s is high because less
labor is employed than would be employed under competition and fewer
goods are produced. The actual product of the unit of labor, as
measured in dollars, is enhanced by the employers' monopoly. _BB'_
represents, by its varying distance above _EE'_, what organized labor
can get under the different conditions. On the left it forces the
trusts to share gains with it, and gets a high rate of pay; while on
the right, where employers are not in combination and there are no
such great gains to draw on, it gets less, although at the extreme
right it gets all that it produces. _DD'_ represents what unorganized
labor can get under the different conditions, and it is usually
somewhat more where trusts employ it than it is elsewhere. The dotted
line _CC'_ represents the product of labor as it would be if it were
equalized in the different fields.

_The Parties interested in a Dispute in which Both Labor and Capital
are Organized._--We can best deal with the problem of the adjustment
of wages by arbitration if we approach it in a region where
organization is strong, both on the side of labor and on that of
capital, and disturbances of the natural system are greatest. The
struggle that here goes on is, in a way, triangular. Organized labor
contends against its own employers, on the one hand, and against
unorganized labor, on the other; and the part which develops the
greatest bitterness of feeling and the most violence is the strife
between labor and labor--between the trade unionists who strike and
the men who attempt to occupy their positions. The union is more
tolerant of the employer's action in driving a hard bargain than it is
of the "scab's" action in "taking another man's job."

_The Public a Fourth Party in the Case._--The three parties just
named--employers, organized employees, and applicants for places--are
not the only parties whom the dispute affects. The public has a vital
relation to it, and in a true sense its interest and rights are
supreme. The public has a right to demand that production should not
be interrupted, and that the supply of necessary articles should not
be cut off; and it is in line with this demand that arbitrators seek
first for an award that the contending parties will be willing to
accept.

_Two Issues needing Settlement._--In the immediate contest over the
adjustment of pay, the three parties first named are the ones
primarily involved. In discharging its duty as the pr