Director Division of Public Service-Charles-A. Prouty.

Director of Division of Operation-Carl R. Gray. Chairman Board of Wages and Working Conditions-G. H. Sines.

Drector of Division of Labor-W. S. Carter. Director of Division of Traffic-Edward Chambers.

Manager Coastwise Ship Lines-H. B. Walker. Manager Troop Movement Section-George Hodges.

REGIONAL DIRECTORS.

Eastern District-Alfred H. Smith, New York, N. Y

Northwestern District-R. H. Aishton, Chicago,
Ill.

Central Western District-Hale Holden, Chica-
go, Ill.
Southern District-B. L. Winchell, Atlanta, Ga.
Southwestern District-B. F. Bush, St. Louis.
Mo.

Allegheny District-C. H. Markham, Philadel-
phia, Pa.
Pocahontas District-N. D. Maher, Roanoke, Va.
Ohio-Indiana District-H. A. Worcester, Cincin-
nati, O.

New England District-J. H. Hustis, Boston, Mass.

As a result of a series of conferences on the subject of labor policies, the council of national defense submitted to the president a program for war labor administration which was approved by him and made public Jan. 9, 1918. The secretary of labor was requested to take charge of the matter and to provide for the purpose the following agencies:

1. A means of furnishing adequate and ble supply of labor to war industries. This will include:

(a) A satisfactory system of labor exchanges.

(c) An agency for determining priorities of labor demand.

(d) Agencies for dilution of skilled labor as and when needed.

2. Machinery which will provide for the immediate and equitable adjustment of disputes in accordance with principles to be agreed upon between labor and capital and without stoppage of work. Such machinery would deal with demands concerning wages, hours, shop conditions, etc.

3. Machinery for safeguarding conditions of labor in the production of war essentials. This to include industrial hygiene, safety, woman and child labor, etc.

4. Machinery for safeguarding conditions of living, including housing, transportation, etc. 5. Fact gathering body to assemble and present data, collected through various existing governmental agencies or by independent research, to furnish the information necessary for effective executive action.

6. Information and education division, which has the. functions of developing sound public sentiment, securing an exchange of information between departments of labor administration, and promotion in industrial plants of local machinery helpful in carrying out the national labor program.

Some of these agencies already existed in part in the department of labor. For example, the mediation service, the system of labor exchanges and the bureau of labor statistics were utilized

Denying the existence of a real labor shortage in the United States and the necessity of a conscription of labor, and asserting that the solution of the war labor problem lay in the proper distribution of the available supply of workers, the department of labor announced that the United States employment service would serve as the national labor mor lization'

Wilson as director of the reorganized service. For several months the labor department had been quietly working to equip the federal em ployment service to handle the war labor prob lem. Funds amounting to more than $1,000.000 were made available and kept the labor supplying machine in operation until the end of the fiscal year in June; $250.000 of the total was appropriated by congress and the presi dent allotted $825.000 more from his war emergency fund.

The service began covering the entire continent with a network of labor exchanges. Federal, state and municipal employment offices and the facilities of the various state councils of defense were utilized. At the beginning of the year more than 200 such exchanges were in operation and the number was being rapidly increased.

In addition to naming Mr. Densmore director of the service. Secretary of Labor Wilson ap. pointed Charles T. Clayton of Maryland assisttant director in charge of the field work and co-operating bodies, and Robert Watson of Massachusetts assistant director in charge of administration.

Five divisions handled the detail of the serv ice's national operations. These divisions, with their chiefs, appointed by Secretary Wilson,

were:

Division of information, T. V. Powderly of Pennsylvania, chief; division of farm service. A. L. Barkman of Kansas City, Mo.. chief; women's division. Mrs. Hilda Muhlhauser of Ohio, chief; division of reserves, William E. Hall of New York, chief, and division of inves tigation, Alexander D. Chiqueine, Jr., of Philadelphia, Pa., chief. The information and women's division existed under the former organization of the federal employment service. Mr. Hall, chief of the division of reserves, is the national director of the public service and the boys' working reserves.

ADVISORY COUNCIL.

On Jan. 15. 1918, the secretary of labor appointed the following advisory council to assist in carrying out the war labor program:

John Lind, former governor of Minnesota. representative of the public, chairman.

Waddill Catchings of Alabama, representing employers.

A. A. Landon of New York, representing employers.

John B. Lennon of Illinois, representing employes.

John J. Casey of Pennsylvania, representing employes.

Dr. L. C. Marshall of the University of Chicago, economist.

Agnes Nestor of Illinois, representing women. The duty of the advisory council, as outlined by the secretary of labor, was to standardize labor policies; provide, distribute and maintain a stable and adequate supply of workers, consider labor dilution and training. priority demands, adjustment of disputes and safeguard employment generally.

WAR LABOR CONFERENCE BOARD. On the recommendation of the advisory council the secretary of labor called upon the president of the American Federation of Labor and the National Industrial Conference board to appoint representatives of labor and of capital for the purpose of reaching an agreement on the principles and policies that should govern their relations during the war emergency and insure the maximum production of war materials. The presidents of the two organizations each appointed five men and each of the two groups chose one additional member to represent the public. The men selected were as follows:

Employers.

B. L. Warden, New York city, vice-president Submarine Boat corporation.

L. F. Loree, 32 Nassau street, New York city, president Delaware & Hudson company, chairman of board and executive committee Kansas City Southern Railroad company, etc. C. Edwin Michael. Roanoke, Va., president Virginia Bridge and Iron company.

Loyall A. Osborne, 165 Broadway, New York city, vice-president Westinghouse Electric and Manufacturing company, chairman executive committee national industrial conference board.

W. H. Van Dervoort. East Moline, Ill., president Root & Van Dervoort Engineering company.

William Howard Taft, New Haven, Conn., former president of the United States, representing the public.

(a) That there be created, for the period of the war. a national war labor board of the same number and to be selected in the same manner and by the same agencies as the commission making this recommendation.

(b) That the functions and powers of the national board shall be as follows:

1. To bring about a settlement, by mediation and conciliation, of every controversy arising between employers and workers in the field of production necessary for the effective conduct of the war.

2. To do the same thing in similar controversies in other fields of national activity. delays and obstructions which may, in the opinion of the national board, affect detrimentally such productions.

3. To provide such machinery by direct appointment, or otherwise, for selection of committees or boards to sit in various parts of the country where controversies arise, to secure settlement by local mediation and conciliation.

4. To summon the parties to the controversy for hearing and action by the national board in case of failure to secure settlement by local mediation and conciliation.

(d) The members of the national board shall choose the umpire by unanimous vote. Failing such choice, the name of the umpire

shall be drawn by lot from a list of ten suit

able and disinterested persons to be nominated for the purpose by the president of the United States.

(e) The national board shall hold its regular meetings in the city of Washington, with power to meet at any other place convenient for the board and the occasion.

(f) The national board may alter its methods and practice in settlement of controversies hereunder. from time to time, as experience may suggest.

(g) The national board shall refuse to take cognizance of a controversy between employer and workers in any field of industrial or other activity where there is by agreement or federal law a means of settlement which has not been invoked.

(h) The place of each member of the national board unavoidably detained from attending one or more of its sessions may be filled by a substitute to be named by such member have the same representative character as his as his regular substitute. The substitute shall principal.

(i) The national board shall have power to appoint a secretary and to create such other clerical organization under it as may be in its judgment necessary for the discharge of its duties.

(1) The national board may apply to the secretary of labor for authority to use the machinery of the department in its work for conciliation and mediation.

invoked in respect to controversies within its (k) The action of the national board may be jurisdiction by the secretary of labor or by either side in a controversy or its duly author

Sir: The commission of representatives of employers and workers. selected in accord with the suggestion of your letter of Jan. 28, 1918. to aid in the formulation, in the present emergency, of a national labor program, present to you, as a result of their conferences, the following:

consideration, may refuse further hearing if the case is not of such character or impor tance as to justify it.

(1) In the appointment of committees of its own members to act for the board in general or local matters, and in the creation of local committees, the employers and the workers shall be equally represented.

(m) The representatives c2 the public in the

The national board shall refuse to take cognizance of a controversy between employer and workers in any field of industrial or other activity where there is by agreement or federal law a means of settlement which has not been invoked.

And I do hereby urge upon all employers and employes within the United States the necessity of utilizing the means and methods thus provided for the adjustment of all industrial disputes, and request that, during the pendency of mediation or arbitration through the said means and methods, there shall be no discontinuance of industrial operations which would result in curtailment of the production of war necessities.

William H. Taft and Frank P. Walsh are joint chairmen of the board and W. Jett Lauck secretary.

William P. Harvey of Kansas City, Mo.. was appointed May 17, 1918, as a field representative of the national war labor board.

War Labor Umpires.

On July 12. 1918. President Wilson named ten disinterested persons as suitable to act as umpire when drawn by lot as provided in paragraph (d) of the war labor conference board: Henry Ford. Detroit, Mich. Matthew Hale, Boston, Mass.

James Harry Covington, Washington, D. C.
Charles C. McChord, Washington. D. C.
V. Everit Macy, New York, N. Y.
Julian W. Mack, Chicago, Ill.
Henry Suzzallo, Seattle, Wash.
John Lind. Minneapolis, Minn.
William R. Willcox, New York, N. Y.
Walter Clark, Raleigh, N. C.

Method of Procedure.

The national war labor board at a meeting held May 14, 1918, agreed upon a plan of procedure and method in all cases. This plan provided for the appointment of subcommittees composed of two members to act for the board in every local controversy and the appointment of permanent local committees in cities and districts to act in cases therein arising, and also comprehended a method of investigating industrial disputes by trained field agents sent out from Washington. Under the form of procedure adopted the board itself will sit only in cases when its sections or subcommittees find it impossible to settle a controversy. In such cases the board will sit as a board of arbitration. decide the controversy and make an award. The board will hear appeals in the following cases:

1. Where the principles established by the president of the United States in his proclamation of April 8, 1918, have been violated.

2. Where an award made by a board has not been put into effect, or where the employes have refused to accept or abide by such award. 3. To determine questions of jurisdiction as between government boards.

Any person desiring to bring before the national war labor board an issue between employer and employes, of which the board has

Where an employer and employes both desire to submit a controversy to the board, they shall sign a short joint statement of the issue be tween them, with their respective post office addresses, and request the action of the board. They shall deliver this signed statement to the secretary of the board.

Controversies in which the secretary of labor invokes the action of the board, together with the documents transmitted by him, shall be delivered to the secretary of the board.

WAR LABOR POLICIES BOARD. Under the general plan of the war labor administration a new board was created in the latter part of May, 1918, to supplement the work of the national war labor board. This was called the war labor policies board. Felix Frankfurter, assistant secretary of labor. was made its chairman. The distinction between this board and the national war labor board is that the former is adminstrative and the second is judicial and legislative-judicial in the sense that it is a court of appeal where one or more of its enunciated principles are involved in dispute, and legislative at such times as the establishment of a new principle to govern industrial relations is contemplated. The policies board determines directly for war industries and indirectly for nonwar industries all questions involving the distribution wages, labor, hours and working conditions. Its decisions are executed by the various production departments of the government, each of which is represented in its membership. This execution is direct for all industries engaged in war work. In nonwar industries its decisions are given effect through the war industries board, which controls the flow of raw materials for all industries. The policies board represents the war department, the navy department, the department of agriculture, the Emergency Fleet corporation, the railroad administration, the war industries board and the national war labor board.

of

Membership of Board. Chairman-Felix Frankfurter. Representative of war department-Stanley King. Representative of the navy department-Louis McH. Howe. Representative of department of agricultureG. I. Christie. Representative of war industries board-Hugh Frayne.

Representative of fuel administration-John P.
White.

Representative of United States shipping board
-R. P. Bass.
Representative of Emergency Fleet corporation
-Howard Coonley.

Representative of food administration-M. B.
Hammond.

Representative of railroad administration-W.
T. Tyler.
Representing women's division in department of
labor-Miss Mary Van Kleeck.

On March 20, 1918, President Wilson issued the following proclamation:

"Whereas, the law and practice of nations accord to a belligerent power the right in time of war to take over and utilize neutral vessels lying within its jurisdiction; and,

"Whereas, the act of congress of June 15. 1917, entitled 'An act making appropriations to supply deficiencies in appropriation for the military and naval establishments on account

of war expenses for the fiscal year ending June 13, 1917, and for other purposes,' confers upon the president the power to take over the possession of any vessels within the jurisdic tion of the United States for use or operation by the United States;

"Now, therefore, I, Woodrow Wilson, president of the United States of America, in accordance with international law and prac tice and by virtue of the act of congress

aforesaid, and as commander in chief of the army and navy of the United States, do hereby find and proclaim that the imperative military needs of the United States require the immediate utilization of vessels of Netherlands registry now lying within the territorial waters of the United States.

on

"And I do, therefore, authorize and empower the secretary of the navy to take over behalf of the United States the possession of and to employ all such vessels of Netherlands registry as may be necessary for essential purposes connected with the prosecution of the war against the imperial German government. "The vessels shall be manned, equipped and operated by the navy department and the United States shipping board, as may be deemed expedient; and the United States shipping board shall make to the owners thereof full compensation in accordance with the principles of international law."

In accordance with the proclamation some seventy-seven ships flying the Netherlands flag with an aggregate tonnage of 600,000 were taken over by the United States navy depart ment on the evening of March 20. Corresponding action was taken by the British government, which requisitioned Dutch merchant vessels having a total tonnage of 400,000. President Wilson on the same date issued the following statement giving a summary of the negotiations with the Netherlands, government and the reasons making the requisitioning of the vessels by the United States and its allies necessary:

"For sme months the United States and the entente allies have been conducting negotiations with the Dutch government with the object of concluding a general commercial agreement.

"A clear statement of the character of these negotiations was made on March 12 to the Dutch parliament by his excellency the minister of foreign affairs of Holland. As appears from the statement. the discussion proceeded upon the basis of two fundamental propositions-namely, that the United States and the allies should facilitate the importation into Holland of foodstuffs and other commodities required to maintain her economic life, and that Holland should restore her merchant marine to a normal condition of activity.

"It was the task of the negotiators to develop a specific application of these propositions which would be acceptable to the governments concerned.

"Early in January, 1918, the negotiators came to an understanding, which was embodied in a tentative agreement which was submitted to the governments concerned in order that, if acceptable, it might be ratified, or, if unacceptable, a counterproposal might be made.

"The negotiations becoming prolonged, the Dutch delegates proposed, in order that their ships might sooner be put into remunerative service, that Dutch tonnage lying idle in American waters should, with certain exceptions, be immediately chartered to the United States for periods not exceeding ninety days. This proposal was accepted by the United States government, and, on Jan. 25, 1918, the Dutch minister at Washington handed to the secretary of state of the United States a note expressing the terms of the temporary chartering agreement and his government's acceptance thereof.

"This agreement provided, among other things, that 150.000 tons of Dutch shipping should, at the discretion of the United States, be employed partly in the service of Belgian relief and partly for Switzerland on safe conduct to Cette, France, and that for each ship sent to Holland in the service of Belgian refief a corresponding vessel should leave Holland for the United States.

"Two Dutch ships in the United States ports

with cargoes of foodstuffs were to proceed to Holland, similar tonnage being sent in exchange from Holland to the United States for charter as in the case of other Dutch ships lying in the United States ports.

"The agreement was explicitly temporary in character, and, being designed to meet an immediate situation, prompt performance was of the essence.

"The Dutch government at once disclosed, however, that it was unwilling or unable to carry out this chartering agreement which it had itself proposed. The first desire of the United States was to secure at once shipping. as contemplated by the agreement to transport to Switzerland foodstuffs much needed by the state.

was

"One difficulty after another was, however, raised to postpone the chartering of Dutch ships for Swiss relief, and although the reason was never formally expressed, it generally known that the Dutch shipowners feared lest their ships should be destroyed by German submarines, even if on an errand of mercy and though not traversing any of the so-called 'danger zones' proclaimed by the German government.

"That this fear was not wholly unjustified has unhappily been shown by the recent act of the German government in sinking the Spanish ship Sardinero outside the danger zone, when carrying a cargo of grain for Switzerland, and after the submarine commander had ascer tained this fact by an inspection of the ship's

papers.

"In respect to Belgian relief, the Dutch government expressed its present inability to com ply with the agreement on the ground that the German government had given Holland to understand that it would forcibly prevent the departure from Holland of the corresponding ships which, under the agreement, were to leave coincidentally for the United States.

"The Dutch government even felt itself unable to secure the two cargoes of foodstuffs which, under the agreement, it was permitted to secure, since here again the German government intervened and threatened to destroy the equivalent Dutch tonnage which under the agreement was to leave Holland for the United States.

"Nearly two months have elapsed since the making of the temporary chartering agreement, and the proposed general agreement has lain even longer without reply on the part of Holland. Meanwhile German threats have grown more violent, with a view to preventing any permanent agreement and of foreing Holland to violate any temporary agreement.

"On March 7, through Great Britain, a final proposal, expiring on the 18th, was submitted to Holland. A reply has been received which, while in itself unacceptable, might under other conditions have served as a basis for further negotiations. But the events to which I have alluded had served to demonstrate conclusively that we have been attempting to negotiate where the essential basis for agreement-namely, the meeting of free willsis absent. Even were an agreement concluded. there is lacking that power of independent action which alone can assure performance.

an

"I say this not in criticism of the Dutch government. I profoundly sympathize with the difficulty of her position under the menace of a military power which has in every way demonstrated its disdain of neutral rights. But since coercion does in fact exist, no alternative is left to us but to accomplish. through the exercise of our indisputable rights as a sovereign, that which is so reasonable that in other circumstances we would be confident of accomplishing it by agreement.

"Steps are accordingly being taken to put into our service Dutch shipping lying within our territorial jurisdiction. This action on our part and the similar action which is being