April 20, 1920


First Annual Report of the Air Board-Hon. Air. Sifton.


On motion of Hon. S. F. Tolmie (Minister of Agriculture), it was ordered that the House do to-morrow go into committee te consider a resolution respecting an amend inent to the Oleomargarine Act, 1919.


On motion of Hon. C. C. Ballantyne (Minister of Marine and Fisheries), it was ordered that the House do to-morrow go into committee to consider a resolution respecting an amendment to the Canada Shipping Act.



On motion of Rt. Hon. Sir George Foster, Acting Prime Minister, that the House do go into Committee of Supply:


William Lyon Mackenzie King (Leader of the Official Opposition)


Hon. W. L. MACKENZIE KING (Leader of the Opposition):

Mr. Speaker, I must thank my right hon. friend for his courtesy in moving the House into supply in order to give me an opportunity to make a statement which I have desired for some time past to make, but which, owing to the rules of the House, I have found it impossible to make at an earlier date. The subject I desire to discuss is one which I would have raised as a question of privilege had it not been that the rules of the House limit a speaker in such case to a simple denial of statements complained of, and the matters to which I wish to refer are of such a nature

that the House 1 think will permit from me something more than a formal denial.

I desire to bring to the attention of hon. members a report of a meeting which was held in the city of Montreal on the 5th day of this month, which appears in the Montreal Gazette of the day following. It is the account of a meeting of the regular weekly luncheon of the so-called "Progressive Club" in that city. The report contains addresses by Mr. John MacNaughton, an advocate of Montreal, and by a Dr. Gilday, a medical practitioner, also of that city. The report will be found on page 5 of the Montreal Gazette, under the following heading: " Scored Liberal Party on Policy." "Progressive Club speaker claims Opposition not in harmony on question." " Criticised Party Leader." "Said indications pointed to continuing relationship between Hon. Mackenzie King and Rockefeller." The particular statements to which I wish to draw the attention of the House, and which I regard as being defamatory, appear in the addresses of both Mr. MacNaughton and Dr. Gilday. First, under the sub-heading, " Menace to Canada " is the following as a part of the address delivered by Mr. MacNaughton. Referring to myself Mr. MacNaughton is thus reported:

So far as the returned man was concerned, he declared, how could he expect to receive any concessions from a Liberal leader who had deserted Canada in her hour of crisis in search of Standard Oil millions. Indications pointed to a still continuing relationship between Mr. King and the Rockefeller interests, which at no distant date might prove a menace to Canada.

Then appears the following reference to utterances by Dr. Gilday:

In moving a vote of thanks tc the speakers of the day. Dr. F. W. Gilday referred to the first Liberal leader as one whose connections with American capitalists might soon prove inimical to Canada's best interests.

He saw in Mr. King the representative of certain American commercial men charged with the mission of making Canada a free trade country, and commercially subservient to the United States. Mr. King had left Canada at the time of war crisis, although a bachelor and capable of bearing arms, and only a young man. He preferred, however, to work for Rockefeller, and indications pointed to the fact that he had returned to Canada not for the purpose of the country's best welfare and advancement, but still apparently entangled in the octopus of Standard Oil interests and Rockefeller millions. The future, he said, would bear out the truth of his remarks.

Mr. Speaker, it will be perfectly apparent to hon. members of this House that statements of this kind are intended to arouse prejudice not in one direction only, but in many directions, and prejudice of the most bitter and cruel kind-prejudice in the

minds of labour, prejudice in the minds of the returned soldiers, prejudice in the minds of the business community, prejudice in the minds of all patriotic citizens. The statements are absolutely false in fact and misleading in inference. They constitute as utter a slander, and as undoubted a criminal libel as any statement could possibly be. If I have not taken steps to proceed against the guilty parties, it is because I am willing to believe that they were made in complete ignorance of the facts, and that they would not have been uttered had the truth been known to those who made them, or to the journal which has given them publicity.

I do not at this moment rise to make any defence in regard to any statement which is contained in these utterances. My purpose is solely to place on record a few relevant facts, so that ignorance of the truth, or any pleading of current rumour, will not hereafter be any defence should I find it necessary and desirable to take criminal proceedings against individuals, or publications that persist in this kind of political warfare.

Were the gentlemen who have made these statements not members of learned and honourable professions, and were the paper that has given publicity to them not one which prides itself on its high place in journalism in this country, I could well afford to treat them with that contempt and indifference with which I have treated like slanderous statements in the past. I feel, however, that if I continue to allow statements of this kind to go unchallenged, in view of the publicity that has been given them, I shall be laying myself open to being misunderstood throughout the country in a manner which will not only prejudice me personally as a member of this House but also prejudice hon. gentlemen who have honoured me with the position I hold and those who accord to us political support. I have a. further reason for desiring to give to the House a few relevant facts, and that is my belief that there are many persons in this country who have no desire to further either a personal injury or a public wrong, but who, owing to the currency which has been given to certain false statements and rumours, find it difficult to understand how so much publicity could be given to anything that is so absolutely without foundation.

And I have yet another reason for desiring to make this statement at this time.

I see no other way in which many of my, fellow-countrymen who have served this

country overseas can find it possible to become acquainted with the truth, in view of statements that have been made to them concerning matters which were supposed to have taken place during the time they were absent from this country.

Sir, as I have said, these statements are utterly false and completely misleading.

First of all, there is the statement that J have resided in the United States. Permit me to say that I have lived for the last twenty years in this city of Ottawa, and have never during that time had my place of residence anywhere else. During the last ten years. I have resided in the Roxborough Apartments in this city, and any member of this House who inquires of the Imperial Realty Company, the proprietors of the Roxborough, -will find that at no time during the war or since have I cancelled my lease or even temporarily sublet the apartment which I occupy. The relationship which I had with the Rockefeller Foundation, and to which I shall allude in a moment, did not require or necessitate in any way my absence from Canada; nor did it as a matter of fact occasion any absence except in the most transient way. More than that, at present I have not, and for some considerable time past have not had any business connection with any commercial, financial or business interest either in the United States or in Canada. I have had none such since I was honoured with the position of the leadership of my party in August last. I have refused consistently since that time even to entertain the acceptance of a retainer or fee for any work and I have done so in order that I might devote to the public duties which devolve upon me, my entire time and attention.

Now, Sir, let me explain the nature of my relationship to the Rockefeller Foundation. First of all, the Foundation is not in any sense of the word a business or commercial enterprise. It is a philanthropic organization chartered under the laws ot the State of New York in the year 1913. As described in the Act of Incorporation, it is a body corporate "for the purpose of receiving and maintaining a fund or funds and applying the interest and principal thereof to promote the well-being of mankind throughout the world." During the war its activities were for the most part in the nature of war work co-operation. It was the first organization in the United States to come to the relief of the Belgians in the matter of food and clothing. It not only assisted the Belgians but its funds

were utilized to bring relief to the starving populations in portions of France as well as Belgium and to the peoples of Poland, Serbia and Armenia at the hour of their. greatest need. It gave millions of dollars in assistance to Red Cross and Y.M.C.A. work in army and navy camps and communities. It equipped and maintained war demonstration hospitals, provided the services of Dr. Alexis Carrel and his staff, hospital and surgical laboratory at Compiegne, France. It carried out many other forms of war work throughout the whole of that terrible period. Apart from the war, its activities relate mainly to medical education and public health demonstration in different parts of the world. It is carrying on its beneficent operations in China, in France, in India, in Egypt and indeed in all parts of the world, and all its work is, as I have indicated, exclusively that of promoting the well-being of mankind.

My duties in connection with the Rockefeller Foundation were to make a study of the problem of -industrial relations with a view to ascertaining if it were possible to contribute in any way toward the solution of that intricate and world wide problem.

I was no more in the employ of the Rockefeller interests, or of any Standard Oil interest, in my association with the Rockefeller Foundation than any librarian of [DOT] a Carnegie library can be said to have been in the employ of the late Andrew Carnegie, or than teachers and professors who are the recipients of pensions from the Carnegie Foundation for the Advancement of Teaching can be said to be related to any steel trust or corporation.

Within the last few months, as an expression of international good-will,, the Rockefeller Foundation made to the universities of this Dominion a gift of $5,000,000 to be used for research work in connection with their medical departments. The young men or professors who study under the benefits of this particular gift will occupy a position precisely similar in its relation to any Rockefeller interest to that which I did when I was appointed by the Foundation to make a study of this question of industrial relations.

May I point out that my connection with the Rockefeller Foundation was formed before the war commenced. My acceptance was given in the spring of the year before the war was thought of. At the time it was made, I had been nominated and was in the position of candidate of the

Liberal party in the constituency of North York. When I was asked if I would undertake that study for the Foundation, 1' pointed out that if it meant any change of Residence from Canada, it would be impossible for me to consider it. I was told that I could pursue my researches anywhere I wished, that there was no obligation to live at one place rather than another, that I could go to any part of the world, and have a staff of men to assist me if I so desired, in carrying out the researches which I had been asked to undertake, the sole object being to conduct a study that might be helpful as a contribution towards the solution of industrial problems.

That was the situation when the war came on. I had then to decide, just as every other man in this country had, what, Under existing circumstances, it was best to do.

I had to decide in relation to the Rockefeller Foundation, and the work which I had undertaken, whether I should abandon those studies altogether, or whether I should undertake them in relation to the problems which were growing out of the war. I shall mention in a moment or two certain private considerations of which I was obliged to take account in reaching a decision; but for the present I wish to confine what I have to say to the public reasons which I felt were strong enough to cause me to make the decision I did, a decision which I believed at the time and have ever since believed, was entirely in the right direction.

As hon. gentlemen know, the war had not proceeded very far before it became perfectly apparent that the winning of the war depended upon the successful co-operation of capital and labour in the industries that were engaged in the production of munitions, and the furnishing of war supplies and materials, as well as upon the heroic efforts of the men who were fighting at the front. The governments of the different countries recognized that to be the situation. The Government of Great Britain established, shortly after the beginning of the war, a reconstruction committee, which subsequently became the Ministry ol Reconstruction in England, with a subcommittee on relations between employers and employed, to deal with the problems of industry as they arose during the war, and were likely to arise during the period of reconstruction. The Government of the United States appointed a National War Labour Board, and the Government of Canada-the present Government-appointed the Reconstruction and Development Com-[Mr Mackenzie King.]

mittee of the Cabinet, with a labour subcommittee. The work of all these bodies was to study the problems arising out of the relations between capital and labour with a view, if possible, to avoiding industrial controversy in essential industries during the war and finding means for the rapid development of peaceful and helpful relations in the period after the war.

The work I was doing for the Rockefeller Foundation, both in its purpose, as research, and in its practical effort, was identical with the kind of work which wa^ being done by persons associated with these bodies. Every man associated with , any of these organizations was regarded by his fellow countrymen as rendering a much needed war service, a service for which he was specially qualified, and for which he had been chosen because of special qualifications.

My selection by the Rockefeller Foundation had been made, amongst other reasons, because of the circumstances that during a number of years I had held a position in the Department of Labour of this country as deputy minister of the department, and subsequently as minister, and during that time had had considerable to do, at first hand, and in a practical way with industrial problems. It was believed that with that experience, and with the opportunity the Foundation afforded, a useful service might be rendered.

The results of my work for the Rockefeller Foundation are published in book form. I think some hon. gentlemen may have heard of the book; and here let me say that I am sure the House will realize how extremely embarrassing it is to any one to be obliged to make a reference to his own work. But hon. gentlemen will also realize, I am sure, that if I simply make a general statement such may not prove sufficient under the circumstances. I am therefore obliged to make specific reference to some portion of the work accomplished in this connection. That is my apology and my reason of necessity for referring to one or two things which I wish to place before the House for consideration. Whether the results of my study bear at all helpfully upon the problem of reconstruction or not, hon. members will be able to see for themselves by referring to the hook. It is entitled "Industry and Humanity: A Study in the Problems Underlying Industrial Reconstruction." The book consists of some 550 pages, exclusive of charts and diagrams. Every line of it was written in the

city of Ottawa; every page of proof was read in this city; all of the research work was done in Canada. It was done during the war, and the book itself was published before the Armistice had been *concluded. The Canadian editions have been published by Thomas Allen, of Toronto, the American by Houghton Mifflin, of Boston and New York, and the English *by Constable and Co.

I presume the impression that in some way or another I was connected with the so-called Rockefeller interests grew first of all out of this association with the Foundation to which I have referred. It may also have grown out of the fact that in the early years of the war I spent quite a little time in the state of Colorado, and later, accompanied Mr. John D. Rockefeller, Jr., through the mines of the Colorado Fuel and Iron Company. May I say to hon. members that the reason I went to Colorado at the time I did was because there had been a situation there very much in the nature of an industrial civil war-it was the most serious industrial situation on this continent. I went of my own volition, under direction or suggestion from no one.

I had been given a perfectly free hand by the Rockefeller Foundation to .do what I thought best in the way of carrying out the work which the trustees of the Foundation had given me the opportunity to perform. I felt that if it were possible to demonstrate in the state of Colorado, under conditions such as existed there, that the application of certain principles to the relations of employers and employees could mot do other than operate in a manner that would be helpful alike to labour, capital .and the public, it would be rendering a service to industry in a place where, and at a time when it was very greatly needed. The Colorado Fuel and Iron Company was one of the companies which had been affected by the strike. It is the largest concern in that state. It employs somewhere in the neighbourhood of 12,000 workers in coal mines, iron mines, and steel works. Like other steel and coal companies, its help was required to provide essential war supplies, -and it had orders from the Allies to be carried out. Because of the Rockefeller interest in that company I believed that my association with the Foundation might gain for me an exceptional opportunity, which it did. I am not going to refer to my work done in that connection. It was work done in public, and hon. members can find out its scope *and significance for themselves if they are sufficiently interested in so doing. All I

wish to state at the moment is that for that service-or whatever measure of service it may have been possible to render in the State of Colorado-I received no payment from any interest or from any individual directly or indirectly concerned with any of the companies with which I had to deal. I undertook the work as a part of the opportunity afforded me by the Rockefeller Foundation, and I carried it out wholly in that spirit.

If the House will permit it, I should feel deeply obliged if, at the conclusion of my remarks, I might be allowed by general consent to place on Hansard one statement which I think will accurately reveal the nature of the work done in Colorado. It is from an authority which no one in this House will question, and is an article Which appeared in the Toronto Globe of October 13, 1915, entitled "Solving Colorado's Civil War by J.A.M." The article is by Dr. J. A. Macdonald, who at the time was editor-in-chief of the Globe, and who visited Colorado while I was there engaged upon the work to which I have just been referring. It was written fcy (Dr. Macdonald at the time, was published in the Globe, and is of record there. If the House denies me the privilege of placing the article on Hansard, hon. gentlemen who may be interested at all in discovering the significance of that work or the truth concerning it will be able to do so by a reference to the files of that paper.

Solving Colorado's Civil War. by J. A. M.

I Iliad spent the whole day interviewing all sorts and conditions of meh, and gathering all sorts of views about the one question of universal interests these days in all these mountain mining regions-Mr. Rockefeller's plan for the complete reorganization of the mining industry in the Colorado Fuel & Iron Company, in which he holds 40 per cent of the stock, and to whose conditions he has been giving a direct and personal interest during the past fortnight wholly without precedent in the history of capital and labour.

"Hast week in Toronto we had Associated Press despatches to the Globe describing this unusual trip by Mr. Rockefeller, his meeting with men of all grades in all the camps and in the pits, his conference with them face to face, and his proposals to them for a fresh pack and a new deal. The despatches mentioned Mr. W. L. Mackenzie King as being the magnate's guide, philosopher and friend.

Mackenzie King's Work.

"Almost the first man I met after reaching Denver, two days ago, in the rotunda of the Brown, was Mackenzie King. He has been in Colorado a great deal of his time since joining the Rockefeller Foundation. At the very beginning of his work as Chief Executive for the study at first hand of industrial relations, Mr. COMMONS

King: stipulated that the mining1 camps of Colorado where long- industrial strife issued in actual civil war, and where the Foundation itself is a large holder of corporate securities, provided an immense laboratory for a comprehensive study of the essential facts, the root causes of industrial disturbances and the lines of policy to be adopted if industrial war is to make way for co-operation, prosperity and peace.

"The root idea of the old policy on both sides, both capital and labour, was competition. In the new policy the root idea is co-operation. If the seed of co-operation is nourished and comes to full fruitage it may yield co-partnership. I did not find that Mr. Rockefeller baulked at the idea of capital and labour coming to be partners in the industrial world.

" It was both interesting and significant to observe the effect of the young man's personal touch on men whose hostility was deep-seated and fierce. The great body of the miners voting by secret ballot, after hearing him expound the plan and studying it in its fully-printed form for several days, voted almost unanimously for its approval. A newspaperman who went the rounds of the camps, and whose sympathies were socialistic and anti-capitalistic, confessed to me that what he saw at close range convinced him that Rockefeller is absolutely sincere, resolved to meet the men far more than half-way, and has accepted the principles of industrial co-operation with an honest mind and a serious purpose. This view I found to prevail among the Denver newspapermen. A Chicago journalist who came to Colorado to curse returned to Chicago to bless.

A Straightforward Man.

* "This indeed was the impression made on my own mind by frank conversation and close observations. I did not find this young capitalist other than very straightforward and humanely sympathetic. He accepted the obligations of great wealth and stupendous industrial responsibility as a man " who must give an account."

"It was not difficult to observe the reflex influence of Mackenzie King's personality and teaching on the life^and programme of John D. Rockefeller, jr. I confess that I had real misgivings about King's decision last year to undertake work with the Rockefeller Foundation. I feared its reaction on his own outlook and life work. After observing the situation in Colorado, the change of front not by King, but by Rockefeller, and studying the testimony of newspapermen and others, who assured me that all this that Rockefeller has done is in reality the result of King's careful study of industrial problems in the mines, and of his competent exposition of it to Mr. Rockefeller and his associates, I am entirely reassured. Nor was Mr. Rockefeller at all reluctant to give Mr. King full credit.

King Has Made Good.

" The terms of the new policy have already been sent to the Globe by the Associated Press, but Canadians who have watched Mr. King's steady progress as a student of industrial problems and a leader in industrial reform will be gratified to know that, in dealing with this most gigantic problem of capital and labour at the time and place when strikes, murders, civil war and two hundred indictments were the chief features, he has made abundantly good, justified his own decision of last year,

[Mr Mackenzie King.l

brought honour to Canada's Department of Labour, which he established on sound economic foundations, and gives promise of even larger services in industry and politics in which Canada will share just as beneficially as the United States.

"Mackenzie King will always be a Canadian, makes his headquarters in Ottawa, gives only a part of his time to the Foundation's work outside of Canada, and holds his added study and wider experience for the loyal service of his native country. Certain if this new experiment in Colorado achieves what its initial prospect promises, not Canada alone but the whole industrial world will have cause for gratitude that the misfortune of politics in 1911 left Mackenzie King's hand free for a while to tackle a big man's job."

I have here, also, a letter from Mr. J. F. Welborn, President of the Colorado Fuel and Iron Company, of Denver, Colorado, which gives a statement from the company's point of view; and presents the significance of the work as it has grown with time. I do not wish to read this letter to the House, though if it were not taking up time unduly I should feel it a privilege to do so. I should be pleased if it might be permitted to appear on Hansard along with the other communication. There is one point in this letter to which I should like to direct attention. Mr. Welborn shows that as a result of the Industrial Councils formed that when the United States came into the war, the coal production in the mines of the Colorado Fuel and Iron Company exceeded per man per day that of any of the other coal mines in the United States; and he attributes that success to the joint relations of capital and labour under the plan of industrial representation as drawn up.

Topic:   SUPPLY.


The Colorado Fuel and Iron Company, Denver, Colorado. J. F. Welborn, President. December 20, 1919. My dear Mr. King- In the hope that it will be of interest to you and possibly to your friends, I will set forth briefly the work done by our company under new policies inaugurated at your suggestion and op-perated in accordance with your advice. In doing so I have thought it proper to review the method of adoption of those policies. . You will recall that the coal strike of 1913-14 in Colorado was called off in December, 1914. Immediately thereafter, following out your suggestion, we asked employees at each of the coal mines to select one or more of their number to represent them at joint meetings with company officials for the purpose of discussing matters of mutual concern and of considering means of more effective co-operation in maintaining fair and friendly relations. In response representatives were chosen by secret ballot, the initial meeting between them and company officials being held early in January, 1915. Frequent conferences between the different company officials and the employees' representatives, both individually and collectively, followed, and at a joint meeting of these representatives and company officials held in October, 1915, the plan of representation of employees and memorandum of agreement between them and the company (of which you made the first draft and rendered valuable assistance in perfecting) were approved, subject to adoption by the coal mine employees and the board of directors of the company. Both of these actions were taken soon thereafter, the vote of the employees being by secret ballot and showing a majority of over 84 per cent in favour of the adoption of the plan. The total number voting approximated 75 per cent of the regular working force. It is. perhaps, only fair to say that some ot the officials of the company, as well as some of the mine workmen, entertained the feeling that it would be impossible or impracticable to make the principles laid down in the industrial plan effective. However, almost without exception, both wage earners and management officials accepted the new regime established with the determination to do their utmost to make it a success. That we have succeeded there is no doubt in the minds of either the wage earners, company officials or the public which our industry serves. Under the provisions of the plan, employees have not only actively participated in the work of preventing and adjusting differences, but have taken a very active part in establishing a community spirit in the several camps and in improving working and living conditions, including a consideration of character of dwelling houses to be built, the management of club houses, improvement in educational facilities, the adoption of means of recreation suitable to the entire population of the camp and the introduction of ideas tending to reduce aecidents and make the work of coal mining more safe. Hardly a month passes without the adoption by the management of recommendations made by the Safety and Accidents Committees, which are composed of an equal number of miners and company officials. No differences with the employees have arisen that were not readily and satisfactorily adjusted through the machinery provided in the industrial plan. The nation-wide strike of November 1 was opposed by a large majority of our employees, as was evidenced by their expressions through secret ballot and the fact that it did not materially affect our production. The improved living conditions at our mines and the assurance of fair treatment under the operation of the industrial plan are responsible, we believe, for a lack of shortage of miners at our properties, when a general shortage exists in other mining districts. It may be of interest to you to know that when a committee representing the National Fuel Association, in a survey of coal mining conditions in the country, visited our properties it expressed surprise that we were working with a full force of men and employed no labour agents to secure mine workmen from other sections. A recent report of the Committee of Recreation and Education in Huerfano county, where we operate seven mines, contained a statement, significant of the influence of that committee on school questions, which read as follows: " Mrs. Martha M. Thorne, County Superintendent of Schools of Huerfano county, called at Ideal, relative to school there. During the course of our interview she said that the school problem in Huerfano county, from the standpoint of her office, was no difficult problem, as the schools located in the Colorado Fuel and Iron Company camps were kept in an up-to-date condition m every respect, and that other schools in the country tried, as far as possible, to imitate them. The various changes in wage rates that have taken place during the last four years have been made by unanimous action of employees representatives and company officials in conf GFGnc©. During the winter of 1916-17, prior to the time the United States entered the world war, the employees' representatives and company officials entered on a campaign for increased coal production at our mines to help meet the abnormal calls on this country's mines from our own factories and for export to the allies. In January, 1917, our average output per day per miner was 5.83 tons. This was gradually increased until 6.33 tons per day average was reached in May, 1917. Interest In this movement was kept alive and further stimulated by a campaign for increased production inaugurated by the National Fuel Administration in the summer of 1918, with the result that monthly increases in daily production per man were made, the high mark of 7.26 tons being recorded in October, 1918, which latter figure represented an increase of approximately 25% over the average daily production at the beginning of 1917. During this campaign for greater efficiency the employees at each mine selected Production Committees of their own, in whose hands the management placed the power to grant leaves of absence to workmen, and as a result unnecessary lost time was reduced from 10% in June, 1918, to slightly over 4% in October of that year. The increased efficiency shown by greater production and less idle time made a record that, so far as we are able to learn, was not equalled elsewhere. The best figures obtainable indicate that in other important coal fields the

time that the mines work. The plan of representation of employees was adopted at the steel works, in the same manner as at the coal mines, early in 1916, and, without going into detail, its operation there has been along the same lines and with the same success as at the mining properties. In a series of conferences between employees' representatives and company officials an actual eight-hour working day was adopted at the steel works in 1918 in the place of the former twelve-hour day, which had always prevailed in the steel industry, and which, generally speaking, is still in effect in other steel manufacturing plants in this country. In the purchase of Liberty Bonds and contributions to the various war funds our employees at the steel plant and mining properties participated to the extent of practically 100%. Campaigns for these funds were conducted by committees composed principally, and in many instances entirely, of wage earners, and developed a friendly rivalry between the various properties in the mining department, as well as between that department and the steel department. We are confident that the spirit and effectiveness with which our employees responded to the Government's call for increased efficiency and financial help in the war are at least equal to what was done along similar lines in any other industry in this country, and we are very sure that too much credit for this accomplish-

ment cannot be given to the machinery, controlling the relationships between the company management and its wage earners, which was proposed by you, and in the operation of which, since its installation, we have had the benefit of your frequent advice. Indeed, I feel that the part you have had in the establishment of the new and better relationships in our industry represents a contribution to the late war of inestimable value. I can consistently so express myself, because I had some misgivings as to the wisdom of the course you laid out for us, and am now convinced it has exceeded the most sanguine expectations expressed at its beginning. With kind regards, Yours sincerely, (Signed) J. P. Welborn. Mr. W. L. Mackenzie King, The Roxborough, Ottawa, Canada. After the Colorado work had received some public attention, I began to receive from the heads of several of the large industries in the United States communications asking if I would come and make a study of their industrial conditions with a view to advising them as to methods of forming joint boards of employers and employees and aiding in the prevention and settlement of industrial differences. I have a number of such letters-I do not intend to read them, nor shall I ask that they be placed on Hansard-but I shall be very pleased to show the communications to any hon. gentleman who may be interested in seeing them. I shall give to the House the names of some of the industrial concerns by which I was asked to come and lend assistance in matters of industrial controversy. It will then be open to any member of this House, or to any individual in the country, to write to the heads of these concerns or to the employees connected with them, and ascertain for himself exactly the nature of the service rendered. When in September of last year, at the time I was about to contest the riding of Prince, I saw that statements of the kind I have been dealing with this afternoon were being busily circulated, I wrote to several of the different industrial concerns by whom my services had been retained and asked if there were any objection to making reference in public to' the nature of the work which I had been asked to perform. I had felt that having been retained as an industrial adviser there was a certain obligation upon me to regard any service that I might have been able to render as confidential, and for that reason, as well as haying no desire to traffic in patriotism for political ends, I had sought up to that time carefully to avoid any reference at all to [Mr Mackenzie King.] work done during the period of the war. I shoifld like to place on Hansard two or three of the letters which were sent in reply, and which will speak for themselves. Hon! gentlemen, will see in a moment that they are from some of the largest and most important industries in the United States, industrial concerns that had very much to do with the production of war materials and the furnishing of war supplies. These communications have been received by me in answer, as I have said, to my inquiry of these companies as to whether I might feel at liberty to make public reference to certain services rendered during the war. The letter I have in my hand is from the Bethlehem Shipbuilding Corporation, Limited, of Bethlehem, Pennsylvania, and is written by Mr. J. W. Powell, Vice-President of the company. At the time my services were requested by this particular industry, in the connection I have mentioned, it was employing 70,000 men. Mr. Powell writes: Bethlehem Shipbuilding- Corporation Limited. Bethlehem, Pa., September 22, 1919. Mr. W. L. Mackenzie King, The Roxborough, Ottawa, Ontario. Dear Sir:-I am very glad to take this opportunity to tell you in a form that you may use as you may see fit, that we found your advice and counsel at the time we called on you in the spring of 1918, in connection with the labour situation in our shipyards, of very great benefit in assisting us to arrive at a plan of action that would help us to preserve industrial peace and to improve relations between the company and its employees. At the time we asked for assistance, there was a great deal of unrest among our labour and we believe that the advice you gave us was of material assistance in reducing this unrest and in correspondingly increasing the efficiency in the production of ships. As this company is far and away the largest shipbuilding concern in the world and as it produced a very large percentage of all the ships actually completed in this country during the period of its participation in the war, i.e., something like 60 per cent of the destroyers and over 20 per cent of the merchant craft, your assistance was evidently of real value from the standpoint of helping to win the war. Yours very truly, Bethlehem Shipbuilding Corporation, Ltd. By (signed) J. W. Powell, Vice-President. The next communication is from the Bethlehem Steel Company of South Bethlehem. Pennsylvania, and is written by Mr.N E. G. Grace, the President of that company. At the time I visited Bethlehem, this concern was employing about 50,000 work-eis. Mr. Grace writes: Bethlehem Steel Company. South Bethlehem, Pennsylvania, September 26, 1919. Dear Mr. King:-My attention has just been called to an article which appeared recently in the I.ondon Telegraph relating to the accomplishment, of the Ministry of Munitions of the British Government in the late war. Naturally I was interested in reading a statement, referred to therein, made by the Deputy Minister of Munitions and in which he said! "Reference was made by Mr. Asquith to the fact that large orders for shells were placed in the United States of America and Canada before the Ministry of Munitions was started. Such orders were placed. They were orders for complete rounds, but when the time came for delivery the components were not forthcoming, and the shell bodies had to be brought over and completed in this country with components produced by the Ministry of Munitions. An exception to this statement must be made in regard to the Bethlehem supplies, which were well delivered and proved of immense service to the armies." X think it is now well recognized that if it had not been for the assistance our plants were privileged to give to the Allies previous to the entry of this government in this war the result might have been different. In reflecting the credit for the achievements of this country, which is shared by every one of our employees who contributed to the result of the oiitcome, I cannot in this connection refrain from calling to mind with much appreciation the great work to which you gave your time and talent during the world's crisis. At a crucial time when we were contending with an unprecedented industrial unrest, your counsel and advice in the construction and development of a plan which when installed proved most conducive to promoting cordial relations with our employees during the emergency, resulting in the obtaining of the maximum efficiency in the production of war munitions, constituted X feel a real service not only to this country but to the Allies during the war. Yours very truly, (Signed) E. G. Grace, -v President. Mr. W. L. Mackenzie King, The Roxborough, Ottawa, Canada. I have here a letter from the General Electric Company, which is another of the largest and most important industrial concerns on this continent. During the war it was employing over 50,000 workers, 12,000 or 13,000 of whom were engaged in the particular branch of which Mr. Richard H. Rice, the acting manager and writer of this letter, was then in charge. His letter is as follows: General Electric Company. West Lynn, Mass, September 29, 1919. Mr. W. L. Mackenzie King, The Roxborough, Ottawa, Ontario. Dear Sir,-During the great war it was the privilege of the General Electric Company to d> effective work in the creation and production of devices of direct assistance in the winning of that war. Of these devices perhaps the most directly useful ones were those which enabled the submarine warfare to be effectively combatted. These devices were in the nature of detectors and they are so effective that they enabled submarines in motion to be located 30 miles away * their course of motion plotted and intercepted ; and even submarines quiescent on the bottom of the ocean were located and destroyed. These devices were largely used by the British and American navies both in the waters directly about the United Kingdom and also in Italian waters and off the American coast. Other apparatus produced by our company is too numerous to mention; shells, shell cases, fuses, airplane compasses, portable army searchlights, wireless telephone apparatus, and a thousand and one other devices were actively produced in large quantities for the use of the United States Government and for the Allied forces. < I mention these matters not for the purpose of glorifying the work of the General Electric Company in the war. but to indicate that our industry was considered as an absolutely essential one. This is perhaps also shown by the fact that the United States Government sent a large body of troops to our Lynn works without any knowledge of the management, for the purpose of protecting it against destruction by bombs or otherwise. If it is admitted that our industry was an essential one, it must also be admitted that contentment of the labouring forces, continuity of operations and freedom from labour disturbances was an essential feature. In connection with this matter, and particularly at the time of greatest stress, when the production of the works was temporarily interrupted by a general strike, and for the period since that time, we have been greatly indebted to your sound, intelligent, progressive and humanitarian advice; and profiting by this advice we have established at our Lynn works a system of industrial relations which gives our employees a large voice in the determination of working conditions and conditions of employment. This, in my opinion, puts us in the forefront among organizations of industry in dealing with the human problem. I was intimately associated with you for some time in the discussions which preceded the adoption of this method of dealing and have had direct charge of the workings of it since that time, and I know the value of your advice and the inspiration which it has given me in carrying out the work. Yours very truly, (Signed) Richard H. Rice, Acting Manager. I may say that the letter from Mr. Rice was accompanied by one from Mr. E. W. Rice, junior, the president of the company, mentioning the extension of the plan adopted by the Lynn works to the other factories of the company, and endorsing what Mr. Richard Rice had written. One other communication to which I would ask hon. gentlemen kindly to listen is from the Great Western Sugar Company which has its factories in Colorado, Wyom-

ing, Nebraska, and Montana-some fourteen in all-and which during the war was employing some 7,000 workers. This letter from the president of that company reads: The Great Western Sugar Company. General Offices, Sugar Building. Denver, Colorado, U.S.A., November 4. 1919. Mr. W. L. Mackenzie King, The Roxborough, Ottawa, Canada. My dear Mr. King:-Upon my return to this city alter an absence of about three months, I And your valued communication of September 17, and hasten to acknowledge it. Let me say at the outset that in my opinion the service which you rendered American industry during the war was not only a distinct contribution to the Allied cause during that period, but has been of great valui during the trying times since the signing of the Armistice. I am able to speak more specifically concerning our own industry. The matter of furnishing an adequate supply of sugar for the military forces as well as for the civilian population was generally recognized as one of the serious problems of the war. The beet sugar industry is one composed not alone of manufacturing plants which can be speeded up at will; it comprises, in addition to the factories, thousands of farms and farmers, and thousands of field and factory workers. To function most effectively there must be the utmost co-operation and understanding between these various groups. Realizing this, and realizing also that an unbiased outsider would probably be able to analyze and view the problems of the industry more clearly than any one withiir it, we invited you to make a general survey of our operations, with the particular purpose in view of obtaining suggestions and plans which would insure a harmonious relationship between two various groups in the business. All of us who were in contact with you during your vigorous and thorough examination of our situation appreciate the value of your contribution. It was a contribution the effects of which did not cease with the ending of the war. During the present troublous period it is very gratifying, and must be particularly so to you, to know that our operations are proceeding so smoothly. In our own case, our production this season will be from 20 to 25 per cent greater than for the previous season. The production of an extra 40,000 or 50,000 tons of such a concentrated foodstuff as sugar at a time like this is, in my humble opinion, of considerable value to everybody. I assure you that it is a privilege to be able to express myself to you in this sense. With assurances of my high respect and regard, Believe me, Sincerely yours, (signed) W. L. PETRIKIN, President. I might quote also from other equally important concerns. I have here a letter from Mr. Harold F. McCormick, the President of the International Harvester Company, [Mr Mackenzie King.) which has some 35,000 employees in the United States and Canada, one from Mr. J. H. Wheelwright, the late President of the Consolidation Coal Company, which oper-[DOT] ates mines in Pennsylvania, Maryland, West Virginia and Kentucky, and employs from 8,000 to 9,000 workers; one from Mr. C. S. Robinson, Vice-president of the Youngstown Sheet and Tube Company of Youngstown, Ohio, which has about 10,000 employees; and letters from the officers or directors of other less important concerns. All go to show that these gentlemen at least regarded that I had been able to render a substantial service to the industries with which they are connected and which were essential in time of war, and are essential industries at the present time. I have referred to these matters to illustrate why, recognizing the opportunity which was mine when the war came on, having had to take into account, as I had, certain personal obligations as well as previous training and equipment, I took then what I believed to be the course that would enable me to take the most useful part that I could possibly take in the service of my country and the cause of the allies at that time; and why I continue to believe I was not wrong in the judgment I then formed. Mr. Speaker, I should be at a loss to understand how it is conceivable that two such gentlemen as those I have mentioned, members ol honourable and learned professions could stoop to the deliverances they have and go on then to imply that there was some kind of continuing relationship on my part with industries in the United States calculated to prove inimical to Canada, were it not that recently there has appeared in the Canadian press a despatch which refers to a survey made for the Standard Oil Company of Indiana in January of last year. Let me point this out to my hon. friends, so that there will be no misunderstanding: I have said that during the period of the war I had no connection of any kind with any industry that was associated with Standard Oil interests. That is true. Since the war, and after all the work to which I have to-day alluded had been completed, I received from the chairman of the board of directors of the Standard Oil Company of Indiana a communication asking if I would make a survey of the company's plants and assist the company in drawing up some plan of joint councils between the company and its employees which would be of service in helping to maintain good relations. I accepted that^ opportunity and spent a few weeks making a study of the working conditions of the men employed in that industry, with results that are apparent in the despatch to which I have made reference. Let me say, so that there can be no misunderstanding as to the nature of any of the work done, at any time, that all of it was in the nature of assisting in the formation of joint industrial councils much along the line recommended in the report of the Whitley Committee, and which at a conference held in the city of Ottawa last summer between employers and employees, was endorsed as a method of procedure highly in the interests of both capital and labour. It consisted in setting out known and orderly methods of procedure for the adjustment of industrial differences, in the providing of machinery for conciliation and arbitration for the prevention and settlement of industrial controversies; in giving to labour a voice in the determination of its own working and living conditions, and in the framing of joint agreements as to terms of employment, working and living conditions by which rights were specifically defined and to which reference could be made in case of dispute between employer and employees. In every instance there was a provision that nothing in the arrangements come to, or in the agreements made should deprive any man of the right to belong to any legitimate union. I mention that lest by any chance there might be an endeavour from any quarter to misconstrue anything in that connection. I have taken the trouble to find the despatch which appeared in the Chicago papers and to which' reference was made in our own papers, and which I take to he the ground upon which the gentlemen in Montreal had based their reference to_ a continuing relationship on my part with some American companies. The following is the despatch as it appears in the Chicago Tribune of February 19, 1920. It is headed "11,090 Standard Oil Aids Fix Own Pay Rate-Get 11.11 per cent Boost and Six-Day Week," and is as follows: 11,000 Standard Oil Aids Fix Own Pay Raise. Get 11.11 % Boost and Six-Day Week. A wage increase of 11.11 per cent for 11,000 refinery workers was announced yesterday by the Standard Oil Company of Indiana. Coincidentally, all shift men go from a seven-day week to a six-day week, a radical change in the company's manufacturing policy. The new schedule becomes effective on March 1, and it applies in refineries at Whiting, Ind., Wood River. 111., Sugar Creek, Mo., and Caspar and Greyhull, Wyo. What is most significant is the fact that the new wage and hour schedule was worked out by the employees themselves, through the agency of their industrial councils. Last June, as a step in "democracy in industry," the Standard Oil Company established an employees' council system, drawn up by W. L. Mackenzie King, leader of the Liberal party in Canada. Through joint committees, on which the men and management have equal representation, the workers were given a direct voice in the adjustment of wages and hours. Work Out Six-Day System. The process of gasoline manufacture is such that refineries must be operated every hour of the day, every day of the week. Up to 1915, shift workers worked twelve-hour shifts seven days a week. The company in that year put in an eight-hour shift with an increase, giving the men as much pay for eight hours' work as they had been getting for twelve. But the seven-day week was continued. After the industrial council system was adopted, Col. R. W. Stewart, head of the hoard of directors, asked the employees' councils to work out a scheme that would make a six-day week practicable. The result is a new schedule, which gives all shift workers thirty-two consecutive hours off each week. Under the old plan the men worked fifty-six hours a week; under the new they work 50.4, or a net reduction of 5.6 hours a week. The 11.11 per cent increase in wages makes the pay for six days equal to that received under the old seven-day week. Others also Boosted. A similar increase of 11.11 per cent in hourly wages is also declared for refinery workers other than shift men. Hours are not to be changed, except that men working forty-four hours a week may increase it to forty-eight hours, if they wish. This affects common labourers, machinists, blacksmiths, boiler makers and others. I have here a letter from Mr. R. W. Stewart, the chairman of the board ot directors of that company, and from which I shall read only one paragraph. It was received in reply to the circular communication I sent out last fall. The paragraph I am about to read explains the nature and circumstances of the request made of me by the company. The letter is dated Chicago, October 7, 1919, in it Mr. Stewart says: When I was selected as chief executive of this company, I became convinced that there was lack of contact between the employees and the management of the company, and that the situation was one which, if not cared for, would possibly result in great harm by reason of misunderstandings, suspicion and ignorance of the conditions. I looked over the field of advisers on questions of this kind very carefully, and, after the most painstaking search, selected you as the best equipped, ablest and most conscientious adviser in the field. The board of directors of this company agreed with me, and you were invited to examine our plants and look into the conditions under which our twenty-two thousand employees were working, and to formulate a plan which would insure the fullest contact, and, once established, would be maintained to the satisfaction and betterment of all of us. You undertook the work, spent

many weeks in personally examining our plants and workmen, and finally reported to tlhe management a plan which has met the approval of the employees and the management of this company, and is actually working out to the satisfaction of the entire organization. We all consider it the best plan of industrial relations in existence, and believe that it comprehends and includes the strength of all plans of this kind ever suggested and the weakness of none of them. It is daily strengthening the bonds of good-will, confidence and understanding in our entire organization. Let me point out a feature mentioned in the paragraph just quoted as true also of the other concerns of which I have spoken that as regards all of these joint councils, they were worked out and adopted only after approval by the employees as well as by the management. I have nothing further to say in regard to the public reasons which actuated me in taking the course I did during the period of the war and which I believe enabled me to perform a kind and measure of service greater than any I could have performed in any other way, had there been like opportunity to take any other course. I would ask the House to permit me to refrain from the spoken word, and to read in conclusion just a few words in reference to the personal reasons which were also a controlling factor in guiding me in my actions during the period oi the war. There remains the statement that I was young, and a bachelor. I am now in my forty-sixth year. When the war commenced, I was in my fortieth year. Shortly before that time, my father, a barrister and solicitor, and one of the lecturers at the Law School in Toronto, was stricken with blindness, and obliged to give up the practice of law and lecturing at the Law School. He and my mother and unmarried sister lived together at our home in Toronto. My brother, who for a qumoer of years was a practising physician in this city, some little time prior to the war, after an attack of influenza complicated by double pneumonia, developed tuberculosis, and was obliged to give up the practice of his profession and for the greater part of two years to spend his time in a sanatorium. Later, he and his wife and little children took up permanent residence in Colorado. There was no one left to share the responsibilities of our home under these sad and trying circumstances, but my married sister and myself. My married sister had, as well, her own family to consider. On April 4, 1915, within the first few months of the war, my unmarried sister died. That left my father and mother alone. On August 30, 1916, my father died. After [Mr Mackenzie King.] spending a few weeks with my invalid brother in Denver, and two or three months with my married sister, my mother came to reside with me at the Roxborough, here in Ottawa. My mother was critically ill most of the year she was with me, and on December 18, 1917, she, too, died. My brother, I rejoice to say, though still an invalid, has fought his disease so successfully as to be able to publish a book, entitled "The Battle With Tuberculosis and How to Win It," which has found a place in our military hospitals. The inscription of this volume, "Gratefully and affectionately dedicated to my wife and to my brother," speaks for itself. As I look back upon those years of the war, so full of poignant suffering for the whole of mankind, I cannot but experience a sense of gratitude, that in that world ordeal it was given to me to share in so intimate a way the sufferings of others, and, with it all, so large a measure of opportunity to do my duty, as God gave it to me to see my duty, at that time.


Edgar Nelson Rhodes (Speaker of the House of Commons)



The rule that only those documents which are read in the House shall bo incorporated in Hansard has always been very closely adhered to. Exceptional cases, however, have arisen through unusual circumstances. The leader of the Opposition (Mr. Mackenzie King) desires to incorporate in Hansard one .article from a newspaper and one letter, they not having been read. I take it that it may be construed that this is one of those unusual circumstances, and I, therefore, put the question to the House whether the hon. gentleman shall have leave to incorporate these documents in Hansard.

Unanimous consent of the House granted.

Topic:   SUPPLY.

Motion agreed to, and the House went into Committee of Supply.


The House in Committee of Supply, Mi'. Boivin in the Chair.

April 20, 1920