THE BREAKDOWN OF THE LABOUR ARBITRATION SYSTEM.

Auckland Star, Volume XXXIX, Issue 168, 15 July 1908, Page 8

THE BREAKDOWN OF THE LABOUR ARBITRATION SYSTEM.

(To the Editor.) Sir, —It has appeared to mc strange that the collapse of the above system has caused so much surprise to so many. An unseaworthy craft may cross the ocean safely in fine w«ther, but that would not be a reason for pronouncing her tight and staunch. It has been frequently said that it was premature to boast of the absence of strikes in N.Z., as the working of the Arbitration Act had been concurrent only with a period of unprecedented prosperity. At the present juncture, it will be probably interesting to j - our readers to peruse the following lines, being an extract from some lectures by that large-souled American. Colonel Ingersoll, /in the Labour question, and written some 25 years ago: —"There has been, for many years, ceaseless discussion on what is cailed the labour question, the conflict between the working man and the capitalist. Many ways have been devised, some experiments have been tried, for the purpose of solving this question. Profit-sharing would not work, because it is impossible to share profits with those who are inCapable of shaving losses. Communities have been formed, the object being to pay the expenses and share tho profits among all the persons belonging to Che society. For tho most part, these have failed. Others have advocated arbitration; and, while it may be that the employer could be bound by the decision of the arbitrators, there has been no way discovered by which the employees could be held by such decision. In other words, the question has not been solved. For my own part, I see no final and satisfactory solution except through the civilisation of employers and employees. The question is so complicated, the ramifications are so countless that a solution by law or by force, seems at least improbable. Employers are supposed to pay according to their profits. They may or may not. Profits may be destroyed by competition. The employer is at the mercy of other employers, and, as much so as his employees are at his mercy. The employers cannot govern prices, they cannot fix demand, they cannot control supply; and at present in the world of trade, the laws of supply and demand, except when interfered with by conspiracy, are in absolute control." Socialists would probably say that the solution of the difficulty would be found in the State acquiring and running all commercial and industrial undertakings, that would, of course, include the nonpaying as well as the paying ones. The average profitmaking, then, would not perhaps be so dazzling as the few very successful enterprises now appear to be. As, for an instance, were the State, or any one corporation, to take over tho whole mining industry in this Dominion, two-thirds of the mines would be soon closed down as non-paying, which -would throw out of work a large number of persons to start with, but, as this is opening up a very large question, I will at present pursue it no further,— l am, etc., JOHN A. BEALE.