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mutual consent of workmen and employers necessary before local magistrates could enforce arbitration by appointing one arbitrator from each side in the dispute. In 1837, the local magistrate was empowered to enforce compolsory arbitration, at the request of either side, by means of an equal number of arbitrators from each side. After the middle of the century, joint boards of conciliation and arbitration in individual industries became common.

In 1889, the City of London provided for a permanent board of conciliation and arbitration for all trade disputes within the city. In 1896, the British Government was authorized to take official steps toward aiding conciliation and arbitration in industrial disputes, and since that time Governmental and private arbitration in industrial disputes has increased in both scope and number, as Labor has become more powerful and as strikes have become more numerous. The passage of a number of social insurance laws, such as minimum wage and health insurance laws, has affected the British situation of recent years, as has the fact that British Labor, although far better organized industrially than American Labor, has organized a political party of its own, and thus is more prone than American Labor to resort to political rather than to industrial or direct action to gain the fundamental changes it desires.

In 1912, 7442 % of the industrial disputes in England were settled in favor of the workers, 1442 % in favor of the employers, with 11% compromised. In that year, 1,223,000 workers were directly affected by industrial disputes, of which more than 1,900,000 were affected by disputes concerning wages and 121,000 were affected by disputes concerning unionism. The total numher of working days represented by the duration of the disputes was

than 38,000,000.

In France, the councils of experts were given official sanction in 1806, and by the end of the century there were some 125 such in operation. The existence of trades unions was not legalized until 1884. In 1892, a conciliation and arbitration law was passed by


Government which facilitated private conciliation and Governmental arbitration by local magistrates ; but, as in the case of England by this time, the arbitration was voluntary, not compulsory. In the next ten years, there were almost 6,000 strikes and lockouts, in 1,400 of which conciliation and arbitration were attempted. About 600 of these 1,400 attempts were successful. In the majority of cases, the attempts at settlement were initiated by the workers, and in only 42 cases by the employers. In 1912, there were 1,116 strikes in France, with 268,000 strikers, affecting 6,656 establishments and totaling 2,318,000 workdays lost. About 17% of the strikes were wholly successful and 34% were compromised, with 49% lost. The situation in France has been affected pot only by the growth of Socialism, but also by the growth of syndicalism, which aims at complete industrial unionism (One Big Union) and which on several occasions has called general strikes for political purposes.

Germany was more backward in industrial development than the other great Powers of Europe, and until 1890 had only private facilities for the settlement of industrial disputes. In 1890 and again in 1901 laws were passed which gave Governinental assistance to industrial conciliation

and arbitration. The system was that of providing industrial courts for voluntary arbitration.

Compulsory Arbitration in New Zealand and Australia-As outlined above, arbitration of recent date in Europe has been chiefly voluntary, but in Australasia there are forms of compulsory arbitration. In 1894, and by amendments of later years, New Zealand provided for boards of conciliation, consisting of an equal number of representatives from the parties to industrial disputes, the former selecting an impartial chairman. The representatives were elected for periods of three years. When conciliation fails, the dispute passes to a court of arbitration, appointed by the Government, one member from a list prepared by employers, one from a list prepared by employees, and one of the judges of the Supreme Court, Strikes and lockouts are forbidden while the case was pending. The awards, which are enforced by the Government, often cover large sections of the industry involved, and often large stretches of territory. This arrangement was made possible by what practically amounted to Government encouragement of trades unions, since no worker was entitled to recognition by the Government in disputes unless he were a member of his union.

As a matter of fact, the law is only partially compulsory, strikes and lockouts being forbidden only when the dispute has been referred to conciliation or arbitration, or where there is not an industrial agreement. Moreover, the law does not apply to unregistered unions, which are without the scope of the law. Even in cases not falling under the above provision, notice must be given to the Minister of Labor, who must refer the matter to an industrial commission or commissioner. If no settlement is affected within fourteen days from the delivery of the notice to the Minister, the Labor Department must conduct a secret ballot, and then seven days must elapse before cessation of work. In practice, however, the law almost eliminated strikes, as from 1895 to 1915 there were but 22 active and 31 sympathetic strikes within the law and only 95 strikes of unregistered unions. The awards are enforced by the infiction of light fines upon violators, which have proved to be effective. Moreover, at any time during the progress of the strike, 5% of the workers concerned may compel a secret ballot on any question involved in the strike. The conciliation councils also proved most successful-from 1909 to 1915, they settled without the necessity of reference to the court of arbitration about 600 or 700 or so cases submitted to them. The Government enforces the private agreements made in disputes between employees and employers.

In Australia, there is compulsory arbitration in all the states except Victoria and Tasmania, which regulate industrial disputes by wage boards, but do not prohibit strikes, except on railways. The Govern ment of Australia also enforces compulsory arbitration in disputes extending beyond any one state, As in New Zealand, the emphasis is on conciliation, rather than on arbitration. The law in New South Wales is patterned after the New Zealand law, but has been less successful, particularly in mining disputes. The voluntary agreements in all the Australian states have the force of a legal award, and are registered by the Government. In Australia, the judge sits alone in the arbitration court, and since the


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awards must go into the details of Industry, in effect the Government actively intervenes in the management of private business, laying down conditions of employment which must be obeyed by Capital no less than by Labor. Sometimes


award covers the entire industry involved whether all of it has been affected by the dispute or not. It is reported that until recently this system almost abolished strikes ; but of late years it has seemed to be more and more ineffective. Most of the Australian states have declared strikes and lockouts illegal under practically all conditions.

Compulsory arbitration has not been 80 successful in Australia and New Zealand of recent years as previously.

In the United States-So far as is known the first strike in this country was in New York among the journeymen bakers in 1741. The journeymen shoemakers of Philadelphia struck in 1796, 1798, 1799 and 1805. In New York sailors organized a strike in 1802. From 1830 to 1840 occurred a number of strikes for the ten-hour day, and by that time strikes had become common phenomena.

The first instance of arbitration in the United States occurred early in the nineteenth century, among the copper miners of Connecticut. In 1865 the first trade agreement resulted in the iron industry; and was followed by another in 1867. In 1870, at Lynn, Mass., in the centre of the shoe manufacturing district. a board of industrial arbitration was established.

The board consisted of five representatives of the Knights of St. Crispin. the union powerful in that industry, and five representatives of the manufacturers. It represented chiefly an agreement concerning wages : but the agreement was abrogated in 1872, after which time the manufacturers were able to maintain the upper hand.

In 1877, the occurrence of the great rail. road strikes awoke the country for the first time to the serious problem presented by the antagonism between capital and labor and to the fact that the strength of labor organizations could longer be disre.. garded.

The first state law providing for industrial arbitration was passed in Maryland, the home of the great railroad strikes in the period around 1877, on April 1, 1878; but seems never to have been used. It provided for local arbitration only. New Jersey passed a more comprehensive law in 1880. By 1916, two-thirds of the states in the Union had passed laws providing for some form of industrial arbitration. Or the sixteen states which have no such laws, eight are in the South, where capital is still able to preserve much of a paternalistic attitude towards labor.

There are two chief forms of arbitration in the United States. One provides for a permanent state board of arbitration, always on hand to render its services. The other provides for voluntary arbitration by local boards when the need for it arises. Seventeen states have permanent boards, nine states have local 'boards, and nine states have both forms.

Owing to the opposition of organized labor to compulsory arbitration, in which respect it is often supported by employers, all this arbitration is voluntary-and there is no compulsion to accept the awards and

decisions of the various arbitrating agencies.

About 70% of strikes are ordered by unions. Half of all strikes seem

to be successful, 16% partly successful, and 34% unsuccessful. Strikes are much more successful when organized by unions than without union control and support. Thirtytwo per cent of strikes are for higher wages, 19% for recognition of the union and 11% against reduction in wages.

A federal law of 1898, generally called the Erdman law, provides for the mediation and arbitration, by the labor bureau of the Department of Commerce and Labor, in cases of disputes between interstate common carriers and their employees. There is no power but public opinion to compel resort to arbitration, but this has been found effective in many cases ; but when agreed to by both parties to a dispute the decision of the arbitration is final.

The Newlands Act (q. v.), passed in 1913, created the United States Board of Mediation and Conciliation. (See Mediation and Conciliation, Board of). It consists of a commissioper, assistant commissioner, and two other officials, all appointed by the President to offer arbitration in disputes between capital and labor. Some idea of its services may be gained from the fact that in three years (1913-1916) it applied mediation successfully in 45 of 56 controversies between railroad employ. ers and employees, and arbitration Successfully in the 11 other cases. The Board, however, may play the part merely of a voluntary mediator, organized labor resisting. bitterly all attempts at compulsory arbitration, under the plea that such procedure deprives employees of their right to strike and in other ways obtain their ends. In September, 1916, when the Railroad Brotherhoods threatened to strike in order to obtain an eight-hour day, mediation failed; and a strike was averted only by act of Congress, called the Adamson Law (see Railroads, Eight Hour Day).

After the entrance of the United States into the World War, the various bodies concerned with the production problems of the conflict, such as the Council of National Defence (q. v.), had sub-divisions functioning to meet the problem of labor. Before the United States had been in the war a year, however, the Department of Labor had taken central supervision of the labor problem. During the first year of the American participation in the War, the Department of Labor announced that it had handled almost nine hundred labor controversies, affecting directly some_1,300,000 workers. The efforts of the Depart. ment failed in less than eighty cases, whereas of the cases adjusted some 85 per cent were settled by the efforts of the Department alone, the remainder being settled by state and local bodies with the assistance of the Department. The magpitude of the task soon outgrew the organization of the Department of Labor, with the result that there was organized the War Labor Board (q. v.).

The Lever Bill (see Food Control Law) passed during the World War was utilized by the Government in 1919 to prevent a strike in the bituminous coal industry. The Attorney General, declaring that the unions fell within the provisions of the law borbidding conspiracy to hinder production, filed an injunction compelling the leaders to call off the strike. The Lever Law was also used to prosecute striking railway workers in the following year.



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Great interest has been aroused of recent years by the passage of a law in Kansas providing for compulsory arbitration of labor disputes within the state. By the provisions of the law, which was enacted in January, 1920, against the bitter opposition of organized labor and, to an extent, of employers, the Public Utilities Commission was reorganized and became known as the Industrial Court. It consisted of three judges appointed for three years,

with annual salaries of $5,000 each. In addition to its old power of supervising public utilities and common carriers, it was given jurisdiction orer the operation of industries affecting the public interest. It was given the power to suspend old standards of wages and prices and to tix new standards of working conditions, including both wages and prices. On order of the court, the state may even take over the industry concerned. It is the duty of the Industrial Court to investigate all industrial disputes, and to enforce its findings. Strikes and lockouts for the purpose of violating the law are punishable ; but on the other hand the right of collective bargaining is recognized, employers are forbidden to discharge employees for appearing before the Industrial Court, and a contract found by the Court to be unfair may be changed by the Court even during the period of its existence. The right to picket is denied.

With this exception, labor arbitration in the United States has been chiefly voluntary, and has resulted from private negotiations between labor unions and employers affected. There is a notable record of such private arbitration. Probably the most significant record of industrial peace by arbitration in

the United States has occurred in the garment industry, particularly through the Amalgamated Clothing Workers America. The ground was broken by an agreement for arbitration, known as the protocol, in New York City after a disastrous strike in 1910, which provided permanent methods for the arbitrament of disputes. Not only was the union recognized and the standards of wages and hours fixed, but also there were provisions for joint boards of sanitary control, a grievance committee and

permanent arbitration board. A similar agreement in the Hart, Schaffner and Marx shops in Chicago paved the way for the adoption of arbitration in other individual shops, so that by 1920 most of the clothing industry in the United States was operating under complicated but effective measures for the prevention of strikes by joint conciliation and arbitration. It is to be noted that the Amalgamated Clothing Workers is a union outside of the American Federation of Labor, is officially Socialistic and is composed to a very large extent of foreignborn.

The Second Industrial Congress convened by President Wilson in the winter of 19191920 to consider means of minimizing industrial unrest proposed a national industrial tribunal and twelve regional boards of inquiry and adjustment for the lessening of labor disputes in the United States. The plan would have compliance with the terms of the arbitration largely voluntary, thus making strikes more difficult, rather than forbidding them, counting on public opinion to make the arbitration binding in practice.

After the close of the World War, Governmental steps for labor arbitration became

more common throughout Europe. With widespread distress due to under-production, arbitration became more essential than ever to prevent strikes. Labor, both politically and industrially had achieved a more powerful place than ever before in the Governments of practically all European countries, and

thus Governmental arbitration made more acceptable to the workers.

In England for instance, the war-time Industrial Court for the whole country, with all the authority of a Government body, was made permanent after the War.

General Remark8.--There are certain factors reacting upon the labor arbitration situation in the United States which make that situation different from the situation in other countries. In the first place, the United States is the only great Western Power in which organized Labor has not formed a political labor party to advance its ends, instead of trusting only to its economic power. Thus in the United States Labor has no official connection with the Government, whereas Governments in Australia, for instance, have been practically Labor Governments. Therefore, Labor in the United States tends to be far more suspicious of and opposed to Governmental arbitration than Labor in Australia.

In the second place, the industrial pretensions of Labor are more fully recognized in Australia and New Zealand, for instance, than in the United States. As an example, most great industrial countries have conceded the principle of the closed shop in industry to a greater extent than has the United States. Similarly, Australia has protected the worker by laws against low wages, child labor, unemployment, old age, ill health, unsanitary and dangerous conditions of enployment, etc., questions which in the United States are among the prime causes of strikes. Thus the countries generally cited as those most prominent in enforcing compulsory arbitration of strikes are those which by legislation have removed most of the causes of strikes.

In the third place, Labor in other countries employs not only the economic weapon, but also the political weapon. In most of the countries on the Continent of Europe, Socialism is either in control, or has a position of great power; and England, where Socialism is weak, has a very powerful British Labor Party which is Socialistic in almost everything but name. In Australia and New Zealand, Labor can also achieve many of its desires by the political strength of its political party. Therefore, in the United States Labor is more prone to gain its ends by resorting to its industrial strength than in most of the other great industrial nations, although in Italy and France the strength of the syndicalism has tended to foment strikes.

Finally, the rights of private enterprise are more zealously guarded in the United States than in countries like Australia and New Zealand. We have seen that compulsory arbitration in those countries has been made possible only by giving the Government control over private business to an extent which American employers at the present time would not be likely to tolerate.

On the whole, therefore, it appears that the opposition of organized Labor in the United States to compulsory arbitration of industrial disputes and even to Governmentally-enforced voluntary arbitration will continne for some time, and that whatever


Labor arbitration will continue here will be, as previously, chiefly in the forms of private voluntary agreements between ('apital and Labor, industry by industry or plant by plant.

(See also Strikes ; Trades Unions ; Mediation and Conciliation ; Labor; Business ; Socialism.) Labor Arbitration:

Discussed, 8819.
Failure of, in railroad disputes, 8145,

Machinery for compulsory investiga-

tion of controversies between employers and employees recommend

ed, 6345, 6348, 7036, 7089. Steps for, during war with Germany,

8359. War Labor Board created, 8485. Labor, Bureau of, enlargement of, by

adding power of arbitration rec

ommended, 4979, 5111. Conciliation work of, commended,

7510. Work of, discussed, 6898. Labor, Commission of, establishment

of, with power of arbitration recom

mended, 4979, 5111. Labor, Commissioner of: Annual report of, transmitted, 5502,

5569, 5674, 5782, 5909. Reports of, onBuilding and loan associations,

5909. Compulsory insurance of working

men in Germany, etc., 5782. Gothenburg system of regulating

liquor traffic, 5785. Housing of working people, 6001. Industrial education, 5782.

Slums of cities, 5911. Labor ay.-The first Monday in September has been made a holiday in practically all states (see Holiday) in honor of Labor. It was first thus observed by Colorado in 1887. Meetings for the general discussion of labor questions are usually held. There are usually parades, picnics, and dances. In Europe May 1 is celebrated as a labor festival and there are demonstrations by workingmen. Labor Day, significance of, discussed,

8576, 8783. Labor, Department of.-In response to petitions from labor organizations and trade unions for a departme

of the govo ernment to look after their interests the Bureau of Labor was established in the Interior Department by act of Congress of June 27, 1884. After an existence of four years the bureau was raised to the dignity of a department June 13, 1988, and Carroll D. Wright was placed at its head as Commissioner. He was later succeeded by Charles P. Neill. When Congress eg. tablished the Department of Commerce and Lahor Feb. 14, 1903, the activities in behalf of labor were placed under the jurisdiction of the new secretary. (See Commerce, Department of.)

The Sixty-second Congress, on the last day of its third session, March 4. 1913, separated the Department of Commerce and Labor into the Department of Com. merce and the Department of Labor.

The Bureau of Labor Statistics, the Children's Bureau and the Bureaus of Immigration and Naturalization were placed under the new Secretary, with directions to investigate and report to Congress a plan for the co-ordination of the powers of the present bureaus, commissions and departments so far as they relate to labor and its conditions, in order to harmonize and unify them. The new Secretary was charged with the duty of fostering, promoting, and developing the welfare of the wage-earners of the United States, improving their working conditions, and advancing their opportunities for profitable employment. He has power under the law to act as mediator and to appoint commissioners of conciliation in labor disputes whenever in his judgment the interests of industrial peace may require it to be done.

William Bauchop Wilson, member of Congress from Pennsylvania, who had been chairman of the House Committee on La. bor, was made the first Secretary.

For more detailed information of the scope of the activities of the Labor Department, consult the Index references to the President's Messages


Encyclopedic articles under the following headings: Children's Bureau. Commissioner of Commissioner of


Commissioner of

Labor Statistics. Labor, Department of (see also Com

merce and Labor, Department of): Cost of living investigations of,

8786. Soldiers' and Sailors' re-employment,

plans of, for, discussed, 8715, 8813. War-time activities of, discussed,

8641. Labot, International Exposition of, at

Barcelona, Spain, discussed, 5177,

5399. Labor, Knights of. (See Knights of

Labor.) Labor Parties. (See the several par

ties.) Labor Reform Party. -This party organized in 1872, and in Convention at Columbus, Ohio, placed in nomination David Davis for President, and Joel Parker for Vice President. adopting a platform calling for just distribution of the fruits of labor. Labor, Secretary of, war housing pro

gram placed under, 8527. (See also Commerce and Labor.) Labor Statistics. (See Commissioner of

Labor Statistics.) Labor Statistics, Bureaus of.-Many states and the United States have bureaus of labor statistics. The first office of the kind was established in Massachusetts by an act of June 23, 1869. Others were established as follows: In Pennsylvania in 1872; Connecticut in 1873 (abolished in 1875 and reestablished in 1885); Ohio in


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