taxes. It is expected that after the work has been well started, the larger industries will not need governmental assistance. At the end of 1921, there were twenty-four active research associations in Great Britain and others in process of formation.80 These associations are most carefully organized to protect the interests of the British trade against foreign competition, to protect the rights of the individual members and to correlate governmental, scientific and industrial efforts in research. The responsibility for the prosecution of the work is placed on the industries themselves, to avoid chaining the efforts of the industries to government routine. The Report of the Committee of the Privy Council for Scientific and Industrial Research for 1917 outlines the benefits accruing to the members of such organizations in the following language:

"It is anticipated that each firm subscribing to a research organisation will have the following privileges:

(1) It will receive a regular service of summarised technical information which will keep it abreast of the technical developments in the industry at home and abroad. To do as much for itself any firm would have to employ more than one man on its staff reading and translating the technical press.

(2) It will be able to obtain a translated copy of any foreign article in which it may be specially interested and to which its attention will have been drawn by the periodical bulletin.

80 Report of Committee of the Privy Council for Scientific and Industrial Research, 1920-21, p. 106. These associations were the British Shoe & Allied Trades Research Assn., British Cotton Industry Research Assn., British Sugar Research Assn., British Iron Mfrs'. Research Assn., Research Assn. of British Motor & Allied Mfrs., British Photographic Research Assn., British Portland Cement Research Assn., British Research Assn. for the Woollen & Worsted Industries, British Scientific Instrument Research Assn., Research Assn. of British Rubber & Tyre Mfrs., Linen Industry Research Assn., Glass Research Assn., British Assn. of Research for Cocoa, Chocolate, Sugar, Confectionery & Jam Trades, British NonFerrous Metals' Research Assn., British Refractories' Research Assn., Scottish Shale Oil Scientific & Industrial Research Assn., British Leather Trades' Research Assn., British Launderers' Research Assn., British Electrical and Allied Industries' Research Assn., British Silk Research Assn., British Motorcycle and Cycle Car Assn., British Cutlery Research Assn., British Music Industries' Research Assn. and British Cast Iron Research Assn.

(3) It will have the right to put technical questions and to have them answered as fully as possible within the scope of the research organisation and its allied associations.

(4) It will have the right to recommend specific subjects for research, and if the Committee or Board of the research organisation of that industry consider the recommendation of sufficient general interest and importance, the research will be carried out without further cost to the firm making the recommendation, and the results will be available to all the firms in the organisation. (5) It will have the right to the use of any patents or secret processes resulting from all researches undertaken either without payment for licenses, or at any rate on only nominal payment as compared with firms outside the organisation.

(6) It will have the right to ask for a specific piece of research to be undertaken for its sole benefit at cost price, and, if the governing Committee or Board approve, the research will be undertaken." p. 50.

The annual reports of these associations show them to be engaged in a constantly widening range of research of a fundamental character as well as that of immediate practical value.81

Conclusion.-Unquestionably the systematic well-financed research work of great industries, correlated through an advisory body of the leaders of business and science, such as is being developed in England, can become a powerful factor in improving processes, reducing cost and increasing the efficiency of such industries in world competition. It is impossible, within the scope of this chapter, to more than sketch the possibilities of research as a fixed trade association activity. To competitive industries striving for commercial supremacy, it is vital. The industry which breaks through the limitations of the past and improves its products, reduces its cost, and opens new avenues of demand must outstrip its more lazy competitor which, by reason of lack of organization or inertia of spirit, is satisfied with the status quo. There will be no end to progress. To

81 See, for example, "Report of Council," British Research Assn. for the Woollen & Worsted Industry, 1921, published March 22, 1922; Second Annual Report, of the British Non-Ferrous Metals' Research Assn., published January, 1922; "Report of the Council," Linen Industry Research Assn., 1921, published March 21, 1922.

the smaller units in any industry, competitive research offers possibilities of increased efficiency and greater profits. To industry in general it affords opportunity for decreased cost, increased output and more stabilized conditions of manufacture and sale. To the public it holds promise of reduced prices, better quality, enlarged utility of products and constant progress. In such an activity there is no hint of violation of the law. Surely no one will deny that here is one of the activities in which broad-visioned business men may jointly engage and render great service, not only to themselves but also to industry and to the public. Would it not be possible to develop in this country, through the Department of Commerce, which is already admirably equipped for such work, a great central agency of voluntary coöperation in research work which would work with an Advisory Council of the leaders of business, science and of labor, and keep intimately in touch with the scientific and industrial development the world over. Such an organization could give impetus and direction to the development of American industry and increase the prosperity of the nation.

CHAPTER VIII

TRADE ASSOCIATIONS AND LABOR

THE importance to our social and economic life of a rapprochement between capital and labor is apparent to everyone. The development of our great business organizations with thousands of employees has destroyed the personal contact between employer and worker. Huge impersonal industrial machines to which labor is merely a commodity do not promote goodwill among their employees. The growing antagonism of labor toward capital and its steady trend toward radicalism is a matter of general concern. No amount of legislation can correct the situation. There must be means provided for the restoration of friendly personal relations between employer and employee. Laws may restrain abuses arising from warfare between capital and labor, but the leaders of business and the leaders of labor approaching the problem in broad-visioned and public-spirited fashion must themselves work out the real solution. Surely the magnitude of such a problem touching the foundations of government and menacing the future warrants organized consideration by the business men of every industry. The trade association affords the medium for the concentration of the thought and the experience of business men from which there ought to spring new plans and new leadership working for the maintenance of fair and just relationships which will protect public as well as private interests.

Unfortunately, there has been, comparatively speaking, little consideration of labor questions by trade associations except in those branches where labor is so important a factor in costs that it compels attention. Possibly, also there is a feeling that the dealing with labor as a national unit is dangerous. There is, of course, no activity in which an association may engage which can more quickly wreck it. The United Typothetæ of America. seem to have happily solved this problem by creating two divisions within the association, called the Open Shop Division

and the Closed Shop Division, which are completely autonomous in themselves, with a coördinating committee known as the Industrial Relations Committee, to act as an advisory body. This organization deals with the highly controversial questions involving labor policies, in order that the general program of the association in other matters may not be harmfully affected.

Most business men have intense feelings on the labor question as it affects their industry, and too often a failure to maintain their viewpoint results in their withdrawal from the association. But on the other hand some associations have found that most of their disputes are simply matters of misunderstanding which are quickly overecome if both groups take the time to meet and discuss the dispute in a coöperative spirit. In every association there will be found three groups of business men. The first are bitterly opposed to organized labor and are determined to do all within their power to destroy it. The second, more conservative and cautious, view the problem from a purely business standpoint, dealing with labor to secure the best bargain possible. The third group are searching constantly for new methods, new plans, and endeavoring to evolve a system which will make for industrial peace. In every association a relatively few men dominate its councils, and the character of these men as well as the character of the leaders of labor will determine the attitude of the organization of the industry toward labor. Most trade associations because of their fear of disruption of their association and the desire of their members to have complete freedom of action exclude discussion of, and organized effort in labor matters. Other associations are powerfully organized to combat union labor. Others have evolved elaborate machinery for dealing with labor on a business bargaining basis. Others utilize their organization merely as a forum for the interchange of ideas with the hope that the exchange of experiences may be productive of better conditions.

Associations Opposed to Organized Labor.-A typical example of the organizations whose fixed policy appears to be

1 "Standardization and Coöperation in the Printing Industry," F. A. Silcox, Proceedings, Academy of Political Science, vol. 9, No. 4, Jan., 1922. 2 "Report," E. C. Miller, President, American Photo-Engravers' Assn., Photo-Engravers' Bulletin, July, 1918, p. 8.