The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-11-18
TIE WAGE INCREASES

A4A " 1VA kNUQAa1A0
Of overshadowing Importance, to the
student of economic changes as well
as to those directly affected and the
country at large, are the advances in
wages now being made by the great
corporations. Already the Pennsyl-
vania Railroad company, the Reading,
New York Central, Milwaukee, Stan
dard Oil, United States Steel and Jones
& Laughlin companies have raised their
lists, besides numerous smaller compa-
MES. In the case Of the Pennsylvania
alone the 10 per cent advance will
mean close to $12,O0o,0Oo annually adj
ditional to expense of operation.
This is the fourth stage of a devel-
opment of the past several years that
first rolled up big figures in earnings for
the railroads and other corporations,
next, in the raising of the standard
OF living and the pressure upon pro-
ductivity due to general prosperity put
up the cost of living, brought to hold
ers Of securities gratifying returns in
the form of increased dividends. extra
disbursements and rights in the pur-
chase OF new stock, and now has turned
towards the equalizing of things with
reference to the men who have only
their labor to sell and upon whom the
increased cost of living has fallen
heavily.
The Pennsylvania road, in more than
one respect the greatest railroad in the
world, is prime mover in the new de-
parture. Evidently its officers are
men of breadth Of mind sufficient to
understand that disastrous strikes
might rend the fabric Of our unprece-
denied prosperity and that for their
avoidance labor must be permitted to
have part in the distribution Of the
good things. There must be some
"melon cutting" for the men who labor
to produce results as we'll as for those
whose invested wealth makes possible
the employment Of labor.
We have probably seen the end of the
era Of dividend increases. The year
1906, up to Nov. 1, will mark the pc
Rod, when, in greater degree than ever
before, the shareholder received his
due. Nearly all dividend-paying COM
panies, both railroad and industrial,
inaugurated higher rates of payment.
Some glaring instances Of great sums
divided among stockholders have been
recorded, notably the Pullman distri-
button by new stock gratuity of $685.
100000, and with these things in mind
the legislatures of several states, when
next they meet, are likely to concern
themselves with the question of a fair
return upon invested capital. For the
most part the increases have only been
such as in fairness should have gone
to capital actively employed in a time
Of general prosperity. !
November, 1906, may be said to have
brought in the era of the greater COM
pensation for labor. That this trend
will continue into next year seems en-
tirely probable. Other companies will
| necessarily follow the leadership of the
big ones. ..,.. -..
Nothing could be more favorable for
the financial and political stability of
the United States than these wage in
creases. For one thing the country has
gained enormously in wealth. The cen
sus bureau, in a recent bulletin, showed
that in 1904 the wealth of the United
States was 100000, 100000, and as it
| has increased since then at the rate of
nearly $4,500,0O0,OOO annually, the
| total now is close to $115, O00, 900 900.
The cost Of living has increased ma
| terially. We have seen this in the re-
| ports Of Dun s and Bradstreet's, where
| index numbers show the rise and fall
OF the average, and the question has
been discussed accidentally by, writers
like Nicholas Murray Butler, and 9TH
ers. The department of commerce and
labor now backs this all up by some fig
| ures recently issued, showing that
wholesale prices have reached higher
average level than in sixteen years and
are 2.6 higher than in 1904. Compared
with 1896 farm products and feeds are
5S.6 and 2O.7 per cent higher respec-
lively, clothing is % per cent higher,
fuel and lighting costs the average
man 1914 per cent more than in 1894,
and housefurnishing goods are up 81 per
cent since 1897.
1t was time that the working man
was beginning to bet better return. In
many lines Of labor this had already
come about, and indeed unskilled labor
has Jared best relatively, owing to the
immense amount of rough work con-
sequent upon new western development
The corporations that are governed by
fixed standards arrived at by comprom-
Use between employer and employee,
have Jagged, but they are now leading
off in iberality in very gratifying
manner.
| The country is to be congratulated.
That which strikes and great disturb
ances might not effect is now coming
about peaceably, thanks to the foresight
OF the men at the heads Of the great
corporations, and in it there is the
promise of continued pleasant rela-
tionship between capital and labor and
continued prosperity for the country.
MINNEAPOLIS PRODUCE