of law violation or the depriving of a mem. ber of his good standing unjustly.

If congress decides, for the purpose of obtaining better supervision, that the department shall manufacture its own envelops the system herein outlined would confine such work to the mere embossing of the stamp and the gumming and folding of the paper when the latter is furnished already printed by the consumer.

The regulations governing the printing of return cards on stamped envelops were revised during the past year, the law on the subject being given a more liberal construction than formerly. The revised rules, however, exclude everything of an advertising nature, as required by law, and eliminate any printing not in harmony with the purpose of the return card to secure the return of undelivered letters to the writer.

While the recommendation of the postoffice department that, "under regulations to be prescribed by the postmaster-general, any person, firm or corporation may deliver, or cause to be delivered, to the stamped envelop agency paper of suitable quality, color, weight and finish with return request not exclusive of advertising thereon in lithographing, engraving, embossing, or printing, and have such paper embossed with the stamps used on government stamped envelops and made into envelops at the usual schedule price therefor, less the cost of the paper, which would otherwise have been furnished by the postoffice department; and that paper in sheets, with stamps embossed thereon, for manufacturing stamped envelops, may be furnished to the public in lieu of stamped envelops and at the same schedule price,” if adopted, would not result in all the reforms which we desire, it is the belief of the executive council that it would go a long way in the proper direction. We believe it would to a great degree bring about the result that the Boston convention desired in the resolution adopted, and while we are not at the present informed as to whether any action has been taken by congress on the recommendation submitted to it by the postal authorities, we have taken steps to gain this information and will use all the influence possible to secure the adoption of this or any other law that will grant the relief which our. members desire, and do away with the printing of return cards on stamped envelops by the government.

SECURITY OF FUNDS. Referring to the securing of the funds of the International Typographical Union, section 3

of article v, of the by-laws, says:

Section 3. The executive council shall take im. mediate steps to secure the funds of the Interna. tional Typographical Union in excess of $50,000 (the amount of the bond of the Secretary-Treas. urer), either by depositing the excess with a safety deposit company, or investing in bonds of the United States, the said deposit or investment to be made by the executive council as trustees.

It was evidently the idea of the framer of the above section, as well as the convention which adopted it, that the $50,000 bond of the secretarytreasurer would secure the International Typographical Union from loss of money deposited in banks that might suspend payment. This idea is erroneous, as the bond of the secretary-treasurer is simply a guarantee that he will properly handle the money entrusted to his care and deposit or dispose of the same as directed by the laws of the or. ganization, and properly account for and produce vouchers for the expenditure of all funds coming into his possession as secretary-treasurer.

The executive council has found that it can not secure the funds of the organization in the man. ner provided by section 3 with any advantage to the organization, and it has, therefore, left the money in the various banks of Indianapolis, requiring that the banks give bonds issued by reputable surety companies for a considerable portion thereof. At the present time $125,000 deposited in four Indianapolis banks is secured by such bonds. The council believed this to be a virtual compliance with the provisions of the above section.

The council will recommend the following addi. tion to section 3, article v, of the by-laws:

Provided, That if the executive council deems advisable it may deposit the funds of the Interna. tional Typographical Union in any stable bank and accept as security for such deposits bonds of any reputable surety company.

APPEAL CASES. During the five months from January 1, 1909, to May 31, under the workings of the present appeal laws, the executive council has handled fortysix appeal cases. While a few of these cases have been of merit, a great majority were of a trivial nature and in which the decision of the local union should have been final. It is the belief of the council that the decision of a local union should not be appealed from except in cases that might affect the standing of a member of the organization or establish a precedent that would result in future violations of International or local laws.

It seems to be the idea of a large number of our members that they should appeal from every decision of a chapel or committee of a local union, or any action of a local union that is not in strict conformity with their own ideas, evidently taking a chance that in some manner the

REMOVAL OF HEADQUARTERS. The St. Louis delegation to the Boston convention offered thc following resolution (Proposition 165, page 270, proceedings Fifty-Fourth Session) :

The executive council is hereby instructed to investigate the proposition made by the Lewis Publishing Company, of University City, St. Louis, Mo., looking to the establishment there of Internathe same classification, and in addition there is the saving in tolls on the large amount of telegraph business that the International Union does. Indianapolis has become fixed in the minds of the membership of the International Typographical Union as the headquarters city, and to disturb this impression will create, for the time at least, confusion. If a headquarters building is neccs. sary, or advisable, and it is submitted that this is open to discussion, Indianapolis is the ideal location for that building, as it is, in the opinion of the executive council, the ideal location for the headquarters of the International Typographical Union.

tional Typographical Union headquarters, in our own building; and if the statements made by the said Lewis Publishing Company are found to be correct, the executive council shall sign a contract binding the International Typographical Union to carry out the terms of the order, subject to the approval of the referendum. If the council's investigation shall be favorable, it is directed to submit the ratification of the contract to a referendum vote. This vote being favorable, the council is directed to proceed with the closing of the contract, the drawing, of building plans and the erection thereof, and the removal of the headquarters to the building when ready for occupancy. The council shall make amendments to the constitution and general laws, substituting University City, Mo., for Indianapolis, wherever it may appear.

The committee on laws offered the following substitute, which was adopted by the convention:

The executive council is hereby instructed to investigate the proposition made by the Lewis Publishing Company, of University City, St. Louis, Mo., looking to the establishment there of the headquarters, in our own building, and to report to the next convention such conclusions in the matter as their judgment may suggest.

The executive council has depended very largely on the investigation made by President Lynch, of the offer of the Lewis Publishing Company, and of University City as the proposed location for the headquarters of the International Typographical Union. This investigation was made by the International president just prior to the Boston convention. It was found at that time that University City was about eight miles from the business portion of St. Louis, that it was sparsely settled, the main buildings being those owned by the Lewis Publishing Company, The impression formed at that time was that if the International Typographical Union erected an office building it would have the building entirely to itself, because business property or an office building would not be eagerly sought after when the building was located some eight miles from the business center of the main city. Practically, University City is a suburb of St. Louis, and without St. Louis would not exist.

STRIKE BENEFITS AND SPECIAL AS

SISTANCE. At the close of the fiscal year which ended May 31, 1908, the remnants of the eight-hour struggle were considerably in evidence, which is shown by reference to the strike benefits and special assistance that were then being paid to our subordinate unions to assist them in re-establishing conditions which existed previous to the commencement of that strike. The expense account for the last week of that year shows that the International Typographical Union paid to subordinate unions as special assistance for that week $4,287 and as strike benefits $2,255.25, or a total of $6.542.25. Since that time conditions have materially changed in most all these jurisdictions and a number of subordinate unions informed the executive council that they could continue to carry on such organ. izing work as was necessary without further assist. ance from the International. In other localities where conditions continued to improve the council gradually reduced the financial assistance being rendered, and the reports show that there was paid out for the last week of the present year the sum of only $503.65 as special assistance and $13.50 as strike benefits, or a total of $517.13. The $13.50 paid out for strike benefits during the last week of the present fiscal year was for small strikes of recent origin in Cincinnati, Ohio, and New London, Conn., and $100 of the special assistance for the same week was granted New London Union on the same difficulty for which strike benefits were paid, and had no connection whatever with the cases that required the expenditure of money dur. ing the previous year. Thus it will be seen that during the last week of the fiscal year ending May 31, 1909, there was paid out as special assist. ance as a result of the eight-hour difficulty only $403.63, as against $6,642.25 strike benefits and special assistance during the corresponding week of the year previous. It is expected that the expenditures on this account will cease entirely in the near future.

IN FAVOR OF INDIANAPOLIS. The main proposition, as considered by the executive council, is as to the advisability of re. moving headquarters from Indianapolis, Ind. After considering the proposed offer from every viewpoint, the council is opposed to the removal. Indianapolis is centrally located, and is now the headquarters of some of the largest international unions, these unions including the United Mine Workers of America, L'nited Brotherhood of Carpenters and Joiners, the Bricklayers' International Union, Journeymen Barbers' International Union, International Brotherhood of Teamsters and the International Association of Bridge and Structural Iron Workers. Train facilities, which are of so much importance when the large amount of traveling the International officers are compelled to do is taken into consideration, are of the best. This is also true of the mail facilities and the telegraph facili. ties. Mail reaches Indianapolis, when all points of the International jurisdiction are placed in the estimate, more expeditiously than from any other point suitable for headquarters. Telegrams are in

THE NEW ORLEANS CASE. On March 29, 1908, S. T. Stevenson, financial secretary of New Orleans Typographical Union No. 17. disappeared, leaving a shortage in the treasury of that organization which subsequent investigations proved to be approximately $6,200.

cases.

cases were caused, in the opinion of the National Board of Arbitration, in the first place by the employment of attorneys, and in the second place through a total misunderstanding of the intent of the arbitration agreement. As a result, brought about by the developments in the San Francisco cases, the National Board of Arbitration has inhibited the employment of attorneys in arbitration

The arbitration agreement has been amended in several important particulars, these amendments appearing in sections 4 and 5 of the agreement, and in sections 5 and 7 of the code of procedure. A new section has been added-sec. tion 18 of the code of procedure-as follows:

“When differences arise as to the application of the arbitration agreement, the code of procedure, or any clause or clauses in contracts, or the interpretation to be placed upon any part, or parts, of any agreements, there shall be an agreed statement of facts signed by both parties forwarded to the commissioner of the American Newspaper Publishers' Association and the president of the International Typographical Union, together with the arguments and briefs of both parties, accompanied by a joint letter stating that each party is familiar with the contents of all documents. In case these two officials can not reach a decision upon the issues involved, their differences shall be submitted to the National Board of Arbitration."

The amended agreement is attached to this report as an exhibit.

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Stevenson returned to New Orleans in July, surrendered to the authorities, and, after a preliminary hearing, was held under bond of $6,000 on the charge of embezzlement. When Stevenson disappeared expert accountants were engaged to examine the books of No. 17, who reported to President Hudspeth, under date of May 12, 1908, that $2,556.43 was owing to the International Typographical Union on March 1, 1908, and this amount was immediately forwarded to headquar. ters.

Later, at the June meeting of Typographical Union No. 17, a committee composed of John L. Ebaugh (chairman), G. G. Norris and W. F. Scheyd, was appointed to investigate and report on the expenditures of the union during the period between January 3, 1905, and June 13, 1908. This committee reported at the September (1908) meeting of the union, a recapitulation showing that

luri the period covered the gener penses

$16,815.70; salary of Hudspeth, $3,660.95; paid into the International treasury, $37,642.97; local relief, $3,308; local petty expense, $4,312.44; local organization work, $2,431; strike benefits, $609.05; local pensions, $462; Hudspeth's campaign committee for conducting affairs during his race for the presidency of the International Typographical Union, $2,186.85. At the June (1908) meeting of No. 17 Hudspeth was suspended from office, and at the September meeting he was expelled from the organization on the charge of malfeasance in office and misappropriating union funds. Stevenson had previously been expelled at the August meeting.

At the urgent request of New Orleans Union for an International representative to go to that city and make a thorough investigation of affairs, the International executive council commissioned Organizer T. C. Parsons to take charge of the work. After laboring diligently at the task for eight weeks, during which time many members of No. 17 were examined as to any knowledge of the manner in which the affairs of the union had been conducted under the regime of Hudspeth and Stevenson, Mr. Parsons submitted a voluminous report to the executive council in December, 1908. In June, 1909, a reply to Organizer Parsons' report was received from New Orleans Typographical Union No. 17. The organizer's report and the reply of No. 17 will be printed, together with the decision of the executive council thereon, and distributed to the delegates at the St. Joseph convention.

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ARBITRATION BOARD DECISIONS. There follows an account of the deliberations of the national board, as made under the present arbitration agreement, together with the verdicts arrived at in the cases referred to the national board for adjustment:

JULY MEETING. The National Board of Arbitration met pursuant to agreement on Tuesday, July 21, and remained in session almost continuously until midnight on Friday, July 24.

The American Newspaper Publishers' Association was represented by H. N. Kellogg, of Chicago; Bruce Haldeman, of Louisville, and Hilton U. Brown, of Indianapolis.

Messrs. James M. Lynch, Hugo Miller and J. W. Bramwood represented the International Typographical Union.

The cases handled by the board are given in the order in which they were considered. The action in each case appears under the proper heading.

The Denver Scale Case, In this case the publisliers contended for a decrease in the scale rate, asking $21 and $24 per week for composing room employes. The union requested an increase to $27 and $30 per week.

The present scale in Denver is $25.30 and $28.60 for day and night work, respectively. The present scale also provides that machine operators shall receive i cent per hundred for all type set in excess of 40,000 linometer measurement or 45,000 dupe measurement.

Ex-Senator Thomas M. Patterson represented the

ARBITRATION. Under our arbitration agreement with the American Newspaper Publishers' Association our relations with the newspapers that have secured arbitration contracts have been uniformly peaceful, and all cases that have arisen under the arbitration agreement and that have gone to arbitration where local settlement has been impossible have been adjusted with one exception, and at this writing the exception is still pending. The San Francisco cases were perhaps the most notable of the fiscal year, and the delay, expense and labor attached to these

ical Union law, has the right of appeal. When the foreman reinstates on the demand of the chapel, the foreman has the right of appeal. When the foreman declines to reinstate on the demand of the chapel, and the decision by the court of last resort reverses his position and sustains the reinstatement, then the office is liable to the man or men affected for all ti lost. We further agrec that the authority of foremen as set forth in International Typographical Union law must be sustained, and that the rights of chapels and members must also be sustained; and any attempt to evade the law on the part of a foreman, chapel or members is inimical to the peace and good fellowship now existing between the American Newspaper Publishers' Association and the International Typographical Union.”

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Denver publishers, being assisted by C. H. Poole. Denver Typographical Union was represented by E. S. Close, F. A. Birdsall and John Keating.

After a full consideration of the merits of this controversy, the board found itself unable to agree. Chairman Kellogg was, therefore, instructed to notify the representatives of the publishers and of the union that: “No agreement could be reached, and that further consideration of the case had been postponed.”

Kansas City Mailers vs. Kansas City Journal.

This contention arose over the provisions of the arbitration contract with the Journal, which covered the mailing department.

Mr. Moise presented the case for the Journal and Mr. Masters appeared for the mailers.

An agreement could not be reached in this controversy and the secretary was instructed to make a minute that: “The board found it impossible to agree, both parties at interest to be so notified." Denver News-Times vs. Denver Typographical

Union No. 49. This dispute arose over the discharge of an employe by the foreman of the News.Times. The chapel ordered his reinstatement, and the foreman was sustained in the discharge by the business manager, who afterward appeared upon the composing room floor with a police officer, and had the discharged man ejected from the office.

Ex-Senator Patterson appeared for the NewsTimes, and the case of the union was presented by President Close, assisted by Messrs. Birdsall and Keating.

The question before the board was one of jurisdiction. Though an agreed statement of facts had been submitted, the members of the national board found they were unable to agree as to the interpretation to be placed upon certain clauses of the agreed statement of facts.

In view of the importance of the question presented, it was deemed advisable by the board to request more specific information on the points in controversy, and issue a declaration relative to the respective rights of foremen, chapels and members. This declaration follows:

“The National Board of Arbitration, in considering the case involving the discharge of a composing room employe by the foreman of the Den. ver News-Times, and a demand for the reinstatement of that employe by the Denver News chapel, and the subsequent developments therein, makes the following statement:

“The board agrees that the foreman of a composing room has the right to discharge for the causes enumerated in section 108, general laws, International Typographical Union. The board also agrees that the chapel has the right to demand the reinstatement of the discharged employe, but that the foreman can not be compelled by the chapel to reinstate the discharged man. When the foreman refuses to reinstate on the demand of the chapel then the chapel must take its case to the local union, through the usual channels, and if the local union sustains the chapel in its action, then the foreman, under International Typograph

This was a dispute between the publisher and the union relative to the wages of the machine operator employed on the night shift of the News. The decision was as follows: "The publisher shall be permitted to employ an operator at night in his composing room at the regular scale for machine operators, provided he does not require said oper. ator to make any repairs on the machine or to perform machine tenders' duties further than to attend to the distributor. The operator may, if he so desires, eject the slugs which may become lodged in the mold, provided this can be accomplished with the regular apparatus attached to the machine for this purpose.

Should the operator be compelled to make any other repairs or adjustments he shall be paid the operator-machinist scale.”

Publishers' Association of Springfield, III.,

Typographical Union No. 177. This was a dispute relative to the reproduction of matrices of certain ads used in the Springfield papers.

In its decision, the board quoted from the agree. ment between the parties at interest entered into March 6, 1907, and ending May 31, 1910, containing the specific declaration that it would "be governed by the laws and rules prevailing at the time of such agreement being made." Its decision was: "If plates or mats of the character in question were being reproduced or paid for at the time the agreement of March 6, 1907, was entered into, said plates or mats should be reproduced or paid for until the expiration of the contract on May 31, 1910. If on the contrary such plates or mats were not being reproduced or paid for when the agreement was entered into on March 6, 1907, they should not be reproduced or paid for without mutual consent until the expiration of the contract on May 31, 1910."

Butte Miner vs. Typographical Union No. 126.

This was a dispute over the provisions of the contract between the parties at interest, which provides that, with the approval of the National Board of Arbitration, it will be permissible to exchange

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