Changed Status of Labor

The truth is, we are all caught in a great economic system which is heartless.

Continuing Woodrow Wilson’s New Democracy,
our selection from The New Freedom by Woodrow Wilson published in 1913. For works benefiting from the latest research see the “More information” section at the bottom of these pages. The selection is presented in five easy 5 minute installments.

Previously in Woodrow Wilson’s New Democracy.

Time: 1913

Why is it that we have a labor question at all? It is for the simple and very sufficient reason that the laboring man and the employer are not intimate associates now, as they used to be in time past. Most of our laws were formed in the age when employer and employees knew each other, knew each other’s characters, were associates with each other, dealt with each other as man with man. That is no longer the case. You not only do not come into personal contact with the men who have the supreme command in those corporations, but it would be out of the question for you to do it. Our modern corporations employ thousands, and in some instances hundreds of thousands, of men. The only persons whom you see or deal with are local superintendents or local representatives of a vast organization, which is not like anything that the working men of the time in which our laws were framed knew anything about. A little group of working men, seeing their employer every day, dealing with him in a personal way, is one thing, and the modern body of labor engaged as employees of the huge enterprises that spread all over the country, dealing with men of whom they can form no personal conception, is another thing. A very different thing. You never saw a corporation, any more than you ever saw a government. Many a working man to-day never saw the body of men who are conducting the industry in which he is employed. And they never saw him. What they know about him is written in ledgers and books and letters, in the correspondence of the office, in the reports of the superintendents. He is a long way off from them.

So what we have to discuss is, not wrongs which individuals intentionally do — I do not believe there are a great many of those — but the wrongs of the system. I want to record my protest against any discussion of this matter which would seem to indicate that there are bodies of our fellow citizens who are trying to grind us down and do us injustice. There are some men of that sort. I don’t know how they sleep o’ nights, but there are men of that kind. Thank God they are not numerous. The truth is, we are all caught in a great economic system which is heartless. The modern corporation is not engaged in business as an individual. When we deal with it we deal with an impersonal element, a material piece of society. A modern corporation is a means of cooperation in the conduct of an enterprise which is so big that no one can conduct it, and which the resources of no one man are sufficient to finance. A company is formed; that company puts out a prospectus; the promoters expect to raise a certain fund as capital stock. Well, how are they going to raise it? They are going to raise it from the public in general, some of whom will buy their stock. The moment that begins, there is formed — what? A joint-stock corporation. Men begin to pool their earnings, little piles, big piles. A certain number of men are elected by the stockholders to be directors, and these directors elect a president. This president is the head of the undertaking, and the directors are its managers.

Now, do the working men employed by that stock corporation deal with that president and those directors? Not at all. Does the public deal with that president and that board of directors? It does not. Can anybody bring them to account? It is next to impossible to do so. If you undertake it you will find it a game of hide and seek, with the objects of your search taking refuge now behind the tree of their individual personality, now behind that of their corporate irresponsibility.

And do our laws take note of this curious state of things? Do they even attempt to distinguish between a man’s act as a corporation director and as an individual? They do not. Our laws still deal with us on the basis of the old system. The law is still living in the dead past which we have left behind. This is evident, for instance, with regard to the matter of employers’ liability for working men’s injuries. Suppose that a superintendent wants a workman to use a certain piece of machinery which it is not safe for him to use, and that the workman is injured by that piece of machinery. Our courts have held that the superintendent is a fellow servant, or, as the law states it, a fellow employee, and that, therefore, the man can not recover damages for his injury. The superintendent who probably engaged the man is not his employer. Who is his employer? And whose negligence could conceivably come in there? The board of directors did not tell the employee to use that piece of machinery; and the president of the corporation did not tell him to use that piece of machinery. And so forth. Don’t you see by that theory that a man never can get redress for negligence on the part of the employer? When I hear judges reason upon the analogy of the relationships that used to exist between workmen and their employers a generation ago, I wonder if they have not opened their eyes to the modern world. You know, we have a right to expect that judges will have their eyes open, even though the law which they administer hasn’t awakened.

Yet that is but a single small detail illustrative of the difficulties we are in because we have not adjusted the law to the facts of the new order.

Since I entered politics, I have chiefly had men’s views confided to me privately. Some of the biggest men in the United States, in the field of commerce and manufacture, are afraid of somebody, are afraid of something. They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it.

They know that America is not a place of which it can be said, as it used to be, that a man may choose his own calling and pursue it just so far as his abilities enable him to pursue it; because today, if he enters certain fields, there are organizations which will use means against him that will prevent his building up a business which they do not want to have built up; organizations that will see to it that the ground is cut from under him and the markets shut against him. For if he begins to sell to certain retail dealers, to any retail dealers, the monopoly will refuse to sell to those dealers, and those dealers will be afraid and will not buy the new man’s wares.

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