<SPAN name="LIII"></SPAN>
<h1 align="center" style="margin-top: 2em;font-variant: small-caps">Chapter LIII</h1>
<h2 align="center" style="margin-top: 2em;font-variant: small-caps">The Effacement of Philip Dru</h2>
<p>In the years since he had graduated from West Point
General Dru had learned to speak German, French and
Spanish fluently, and he was learning with Gloria
the language of the Slavs at odd moments during the
closing months of his administration. Gloria wondered
why he was so intent upon learning this language,
and why he wanted her also to know it, but she no
longer questioned him, for experience had taught her
that he would tell her when he was ready for her to
know.</p>
<p>His labors were materially lightened in these closing
months, and as the time for his retirement drew near,
he saw more and more of Gloria. Discarding the conventions,
they took long rides together, and more frequently
they took a few camp utensils, and cooked their mid-day
meal in the woods. How glad Gloria was to see the
pleasure these excursions gave him! No man of his
age, perhaps of any age, she thought, had ever been
under the strain of so heavy a responsibility, or had
acquitted himself so well. She, who knew him best,
had never seen him shirk his duty, nor try to lay
his own responsibilities upon another’s shoulders.
In the hours of peril to himself and to his cause he
had never faltered. When there was a miscarriage of
his orders or his plans, no word of blame came from
him if the effort was loyal and the unhappy agent had
given all of his energy and ability.</p>
<p>He had met every situation with the fortitude that
knows no fear, and with a wisdom that would cause
him to be remembered as long as history lasts.</p>
<p>And now his life’s work was done. How happy
she was! If he did not love her, she knew he loved
no one else, for never had she known him to be more
than politely pleasant to other women.</p>
<p>One golden autumn day, they motored far into the hills
to the west of Washington. They camped upon a mighty
cliff towering high above the Potomac. What pleasure
they had preparing their simple meal! It was hard
for Gloria to realize that this lighthearted boy was
the serious statesman and soldier of yesterday. When
they had finished they sat in the warm sunshine on
the cliff’s edge. The gleaming river followed
its devious course far below them, parting the wooded
hills in the distance. The evening of the year had
come, and forest and field had been touched by the
Master’s hand. For a long time they sat silent
under the spell that nature had thrown around them.</p>
<p>“I find it essential for the country’s
good to leave it for awhile, perhaps forever,”
said Philip Dru. “Already a large majority of
the newly elected House have asked me to become the
Executive. If I accepted, there would be those who
would believe that in a little while, I would again
assume autocratic control. I would be a constant menace
to my country if I remained within it.</p>
<p>“I have given to the people the best service
of which I was capable, and they know and appreciate
it. Now I can serve them again by freeing them from
the shadow of my presence and my name. I shall go to
some obscure portion of the world where I cannot be
found and importuned to return.</p>
<p>“There is at San Francisco a queenly sailing
craft, manned and provisioned for a long voyage. She
is waiting to carry me to the world’s end if
needs be.”</p>
<p>Then Philip took Gloria’s unresisting hand,
and said, “My beloved, will you come with me
in my exile? I have loved you since the day that you
came into my life, and you can never know how I have
longed for the hour to come when I would be able to
tell you so. Come with me, dear heart, into this unknown
land and make it glad for me. Come because I am drunken
with love of you and cannot go alone. Come so that
the days may be flooded with joy and at night the
stars may sing to me because you are there. Come,
sweet Gloria, come with me.”</p>
<p>Happy Gloria! Happy Philip! She did not answer him.
What need was there? How long they sat neither knew,
but the sun was far in the west and was sending its
crimson tide over an enchanted land when the lovers
came back to earth.</p>
<hr width="75%" size="1" />
<p>Far out upon the waters of San Francisco Bay lay the
graceful yet sturdy <i>Eaglet</i>. The wind had
freshened, the sails were filled, and she was going
swift as a gull through the Golden Gate into a shimmering
sea.</p>
<p>A multitude of friends, and those that wished them
well, had gathered on the water front and upon the
surrounding hills to bid farewell to Philip Dru and
his bride Gloria.</p>
<p>They watched in silent sadness as long as they could
see the ship’s silhouette against the western
sky, and until it faded into the splendid waste of
the Pacific.</p>
<p>Where were they bound? Would they return? These were
the questions asked by all, but to which none could
give answer.</p>
<h2 align="center" style="margin-top: 2em;font-variant: small-caps">The End</h2>
<hr width="75%" size="1" />
<SPAN name="copartnership"></SPAN>
<h1 align="center" style="margin-top: 2em;font-variant: small-caps">What Co-Partnership Can Do</h1>
<h2 align="center" style="margin-top: 2em;font-variant: small-caps">By Earl Grey</h2>
<p><i>(Governor-General of Canada,</i> 1904-11.)</p>
<p><i>One of the ablest champions of Co-partnership
as a solution of the industrial problem is Earl Grey.</i></p>
<p><i>Below are some remarkable passages from his presidential
address to the Labor Co-partnership Association.</i></p>
<p>The problem before us is how to organize our industry
on lines the fairness of which will be generally admitted.
Fairplay is the keynote of our British character,
and I am satisfied, if employers and employed are
properly approached, that wherever a feeling of mutual
sympathetic regard exists between them they will both
be prepared to consider fairly and to meet fully each
other’s requirements. This is the belief on
which we build our hopes of the future greatness of
this country. Remove this belief and the outlook is
one of blackest gloom.</p>
<p>Now what is the cause of the wide feeling of labor
unrest? At the same time, while the average standard
of living, as a result of better education, has been
considerably raised and the retail prices of food
have risen 9.3 per cent. since 1900, wages in that
period have only risen 3 per cent. Consequently the
manual workers find themselves in straitened, pinched,
and most distressing circumstances. Their difficulties
have naturally given birth to a general belief, or
at any rate added strength to it, that they are not
receiving their fair share of the wealth their labor
has helped so largely to create. Now, whether this
belief is justified or not, there can be no doubt of
its existence.</p>
<h2 align="center" style="margin-top: 2em;font-variant: small-caps">Labor and Capital in Opposing Camps.</h2>
<p>The great fact with which we are confronted in the
industries of to-day is that labor and capital are
organized not in one but in opposing camps, with the
object not so much of promoting the common well-being
of all connected with industry as of securing whatever
advantage can be obtained in the prosecution of their
common industry for themselves. The members of each
camp consequently regard each other with distrust and
suspicion. The capitalist is inclined to give the minimum
that is necessary to secure the labor which he requires,
and the worker in return considers that all that should
be required from him is the minimum of labor which
will save him from dismissal.</p>
<p>Then not only have we to consider the limiting effect
on the efficiency of industry caused by the fact that
capital and labor are ranged not in one but in opposing
camps, but we have also to consider the effect on
the attitude of the men towards the management caused
by the growing tendency of the small business to be
swallowed up by the large combine. In such cases the
old feeling of mutual affection, confidence, and esteem,
which in the past bound together employer and employed,
has been destroyed, and it must be obvious that unless
we can adopt methods which will restore in a new,
and perhaps in a more satisfactory manner, the old
spirit the efficiency of industry and the prosperity
of the nation will both suffer.</p>
<p>If you alter one part of any bit of machinery you
must readjust all the other parts in order to secure
smooth working, and if by substituting big businesses
for small businesses you destroy the old intimate
connection which formerly existed between masters and
men, it would appear to be necessary, if you wish
to maintain the old friendly relations between employer
and employed, that you should establish your business
on lines which will automatically create a feeling
of loyalty on the part of all concerned to the industry
with which they are connected.</p>
<p>How is that to be done? By co-partnership.</p>
<p>Now, what is the ideal of co-partnership?</p>
<p>Ideal co-partnership is a system under which worker
and consumer shall share with capitalists in the profits
of industry.</p>
<h2 align="center" style="margin-top: 2em;font-variant: small-caps">The Surplus Profits Go to Capital.</h2>
<p>Under our present system the whole of the surplus
profits go to capital, and it is the object of capital
to give the worker the least wage for which he will
consent to work, and to charge the consumer the highest
price which he can be persuaded to give; conversely
it is the object of labor to give as little as possible
for the wage received.</p>
<p>Now, that is a system which cannot possibly satisfy
the requirements of a civilized and well-organized
society. What we want is a system which will safeguard
the consumer, and also provide the worker with a natural,
self-compelling inducement to help the industry with
which he is connected. That system is provided by
co-partnership. Co-partnership insists that the workers
have a right to participate in the net profits that
may remain after capital has received its fixed reward.
In a co-partnership business, just as the reward
of labor is fixed by the trade union rate of wages,
so the reward of capital is fixed by the amount which
it is necessary for the industry to give. That amount
will vary corresponding with the security of the risk
attending the industry in question. If the industry
is a safe one, it will be able to obtain the capital
required by giving a small interest; if the industry
is a risky one, it will be necessary to offer capital
better terms.</p>
<p>Then, if there should be surplus profits available
for division after labor has received its fixed reward--viz.,
trade union rate of wages--and after capital has
received its fixed reward--viz., the rate of interest
agreed upon as the fair remuneration of capital; I
say if, after these two initial charges have been
met, there should still be left surplus profits to
distribute, that instead of their going exclusively
to capital they should be distributed between labor
and capital on some principle of equity.</p>
<p>The way in which the principle of co-partnership can
be supplied to industrial enterprise admits of infinite
variety. In some cases the surplus profits are divided
between wages, interest, and custom, in some cases
between wages and custom without any share going to
interest, and on some cases between wages and interest.</p>
<p>As an example of a co-partnership industry which divides
all surplus profits that may remain after 5 per cent.
has been paid on capital between custom and labor,
one pound of purchase counting for as much in the
division as one pound of wage, let me refer to the
well-known Hebden Bridge Fustian Works. I commend
to all interested in co-partnership questions a close
study of this industry. Started by working men in
1870, it has built up on lines of permanent success
a flourishing business, and is making sufficient profits
to enable it to divide 9d. in the pound on trade union
rate of wages and the same amount on purchases. The
steady progress of this manufacturing industry over
a period of forty-two years; the recognition by trade
unionist management of the right of capital to receive
an annual dividend of 5 per cent., and the resolute
way in which they have written down the capital of
£44,300 invested in land, buildings and machinery
to £14,800, notwithstanding that a less conservative
policy would have increased the sum available for
bonus to wages, all go to show how practicable are
co-partnership principles when they are applied by
all concerned to productive enterprise in the right
spirit.</p>
<h2 align="center" style="margin-top: 2em;font-variant: small-caps">A Brilliant Example.</h2>
<p>I should also like to refer to Mr. Thompson’s
woolen mills of Huddersfield, established in 1886,
as another brilliant example of successful co-partnership.
It is frequently stated that in an industry where
men are paid by piecework or share in the profits there
is a tendency for the men to over-exert themselves.
Well, in the Thompson Huddersfield mills there is
no piecework, no overtime, only the weekly wage; no
driving is allowed. The hours of labor are limited
to forty-eight per week. The workers are given a
whole week’s holiday in August, and in addition
they enjoy the benefits of a non-contributory sick
and accident fund, and of a 24s. per week pension
fund. In these mills cloth is made from wool and wool
only, not an ounce of shoddy. Here again the surplus
profits, after the fixed reward of capital--viz., interest
at the rate of 5 per cent. per annum--has been paid,
are divided between labor and custom; and here again
the capital sunk in the mills has been written down
from £8,655 to £1,680. Unprofitable machinery is scrap-heaped.
The mill has only the best, most up-to-date machinery,
and all connected with the works, shareholders and
workers, live together like a happy family.</p>
<p>As an illustration of a co-partnership industry which
divides its surplus profits between wages, interest,
and custom, I might point to the gas companies which
are being administered on the Livesey principle, which
is now so well known. Since co-partnership principles
were applied to the South Metropolitan Gas Works in
1899 over £500,000 has been paid, as their share of
the profits, to the credit of the workers, who also
own over £400,000 of the company’s stock. The
fact that over £50,000,000 of capital is invested
in gas companies administered on co-partnership principles,
which divide surplus profits between consumers, shareholders,
and wage-earners, encourages us to hope that we may
look forward with confidence to the adoption of co-partnership
principles by other industries.</p>
<p>As an illustration of a co-partnership industry which
divides its surplus profits between labor and capital
alone, let me refer to the Walsall Padlock Society,
one of the 114 workmen productive societies which
may be regarded as so many different schools of co-partnership
under exclusive trade unionist management. In this
society the rate of interest on share capital has
been fixed at 7-1/2 per cent., and should there be
any surplus profit after trade union rate of wages
and the fixed reward of capital, 7-1/2 per cent.,
have been paid, it is divided between labor and capital
in proportion to the value of their respective services,
and the measure of the value is the price the Walsall
Padlock Society pays for the use of capital and labor
respectively. £1 of interest counts for as much in
the division of the profits as £1 of wage, and vice
versa. This principle of division, invented by the
Frenchman Godin, of Guise, has always seemed to me
to be absolutely fair and to be capable of being easily
applied to many industries.</p>
<p>Now in these cases I have quoted, and I could refer
to many others, a unity of interest is established
between labor and capital, with the result that there
is a general atmosphere of peace and of mutual brotherhood
and goodwill.</p>
<p>Capital receives the advantage of greater security.
Labor is secured the highest rate of wage the industry
can afford.</p>
<h2 align="center" style="margin-top: 2em;font-variant: small-caps">Willing and Unwilling Service.</h2>
<p>Now, what does the substitution of such conditions
for the conditions generally prevailing to-day in
England mean for our country? Who shall estimate the
difference between the value of willing and unwilling
service? The Board of Trade will tell you that a man
paid by piecework is generally from 30 to 50 per cent.
more effective than a man paid by time.</p>
<p>If the co-partnership principle, which is better than
piecework, because it tends to produce identity of
interest between capital and labor were to increase
the efficiency of time-paid workers from 30 to 50 per
cent., just think of the result; and yet the fact
that co-partnership might add from 30 to 50 per cent.
to the efficiency of the worker is urged by many trade
unionists as a reason against co-partnership. They
seem to fear that the result of making men co-partners
will be to cause them to give 25 per cent. better
labor and to receive only 50 per cent. more wage. No
system can be right which is based on the assumption
that self-interest calls for a man to give his worst
instead of his best. When I compare Canada with England
I am struck by the fact, that, whereas Canada’s
greatest undeveloped asset is her natural resources,
England’s greatest undeveloped asset is man
himself. How to get each man to do his best is the
problem before England to-day. It is because co-partnership
harnesses to industry not only the muscle but the heart
and the intelligence of the worker that we are justified
in regarding it with reverence and enthusiasm as the
principle of the future.</p>
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