nal, and in return for which the journal was sent free to every member of the organization. Finally each local was required to contribute 5c per member every three months to constitute a convention fund from which the traveling expenses of the delegates were defrayed. All moneys paid to the union were received by the corresponding secretary, who was required to keep an accurate account of the financial standing of the locals with the national organization. He was required to draw up quarterly financial reports, which were subject to revision and audit by the trustees, who had the authority to examine the financial books of the union at any time. The money received by the corresponding secretary was turned over to the treasurer, who kept a record of all receipts and expenditures of the union and reported the same at each meeting of the executive committee. The cash on hand could never exceed $50, the excess being deposited by the trustees in some place of safe keeping designated by the executive committee. The treasurer was not permitted to pay out any money except on the written order of the recording secretary, and endorsed by the trustees. The funds of the Furniture Workers' Union were as effectively safe-guarded as regulations can establish safety. The most serious defect in the financial system of the union was one that was common to all organizations of that date, namely, the dues were so low and the income so small that it was impossible to build up a strong organization able to endure a long financial strain".

The revenue of the Machine Wood Workers was derived from charter fees, the per capita tax,-including the dues from isolated members.-and special assessments." The revenue from the first two sources was to be used as a fund for the support of the union and for the payment of the benefits prescribed by the constitution. At the second convention a general strike fund

6

This provision was enacted at the second convention in 1874. Cf. Verhand lungen, p. 18.

Facts for the I. F. W. U. have been taken from the constitution of 1883. Every local was required to pay a fee of $10 for a charter and an outfit. Cf. Const. M. W. W. I. U., 1890, Art. V, sect. 1.

Ibid., Art. VI, sect. 1, 3.

was established and the general council was empowered to levy on all locals not affected by the strike, a monthly assessment not to exceed 10c per member, whenever any deficiency should occur in the fund. This assessment was in force as long as the dispute was continued and the locals were required to pay it within two weeks from the date of notification. In case a local should fail to pay any of the taxes or special assessments for a period of three months, the general secretary was authorized to suspend the local from benefits."

8

The sources of revenue of the Amalgamated Union have already been stated. The per capita tax is the most important source of revenue. Between October 1, 1896, and December, 1903, this tax constituted approximately 75% of the total revenue. It is a uniform tax of 20 cents for all members in good standing and is paid by an order on the treasury to the general secretary. The per capita tax is paid into a general fund for the management of the organization and for the payment of the benefits provided by the constitution. All money due the Amalgamated Union is paid to the general secretary, who turns the funds over to the general treasurer. In this way there is established a double check on the finances of the union. The same method of management is followed also in the local organization, where the financial secretary collects all money due the local, and pays it over to the treasurer, who acts simply as custodian of the funds. The object of this system is to give the membership a better opportunity for detecting any crooked work on the part of the officials. The union has made no attempt to establish a large fund. The general officers have had great difficulty in impressing upon the membership the need of high dues in order to put the union on a strong financial basis. It was not until 1902 that the minimum local dues were raised to 50

Ibid., Art. VI, sect. 1, 3. On the last meeting night of each month the president and financial secretary of the local were required to sign an order on the local treasury for the amount of the per capita tax, and the treasurer must pay the tax to the general secretary without delay.

Has been increased to 30c at last convention. This will require ratification by membership before it becomes lawful. Proceedings Fourth Convention, p. 57-64.

cents per month. After 1897 there was a decided movement to increase the dues and initiation fees of the local unions throughout the country. In Chicago the agitation resulted in the establishment of uniform initiation fee of $5 for Cook County,10 and this was raised to $10 two years later." The same effort was put forth elsewhere with similar results, as in Minneapolis in January, 1900, when the initiation fee was increased from $5 to $10.12 While there was a decided resistance to an increase in the dues, there was a strong desire for high benefits. This attitude is probably due to the large German element among the membership, who brought with them from the International Furniture Worker's Union a strong sentiment in favor of high benefits. The futility of this policy was evident to the leaders, 13 and often embarrassed the treasury, rendering it impossible for the general officers to enforce the decrees of the union in regard to the payment of strike benefits.

• Constitution, 1902, sect. 49. Have been increased to 75c per month. Cf Proceedings Fourth Convention, p. 56.

10 7. W. W., Jan. 1897, p. 228.

11 Ibid., June 1899, p. 64.

12 Ibid., Nov. 1899, p. 122.

13 The following is the substance of an article entitled "High Dues Mean Success," and it expresses the attitude of the officials toward this question. The Amalgamated Wood Workers have had recently about fourteen disputes on at one time. In every instance demands were made upon headquarters for financial assistance. In our industry strikes usually involve larger numbers of men than are involved in strikes in other industries. All the more reason why we should have a strong fund with which to fight and win our battles. It was impossible to grant all of our unions on strike financial assistance. The Wood Workers must learn that "out of nothing, nothing can come," and if they achieve success they must follow in the footsteps of others, and do as others have done who have succeeded. One trouble with the average workingman is in his belief that as soon as he organizes a union, and as soon as he becomes involved in a strike, all the other trades unionists throughout the country will dip into their pockets with lightning speed and see how many sheckles they can withdraw to donate to his support. This is a mistake. There is too much of these "passing the hat" tactics in the trades union movement. The time is well nigh here when men should organize and build upon organization and remain quiet until they are in a position to do something besides gaining some knowledge of the particulars and tactics of the trades union, before making demands. The policy of the past, of having one or two strikes, paying out all of our money and then beginning to save again for some other strike is foolish in the extreme. We ought to have a good fund to be used when occasion requires, and there need be little fear of failure. Cf. I. W. W., May 1900, p. 52.

The principal items of expenditure are the general expenses, including printing, labels, supplies, salaries, etc., publication of the International Wood Worker, the payment of benefits,-death disability, and strike-organizing and traveling expenses, and the per capita tax to the American Federation of Labor. The four items of general expenses (including printing, labels, salaries, and supplies. 27.8%), organizing expenses (24%), publication of the Journal (14.1%), and the benefits (27.8%) constitute 93.7% of the total expenditure of the Amalgamated Union. The total expenditures show a marked increase in practically all items. Using January 1, 1900 as a dividing line, a comparison of the expenditures between 1896 and 1900 and 1900 and 1903 will show that the payment of benefits during the first period amounted to 59.4% of the total expediture, a sum which is relatively abnormal and is accounted for by the expenditure on the Oshkosh strike. This strike alone cost the union $17,205, or 47.2% of the total expense of the union during this period. While the absolute amount expended on this item during the second period had increased from $21,670 to $36,426, the relative importance declined to 27.8%. The amount expended on death and disability benefits increased from 8% to 12.9%, or an absolute increase of 5.7 times. The relative amount expended on strikes had declined from over 50% to 13%, and the actual amount spent was just under the sum spent during the first period. General expenses had increased from 20.4% to 27.8% or 4.7 times. The largest growth is shown in the item of organizing and traveling expenses, which increased from 7% to 24%. This was the result of the movement which was begun toward the end of 1898 for the extension of the union. As a result of this agitation the union attained its maximum numerical strength.

The principal safe-guard against mis-application of funds and crookedness in the financial operations of the union lies in the provisions for auditing the accounts of those officers, into whose hands the finances of the union are entrusted. The constitution contains adequate provisions on this point. It provides that the general council shall appoint an auditing committee of three members who shall audit the accounts and examine the vouchers of the general secretary and general treasurer at the end of each

fiscal quarter.14 This provision, together with the provision requiring these two officials to file bonds, furnishes the union with adequate machinery for safe-guarding its funds, but it must be remembered that the efficiency of such regulations depends not upon the letter of the provision itself, but upon the spirit in which it is administered.

The income of the local organizations is derived from five regular sources,-initiation fees, dues, fines, and charges for clearance and withdrawal cards. Each candidate for membership must pay an iniation fee of not less than one dollar. This fee, however, is not uniform but is subject to local regulation provided that no local charges less than the above minimum.15 The important source of income is the monthly dues, and here again the union makes provision for a minimum charge of fifty cents per month, and further regulation is left to the local unions.16 The monthly dues in the Furniture Workers' Union were left to local regulation but a per capita tax of 10c per member per week had to be paid to the executive committee. The Machine Wood Workers provided a minimum monthly due of 20c, which after a long and constant agitation has been raised to 75c per month in the Amalgamated Union. The income from fines and charges for clearance and withdrawal cards is relatively small and irregular. An analysis of the reports of the financial secretary of Local No. 17 of Chicago showed that 78% of local receipts come

14 Const. A. W. W. I. U., Rev. 1904, sect. 33. In the Furniture Workers' Union, in both the national and local organizations, the trustees were authorized to examine the financial books of the union at any time and to audit the accounts of the corresponding secretary and treasurer. Cf. p. 101.

15 The initiation fees charged by the various locals may be seen from the following table taken from the proceedings of the Third Annual Convention.

16 The monthly dues charged by the various locals were reported as follows: