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occupies a post of semi-public functions, of all labor organizations have not yet
, duties, and responsibilities. An organ- put this view into practice; even some ization so intimately touching every phase of the integral units of the Federation of the economic and political life of the give the impression that their chief funcnation must consider the effect of its tion is to get what they can out of own special policies upon the public industry, regardless of the effect on welfare; both Mr. Gompers and Mr. business, on the public, or, in the long Morrison recognize this obligation in run, on themselves. That is an archaic considering their problems. The officers view.
C. E. Eveleth, Industrial Philosopher
IN THE effort to eliminate waste of the General Electric Company, with its
human energy, it is recognized that 20,000 men and manifold manufacturing more must be accomplished in the activities. same time, or the same accomplished He was a captain of army engineers, as
in less time,” said the Hoover report it were, suddenly sent to command a on wastes in industry.
corps in action, without ever having seen The great problem is how to eliminate an army corps. And his corps was unthis waste. Labor has not always done easy. Wages were advancing in some its utmost to increase production, not other industries. The United States only because incentive was frequently Steel Corporation had just increased lacking, but also because of a false and pay. What would the General Electric sometimes unnecessary hostility or want do at its big works? of confidence and sympathy between
MR. EVELETH'S SOLUTION management and labor, which led directly to a limitation of output and to holding HE solution finally evolved by Mr. both efficient and inefficient men to the Eveleth is important, not only to same level of production.
his company but also to general industry, To remove the hostility or suspicion, because he has proved that under sympaand supply the incentive was the problem thetic management every man, even in for those who wished to realize the ideal large groups of labor, can be treated as an of the report. Henry Ford in his shop individual, and that as an individual the and on his railroad has given industry one workman is willing to give an increased example of increased efficiency, which output for increased pay. His aim was results in higher pay for employees and a to increase earnings and to bring incheaper product for the public, and other dividualism back into large labor groups great industries are following suit in their by encouraging every man to do as much own methods. The land is full of labor work as his desires or energies permitted. philosophers, both practical and aca- There is nothing especially new in the demic, who are philosophizing without piece work system, to be sure, but there end on an era of better industrial re- is something new in the creation and lations.
successful operation of a system which It is remarkable that one of the most makes every one of 20,000 men an indisuccessful of these experiments in carry- vidual whose pay is rated upon indiing out a new labor philosophy should be vidual efficiency, ability, and versatility. conducted by a research engineer, C. E. Under the new system three classes were Eveleth, who had no theories or philoso- created, A, B, and C, and increases of pay, phy on the handling of labor or labor some as high as 30 per cent. were granted problems when he was suddenly and after consideration of class ratings. unexpectedly informed that he was to be Others of lower efficiency in Class C rethe manager of the Schenectady works of ceived no increases, and are first to be
An Important Example to Industry
considered for temporary retirement dur- sidered as it comes up. The door of this ing depressions.
office is always open to any man who The result of this new system was an wants to talk about work or pay. He is immediate and marked increase in the an individual and he deals with me as an operating efficiency of the entire works individual, if he wishes." and in the efficiency of the individual Mr. Eveleth had the sympathetic supworker. Earnings of men leaped as they port of the officers of his company, of received their increases, and piled upon course, but neither they nor he could that the results of their increased ef have initiated any system without the ficiency. They had an incentive to in confidence of the men, which he won crease their efficiency. The Schenectady immediately, not only by his rugged works, incidentally, is an open shop. appearance and manner, but also by his
Dollars and cents tell in much better rugged yet frank method of dealing with fashion the story of increased efficiency, problems. dollars and cents not only for the worker Immediately he showed the men that but for the employer as well. If the he trusted them and relied upon them, cost of direct labor is 80 cts. an hour, and they trusted him. Mr. Eveleth materials $1, and overhead and other wanted to organize a Works Council, or a expenses $1.20, the manufacturing cost sort of forum where chosen representaof one man for one hour is $3. With a tives of the men might discuss problems 50 per cent. increase in the efficiency and, with the manager of the works. When consequently, the pay of labor, the manu the first council met, Mr. Eveleth sugfacturing cost is only $2.60 an hour. gested that a committee of five decide in Overhead remains the same; labor re advance what problems should be disceives $1.20 an hour; the cost of material cussed during the limited time. is increased 50 per cent., but the output
“Who will choose this committee?" of goods also is increased 50 per cent. was the question of the men, who apThe worker has benefited by increased parently thought this was the catch in the pay; the manufacturer is benefited by proposal. lower costs and greater production, a "You name the committee, all the benefit which he is able in part to pass on members," was the reply. to the public.
That answer won the confidence of the
men, HOW THE PHILOSOPHY WORKS
Important as Mr. Eveleth's achieveОТ
long after the new system went ment may be to himself and the General
into effect, a group of workmen Electric Company, it is far more imporasked Mr. Eveleth for an increase of 7; tant as an example to industry. He has per cent. in pay. He replied that he shown that Henry Ford's success is no would be glad to give the increase, pro freak of luck, and that the ideal of the vided the efficiency of the group was Engineers' survey can be attained. increased 7 per cent.
“The wastes revealed,” says the sur“That increase in efficiency with your vey-sometimes called the Hoover reincrease in pay will actually increase your port, "are the result of methods, tactics, earnings 15 per cent.,” he pointed out. practices and relationships of long stand
The men thought an increase in ef- ing in industry.” ficiency was impossible, but took the in Mr. Eveleth has found the wastes; crease in pay and agreed to experiment. he can illustrate the survey for industry The result was a marked increase in ef- because he himself had the qualities and ficiency, and some of the workers actually character to put into effect the ideals increased their production and, conse- expressed academically and generally in quently, their pay, by 50 per cent. the report. He has proved that the in
“I have no set rules to follow,” says dividual can and will become more Mr. Eveleth. “Every problem is con efficient if he has the incentive.
Responsible Leadership that Must Follow the Federal Budget-A Revolutionary Change for Increased Efficiency Within the Constitution
BY CHESTER H. ROWELL
WEARING at Congress has be- of coördination of estimates, revenues, come a favorite American sport. and expenditures, so the chief source of Considering what to do about it the legislative evil is lack of public, is naturally not so common; but responsible contact between the executive
that has not been neglected, and legislative branches of the Governeither, and there is a fair consensus of ment. The remedy proposed is nothing informed opinion as to what is needed. original. It is already in successful operUnfortunately, knowing what to do is ation in all private business and in pracnot doing it. If it
tically all other were, we should
governments, and not, for instance, Mr. Chester H. Rowell, editor, re is approved for have had the thirty former, and practical politician, after America by nearly years' lag between a long and successful career in Cali all of those whom the demonstration fornia and national politics in which scholarly attainthat we needed the he has studied both the theory and ments or practical budget and the first the practice of government, has spent experience have step towards get the past six months specifically study qualified to be reting it. Meetings of ing the machinery of government in garded as our most experts in Washing Washington and discussing with the eminent experts. It ton, even in 1890, leaders, both executive and legislative, is, briefly, that we pointed out as well of all parties the changes towards re bridge the aloofness as it could be done sponsible leadership which conditions of executive and to-day the absurd at home and abroad demand of our legislative responity and extrava government.--THE EDITORS.
sibility by bringing gance of our hap
Cabinet members hazard system of
and legislators face raising and spending money by a dozen to face, on the floor of Congress, for unrelated bills from as many separate the transaction of their joint business. committees, without unified estimates, The magnitude of the benefits, both to and outlined the necessary steps towards legislation and to administration, as well coördination, such as private business and as to the standing of Congress and the all other governments had already taken. personal opportunities for service and Thirty years later, Congress authorized reputation of Congressmen, to be exthe first of these steps!
pected from so simple a step, will appear The end of the similar lag in the general in the course of the discussion. problem of Congress must be nearly To begin with, this is no proposal to overdue, and an attempt to arouse some tamper with our constitutional form active interest in its solution may there- of government." Yet it would be nothing fore not be untimely. The purpose of very startling if it were. That has been these articles is to be a part of an effort happening throughout our history. The to that end. The case is just as clear "constitutional form of government" of and nearly as belated as the budget was. 1924 is not that of 1790, nor of 1830, 1860, As the source of the fiscal evil was lack 1880, or even of 1900, and it will certainly
Congressmen Doing Their Best
not be the same in 1930 or 1940 unless the budget. And if, incidentally, it we now, for the first time, somehow bettered the situation of Congress, that freeze into sudden immobility what has is confessedly the one place where imhitherto been a living, growing organism. provement would be most welcome.
When we do our swearing, we swear IS THE CONSTITUTION RIGID OR FLEXIBLE?
one who knows Congress intimately will tution is altered only at intervals, certify that the chief trouble is not by formal amendment, but as an operative Congressmen, it is Congress. Congressinstitution it is changing all the time. men are not so bad. There are fine men Surely the finished fabric of a mighty among them, and it would be easy to nation, after a generation of experience get more of these, and abler, if it were and of John Marshall's decisions, was made worth their while. The ordinary something far beyond the tentative in- member is about like your own Congressstrument of 1789. The development of man, a fairly representative citizen who political parties added a whole new un works hard and thanklessly at the task written article, transferring most of the you set him—which is chiefly to run your functions of the Electoral College to errands. Those of us who can remember extra-legal bodies, created by custom. the Congress of an older and greater day, The establishment of the spoils system when it really was something, can testify under Andrew Jackson and its partial that most of the members were no better disestablishment by the Civil Service law then. The difference was in organizaconstituted practically an administrative tion and leadership. Considering the revolution and counter-revolution. The misfit tools and preposterous organization budget is now the beginning of a legisla-, with which they have to work, the wontive overturn at least as radical. The der is that it is not worse. They are enCivil War transformed the whole relation titled rather to commiseration than to of state and nation, though its formal the sort of thing they have been getting. amendments affected only the rights of Above all, they are entitled to a chance, the Negroes. Roosevelt shifted, not for by serving us visibly better, also to imthe first time, the center of gravity of prove their own situation. Let us see if, government. By turns, the President, by examining how they got into their the Senate, and the House of Representa- present depths, we cannot find a way out. tives have been the center of power.
REPRESENTATIVE LONGWORTH'S ANSWER No one will pretend that the House of Representatives is now that center, nor
WAS trying to put the House of Repmaintain it very strenuously even of the
resentatives back on the legislative Senate. These articles will describe the map,” said Nicholas Longworth, Redecline of Congress, which no one now
publican floor leader, in a speech near denies. They will suggest that the situa
the close of the last session defending his tion be improved by the method which course in leading House Republicans George Washington tried. This ought, contrary to declared party policy. The therefore, to be not shockingly ultra- applause of his colleagues testified to modern.
their realization that their House had We have already seen President Wilson not been “on the legislative map.” Public revive the earlier custom of appearing opinion would not have given even the personally in Congress to deliver his Senate a much larger place on it. messages. If we were to extend the same And yet, nearly forty years earlier, precedent to members of the Cabinet, Woodrow Wilson, in his first (and best) the sky would not fall nor the Constitu-- book, "Congressional Government,” had tion fail. It would be no greater change attributed to Congress “the predominant of form than the delivery of the Presi and controlling force" in government: dent's messages, nor of substance than It is said that there is no single or central
force in our Federal scheine; and so there is not Cannon, J. Randolph Tucker, Roger Q. Mills, in the Federal scheme, but only a balance of Richard P. Bland; Nelson Dingley, John H. powers and a nice adjustment of interactive Reagan, James Wilson, Perry Belmont, checks. How is it, however, in the practical Robert R. Hitt; Samuel S. Cox, Charles conduct of the Federal Government? In that, F. Crisp, Sereno E. Payne, David B. Henderunquestionably, the predominant and controlling force, the center and source of all motive and of all regulatise power, is Congress.
A few years earlier would have included
James G. Blaine and James A. Garfield, Speaking of “the declining prestige and a very little later would have added of the Presidential office" he said:
William J. Bryan, Robert M. La Follette That high office ha fallen from its first and Henry Cabot Lodge, whose reputaestate of dignity because its power has waned; tions, begun then, have been among the and its power has wanec because the power few permanencies of American public of Congress has become predominant.
life for a generation. Or, if we wish to Further:
consider the Senate, such names as George
F. Edmunds, Nelson W. Aldrich, William I am inclined to thisk, therefore, that the enlarged powers of Congress are the fruits
B. Allison, Shelby M. Cullom, Benjamin rather of an immensely increased efficiency Harrison, George F. Hoar, John J. Ingalls, of organization, and of the redoubled activity Justin S. Morrill, John Sherman, Thomas consequent upon the facility of action secured F. Bayard, Arthur P. Gorman, Wade by such organization.
Hampton, John T. Morgan, Dan W. These words, written within the easy Voorhees, and many others, at once come memory of men not yet old, sound like
to mind. echoes from another age or the descrip
Following are the twenty-five memtion of some strange and distant land. bers who occupy the corresponding Evidently, in the interval between the positions in the present House of Repbeginning of Wilson's academic career resentatives: and the zenith of Longworth's Congres Frederick H. Gillett, Nicholas Longworth, sional one, something has happened to William R. Green,' Martin B. Madden, Congress.
James A. Frear, Joseph W. Byrns, George S. As we shall see, many things have Graham, Ogden L. Mills, John N. Garner, happened. One of them is best illus- James W. Collier, Henry T. Rainey, Cordell trated by a comparison of two lists of Hull, Daniel R. Anthony, Jr., William S. Vare,
Robert Y. Thomas, Jr., Willis C. Hawley, Alnames, one from the membership of the House of Representatives sitting in 1884,
bert Johnson, Samuel E. Winslow, Gilbert
N. Haugen, Stephen G. Porter, Theodore E. while the young Dr. Wilson was writing his
Burton, Julius Kahn, Sydney Anderson, book a few miles away in Baltimore, Adolph J. Sabath, Charles R. Crisp. and the other from the body to which Longworth addressed his apologetic vin
Read these two lists! It will be surdication in 1924.
prising if you
do not find more names on
the first than on the second that mean ARE COMPARISONS ODIOUS?
something to you. In other words, there FOLLOWING are the twenty-five were more men in the earlier Congress
leading members of the House of whose memory has lasted forty years Representatives of 1884, as determined than there are in the present one whose by committee assignments and public fame has reached the general reader. recognition:
And there were certainly three times the
first list better known to their contemJohn G. Carlisle, Samuel J. Randall, Joseph C. S. Blackburn, J. Warren Keifer, poraries than the best-known half of the Thomas B. Reed, William R. Morrison,
second list is known now. Abram S. Hewitt, William D. Kelley, John
Spectacular as this decrease of reputaA. Kasson, William McKinley, Jr., Frank tion appears, it will not do to assume an Hiscock, William S. Holman, Joseph G. equal decline in the quality of member