The Indianapolis journal., 1903-02-12
ARE LABOR UNIONS A MENACE TO
PROsPERITYg


ARE LABOR UNIONS MENACE TO
PROsPERITYs
j. j. Hill, the railroad magnate, thinks
labor unions are a menace to the prosperity
of the country. Labor unions have been
often and vigorously attacked on other
grounds. as their dictatorial policy toward
employers and their prescriptions and per-
secution of nonunion men, but Mr.. Hills
criticism Is from different point of view.
He says that las labor unions have killed
industrial England. so they are destined to
bring about grave financial reverse in the
United States" He says the common idea
that the United States is the leading manu-
featuring nation and is rapidly capturing
that instead of establishing our leadership
we are falling behind in the race. Contin-
uing, he says:
The truth is that this country is losing
ground in a manufacturing way and will
do very well even to hold her own mar
kets. Why? Because of the high cost OF
production here due to the growth of labor
unionism and the continued strife going on
among the unions, as well as between the
men and their en- oloyers. We cannot meet
the prices of German and English manu-
facturers and pay the wages which the
unions compel.
Germany is leading the world now, and
Is making much swifter progress than this
country or any other. England has dropped
behind. Labor unions aided In Killing her
that Is forging ahead. Her laborers work
very cheaply; they spend sixty-six hours In
nS
In addition she has facilities for trans
porting her products from and to every part
of the globe at very cheap rates. Before
we can get out and compete with her in the
markets of the world we must lower the
cost of producing manufactured articles
and must elevate the quality of the prod
ucts.
responsibility for this state of affairs in
that their persistent demand for higher
wages and their ability to enforce the de-
mand has resulted in making the cost of
production in this country so great that it
cannot compete successfully with others,
makes for cheaper production through
lower wages.
Mr.. Hill Is an able man and his views are
entitled to as much respect those of any
other business man. but even railroad mag
mates are not infallible. Mr.. Hill is human
and may be mistaken; anyhow, his views
must run the gauntlet of scrutiny and crit
icism like those of other people. They seem
to consist largely of assumptions or Of
statements which call for verifcation. For
instance, he says, this country is losing
ground I'm a manufacturing way" that I'VE
cannot meet the prices of German and
English manufacturers and pay the wages
which the unions demand;" that Germany
Is leading the world now and is making
much swifter progress than this country
or any other" and that before we can
compete with her in the markets of the
world we must lower the cost of production
and elevate the quality of products Where
Is the proof Of these sweeping assertions?
Undoubtedly Germany is making good
progress i'm manufacturing, but she does
not lead the world. and there is no evil
dence that the United States is losing
ground. Compare some of the leading items
OF Industrial prosperity: Germany I'm 1900
produced 1O1.s2l 900 tons of coal and the
United States produced 2ss. .255. .962 tons. OF
iron ore Germany produced l7,9S9,7OO tons
and the United States q. 3s2 on tons. Ger
many turned out 7.3l2.766 tons of pig iron
and the United States 1s,sl45eS tons. Much
the same proportion runs through every i'm
portant item of production. American man.
ufactures have increased more rapidly than
those of Germany, and our foreign trade
greatly exceeds that of Germany. In the
year 1900 the American consul general at
Berlin reported that Gin several branches Of
iron and steel manufacture the point of
| highest prosperity has been passed and
production has overtaken the demands of
both home and foreign trade" Germany
is progressing, but she is not more prosper
GUS than the United States and is not gain
| ing on this country in the race for COM
mercial supremacy.
But while Mr.. Hills statement is much too
| sweeping and is inaccurate in some re-
| spects it contains food for thought. If
| American manufacturers are still able to
| hold their own against those of Germany
| with the present disparity of wages and
with German laborers working sixty-six
4 nOuTS d WEEK dSdillSl IOfty-lOuT EOuTS Dy
| American workmen, it is pertinent to ask
| how long can this condition continue with
| out placing American manufacturers at a
| disadvantage? There must be a limit to the
| increase of wages and the reduction of
| working hours, and it is worth while to
consider whether il has not about been
reached. The cost of production in recent
years has been greatly reduced by the In
PRODUCTION of machinery, and still further,
as well as the cost of distribution. by in
| dustrial combinations and so-called trusts,
but even these advantages may be more
than counterbalanced by repeated increases
of wages and reductions in the hours of
labor. There is limit beyond which
| American manufacturers cannot go In these
respects and compete successfully with
their foreign rivals. Labor unions should
beware of killing the goose that lays the
| golden egg.
THE POLITICAL OPPORTUNITY OF