TESTIMONY OF CHARLES H. DALTON WITH THE ARGUMENT OF R. D. SMITH BEFORE THE COMMITTEE- ON LABOR, OF THE MASSACHUSETTS LEGISLATURE, Remonstrating Against More Frequent Payments of Wages. 18 85 . [Reported by Geo. C. Burpee.] ABSTRACTS OF TESTIMONY OF CHARLES H. DALTON WITH THE ARGUMENT OF R. D. SMITH, BEFORE THE COMMITTEE ON LABOR OF THE MASSACHUSETTS LEGISLATURE, Against More Frequent Payment of Wages. 331 .Tj TESTIMONY OF CHARLES H. DALTON, Mr. Chairman: The question of the expediency of legislating upon the period of payment of wages, is no novelty. It has been before successive legislatures for several years. I have listened to the evidence on both sides, and so far have heard nothing new iu favor of a restrictive law. I understand this examination is for the purpose of ascertaining whether legislation is desirable to compel more frequent payments than is customary at the present time ; not whether more frequent paj’ments are desirable. I had occasion, last 3’ear, in referring to this matter, to mention the depressed condition of manufacturing throughout the country, and measureably in Mas¬ sachusetts, as perhaps one reason why caution should be exercised in any further effort at restrictive legislation. If the suggestion had any weight then, it has much more force this year. Two 3'ears ago the manufacturers of woolen, cotton and all varieties of textile fab¬ rics, and man3’ other manufacturers, found that the3 T had been selling their products for twelve months on a falling market. That is, the margin for profits was growing less and less. During the past year this process has been going on in an increasing ratio. The val¬ uation of corporate manufacturing property alone has decreased in Massachusetts some four and a half million, as shown by the records of the state, and the stocks of goods have been accumulating. Hap¬ pily that it comes last, if it must come at all, the wages of the oper¬ ative have felt this pressure and have been reduced. Worse than all, there is a good deal of machinery today idle in Massachusetts. In the cit3 r of Lowell there are several thousand looms now idle, with the prospect of an increasing number in the near future. And I can¬ not but think that any legislation that is likel3 7 to restrict the natural course of manufacturing in Massachusetts—I do not speak now of the United States, for we are confining this investigation to our own state—should be approached with great caution. The immedi¬ ate cause of the depression referred to is not difficult to discover. The goods that are made in Massachusetts are chieffy consumed in the Mississippi valle3*. The3* are used b3 r the farmers, who till the soil. The farmers are our great customers—a class of persons with¬ out whom all our industries here in Massachusetts would never have existed, and without whose successful labor we should be unable to continue manufacturing. The farmers, as we all know, are paid, by a law of nature, once a year. We pa3 T , as is the custom in Mas- 4 sachusetts, not universal but in a majority of cases twelve times a year. It is now proposed that the operative of Massachusetts, in¬ stead of being paid twelve times as often as their customers in the Mississippi valley shall be paid either twenty-six times as often or fifty-two times as often. We are aware that the Western farmer is unable to pay the prices he formerly did for the products of our in¬ dustry. The last current prices for the standard cotton cloths of Massachusetts are as follows: Standard sheeting, 1883, eight cents; 1884, seven and three-quarters cents; 1885, six and three- quarters cents; cotton being higher in 1885 than in 1884 or 1883. And print cloths, which are reconized as the barometer of the cotton cloth trade, are quoted as follows; In 1883, three and eleven-six¬ teenths cents ; in 1884, three and fifty-four one hundredths cents ; in 1885, three and eleven one-hundredths cents. These figures indicate the price that the Western farmer is able to pay us for the products of our industry. Now have the industrial classes of Massachusetts suffered during the past year as compared with previous years, relatively or posi- tively ? I heard it said here at one of the hearings that the evidence of the savings banks of Massachusetts was not such as was worth considering. I do not give the exact language, but it was in words to that effect. Our state takes great pains to collect in an intel¬ ligible form the results of the operations of the savings banks, and they are worthy to be studied by students of politics, not only here but in other states. I find that there was an increase in the past 3 T ear in deposits of over ten millions of dollars, which is about the average of the last three or four years ; that the number of open accounts is 826,000, or over forty per cent. # of the whole popula¬ tion, or about 70 or 75 per cent, of the adult working population of Massachusetts, are represented in the savings banks accounts. There was an increase in the number of persons who opened ac¬ counts, over and above those who closed their accounts, of 19,998. The average deposits in 1884 were $70.06 ; in 1883, $61.75 ; show¬ ing an increase of $8.31. As one evidence of the use of this sav¬ ings bank fund of two hundred and sixty millions of dollars, I will say that nearly 7 twenty-three per cent, was loaned upon such securi- tres as those manufacturing corporations offer upon what is called personal security’, an increase of over a million dollars last year from what it was the previous year. As regards the local character of these deposits. The city of Lynn has been mentioned here as a place of extreme prosperity 7 , which I believe is true, and where set¬ tlements are made weekly 7 . I find that the average amount of each deposit in all the savings banks of the State is $318.00. The average in Boston is $281 ; the average in Lynn, where weekly pay¬ ments are the rule, is $232 ; the average in Lowell, where monthly 7 payments are the rule is $332; being over four per cent, above 5 the average of the State, and over forty per cent, above the average of the city of Lynn. The amount per capita In the State is $131 ; the amount per capita at Lynn, with a population of 38,000 —which is the last census—is $108 ; the amount per capita at Lowell, taking the population at 59,000— according to the same census—is $168. I don’t consider this last statement as positive evidence of the relative condition of the employes in the two places, because Lowell is the older city. Let us compare the deposits of the savings banks iu Massachusetts with those of New Hamp¬ shire, where the operatives are earning more money per day than they are in Massachusetts, from the fact that they are not restricted by the ten hour law. The average of deposits in the State of New Hampshire is $358, or over twelve per cent, above the average in the State of Massachusetts. Q. (By Mr. R. D. Smith.) Is that all the savings banks in the State ? A. That is all the savings banks in the State. These facts are taken from reports published by the savings banks commissioners of New Hampshire and Massachusetts. Q. How much is the average deposit in New Hampshire? A. The average account in New Hampshire is $358, and in Massachusetts it is $318. Q. Mr. Russell.) Is that confined to the operatives in the two States? A. It is not confined to operatives. The law does not confine benefits of savings banks to any class in the community. Mr. Dalton. The increase in New Hampshire in 1884 over 1883 was seven and four-tenths per cent. In Massachusetts the in¬ crease was four per cent. The per centage of increase in the deposits was nearty double in New Hampshire to what it was in Massachusetts. Now the advocates of such restrictive laws as are before this committee, refer to England as having adopted this class of legislation, and we are told that it would be well for us to imitate her. Let us see how British savings compare with our own. I find that, by the latest official report that I can get, the “Official Abstract,” so called, of the government, in 1882 the total deposits in all the savings banks in the United Kingdom, including the post office savings banks, which can be reached in every town and village, and which receive the smallest coins of the realm on deposit — the total amount of deposits were 83,750,402 pounds sterling, equal to $418,752,010. We have in Massachusetts $270,000,000. The amount per capita in the United Kingdom was $12. Mr. R. D. Smith. We have got one-eleventh of their people and one-half their deposits. Mr. Dalton. The increase between 1881 and 1882 was $11,- 346,985 ; and ours was over $10,000,000 in Massachusetts alone. 6 Nine hours is a day’s work in England. I noticed that one gentle¬ man at a previous hearing gave as a reason for the enforcement of weekly payments, that it would make the laborer more independent. There can be no greater misuse of language than to say that a man would be more independent if obliged to receive his pay once a week, whether he wished to or not. I do not understand how the Legislature of Massachusetts can make its citizens more independent than they are to-day by any compulsory legislation. It can restrict and limit independence by legislation ; but the constitution secures all the independence there is for the people. The suggestion that has been made here that the manufacturing corporations of Massa¬ chusetts have had the benefit of a great deal of legislation, and that the employes have had none, is reversing the truth. The value of the charters of the manufacturing corporations of Massachusetts is well known to everybody. They can be had by anybody for the asking. The principal rights that charters give are to sue and be sued. I do not know that beyond the right to aggregate capital, there are any other privileges belonging to manufacturing corpora¬ tions. Railroads do have special privileges, because they can take other peple’s property without making a bargain with the owner. But it is not so with manufacturing corporations. I find by the tax commissioner’s last report that the number of corporations in the State is 1,609. The valuation of this stock in 1884 was $309,400,- 000. In 1883 the valuation was $313,900,000 ; showing a reduction of $4,500,000 during the last year in the valuation for taxable pur¬ poses. It was shown here last year, and it is well to repeat it, that the industries of Massachusetts are chiefly controlled by private persons and not by corporations. There is a notion, that manu¬ facturing is carried on chiefly by corporations; whereas the reverse is true. By the latest state census, which is the last source of in¬ formation I am able to refer you to, it appears that the corporations employ 101,000 persons and that private establishments em¬ ploy 160,000 persons. The corporation wages are reported as being $38,000,000, and the private establishment wages are reported as being $79,000,000. I am giving you State authority. Q. (By Mr. Russell.) Can you give ns in connection with it the average wage paid by’ corporations and by private individuals. A. I cannot. Mr. R. D. Smith. You can tell how’ many are employed, and then y ou can divide the amount. Mr. Russell. I asked that, because the same report gives the answer to my question. Mr. R. D. Smith. It would be $38,000,000 divided by’ 101,000 and $79,000,000 divided by 160,000. It makes the corporation wages rather higher, I should think, from a glance. Mb. Dalton. Now the corporations of Massachusetts are owned 1 by persons of small means today. They were originally founded by persons of large properties seventy years ago; people who with¬ drew their capital from commerce and put it into manufactories. For illustration, the Merrimack Manufacturing company, which I represent and of which I am the servant, originally had five stock¬ holders ; who averaged $120,000 of stock. I had the books ex¬ amined yesterday, and found there were 729 stockholders upon the books, with an average interest of $3,430 each. But, as a matter of fact, there are probably 1,000 stockholders ; because a very large proportion is held by trustees, often representing several persons each. The proportion of stockholders to employes is as one to three. Q. (By Mr. R. D. Smith.) How many persons are there hold¬ ing single shares in your company ? A. Three hundred and four persons hold single shares, 153 own two shares each, and 73 own three shares each. And this disintegra¬ tion is going on constantly throughout all the corporations in the State. Q. Do operatives hold your shares? A. Yes, there are operatives that have held shares for a long time. Q. Whether some of this class of shares are held by trustees? A. I don’t recall any such case. I know of one instance where a share held by a trustee is divided among nine persons. Now is there any necessity for this compulsoiy law in order to protect those who are troubled by the trustee process ? That has been referred to here, this and in previous years, but if there is any' injurious ef¬ fect upon employes by reason of the trustee process it should be corrected in the law itself and not in an indirect manner. Q. You mean by changing the trusttee law ? A. Yes. And not by making some new law. I have undertak¬ en to lean, whether the operatives of Lowell are troubled by the trustree process. I have had the records of the Merrimack manu¬ facturing company’ for the year 1884 explained and I find there were two hundred and thirty-two trustee writs served upon the company, amounting to $1,940, out of $800,000 wages paid. That is about a quarter of one percent. Then in regard to assignments. During the y’ear 1884 there were seventy assignments amounting in all to S4.6G5, which is about one-half of one per cent, of the wages paid. The operations of the trustee process and of assignments are too trifling for the consideration of this committee. In regard to the payment of operatives at times other than on pay days. Throughou tthe year, there are more or less persons coming to the counting room with a ticket from the overseers to get their pay. There is a paymaster at the Merrimack manufacturing company^,—which i3 a typical com¬ pany of thpse on the Merrimack river,—every day at twelve o’clock 8 whose duty it is to pay all who present a ticket. In 1884 such pay¬ ments averaged about one hundred a month. I hold in my hand a package of these tickets for a summer month; 161 orders for paying persons who wished to leave and did leave, and 128 for persons who wanted something on account. It is such a well known method that there is never practically an}’ difficulty, for an operative wishing to leave or wanting an advance on account, in getting the money. Q. (By Mr. Stratton.) You are speaking of the Lowed oper¬ atives ? A. I am. Q. Now I want to ask you one question. You are speaking about their leaving their employment. What do you know of the custom of the mills, whether or not they oblige their operatives to sign oppressive contacts about leaving in order to obtain employ¬ ment? A. Your question is whether they can leave without giving notice. Q. Yes. A. There are no oppressive contracts. Q. (By Mr. Russell.) Was there not a change in practioe when the law was changed a short time ago ? A. For many years the present custom has been practiced in the Merrimack Manufacturing company. I have never known it otherwise since my connection with that company. You can see the good sense of that. A corporation has no interest in keeping an unwilling operative. Mr. Stratton. I know that is true in some places. Mr. R. D. Smith. That they forfeit their wages by leaving? Mr. Stratton. Yes. Mr. Dalton. I know of no such corporation. Mr. Sargent. Private industries do that; it is never done by corporations. Mr. R. D. Smith. Are there any such instances as that? Mr. Stratton. Yes. Mr. R. D. Smith. They have not been brought out at any of the hearings. Mr. Stratton. That is the reason I asked the question. Mr. R. D. Smith. It is a very proper one. Mr. Sargent. It was brought out last } r ear, that it occurred at the Merrimack wollen mills,(a private concern), not at the Mer¬ rimack Manufacturing Co. Mr. Stratton. I didn’t know but it was the custom. Mr. Dalton. It is not the custom in the corporation that I rep¬ resent, and that one is a typical of all the corporations on the Merrimack river. Q. (By Mr. R. D. Smith.) When any man wants to leave in 9 the middle of the month is there any difficulty in his getting his order like that and getting his full pay? A. None. Q. At any time? A. At an} r time? Mr. Stratton. I simply ask the question because I do know of one instance. You were speaking for a large community and I wanted to know what the practice was. Mr. Dalton. I have never known of any instance. Perhaps we have the technical right, but we should not exercise it. I do not put it on any philanthropic ground, but that it would not be for the interest of any corporation to take that attitude toward their em¬ ployes. Q. (By Mr. Russell.) You are aware that there was some abuse of that sort? I cannot say what year, but there was a law passed requiring corporations who make such a requirement of their help to be in the same condition. Mr. R. D. Smith. What is that? Mr. Russell. That is, if they require their help to give two weeks notice they must also give the operative two weeks notice of discharge. And also to forfeit the pay. There has been a law passed making the law work both ways, since which there has not been so much abuse. Mr. Dalton. I know of no such law. Mr. Sargent. That was a law passed some years ago. Mr. Dalton. I want to emphasize this a little, that there is no difficulty to-day on the Merrimack river, and I am confident that this is true throughout the State, since the same motive would guide the intelligent manager in the western part of the State as in the eastern. Employes wishing to leave before pa}* day find no difficulty in getting their pay promptly ; or, if they require an advance on their pay at any time during the month, they can get it. It was mentioned here by one person that the arrests for drunkenness was very much larger in Lowell during ten years in proportion to the population than they were in Lynn. I find that in the year 1882, which is the only one that has been examined, the whole number of arrests was 2,005 ; of those, 337 were classed as operatives. Out of 16,000 operatives 337, or less than one a day, were arrested for drunkenness. Mr. Sargent. I will state, if you will allow me, that the reason why the year 1882 was taken, was that it was the last year that we could get at, the record of 1883 being in use at the station house, and it was the first year that they kept a record of the employ* ment. Q. (By Mr. R. D. Smith.) One question, Mr. Dalton, before 3 *ou leave that. What do the}* do with those people arrested for drunkenness ? I mean what becomes of them ? 10 A. Some of them are sent up to the poor farm, and some are fined. Mr. Sargent. It is usually one and costs for the first drunk, which is $5.25, or ten days. Mr. Russell. Do you state that as the penalty for the first drunk ? Mr. Sargent. Yes. Mr. Russell. It is one dollar for the first drunk. Mr. Sargent. One and costs ; the costs are $4.25. Mr. Russell. Five dollars and costs for second offence. The judge cannot go beyond the law. Mr. Sargent. He don’t, sir, but it is five dollars, and costs for second offence, or a direct sentence. Q. (By Mr. R. D. Smith.) Then are these people taken back by you ? A. Sometimes. Q. (By Mr. Russell.) As bearing upon that I would like to ask a question ; if you keep back a certain amount of wages, why they need to go to the county house for a one-dollar fine, when there is certainly more or less due them. M. Sargent. Sentence is for second or third offence, or for com¬ mon drunkards. Mr. Russell. That is only ten days. Mr. Sargent. They are usually sentenced for being common drunkards, one and costs, or ten days is for first offence. Mr. Dalton. The number is limited and is decreasing. Q. (By Mr. Russell.) Do you make it a practice, when any of your help are arrested, to find out about them? Do you advance their wages for the sake of helping them out of their difficulty ? A. That is a detail I do not know about. My impression is, that the staying out in consequence of drunkenness during the month is very trifling. After pay da} 7 is when the temptation comes. Even then the per centage is very small. But we don’t want it in¬ creased in Massachusetts. I wish to ask your attention to this im¬ portant condition while considering this series of laws, namel} T , that we can only make them for a ver} 7 small part of the country, and that we are surrounded by states which, so far, have not seen fit to imitate the restrictive legislation of Massachusetts, for example, the ten hour law. This law has been in operation in this state ten or twelve years, and no other state in the country has adopted it. The effect of the law is apparent. In our neighboring states the people on the same class of work are earning higher wages ; a consideration which appeals to the most energetic and ambitious of employes, the class which Massachusetts ought to keep at home. But high wages do attract energetic and high grade workers. In this connection I notice in the Boston Journal, on the 10th of January, a communica- 11 tion in regard to the Amoskeag company of New Hampshire. I saw Col. Livermore of that city a few days ago and asked him if the statements were true, as represented. If you will allow me, I will" read a few lines. The correspondent says :— “At present the wages in the mills in Manchester are about eight per cent more by the da}' than those are in Lowell; it being the pur¬ pose of the mill managers of this city to maintain this difference on account of the eight per cent, more time which the operatives here work as compared with the hands in Lowell. The Massachusetts ten-hour law prevents Lowell mills from running more than the legally stipulated daily hours; but in New Hampshire, there is no law restricting the hours of labor. The average time worked in Manchester is 10J hours per day. Our manufacturers can afford to pay this higher rate of wages, because it enables them to have their mill property at work a proportionately greater time than the Mas¬ sachusetts mill owners can. It amounts to the same thing as having a mill plant eight per cent, larger without the cost of building the addition, and at the same time the production of cloth is believed to be proportionately greater.” I asked Col. Livermore if this was a correct statement, according to his personal knowledge, and he said it was. A few days before I saw the managers of the Nashua mills and carefully went over with them a comparison of the wages earned, being the same rate per hour or the same rate per job as in Massachusetts mills—it is mostly job work, and we came out just the same, the earnings were between seven and eight per cent more money than those in Massa¬ chusetts, doing the same class of work received, which is only just and proper? Q. (By Mr. R. D. Smith.) Is the number of hours which the}' work, is that per cent, greater than ours? A. Just about eight per cent. They work nearly Go hour a week ; between 64 and 65. Sixty-four and eight-tenlhs would be ex¬ actly eight per cent. Q. (By Mr. Harwell.) Then practically it is about the same rate per hour as in Massachusetts ? A. Yes. Q. (By Mr. Conway.) Are they not the only two exceptions you can name, the Manchester and the Nashua mills? A. I think it is equally true down in Maine. Mr. R. D. Smith. It is true in Maine and in Rhode Island. I want you to explain a little more fully something which perhaps I do not understand, and that is what advantage the manufacturer has whose operatives are working a few more hours, in getting more product out of his plant. Do you understand what I want? A. A concern, for instance, investing a million dollars in cotton 12 manufacturing in Massachusetts, would turn out, under our laws, about a million and a half dollars’ worth of product. In New Hampshire, Maine, Rhode Island, Connecticut, or Vermont, a million dollars invested in cotton manufacturing, would turn out not less that $1,650,000 worth of product upon the same plant. Of course the fixed charges for insurance, for the management, cost of the buildings and machinery, interest on buildings and machinery would be the same in one State as in the other; whereas, the product, the usefulness of the investment in the State, the operative and the owner would be as $1,500,000 in Massachusetts, to $1,650,000 in New Hampshire. If you go further south it would be more like $1,500,000 of product in Massachusetts to $1,850,000 in Georgia or North Carolina. Q. Why is that? A. Because they work so much longer time. I was consulted recently by a private manufacturer whose family own a manufacturing establishment, valued between $1,000,000 and $2,000,000, in regard to the advisability of making the concern a corporation. We went over the pros and cons and decided it was unadvisable that any change should be made from private ownership, and the change was not made. Q. (By Mr. Farwell.) Then, instead of a charter being valuable, in such cases it is really a disadvantage to a man to accept a char¬ ter? A. Yes. Mr. Farwell. That is my own idea about it. Mr. R. D. Smith. They have one advantage, Mr. Farwell, and that is they avoid the personal liability. Mr. Farwell. I understand they can avoid that by special partnerships. Mr. Dalton. You can avoid personal liability under the limited partnership law. A. (Bj t Mr. R. D. Smith.) I want to ask you something which seems to me to correspond to the idea expressed by the members of the committee, and that is, whether an individual a can carry on business and make it more money-making than a corporation, gen¬ erally speaking? A. As a rule corporations are managed lavishly. The ma¬ chinery and plant are kept in high condition. Corporate property is a trust. Q. There has been something said by some gentleman here which tends to show that by far the larger number of manufacturers are private persons and not corporations, and that the woolen and cotton mills are all corporations. Have you the figures giving the comparative number of cards employed in woollen and cotton cor¬ porations and private firms? 13 A. I think Mr. Coe has those. Q. You have not got them? A. No. Mr. R. D. Smith. It is just half. Mr. Dalton. Of what? Mr. R. D. Smith. Of the sets of cards. Mr. Russell. The point made in previous hearings was that they were largely corporations. Mr. R. D. Smith. I have understood that they were almost ail corporations; but somebody said that in this particular, in cotton and woollen it was just half, or that seven hundred and odd setts were run bj T private manufacturers and the remaining six hundred by corporations. Q. (B} t Mr. Smith of West Newbury.) I would like to ask the witness if he thinks that small private concerns can manufacture the same kind of goods cheaper than large concerns. A. There is economy in operating cotton machinery on a large scale. Mr. Smith of West Newbury. I inferred from your answer that you thought private concerns could manufacture at greater advantage than large ones. Mr. R. D. Smith. No, that is not it. It was whether more economy could be introduced. I had in mind some of the Rhode Island manufacturers ; the Slater mills, for instance. Mr. Dalton. The manufacture of woolen cloth in Massachusetts and New England, has been more successful in private than in corporate hands. Q. (By Mr. R. D. Smith.) How is it in cotton? A. The other way. The processes are very simple, and they can be combined on a large scale and so reduce expense. I think corporations pay higher wages on the average in cotton manufac¬ turing, the advantage of corporations in Massachusetts, under our laws, is that a large number of persons are enabled to pool their money and carry on manufacturing of a simple character; but it must be of a simple character. I mean that the successful corpora¬ tions are those whose business is rather simple, like the cotton busi¬ ness. When it comes to woollen, which is more intricate, it has not been so successful. You will find that the silk manufacture, for ex¬ ample, and all higher grades of manufactures are much better in private hands, than they are in corporate. The advantages which we pos¬ sess in Massachusetts, and our disadvantages, are both easy to see. We are far away from the sources of supplies, we are far away from the market for our goods, and we have a harsh climate to work in ; it is a good stimulating climate, but it is an expensive one. We have to use a great deal of coal, food and clothing in such a climate. We must have expensive houses. We have no mines or forests. 14 Our farms are worth something because we have built up manufact¬ uring towns among them ; otherwise they would be deserted. We have here our accumulated skill and our accumulated capital to work with. It is a delicate business to meddle with these two factors, least we take a still further back seat in the company of states than we occupy today. We have got today a goodly number of manu¬ facturing corporations, and I will admit for the moment that you can do just what you see fit with them. I will not say anything about the constitutionality of any legislation. But how about the future ? I find that General Francis A. Walker, chief of the census bureau, estimates that the country in 1900 will have 80,000,000 people. If Massachusetts is going to hold her own in connection with the other states, relatively with the whole countrj r , we ought to have added to our corporate capital $100,000,000, and taking all manufacturing capital we should have $250,000,000 more. Are we likely to get this proportion of new money invested in Massachusetts if we go on enacting these restrictive laws, which, as I said earlier, reduce the independence under which we have been living all our lives, hereto¬ fore, rather than increase it. M} r belief is that if the question was put today to the gentlemen sitting around this table: “Will you put your $20,000 apiece into a mill in Massachusetts or into a mill in Connecticut?” I have no doubt but that the unanimous vote would be not to put it in Massachusetts. As a citizen of the United States, I do not care whether Massachusetts is to lead in the future as it has done in the past, or whether the industry goes to some other part of the country; but as a Msssachusetts man I do care, and of course we all care. I cannot see any advantage to accrue to the interests of Massachusetts at large by this class of legislation, nor do I be¬ lieve it is for the interest of the working people themselves. You may sa}- the cost of making weekly payments is trifling. It will cost the Merrimack Company a few thousand dollars. It takes four clerks to make up the pay-roll, which is comparatively a simple mat¬ ter ; but it takes four clerks to make it up once a month, occup} r ing two weeks. It is going to cost a good deal of money in the State. Out of the 1,609 corporations in Massachusetts, I will take 1,000 upon which such a law will be operative. If it costs an average of $1,000 for each corporation, that amounts to one million dollars. Q. (By Mr. Russell.) Will it? A. One treasurer told me it would cost his company between $10,000 and $15,000. Q. (By Mr. Stratton.) For clerk hire? A. For clerk hire and the other labor in making up the detail on the mill floor, where there is an intricate kind of work. Q. You don’t intend to reckon the interest on that? A. No. Q. (By Mr. Bennett.) How much more would it cost your company ? 15 A. I say we have four clerks. Half their time, or two weeks per month, is employed in making up this pay roll. Q. It would not cost you four times as much to make it up weekly ? A. I should not think it would cost quite four times as much. Q. Twenty per cent, more ? A. There is a great deal of the work that is precisely the same on every pay-roll. It does not occur to me at this moment where there would be less work. We should have to count the money four times instead of once, put it in envelopes four times instead of once, have four sets of tickets instead of one. If there is a place where the multiple would not apply, it does not occur to me. Q. Have you ever had any experience in paj ing more frequently than once a month? A. No ; never had it asked for. Q. (By Mr. Smith of West Newbury.) How long does it take to pay off 1000 operatives? A. The Merrimack manufacturing company now pay about 3000 employes . in one day. The mere mechanical act of handing the money to the individual is a trifling matter that is done very rapidly. Q. (By Mr. Gunn.) Do you take receipts from the operatives at the time the money is delivered ? A. No. Q. (By Mr. Gunn.) What are the wishes of your operatives so far as you know as to more frequent payments ? A. I have never heard any expression of a desire for a change. Q. There has been no complaint, so far as you know under the present s 3 T stem ? A. There has been no complaint. Q. (By Mr. Smith of Dudley.) You sa\ T that the wage opera¬ tors in Lowell pay more money into the savings banks than those in Lynn ? A. That is what the State records say. Q. Well, has any cause been assigned for that? A. I have not assigned any. Q. Don’t the people in Lynn invest a great deal of money in houselots and after a time build up little houses for themselves, to be the owners of their own homes ? A. I should not think that would be more likely to occur in Lynn than it does in Lowell, especially as I understand that labor is more steady in Lowell than in Lynn. I don’t know the fact, but I am told so. I have seen a newspaper statemen of the number of days in the \ T ear for which work was supplied in Lynn, and it was below that in Lowell. Q. (By Mr. Bennett.) Is it not a fact that the operatives in Lowell live largely in boarding houses? 16 A. Not so largely as formerly 7 . Of the operatives of the Mer¬ rimack company twenty to thirty^ per cent, live in the corporation houses. Q. Is it not a fact that the laborers in Lynn are better housed than in Lowell. A. I think not. There are no houses of the class in any part of the country that are superior to the boarding and small tenement houses in Lowell. Q. I had reference particularly to houses of their own A. You will find Lowell surrounded with a great village of de¬ tached cottages spreading in every direction. Q. I was accounting for this difference of deposits in the savings banks on this principle. A. I wish to confine myself in this evidence to matters of fact rather than to express opinions. These facts that the State supplies to us indicate that the wage-earners of Massachusetts are a very prosperous class of people. They do not appear here to ask y 7 ou for protection or further legislation. Q. In case they were paid more frequently and didn’t receive as much money at a time, would it not be an advantage? A. I cannot see any advantage. Q. (By Mr. Smith of West Newbury.) One question I want to asky 7 ou, Mr. Daiton. You have stated one reason why you think it would be a disadvantage to a corporation to pay more frequently than once a month. Are there any other reasons why it would work to the disadvantage of corporations besides the extra clerk hire ? A. I fear in the course of years it would reduce the general standard of character of the people of Massachusetts. Q. You think they are not able to stand the pressure? A. They are just as much subject to temptation as we all are, some can and some cannot. But I speak of the general average. In England, they pay once a week. The English operatives are coming to this country in a steady stream, and are growing pros¬ perous and better in every way. We need not ask wiry they come. Q. Then your reason is that it is not so good for the operative? A. I do not speak of operatives as a single class, but of the general character of the people of Massachusetts. Because this payment of wages once a week is not going to stop with the opera¬ tive, it is going to permeate all the occupations of the people. Q. I understand. But these are your two principal reasons for not wanting to pay oftener than once a month. Have you any 7 other? A. It involves a waste of money, and Massachusetts has no money to waste on the cost of her industries. There is no margin for a waste. We have got to put our goods into the market as cheaply as anybody 7 , or fail. 17 Q. (By Mr. Bennett.) But the inference that frequent paj-ment is to be a disadvantage ? A. If there is any more labor in it, it is. If it is to cost half a million or a million dollars it is so much more burden on industries and a waste. Q. You believe cash payments would be desirable for all busi¬ ness? A. I consider anything paid once a month as cash. I think it is spending too much time in not doing any business to pay— Mr. Bennett. If the witness wants to say that cash payments are not desirable— Mr. Dalton. What is cash, every hour, eve^ da}^, every week or every month ? Mr. Bennett. In speaking of paying parties—the butcher and baker—we consider cash payment to be as near the time when the goods are purchased as possible. I would not care if it was done the veiw minute ; I think it would be better for the laboring people and for the man they purchase of. Mr. Dalton. Business cannot be transacted in that way with¬ out a waste. For instance, the purchase of coal. A man who can buy a ton of coal and have it all delivered at once, put in and paid for at once, will get his fuel cheaper than the man who buys by the basket full, or 100 pounds at a time. So with a barrel of flour. The flour that is distributed in bags costs the consumer more than it costs the person who buys by the barrel. Mr. Bennett. The mere fact that he pays cash for it does not imply that he shall buy by the bag. Mr. Dalton. If the operative is to settle all his bills once a week, I suppose you hardly think he would have weekly earnings to buy supplies in their commercial unit? Such as coal, flour, etc. Mr. Bennett. I think it would be possible for him to pay for this sort of things and get them at the lowest possible price, even if he received his pay once a month. Q. (B} t Mr. R. Smith.) I want to ask a question on the same ground that the senator has proceeded upon, and that is whether the persons who are saving money and putting it into the savings banks of Lowell are not, as a matter of convenience, having books and proceeding with their butcher and baker on the monthly system ? A. So I understand. Q. Although they have money with which they could purchase, they do proceed on the credit system for convenience ? That is, the} T purchase for cash, but they prefer to buy on credit rather than take the trouble ? A. Yes. They have got the cash. They have put in $200,000 or $300,000 into the savings banks more than they have taken out. Mr. Sargent. Tliej r have taken out largely and put it into tele- 18 phone and moter stocks, to their disadvantage within the last two years. Q. (Ity Mr. R. D. Smith.) I want to ask you about the cost of housing in Massachusetts; for iustance, the cost of a house at Lowell in which the people are housed who are at work, as compared with the cost of the houses which are used in connection with the rest of the cotton mills at the South. A. The cotton mills of Georgia, at Graniteville, for instance, build their best-class single tenement cottagas for operatives, for $190. They build a cheaper house which costs $160 ; but their best, which is a very neat, comfortable cottage, set upon posts, with the, air underneath—they have no cellars —cost $190. The houses that we build at Lowell, cost between $1,000 and $1,100 each. Q. (By Mr. Smith of Dudley.) Single tenements? A. Single tenements, one family shelter. We build them in groups of eight, and they cost between $1000 and $1100. This year they probably cost a little less, bebause the price of labor is less. Q. (By Mr. R. D. Smith.) That is what they cost? A. Without the land. That is the cost of the superstructure. Q. So that in this State you have operatives whose houses cost vfcry much more. Of course the interest is the difference ? A. Five hundred per cent. more. A. Yes. Q. Their cotton comes from the adjoining plantation ? A. Yes, it is raised in the State. Q. What is the difference in the carriage of cotton ? A. It is about three-quarters of a cent a pound. Q, That it costs 3 -ou to get it here ? A. Yes, half a living profit on coarse goods. Q. Half the entire profit? A. Yes. Q. Now I wish to take the coal, and I wish to know how much of the cost of the coal to }~ou at Lowell is, the mere transportation of it from the mouth of the mine. A. I understand the mine owners in Pennsylvania are getting from sixty to eighty cents for coal put on board the cars at the mouth of the mine. That coal will cost about $4.50 to $4.75 at Lowell. Q. Then all but about sixty to eighty cents is transportation? A. Yes, sir. The cost of coal to the Merrimack manufacturing company is $80,000 to $ 100,000 a 3 T ear. Some of our rival works are in Penns} r lvania, and the same amount of coal would cost them from $45,000 to $55,000. Those on the seaboard would save fifty per cent., and some of them inland would same more, because they are nearer the mines. Q. Now is there anything in which labor or the natural product 19 of the earth enters into your cotton mill that you can get cheaper in Massachusetts ? A. Nothing except ice. I have said on another occasion that if it hadn’t been for accident which drove the Mayflower north of Cape Cod this country never would have been settled. Mr. R. D. Smith. I have always thought it was a great mistake, their coming north. Mr. Dalton. Mr. Smith’s question reminded me of this fact, that we have had heretofore the advantage of water power over certain other localities, — not that we have all the water power of the coun¬ try ; but our water power is now all applied, and any development in the future of the possible $250,000,000 in the next fifteen years, which I say we are entitled to, comparatively, if we are to hold our relative position, the power has got to come from steam. Q. (By Mr. Farwell.) Is not that true in Lowell to-day? A. Yes ; half the power of the Merrimack company is steam. Q. (By Mr. R. D. Smith.) They have equal power with you in Maine and New Hampshire, which are competing States? A. Yes. Q. One thing which has been said here is that the Legislature has got these corporations in its hand and can make them do what it chooses, I want to know, suppose Massachusetts keeps long as she now is as a manufacturing State, keeps her rela¬ tive position with other States for the next ten j^ears, how large a proportion of capital will have to be invested here as compared with 3 ’our present capital, confining it, if you please, to spindles. Do I make nyself understood? I want to show that although a mill can¬ not move away from here, 3 *ou can prevent capital from being in¬ vested here, and how much capital should be invested to keep Massachusetts up with the rest of the countaw? I think that is a fair question to put. A. Assuming that the country has twelve million cotton spindles, forty per cent, of those spindles, or four million six or seven hun¬ dred thousand are in Massachusetts. Assuming that there will be required to meet the growth of the countay in the next decade 4,000,000 more cotton spindles, there would be 1,600,000 spindles for Massachusetts if she is going to maintain her relative proportion of that industay. One million six hundred thousand spindles at ten dollars each is $16,000,000. Mr. Draper. That refers to the cotton industay alone? Mr. Dalton. Yes, that is $16,000,000 for the spindle, loom and power to run it. But that always means a town growing up around it with every variety of allied industry. That is just one item if we are going to continue our relative proportion. Q. I want to ask 3*011 how much in the manufacture of ordinary cotton—such as 30 U are engaged in—how large a proportion of its 20 cost was the cost of the raw material ? A. About two-thirds. Q. Then the remaining one-third comes in wages, T suppose, and the interest on the investment which is paid to the manufacturer? A. Yes. Q. And in tins competition of which you speak you are obliged to la}' down your goods so that they can be sold side by side with the goods of these other States? A. Yes. They go on to the same platform, into the same mer¬ chants hands in New York, St. Louis and Chicago. Q. There is one thing which perhaps was brought up before I came here—if so you need not answer—about the system of credit which was spoken of in regard to railroads. I want to know whether any part of your product is sould for cash. A. We sell upon thirty or sixty days. A discount is allowed for anticipating payment. It is the ordinary commercial method. Q. Now is most of your selling done on longer credit than that? A. It is chiefly on sixty days, at present. Any buyer is entitled, by the custom of trade, to discount his bill in ten days and save his interest. These methods change from year to year and are depend¬ ent upon the conditions of business and the value of money, etc. Is it in your mind to ask how soon we get our money after we have in¬ vested it. Q. Yes. A. It is eight, nine or ten months from the time we buy our cot¬ ton at the South, and bring it across the continent, 1,000 or 1,500 miles, keep an average of two or three months’ supply on hand, pass it through the mills, pay the labor, pay freights, pass the cloth through the print works, take orders in January for goods to be de¬ li verhcl in February, March or April, before we get the money back we put into the co'ton and wages-. The money invested in cotton and labor in January is received back in October. There are a great many goods sold on four months. I only now speak of the cotton business, but the bulk of the woollen business is done on four months; a little is done on less, and a great deal of it is done on more. Mr. R. D. Smith. I wanted to show that there is no part of our business that is strictly cash, as in railroad business. There is a part that is strictly cash in the railroad business. Mr. Farwell. It is strictly cash paid out for the raw material. Mr R. D. Smith. He pays out, but he receives nothing back. Mr. Dalton. There is some reason. The planter gets his pa}’ but once a year. He settles but once a year. He cannot do it any oftener. He is working with nature as a corporation, and she pays but once a year. Q. (By Mr. R. D. Smith.) Don’t nature pay but once a year? A. You can get but one crop of cotton or corn per annum. Mr. Benneet. I understand counsels to say that the Old Colon}" receipts were half or one-third cash. The fact is, as stated yester¬ day that they are three-quarters cash. Mr. R. D. Smith. That is so much better for me. That shows that 1 always underrate the force of evidence in my favor. Q. (By Mr. Carleton.) You sincerely believe, Mr. Dalton, that monthly payments are better than weekly for operatives? A. Yes. Q. Then wouldn’t it be better to pay them once in three months? A. No. Two generations have grown up under the present system. They are used to it and had better continue it as the}" have prospered under it. Q. You have got them right where it is for their benefit? A. It is a natural growth. Q. How many operatives are there in Lowell ? A. About 16,000 on the books of the corporation. Q. What proportion of them have money in the savings banks? A. That is impossible to say. Savings bank authorities don’t keep such a record. It is impossible to say. Q. You made the remark that you w r ere surprised when you heard it said that the evidence of the savings banks was not worth considering ? A. Yes. Q. Would you be surprised to know that a very large majority, more than half at least, much more than half of the deposits in the savings banks belong to the persons who are not poor ? A. I should say that that would be likely to be true. I hope it is. Mr. R. D. Smith. Of course they are not poor if they have money in the bank. Mr. Draper. It is assumed in this hearing that all operatives are poor? Mr. Carleton. The reason I asked the question in that way was I understood the gentleman to say that the operatives or wage-work¬ ers are very prosperous. Mr. DaCton. Yes. This is the way I put it; that the evidence of the State records as spread before us is that the operatives, the wage-earners of Massachusetts last year were very prosperous, and saved much money. Mr. Carleton. Consequently they could not have been very poor. Dr. Dalton. They are very prosperous. Q. (By Mr. Carleton.) Now another remark of yours—that you don’t see how the operatives or wage-workers can be any more inde¬ pendent. A. Not by legislation. Q. Are they not dependent upon corporations ? A. Not at all. They are very independent, as independent a class as there is in the world. I will make no exception. Those we call the wealthier classes are tied with as powerful anchors to their daily duties as the operatives. Q. Then you as an individual don’t see how they can be more independent? A. Not by legislation. It is a fact shown by the records of the corporations of Massachusetts that high wages, high prices and high dividends go together, and there is never any reduction of wages when business is active. Q. What usually follows a reduction in wages ? A. Stoppage of machinery. Q. So far as prices are concerned? A. It does not affect prices of goods. Q. When men associate themselves together in corporate bodies, what is their object in so doing? Is it not to make money? A. They will go to the poorhouse unless they do. Q. (By Mr. Russell.) Now you spoke of New Hampshire cor¬ porations giving more pay than is received here. It is my experi¬ ence, which has been trifling, that in order to get help away from Massachusetts, from Lowell and Lawrence, the manufacturers there were obliged to give more pay, to draw them up into the country. Can you agree with me that that is the reason ? A. No ; that is not the reason, but the additional pay that opera¬ tives earn there. Operatives will give up a situation where they can work only ten hours, and seize upon the chance of earning more money. There is no lack of good operatives in New Hamp¬ shire. Mr. Russell. I believe you in that respect; but I believe the reason why there is good labor in New Hampshire is because they pay more. The operatives would prefer to liveTn larger places. Mr. Dalton. Manchester is a large manufacturing city. It is the largest town in New Hampshire and a very prosperous one. The same price is paid for the same service in New Hampshire as in Massachusetts. The operatives make eight per cent, more time and receive eight per cent, more money. Q. Can 3 r ou tell me the comparative production of your mills be¬ tween the first and last week of the month, among the operatives working by the piece ? A. In the spinning there would be nothing perceptible. On the loom it depends on how it is filled. If the operative can wind off several pieces of cloth, she would be apt to strip it. Q. (By Mr. R. D. Smith.) That is, take it off? A. Take it off. That depends upon the character of the machin- 23 ery. The loom does not make any more goods and could not if the operative was paid daily. Q. (By Mr. Russsell.) I wish to state my experience, what lit¬ tle it has been, and see how you can agree with me. The first week of the month the operative has so long to wait for his wages that he works with less courage. When it comes to the last week of the month, the week nearest his pa}^ day, lie exerts himself to his ut¬ most and he does a considerable amount of work in excess of the amount done the first week. A. What per oentage should 3*011 say that was. Mr. Russell. It is something; I have not calculated it. Mr. Dalton. Are } t ou a manufacturer? Mr. Russell. No ; I am an operative. Mr. Dalton. Then you know these facts, if you are familiar with manufacturing ; a spindle goes at a certain speed; it does not go any faster or slower the first of the month than it does the last of the month, or the last hour of the day than the first. The gain would be in the greater energy of the girl in tying broken ends. Is that what- } t ou mean ? Mr. Russell. Yes. Mr. Dalton. That is physically possible, of course. The loom goes at the same speed all through the month ; so the onl}- difference would be the weaver would put in a new bobbin when one had run out, or tie up an end a little quicker. That is physically possible. I agree with you to that extent. Q. You think she would display more energy? A. I say it is physically possible. Mr. Dalton. Do you think there will be larger product from the machinery of Massachusetts ? Mr. Russell. I do. • Mr. Dalton. Do }'ou think it would encourage them to work harder ? Mr. Russell. I do. And I think it is for the manufacturers’ interest to pay them. Mr. Dalton. That would innure to the advantage of the State if the machinery would turn out more work ; but you could more easily accomplish this by extending the hours instead of making the oper¬ atives work harder in less hours. Mr. Russell. If your motive was to discourage the operative, it would be so. Q. (B} t Mr. Russell.) Is it not a fact that this legislation you have spoken of has drawn to Massachusetts one of the most skillful classes of operatives in the country ? Mr. Dalton. I think the ten hour law has worked the other way. The only legislation which has raised the question whether Massachusetts is a desirable place for capital is the ten hour layr. It has kept capital out of the State, and necessarily population also; and in the future it will continue to act in the same way. Q. Is it not a fact that Massachusetts leads in manufacturing in¬ dustry in proportion to population ? A. Yes. She has in cotton manufactures ; she does not in many other things. Q. And also against very stringent natural obstacles? A. Yes. Q. (By Mr. Conway.) Do I understand you that the ten hour law had a tendency to drive capital out of the State ? A. Yes. Q. Has not Massachusetts gained its proportionate share' of the increased investment in manufacturing during the past decade ? A. Yes. Q. How do you make those two statements agree ? A. They do not seem to go together, and yet may agree. The peculiar advantages we possed before this ten hour law was put in force was the investment of three or four large dams, supplying water powers unequaled elsewhere. We had made that plant in Massachusetts, and it has been developed steadily in large manufac¬ turing industries, in towns like Lawrence, or Lowell and Hadley. The impetus of sixt} T years will go on for a limited time, with the dams built and with a large investment in the water-shed of New Hampshire. But now our margins are getting small, our water pow¬ er is exhausted and the local causes will no longer be operative in the same degree in the future as in the past. If weekly payments are a good thing w’e shall adopt them. Mr. Russell. If they are are a good thing in 3^our opinions. Mr. Dalton. We shall know it as soon as anybody. Mr. Russell. There is quite a difference of opinion in that regard. Mr. Dalton. Many now pay once a week. But we are consid¬ ering the wisdom of legislation. Q. (By Mr. Bennett.) Provided 3’our operatives should vote for more frequent pa3 T ments, as they have done in the Lowell carpet mills, what would 3 T ou do? A. I should not recognize a vote as the best way to arrive at it. Q. (63^ Mr. Smith of West Newberry.) Wouldn’t you consult them at all? A. I should consult, if the matter was under consideration, with the most intelligent persons in the business. Q. Do you mean operatives ? A. Operatives, overseers and managers. Q. (B3 t Mr. Bennett.) You say you have 4,000 operatives? A. About 3 , 000 . Q. If they should decide by a majority of three to two to request 25 weekly or fortnightly payments, would that influence you in the' matter ? A. It never occurred to me to take a vote of the operatives as to how to run the mills. Q. I mean if that should come up? A. I should think it was worth while to look into the matter, to see whether it was wise or not. A vote would not be conclusive. Business is not conducted by town meeting methods. Q. (By Mr. Russell.) You gave us the figures in regard to the report of the bureau of statistics of labor for 1878, showing the rela¬ tion of individual firms to corporate firms. Did you find these figures in there which I copied from that sheet: average yearly wage paid by corporations, $383.47 ; average wage paid by private firms, $474.37 ; making a balance of $90.90 that individual firms pay more than corporate firms. Can you give us any information *why that is so? A. Cotton manufacturing is chiefly done in corporate companies on a large scale. It is a business especially useful to the community because its simplicity and lightness enables a large proportion of females and youths vviili little experience, to earn good livings. In your machine shops, iron works and all heavier kinds of work, this class of persons would find no occupation at any price, lienee the comparative^' lower rates in cotton mills. Take the machine shop in Lowell, and you will find that the wages there are higher than the 3 T are in the cotton mills, but you ma\ r find in the cotton mills some of the women and children of these mechanics working in the shop. Q. I have not the figures with me now, but if }T>u have been to all our hearings perhaps 3011 will remember the figures that have been brought ouc to show that the class of business general^ done b 3 T individuals rather than b 3 ’ corporations pa 3 ' two or three dollars more a week. A. It ma 3 ’ be so. I contract with a man to make the boxes for my goods. He employs carpenters at $1.50 or $2 per day. He cannot emplo 3 r girls, but his carpenters girls may be at work in the mill. Mr. Russell. The statistics give us the average for male adults. I confine it strictly to that—it being $9.45 in the cotton manufacto¬ ries and something like $13 in private establishments. Mr. Dalton. If that is due to this corporate system it would be well to grant no more charters to corporations. Mr, Russell. I thought it was in line with the argument made b 3 ’ Mr. Hayes of Lynn, that it was owing to the fact that large cor¬ porations went outside the limits of the State and imported a cheaper class of labor. Mr. Dalton. Do you think he knew anything about it? Mr. Russell. I am asking you. 26 Mr. Dalton. experience is, that it is not true. We do not have to import them; they come fast enough voluntarily, 750,000 two years ago. Q. Do you think they are coming principal^ into the industries controlled by corporations? A. No. The West is filling up faster than we are. Q. Those who come to the State of Massachusetts, do they go principally into the industries controlled by private firms, or do they go into industries controlled by corporations? A. I don’t think the}" care. Q. What is the practice? A. They go in proportion to the demand. Q. (By Mr. Stratton.) Would you object to a national law on this question ? A. I should not advocate it. Q. The argument you use as to the industries of the country outside of Massachusetts is simply used for the purpose of helping your remonstrance on this question? You do it for that purpose? A. It is a consideration always worthy of being taken into ac¬ count by the Legislature, as of the utmost importance to the future welfare of the Commonwealth. CLOSING ARGUMENT OE R. D. SMITH. Mr. Chairman and Gentlemen of the Committee:—In saying the few words which I have to offer at the close of this hearing, it seems to me that I can add very little to the testimony. As practical men, as manufacturers, as gentlemen who have made the subject which we have before us a subject of study, you know much more about it than I do, and I could not, I think, properly occupy your time with telling you, as I might possibly tell a jury, what is the fair deduc¬ tion from the evidence which has been offered before you. More¬ over it is said to be true that evidence, when properly arranged, presents the strongest argument. And I think }’ou will say that on our side of this question we have presented you a very few witnesses, a few who are competent to speak of that they know, and who have presented our side of the case with fulness and with knowledge. And therefore, to the testimony which you have heard, as well as that which the chairman called yesterday, I mean that from Mr. Draper, I think that I can add nothing. 1 have seen with regret this question discussed here as though there were a contest between labor and capital. There is not in this country any contest between labor and capital. The interests of labor and the interests of capital are precisely the same. Every¬ body knows here that capital is nothing but accumulated labor; that just as soon as labor is accumulated it becomes capital, that it. itself, is dead and useless, unless it is assisted in the work of reproduction by labor again. And what is labor without capital to employ it? It is barbarous. It is the work of the hands by the rude savage, living by the product of bow and spear. It is nothing. Just as soon as a man gets a spade in his hand, just as soon as he owns a mule, he becomes to that extent a capitalist. Capital and labor are the complements of each other, the}’ depend upon each other and they can only succeed in combination with each other. And it seems to me that the history of Massachusetts shows a record of the most wonderful prosperity, of the most wonderful success in the face of a sterile soil and a harsh climate, that has ever been seen in the world , and that this is attributable, in a great measure, to the fact that there has been no conflict between labor and capital, that there has been no class legislation in favor of either, and that we have lived under perfectly equal laws. Something was said, rather wittity, I believe b}’ one member of the committee, that it was a mistake that the Mayflower came to 28 these shores ; that the accident by which she was driven north of Cape Cod, when she intended to go to the Virginias, led to the settlement of this country, which would otherwise have been a des¬ ert. I do not agree at all that it was a misfortune. I think you will agree with me, Mr. Chairman and gentlemen, that the people who came here in the early settlement of this country were not cap¬ italists, that they came here almost as naked as they came into the world, that they had deserted everything for the sake of religion, and that they came to fight the forest in this wilderness ; and that all the accumulations which constitute our vast and unrivalled pros¬ perity, have been the accumulation of labor, of laborers allowed to work under free and equal laws. With that prosperity it seems to me we should hesitate to interfere. I trust, Mr. Chairman, that you will see that this is a case in which y*ou are asked to interfere in in a matter in which we are doing well enough. It is a health}* maxim to “Let well enough alone.” No country has yet been seen outside of Massachu¬ setts, having two millions of people, where, on the whole, so large a number of the population are free, are well governed, are well housed and well clothed, and allowed to do what they 7 please as they* will, simply 7 under the restraint which the law places upon ihem, of not injuring others. One gentleman of this committee, representing Essex County 7 , represents a district more populous, a more busy hive of machinery and of labor than any 7 county in England except¬ ing one. And all these things have been brought about by allowing men to act freely 7 , to make their own contracts, without any class legislation, with no right of primogeniture to interfere with equal distribution and to create a privileged or idle class. Now gentlemen, it seems to me that the question here is not whether it shall cost the manufacturers $500,000 more, and that that sum shall be added to the cost at which we can lay 7 down the products of our industries. I mean S500,000 more in clerk hire. This was estimated at a million, I have divided it by 7 two. Nor does it seem to me that the question is whether the manufacturer shall borrow money twenty* day s earlier in order to pay these operatives their- wages. The question is whether, for the first time in the history of the State, you are to indulge in class legislation. And this is just as distinctively* class legislation, as if you should provide that the manufacturers should not make such bargains as they choose with their operatives, but should be compelled by* legis¬ lative enactment to pay them only at the end of three months. That proposition is just the complement of the one which is now before you. It would be just as improper and just as wrong. It would be a protection, however, it is said to the manufacturers ; it would be a protection, to corporations, and, therefore, its impropriety would he at once noticed. It would be at once denounced as legislation in 29 favor of corporations. But, gentlemen, its effects would not be nearly so bad, as the effect of legislation which is distinctively in favor of a certain class of persons. Because in the one case the corporation, in favor of which you would legislate, is a corporation and it is not likely to be degraded. But in the other case, these men, for a small number of whom you are asked to legislate in this way, would be degraded. They would be insulted, for they would be told that the}' were under guardianship, and that their guardian is the State ; that they are not capable of taking their own affairs ,in hand and managing them, and that they were going to protect them. Protect them from what? Protect them from their indi¬ gence, protect them from their want of frugality, protect them from their dissipation, if you please. That is what the}' are to be told. If it is worth while to have these men in these manufacturing cor¬ porations within our borders—and we have encouraged them to come here by throwing open every poli'ical advantage to them—if it is worth while to have them at all, it is worth while to have them good citizens and independent citizens. It is worth while to have them citizens from whom you can breed a good population ; and the most healthy populations in the future will be bred from people who are free, and who are independent, and who have never had it said to them, “ You are paupers, you are the wards of the State, you are people for whom we have to have a care, for whom despotic gov¬ ernments exercise “parental legislation.” Mr. Chairman, it is said that they want it. Is that any reason they should have it unless it is for the good of the whole people. I wish, if I can, to treat that matter fairly. I think myself that most of them are very apathetic about it. There are 135,000 people work¬ ing in the seven trades, of which Mr Robbins spoke, earning on an average $11.99, I think it was, a week, just about $2 a day. Of that great body of men, occupied in the seven trades, the iron work¬ ers, the metal workers, furniture makers, dealers in metals, wooden wares, leather—not one of those persons comes here, nor any rep¬ resentative of those persons, and asks you for this legislation. No one comes here and asks you for this legislation, except certain hired advocates of labor unions, who ask you for this legislation, not because the people among whom they dwell want it, for they tell you that they already have it, but as a matter of agitation. All their witnesses, almost every witness that they had, are already in the receipt of weekly payments. Many of the people who have been here have come from Lynn. I say they are a highly paid and also an intelligent part of our laboring population; but a part which has not that steady labor which is afforded in the cotton and woolen mills. There was one man who came here from Stone- ham who was not paid weekly, although he was in a shoe factory ; and when I asked him what was the character of the factory in which 30 he was employed, he said it was a co-operative factory and that the workmen owned the factor}'. When I asked him how often they were paid, he said that they were paid once a month. That, it seems to me, is a very strong argument, in the first place, that the question of weekly or monthty payments is a mere question of convenience, which is to be settled between the manufacturer and the emploj’e ; and, in the second place, that this story about the operatives really wanting the rnone } 7 week by week in order to make their purchases, is one which has been very much exaggerated. The people in whose favor this legislation is asked, I think you will agree with me, are chiefl}' people who are said to be low wage earners, people who are engaged in the cotton and woolen factories of Lowell and Lawrence and Fall River, and other places where those industries have grown up. It has been said, and in passing I wish to remark upon it, that these corporations pay very low wages on an average. I think that has been explained to 3*011 in testimony, which was very well put. Of course, there must be some people earning the smallest wages in any Commonwealth. In any com¬ munity there always will be a certain class who are the earners of the lowest wages. It is also true that those people will earn the low¬ est wages who are capable of doing only the simplest work; and that the perfection of machinery, in cotton mills particularly, and the facility^ with which the workman’s part is learned, enable peo¬ ple to go into those mills, with much less experience and with much less strength, than into other employments. In considering all labor questions, }*ou will always have to deal with a class of peo¬ ple who are the earners of the lowest wages; and perhaps, it is with that class that you are now going to deal. I will also say that it had been shown here that those people who are receiving these low wages, many of them, are the wives and daughters of skilled mechanics. The children of others, (foreign¬ ers,) as soon as their ability has the additional push of education, go into the higher arts, go into the more skilled industries, iron working, making watches, etc. Those large classes are not the classes for whom 3*011 are asked to legislate for. And how very small, compared with all the working men in Mas¬ sachusetts are the numb ers who are engaged in these cotton factor- ries. Why, Mr. Chairman and gentlemen, out of the 261,000 op¬ eratives, according to the late census there are onh T 78,000 en¬ gaged in both cotton and woolen factories. And it has been al- read}* shown to }*ou, that out of the 1400 sets of cards,—for that is the measure of a woolen mill—which were running according to that census in the State,—perhaps there has been a slight decline now, for manufactures are at a low ebb, and the amount of invested capi¬ tal in manufactures has fallen otf within the last }*ear or two, owing to the depressed times,—nearly one-half, upwards of 700 of all the 31 cards, almost a half, of all the woolen mills are run by private hands, whom you do not attempt to reach. You are only asked, really, to legislate in favor of certain operatives who are engaged in cotton or woolen mills, and not in all the cotton or woolen mills, but onlv in those which are run by corporations. There has been no petition presented to you this } ear from any cotton or woolen mill. There has been no operative, I think, from any cotton mill who has chosen to come here to address you. Haven’t they time for it? Aren’t these people out on strikes from various depressed cotton factories in this State? Aren’t the people who were employed in Mr. Lyman’s carpet factoiy, and to whom he conceded fortnightly payments, out on a strike? Couldn’t they come here, if they could tell you anything that would help you, and show you there is a. great advantage in these weekly or fortnightly pay¬ ments? Aren’t hundreds and thousands of looms stopped at Fall River? Aren’t mills stopped at Lowell, and haven’t the operatives time to come here ? But not one of them choose to come. They are apathetic about it; the}’ don’t care about it. Mr. Anderson told you truly, when he said he believed that the most intelligent, certainly, and he thought the vast majority of the operatives of the Pacific mills would prefer to have it as it is. And I shall show you why the} r prefer to have it as it is The reason is obvious. A great many of them are girls, for whom you are legis¬ lating as well as for men. They are peculiarly under your protect¬ ion. They are a class which in most communities do not earn their living in productive industries, but in household employments ; and when they earn, as these girls have done at Lowell for the last lift}' years, large wages every week, and pile up money in the savings banks of this State, I say they appeal to you that their voice should be heard here, and that the evidence which came from some of them with regard to the facility of saving from monthly earnings rather than from weekly, ought to have an effect with you. Because it is very easy to see how r this is, for it applies, I think, to you, Mr. Chairman, as well as to us all. If I have money in my pocket and I want anything, I buy it. If I have my money at the end of a quarter, and I can save a hundred dollars with which to pay for life insurance, I save it, or I put it into the savings bank. A girl saves, for instance, four dollars a month in Lowell. If she is paid weekly, she has a dollar in her pocket; it burns there ; she treats her friends, she buys candy, she buys ribbons. This is generous, but she does not save; and it is frugality and saving which make a State great. It is the small savings of that frugal people, ihe French, which has increased their credit since the immense debt of the German war. And it is just as true of you and me as it is of these girls. I am not now speaking of the intemperate class. I am not now speaking of those who, in the good old-fashioned English fashion, are paid oif once a week, and go off and misspend a day, not only injuring their health, but their power of earning 1 am not speaking of them, but I am speaking of the really* industrious, who will not save from a small sum as they will from a large sum. And I think to that, Mr. Chairman, as to no other circumstance, is to be attributed the differ¬ ence in any savings banks deposits between Lynn and Lowell. But it is said that in former years petitions came down here from Lowell, and that those petitions of former years are before y*our committee. 1 almost think that when a public measure is demanded, it ought to be so public, the demand ought to be so public, that every legislator hears it. When reform was wanted in England, great mass meetings of thousands were held. When reform is wanted in Ireland, 30,000 people gather on a heath and cry for it. When a real reform is needed, it makes itself known very quickly to the leg¬ islators, and our legislators are very quick to hear it. It is said there have been petitions sent here in former 3 'ears. There was a long petition from Lowell, and if you ever care to in¬ spect it, you will find that it was examined with some care, and it was found that the places in which these petitions were left in Lowell for signatures, were in rum shops. You will find that many of the signatures appeared upon examination to be the signatures of those who drink, and not of those w T ho work ; and although it pretended to be the cry of labor, it was really the cry* of the tramp. You might have heard the voice of Jacob, but the hand was the hairy hand of Esau. I d > not mean to say* that under our laws intemperance is a crying evil. It has been considered so by* many*, and by prohibitory measures, or by strict license laws, I think that we need regulation. But I do not see that intemperance is a crying evil in this State, as compared with older countries, or with other States. But I think it is also true, and it is no use for any manufacturer to wink it out of sight, and there will be a percentage of operatives who, just as soon as the 3 T get their pay* will go, with what is not absolutely* necessary to pay for their weekly board, to the rum shops; and the oftener they get their pay, the oftener they will go. And what is mote, a weekly habit is much more easily established or encouraged than one which is indulged in only’ monthly’. And as y’ou are only asked here, not to legislate in favor of a great class and for frugal people, but for people who are on the borders of pauperism, who are talked about as if they’ were naked, not able to get trusted for a week, you are to consider in what proportions in that class will be found those who will misspend their money in drunkenness once a week, if you give it them, instead of once a month as they’ do when they* have their money then ; and whether those people will not be strength¬ ened in their good resolutions by a longer delay in payment; and whether they will be likely* to get any more drunk once a month than if they got drunk every week, and whether they will be likely 33 to lose more oat of their time upon a monthly drunk than upon one occuring weekly. As I have said before, this legislation is very par* tial. I think you are reaching, or trying to reach, very few people, and that this is not a subject which demands legislation. And that the legislation on which you are asked to embark is very dangerous. It is just as much class legislation as if you were asked to say that no operative should have his pay until three months after he has rendered his service ; and that is my chief objection to it. Let us see a little further whether it is class legislation. In the first place there are only 101,000 operatives employed by 7 corpora¬ tions in this State. There are 160,000 employed bv private persons, but you are not asked to interfere with them at all. What are you saying to these corporations? You are saying “You shall not make such a contract as you wish.” You are saying, also, to the opera¬ tives who wish to work for these corporations, “You shall not make such a contract as you wish.” You say to the 101,000 people who are employed by these corporations, “You are not com¬ petent to make a contract, and you shall not make any but a weekly contract or a fortnightly 7 contract.” Does that not look like class legislation? Is it not saying to a certain class of those operatives who are now employed by r corporations, and who, as a class, cannot be employed anywhere else, perhaps,—I mean the cotton spinners, —is it not saying to them “You shall not make your own contracts as you wish, but you shall abide by the iron rule of the Leg¬ islature.” Is not that class legislation? What else do you say ? You say 7 to all the private persons, that is, to yourselves and to all the manufacturers who are manufacturing as individuals, “You may 7 make such contracts with y'our help as you choose. That will regu¬ late itself; but these corporations shall not make such contracts as they 7 please.” The advocates of this measure say, themselves, that that is unequal. They say it is unfair, and acknowledge that if they 7 get this it is merely an entering wedge. They say that in another year they' will ask to have this applied to everybody 7 ; so that we know what is coming. That is, they cannot get you to do this good thing now, if it is a good thing, but they will get it started in this way 7 , and afterwards apply it to the whole community. It is most distinctively class legislation. You say another thing. You say 7 to the private manufacturer, “You can deal with your workmen untrammelled by this additional expense, and the additional expense of interest.” And I do not wish to leave out of view the fact that if the manufacturer has to pay ten or twenty days earlier, he will have to pay so much more interest; and if he does not have to pay until twenty days later, he will gain so much in his interest account. Of course he will. Every¬ body knows that. He does not have to get the note with which he is to pay his help discounted so soon. Is there any reason why you 34 should encourage private capital rather than corporations ? I mean in regard to the contracts which they shall make. Are corporations capable of running their affairs as economically- as private manufact¬ urers? We know perfectly well they are not. As one of the wit¬ nesses, Mr. Dalton said corporations were running lavishly. It can¬ not be helped. They are directed by a Board of Directors, and one- man power can manage private affairs, or can manage manufacturing, better than a corporation. So you are giving to people who are pri¬ vate manufacturers an advantage over the corporations. Why? These private manufacturers are almost all of them per¬ sons of substance. As a whole, these private manufacturers repre¬ sent the wealth of this State. They are far richer and far greater employ-ers of labor than corporations are. But what are you doing, when y-ou sa 3 T to a corporation, 4 ‘You shall deal with y-our empk> 3 T ees under oppressive regulations ?” You say to every stockholder in that corporation, “You shall not be allowed to aggregate your money with that of other people who have small sums, and deal with those whom you employ, upon an equality-, in y-our competition with the private manufacturer.” Do y 7 ou not sa 3 T exactly that? And who are these people who hold stock in the corporations ? It is true that the corporations at Lowell were started years ago by rich men, who took their mone 3 T 011 1 °f commerce and established on that wonder¬ ful water power these mills, which have changed the Merrimack River into a Pactolus bearing down streams of gold. But of late years other investments have attracted their capital, and the opera¬ tives, who have laid up money by the millions, from working in these mills, have themselves invested in the stock ; so that 300 shares in the Merrimack company- are owned by- single persons, and the num¬ ber of shareholders who hold two shares or three shares, are given. So 3 'ou are legislating in this competition directly against a class of small holders, many" of them the operatives themselves, the most frugal and deserving people in your State, who have laid up their money- and invested it in this way. And, forsooth, because they haven’t enough to become private manufacturers themselves, y-ou are to say T , what has never been said in this State before, “You shall not continue in a corporation for the purpose of putting in your little earnings and compete on an equality with the great private manu¬ facturers.” It is monstrous. You never could justify that to your constituents. You never could justify it to yourselves. I have never seen a piece of legislation which, philosophically 7 considered, was so hard upon the middle and saving class, whom you have al¬ ways encouraged, simply 7 because they- were small holders and per¬ sons deserving of your encouragement. What have you done with regard to these very mills for the pur¬ pose of bringing together capital? At one time, so anxious were you to get people in this State to put their money into these mills, 35 that in 1818 you exempted them from taxation for ten years. So anxious were you to get farmers to breed sheep, that in 1818 y T ou exempted them from taxation, in order to start these woolen mills. It was all necessary', it was all proper. We have a sterile soil here and a harsh climate, and are competing at the greatest disadvanta¬ ges. One of the witnesses, in answer to what seemed to me a most pertinent question from one member of the committee, “Hasn’t Massachusetts increased down to the present time in its competition with other States?” told you “That is true ; and wiry? Because we had this great river here, these dams built; we have utilized our water power, we have used it all, now we are turning to steam.” It is perfectly well known, because of late 3 r ears Fall River without any water power, has grown up and is a steam cotton manufactur¬ ing place, able to compete perfectly well with the older established places like Lowell and Lawrence. And wiry? Because, although the water with which they supplement steam at Lowell, makes the power there a little cheaper, coal upon the sea board is consider¬ ably' cheaper and, therefore, Fall River is able to manufacture by' steam. And we have now no disadvantages for cotton or woolen manufacturing in this State. We are working side by* side in com¬ petition with Connecticut, with Maine, with Rhode Island, with New Hampshire, all filled with as nicely' adjusted machinery 1, as we have, and, I think, drawing from ns some of our very’ best workmen, because they' are allowed to work more hours. It may not be good for them, but, because they' are ambitious and because they' can earn more money', they go from us. Suppose you should pass a law that said every inhabitant of one particular town should pay to the members of this committee ten cents a day. You would think that was a peculiar law. it would not stand, probably; it would be unequal taxation, it would be a violation of equality, before the law, just as this proposed law would be, only' in the former case it is put in a more obvious way'. You are saying, now, to certain people whom you have encouraged to invest their savings, in Lowell and in Lawrence and in Fall River, that they shall pay' to a certain class of persons, viz, their opera¬ tives, ten cents more a month than they do now. That is what the advocates of labor mean to say', and ask y T ou to say'. They think that this is what they will get, — not the true friends of labor, Mr. Chairman, not the true friends of labor ! There are true friends of labor, and there are probably men working in this cause who mean to be true friends of labor ; but in order to be a true friend of labor, you also have need to be an intelligent friend of labor. Because labor and capital are working together with nicely adjusted machin¬ ery, and every foreign substance, every piece of hostile legislation, every improper interference with their relation, is like dropping a piece of dirt into the mechanism of a watch. It is like a drop of blood on the brain,—it means paralysis. 36 I think I can show in a very few minutes, if you will still have patience with me, that this is not for the benefit of the laborer ; but it is the worst kind of interference that has ever been asked for him. And it is very easy to see why i£.is not for his benefit. One part of it is just as broad as it is long ; the other part of it is positively in¬ jurious to him. I am not going to argue to men who know about the details of manufacture as well as I do, that if a man pays his laborers at the end of a month, instead of at the end of every week, he saves a certain amount of interest by it What I mean !;o say is, if he pays it earlier, he is obliged to borrow the money earlier, and his interest account is a little larger. The question whether that is de¬ frauding anybody has been disposed of by the vigorous language of Mr. Draper, a good deal better than I could do it myself, when he said “ Do you think Mr. Harris defrauded me, when he agreed with me as an operative, that I should work for him a year, and should be paid at the end of the year?” Of course no man is defrauded who enters into such a contract; and if the laborer or the operative understands that he is to be paid at the end of the month, it is no fraud to pa}’ him then. If he understands that he is to be paid at the end of the week, and his money is kept back longer than that, you can call it fraud, if you wish ; I call it dishonest. It is not ex¬ actly a fraud in the eye of the law, but it is not right, it is unjust; because the laborer is worthy of his hire, and he ought to have it just when he has stipulated for it, and he ought to have just what the employer stipulates to pay him. All those people who went into the vineyard, one of whom worked one hour, and another two hours, and so on, were paid at night. They were not paid every hour. And the man who had worked an hour there, got just as much as the man who had wrought and borne the burden and heat of the day. Yet the laborers were not satisfied. But no man was defrauded, because it was understood that they were each to receive a penny for his labor. But is it possible that anybody can argue to a body of sensible men, that if a workman is paid earlier instead of later, he will not in the long run get a little less wages? Of course he will. You run two mills side by side, one of which attempts to pay the same wages that the other does, one getting a month’s credit, and the otner pay¬ ing every night. There comes a time when down, down comes the margin of profits, and finally there has to be a cut in wages. Which one makes it first? It is of course the one which is paying the most wages. This is just as broad as it is long. The workingman will not save anything in interest, he will not gain anything in interest. And that illustrates the case before you. I agree that if you ask many laborers, many thoughtless men among the operatives, whether they had rather be paid at the end of the week than at the end of the month, they will say they had rather have their pay at the end of 37 the week; but if you ask such a person, ,4 Do you understand that in the long run you will get a little less, a few cents less, by taking it earlier, because that is the law of trade, do you want it earlier?” he will say, “Why, no. I pay all my bills once a month, and if I am going to suffer any deduction on m 3 ’ pay I don’t want it any earlier.” And that illustrates what these people who deal with the laboring classes don’t tell them. The}’ tell them only one side. They don’t explain to thoughtless people both sides of the question. But the}’ cannot pass any laws to permanently benefit the laboring class¬ es, which violate the laws of trade. You cannot make water run up hill. But your legislation, if improper, may affect the prosperity of the State. It may drive enterprise into investment elsewhere. It may make Massachusetts unable to keep her place in the race of competition. And I may say here,—although I don’t want to speak of the pres¬ ent condition of things, particularly, as affecting a great question,— that of all times, this particular time, when so many manufacturers are having to stop, and when things are at their very lowest ebb, as is shown t»y investments and as is shown by prices in evidence here, is a very poor time for the advocates of labor to make this move¬ ment. As to the matter of clerk hire, it is very difficult to get at the amount of the additional cost cast upon the mills by more frequent payments. Jt is going to be a great deal of bother, and in the long run it is going to add very much to the expense of manufacture. It has been said that perhaps there are a thousand corporations in this State the additional cost to which would average a thousand dollars. There have been two or three witnesses before you who estimated at several thousand dollars the cost to them of the extra clerk hire which will be required to make the weekly payments. I cannot see any possible way in which that additional clerk hire will not add to the cost of laying down the goods in the markets of the world. At present and in the future we must compete with other States in the price at which we can furnish our goods. Just north of us, in New Hampshire, for instance, to show how closely and how wonderfully trade and manufactures regulate themselves, is an¬ other town, a great manufacturing rival on the same river, having the same power, and, probably, having machinery which is quite as new and quite as expensive as that at Lowell. What happens? They work 64| hours a week, to our 60. They work nearly five hours more a week than we do. What is the result? It is found that as 5 is 8 and a fraction per cent, of 60, they produce 8 and a fraction per cent, more goods than we do from the same number of spindles. They pay 8 per cent, more wages than we do, and there- iore the best operative goes there—he goes there by preference, away from us, and, what is more, the operatives came into the New 38 Hampshire Legislature last year with great petitions, saying, “We want to earn more, and we w r ant to have our hours uninterfered withand it Shows that the capitalists here, of course, cannot get from the same plant, from the same investment, as great a return by 8 per cent., and, therefore, if there are profits to divide, he must have 8 per cent, less than can be divided by the other factory. Not to go to Pennsylvania, where coal can be got for half what ours costs, and cotton much cheaper, to find illustrations of competition, here is a city 14 miles north of us which is drawing away our people and will draw our capital. I was somewhat struck ; it hasn’t much to do with this question, but I was somewhat struck by T the testimony, given by certain oper¬ atives, the other day in Connecticut, who went down there, where they are allowed to work eleven hours, from Massachusetts, and they said they preferred to work there rather than to stay here. Why? Because they said that our hours were short, and our manufacturers were obliged to run the machinery at such rates of speed that it was killing them. That is the way they put it there. The Massachu¬ setts manufacturers have got to do something, for 8 per cent, disad¬ vantage is going to kill any business in this country in the next twenty years. Now I will return, Mr. Chairman, to where I was before. This additional cost should not be imposed unless it is for the great and lasting advantage and benefit of these working men. for it is some¬ thing which is going to be paid for by them. I mean paid in part. 1 state the proportion for you. What does a manufactured product consist of? It consists, in the first place, of the raw material which is two-thirds the value of the product, and in the second place of labor, and the return on capital which is one-third. The raw mate¬ rial costs a fixed sum, that is the same everywhere, except the cost of transportion. The other third covers the payment of the opera¬ tive and the payment to the capitalist on his plant, or investment, it goes to those two. You make the cost of laying down your cloth in New York more by half a million dollars, or a million dollars for additional clerk hire, that additional cost has got to fall somewhere. Will it fall on the laborer? Mr. Carlton would tell you what the ad¬ ditional cost will be taken out of the wages of the operative. But, if it fall on these operatives, as it will tall on them in part, certain]}', what will they do? They will either ask you to repeat it, if they see it is for their interest, and to have it left to itself and regulate iiself; or they will go to other fields where these regulations do not exist and get more pay there. If it falls on the manufacturer, wholly, what results, again? It means that if he has to pay the additional cost, that such regula¬ tions are constantly discouraging the further investment of capital in this Commonwealth. It is not true that you can afford to say to 39 corporate capital, “We have got } r ou here, and now we will squeeze you.” That is not the wise way in which this Commonwealth has been managed. Our polic}’ has been to legislate equally for all, and not, because a class asks a peculiar privilege, to grant it ,to them, especially if it is not going to do ai^ permanent good. But what will be the result? The mills at Lowell could not move away; but in the next 20 years, if Massachusetts is going to keep her present position as a manufacturing community, she has got to have 240,000 new spindles put in action. Who is going to do it? Not that keen Mr. Draper who was talking to you } T esterday. He is read}' to take the alarm at once, and go over into Connecticut; and you will find tiiat is so w r ith others. Suppose you do permanently discourage capital? The operatives say: “We have got these factories here, and we can squeeze them, and that additional cost of payment shall come out of capital, come out of its interest.” Is that sound rea¬ soning for them? I think not. It violates the general rule that you cannot safely legislate for one industry or one class of people at the expense of another. Such chickens, like curses, always come home to-roost. A few of the operatives can say: “If wages fall here, under this thing, we will go up to New Hampshire, or down into Connecticut,” Yes, but what does that mean? It means that the itinerant population, which has no ties, can go awa}’ and desert a sinking ship. Does it mean that the people whom you have en¬ couraged to build houses in Lowell, who have built up all over the State, towns like Fall River, does it mean that their propert}’ can be kept at its present prices? Can they go away from the homes that you have encouraged them to establish here among you? No. The onl} T class that reasons that way is simply the changing class that comes into a factory town from Canada to sta\' for a lew months. They don’t care, perhaps. Those who think about it, do. They w r id look at it just as you will, I mean, fairly, in the management of your own affairs ; they will see at the last that there is no more of a cat than her shin, and that you cannot make it cost more to lay down cotton cloth in New York, side by side with that which is manufactured by your competitors, and not have the additional cost fill upon the two parties who are producing it , I mean the capital¬ ist and the laborer, probably in parts upon each. That part of it is unnecessary restriction of trade, and not beneficial 'to the per¬ sons for whom it is asked. The other part, the question of interest, I look upon as just as broad as it is long. I wish to say a word about cash. A cash system has never exist¬ ed in any civilized nation, nor even among barbarians. There is no nation so uncivilized as ever to have had it. so far as I know, no na¬ tion where there has ever been so little faith, or credit, which is the same tiling. Faith or trust in a promise, which is credit, has wafted the sail of commerce to its final haven of success. The sailor waits 40 till the encl of the voyage. The whaler waits for years before he shares his la\ T . The agriculturist waits till the pay-day of harvest repays the loan of seed time. Nature herself proceeds on credit, and cannot*do otherwise; and so man, who is living in nature, goes on credit. Credit is the nurse of civilization. There has been a great deal of talk as though these wages were reall 3 r owed to the workman, as though they were reall}" due before the end of the month. If the workman really shared in these enter¬ prises, out and out, with his employer, he would wait for months. The employer lays out in his mill this expensive plant, which he does not get returned to him for years. He buys a large stock of material for cash, and he waits for it for months before it is cloth. He sells it months before it is paid for, and waits till the agriculturists of the West are able to pay for it from their crops. If the laborer waited really, as it might be said he should do, if he were in the same boat with his employer, he would wait for a much longer time than he does now. But he cannot be in the same boat with his employer, because he needs to be supported. He must live on the earnings of his daily toil, and, it is perfectly proper that at convenient times his employer should make the necessary payment, and the employer gets back his interest on these advances in the final settlement. But as to credit. Even interest is not paid when it is earned. You are paid your interest semi-annually, but it is earned even 7 day by the man who is living in the house on which he has given you a mortgage ; he has had the enjoyment of it every moment, but he is not called upon to pay it until the stated time. The system of credit prevails in all civilized nations. Just as soon, indeed, as the savage lends a wooden bowl of corn to his neighbor, to be returned when the neighbor gets some of his own, he goes upon a credit system. And the sj-stem which it is proposed to establish here is not a cash system, any more than the one in use at present. If }’ou are to establish a cash system, you would have to pay every night, or every hour, or almost every minute. This is not a cash system. The only person that I have heard of here, who is to be benefitted, who demands this law as necessary, is the possible case of a man arriv¬ ing from a foreign port, or from Canada, with just money enough to land him and his traps—or no traps—at a Lowell boarding house. It is supposed that that man must have payment weekly in order to keep soul and body together while he works. Well, sir, even as to him this would not afford relief. He would starve to death in two or three days of the first week. No matter how short the term you fix, the man who comes'to Lowell in that condition of nakedness has got to proceed upon a credit system. And I am told, and I believe you will bear me out in it, that if a man is known to have work in any of these mills, if it is merely known that he has got work, he can go to any storekeeper there and get a week’s credit, or a month’s credit, and the dealer waits for him, and that, too, without 41 an assignment. If he does not keep faith, then he is pursued by the law, perhaps unwisely, on this trustee process. 1 tried to get this trustee process abolished or modified when I was in the Legislature, but 1 found the very strongest feeling against disturbing it. M 3 ’ opposition to it is not that the workman should not have to pay his debt—that he ought to do ; but it is that the trustee process is served over and over again, and that pettifogging lawyers get costs in a way which should not he allowed. That is what I think about it. But still, that could be easily amended bv providing that second suits in trustee process, or scire facias , should not carry costs ; and I think some such legislation as that might be very wise, although I believe that wages are now exempted to a ceitain extent. But I do not wish to argue this question upon the ground that these people who receive their wages and are willing to work are cheats, at all.- They mostly pa}', and it is known that the}' pay, and they can get trusted, and get trusted just as soon as it is known that they are at work in a mill. And that will have to be so, even under a. system of fortnightly payments or weekly payments, or anything like that. There must be some time of credit. But how many people come to Lowell under the circumstances which I have sup¬ posed? Why, none at all. It is a fancy instance which is put be¬ fore you to excite your imaginations. There is nothing in it. But suppose that the operatives are paid every week? Suppose that your income, coming in from property, was received by you every week, would you proceed on a cash system ? I would not, and I do not believe there is a member of this committee who would or does. You don’t like it, you don’t want the bother of it; you had rather wait until the end of the month, or the end of the quar¬ ter, even, and pay your bills. Your common sense and experience will tell you this, that these workmen, this most independent class, as a class, who are putting money in the savings banks every month, who have the large deposits which Lowell shows, although they have money in their pockets all the time, or in the savings banks, which they could equally well use, are going on a monthly credit system, and not on cash. Does the tired operative coming home from his work on Saturday night, with his money in his pocket, want, to be taken by the hand and led out to buy this and to buy that, to buy a half a ton of coal, or a half a barrel of flour, or what not? The weekly payment is not enough to buy in the quantities which he wants. It does not cover the units which it is necessary to buy, to buy cheaply. It will not buy a ton of coal and a barrel of flour to¬ gether, as a general thing; but his monthly wages will, and he gets them cheaper than if he paid cash. Those people who buy in quan¬ tities less than the unit, always suffer in prices. I really don’t be¬ lieve the operatives could buy any cheaper for cash. I am told by excellent judges of human nature, who deal with these people, that 42 they had rather trust a man than have him pay cash, and they will sell him quite as cheaply. They had rather have him come steadily to their place, and establish a connection there, knowing he will buy of them, than to be chaffering with him and getting cash for every item. I am reminded, Mr. Chairman, that it is not great margins, but it is the very smallest advantages and the smallest margins, which, in this competition with other States, are going to regulate our trade hereafter. There is one thing of which I made a note, on which some gen¬ tlemen of the committee, by their questions, seemed to lay some stress, and that is, whether or not more work was not obtained from the operative by a S 3 x stem of weekly than a system of monthly pay¬ ments. I am not at all sure that it is desirable to make them work more. If the regulations of the ten hour law, which I think, on the whole, rest on Very sound principles, are correct, it is not any more proper to have these people worked at lightning speed, than to have them overworked by too many hours of labor. But there is no more cloth produced by the last week’s 1 labor than by the first week. These looms run obedient to a law which the operative does not control. They are speeded by steam, by machinery. It is all reg¬ ulated below. The operative cannot hurry them as she can the treadle of a sewing machine. The same number of yards of 3 am passes over the loom whether she is in a hurry or not. It is true that when a thread breaks she ties it up, and the quicker she gets that done, the sooner her loom will go on, and undoubtedly if there is a cut mark in sight, when she is near the end of her work on Sat¬ urday, she will be a little more attentive to her loom. But they cannot exert themselves, practically, any more one week than they can the other. I don’t know that there is anything to be said further, except this, that there was at first a little effort to make out that the rail¬ roads should not come under these same provisions. I think you will agree with me, gentlemen, that the law is equally applicable to all corporations, if it should be applied to ati 3 T . Railroad corpora¬ tions, it is to be observed, are not subject to any out of the State competition; and however you treat them, however you tax them, they will turn about and put it upon the people who are obliged to travel in this State over their lines. So, if you think that they had better pay once a week, 3 r ou can make them do so without any se¬ rious interference with their property. But I think the law should be treated upon high grounds: as class legislation, dangerous legis¬ lation, not justified 1 > 3 T our experience in the past. It should be treated as the improper interference with a class to whom it does not do any good, but whose feelings it tends to degrade. I ajn very much obliged to you, Mr. Chairman and gentlemen, for the atten¬ tion which you have given me. f'A. •"