Two codes of rules and regulations affect the workers; the law
upon the statute books, and the rules within industry.
The first determines their relationship as citizens to all other
citizens and to property.
The second largely determines the relationship of employer
and employee, the terms of employment, the conditions of labor,
and the rules and regulations affecting the workers as employees.
The first is secured through the application of the methods of
democracy in the enactment of legislation, and is based upon
the principle that the laws which govern a free people should
exist only with their consent.
The second, except where effective trade unionism exists, is
established by the arbitrary or autocratic whim, desire or opinion
of the employer and is based upon the principle that industry
and commerce cannot be successfully conducted unless the
employer exercises the unquestioned right to establish such rules,
regulations and provisions affecting the employees as self-interest
prompts.
Both forms of law vitally affect the workers' opportunities in
life and determine their standard of living. The rules, regulations
and conditions within industry in many instances affect them
more than legislative enactments. It is, therefore, essential that
the workers should have a voice in determining the laws within



THE LABOR VIEW OF PROFIT-SHARING 305

industry and commerce which affect them, equivalent to the
voice which they have as citizens in determining the legislative
enactments which shall govern them.
It is as inconceivable that the workers as free citizens should
remain under autocratically made laws within industry and com-
merce as it is that the nation could remain a democracy while
certain individuals or groups exercise autocratic powers.
