To demand, as a further result, that there should be no strikes in the factory, no revolt against the will of the employer because the employees were filled with loyalty as the result of the kindness, was of course to take the experiment from an individual basis to a social one.

Large mining companies and manufacturing concerns are constantly appealing to their stockholders for funds, or for permission to take a percentage of the profits, in order that the money may be used for educational and social schemes designed for the benefit of the employees.  The promoters of these schemes use as an argument and as an appeal, that better relations will be thus established, that strikes will be prevented, and that in the end the money returned to the stockholders will be increased.  However praiseworthy this appeal may be in motive, it involves a distinct confusion of issues, and in theory deserves the failure it so often meets with in practice.  In the clash which follows a strike, the employees are accused of an ingratitude, when there was no legitimate reason to expect gratitude; and useless bitterness, which has really a factitious basis, may be developed on both sides.

Indeed, unless the relation becomes a democratic one, the chances of misunderstanding are increased, when to the relation of employer and employees is added the relation of benefactor to beneficiaries, in so far as there is still another opportunity for acting upon the individual code of ethics.

There is no doubt that these efforts are to be commended, not only from the standpoint of their social value but because they have a marked industrial significance.  Failing, as they do, however, to touch the question of wages and hours, which are almost invariably the points of trades-union effort, the employers confuse the mind of the public when they urge the amelioration of conditions and the kindly relation existing between them and their men as a reason for the discontinuance of strikes and other trades-union tactics.  The men have individually accepted the kindness of the employers as it was individually offered, but quite as the latter urges his inability to increase wages unless he has the cooeperation of his competitors, so the men state that they are bound to the trades-union struggle for an increase in wages because it can only be undertaken by combinations of labor.

Even the much more democratic effort to divide a proportion of the profits at the end of the year among the employees, upon the basis of their wages and efficiency, is also exposed to a weakness, from the fact that the employing side has the power of determining to whom the benefit shall accrue.