TRANSACTIONS OF SECTION ¥. 735 



The following Papers were read : — 



1. Labour and Capital. — Their Differences and how to Reconcile them. 

 By C. H. Perkins. 



The appointment of a Royal Commission for the purpose of inquiry into the 

 causes of the constantly occurrin;^ disputes between Labour and Capital, is an 

 additional proof of the extreme gravity of the question. 



The results of that inquiry it would be unwise to predict. That much valuable 

 information will be obtained there is no doubt, but it will afterwards rest with 

 practical men to use that information to advantage and in furtherance of the 

 objects in view. Thus, even while the Commission is sitting, there is ample 

 scope and a most useful field for thought and inquiry. 



The causes that have produced the present state of things are readily to be 

 understood. Employers, as a rule, and very naturally, have sought to secure labour 

 at the lowest possible cost ; and so long as they held absolutely the upper hand, 

 disputes could not long continue, and there would be no impediment to the progress 

 of the country in wealth, industry,andcommerce, however much the philanthropist, 

 and indeed the political economist, might have reason to deplore the subservience 

 of the working classes and their deprivation of much of the true enjoyments and 

 happiness of life. 



But now an enormous alteration has taken place, through the spread of educa- 

 tion, a cheap press, ready and cheap means for emigration, and the power of com- 

 bination by means of trade and other unions. 



Thus the forces of labour and capital are equalised, and strikes and disputes 

 have become protracted and dangerous, and the necessity of some mode of identify- 

 ing the respective interests of labour and capital, and of promptly settling disputes 

 when they do arise, is rendered absolutely necessary. 



While much has been said and written as to the identity of the interests of 

 labour and capital, it is apparent that capital has in some respects a preferential 

 claim. Such claim includes interest for its use and its eventual return to the 

 investor. 



The power to labour is, on the other hand, the workman's capital, and for its 

 use he is entitled to wages at current i-ates, and, as that power is an exhaustive one, 

 its possessor should be recouped, so far as possible, for its expenditure. 



But as regards capital, the money invested can only, as a rule, be refunded if 

 success attends the undertaking in which it is embarked, while the workman, 

 after receiving wages at current rates, can, if he likes, remove to other scenes of 

 labour, and thus incurs no risk of loss beyond the expenditure of a certain amount 

 of his physical strength. 



Before, therefore, profits can be regarded as having been attained, interest at a 

 rate depending upon the nature of the undertaking must be paid, and also a certain 

 annual sum, or a percentage on the profits, for redemption of capital. 



These preferential claims being provided for, it is proposed that all further 

 profits or income be divided between capital and labour in the proportion that the 

 amount invested and employed as working capital bears to the collective amount 

 paid annually in wages. 



Thus, presuming a colliery, for example, has cost and employs capital to the 

 extent of 20,000/. and that the interest is 5 per cent., and the charge for redemp- 

 tion 2^ per cent., 1,500/. per annum out of the profits would thus be paid to the 

 investors. Presuming that the annual profits were 5,200/., there would be a 

 residue of 3,700/. for division between capital and labour. If the latter, as repre- 

 sented by the wages paid, amounted to 20,000/., half of this residue of 3,700/., that 

 is, 1,850/., would accrue to labour and half to capital. Thus, presuming a man's 

 annual earnings amounted to 6G/. he would receive a bonus of 5/. 18s. Sd. per 

 annum. 



Capital would really lose nothing by this apparent surrender, for it would first 

 receive interest at fair rates and redemption, and secondly the immunity from 

 strikes and stoppages ; and the additional care and economy that would be shown 



