Many methods of profit sharing have been tried and they have usually worked advantageously, but admittedly they fall far short of the requirements. So-called cooperative industrial concerns have been created with some measure of success, yet the real problem remains untouched and as complex as ever. Labor has never established a cooperative industry worthy of the name, except as Mallock shows in “The Limits of Pure Democracy,”[3] when the actual operation of the concern has been placed in the hands of an oligarch whose administration is as arbitrary as that of any captain of industry. Only in that way has it been possible to supply management, the most essential element, as we have seen, in any enterprise. Labor has sometimes found the capital, but capital and labor without management are impotent. A goodly number of corporations have encouraged and even assisted their workmen to buy stock, which is a very good and meritorious policy. It may tend to alleviate but it fails to cure. ----- Footnote 3: Published by E. P. Dutton & Company, New York. Mallock clearly shows that every successful government unites the elements of autocracy and democracy. Even the Imperial German Government granted certain powers to the people, while the Constitution of the United States clothes the president with powers in certain respects rivaling those of the kaiser. The power of veto which the Constitution vests in the president exceeds any prerogative possessed by the king of England. On the other hand the power to make war rests with Congress, while in Great Britain it requires no parliamentary act. Mallock enlarges upon this thought and shows that socialist organizations and labor unions are successful only because they are arbitrarily managed. Their so-called leaders are, in fact, oligarchs. The Russian Revolution, like the French Revolution, was avowedly of democratic origin, but in fact both were as despotic as anything the world has ever seen. The strength and grandeur of the government of the United States, as established by the Constitution, lies in the most happy combination and blending of these two fundamental principles, popular sovereignty and centralized strength.