The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-11-07
WAGES AND PRODUCTION.
FAliacics In seciaiiss Caleu-
lations Exposed.

lations Exposed.
To N EprroR OF TIE suN-Sir: From
time 20 time the Socialist press and speakers
issue statements purporting to be the correct
census reports on wages paid and wealth
produced In our manufacturing establish
ments. The statement often appears some
thing like this:
Tho census for 1900 shows the average annual
wage paid In this country TO be sss7bo. and the
wealth produced s2,4Sl per capita per annum.
Az other time the statement appears like
this:
Tho workers In our factories receive only II per
cent of what they produce. Statistics show thss
the wage workers produce so q day and receive
only n.Ss. Vote the Sociallss ticket and get the
full product Of your toll.
Such organs as the Social Democratic Herald.
the Chicago Socialist. and the Appeal to Reason
and nearly all the Socialist leaders have cir
culated these untruthful statements. Their
first great mistake Is in supposing. or allowing
their readers and hearers to suppose. that
tAs7. so 10 tho average annual wage paid In
our manufacturing establishments. There
ars no censuA reports on the average wage
rate for all wage workers. The second great
mistake is In supposins gross wealth to bs
net wealth.
The Socialists do not calculate ths labor Of
ss7. $50 clerks. foremen. superintendents. 40;
yot tueu ldDOI IN JubL ~ ucC6HehIy, even moro
20 according to Karl Marx, than the labor Of
machine lenders and others in shops and fac
tories. These clerks. according to tho census
Of 1900. received o total annual wage Of s4oA.-
PSI. SOL. Volume 7 Of the census for 1900
shows the gross value Of our 512. TO manu-
featuring establishments to have been 81
1877, +9s. This gross value was arrived at by
nrst counting In the original raw material.
which cost 81. sos. 05s. i6i, and reckoning CON-
atane AttnltNafian ~ uaysVaa AwwSnr 60 thA
fact that the finished product OF one plant
becomes the material Of some other factory
In which it 10 changed into some higher form
and again included In value Of products.
Thus We find that raw materials and par
TALLY manufactured materials cost 81. s4s.-
l44.7 1885,. 1t may be noted here that we i'm
ported partially manufactured materials to
the value OF many millions of dollars. Yet
the American Socialist coolly implies that
the American workman produced these mate
rails.
Then again there ars the miscellaneous
expenses amounting to 81, o2s. 035. 81. not one
penny Of which the workers in the factories
The number Of wage earners in the shops
and factories was 5,3I8,s 500. and they re-
Ceived IN wages 81. 1928. e9l .2S4; adding the
wage fund was 81, 732. O2l. S2s.
The following table will supply the true
statement:
COHI OF mAtertAN... NT3AN1 IA Th0
Cost Of misceianeous elpensc...... tI.0:S.oS.Sii
To which add total wage fund.-. !. Tss.Ssi.Sss
Total expense. ................ 81. i09. l0l ,s94
-subtracting this from the total gross value
OF manufactured wealth. sl3,ol4.2S .49s. We
have left 81, 9O5. ls5, 604.
Nor is this last sum net profit. When we
manufactured wealth.. not counting stock
holders, we find that there were 7Os, 1923 pro-
prietors Of the $40. 72o manufacturing plants.
The census plainly states that the vast major
ity OF them received no salary, depending
upon the profits in the business for the re ward
You believe that these 7os, s2s Capitalists were
~loafers. But the truth il that at least 95 per
cent. Of them were workers in their own fac
tories.
IL is not easy to determine the value OF in
tellectual labor. but according to Karl Marx
common labor. For example. a skilled man
ager will take a mill property conducted at a
loss and turn It into q profitable plant with
the whole. then, we have $50, 900 capitalists
who contribute their skill to the production
II we ysg as EIHsda t SSshi labor al %s an onIy 81 500 w y Sear
the result would be eo75 900. 900: that is to say,
the. Produced wealth. OF that value. Lastly.
snekHts,the plant Itself representing an invest
AS capital is saved labor II has every moral
might be that this would be s per cent, or il
might be a little more, but whatever il is, it
certainly Is something and we cannot by any
moral right claim that it belongs to the wage
worker.
At frst thought the average reader might
Jump TO the concluson that the balance OF
81 DOS, 1875. 800 represented profit, but the goods
have not been sold and a considerable part OF
depreciation has not been paid for. More
over IL requires superior intellectual labor
economically to distribute the goods as well
a. to produce them. and this Is of tremen-
dous benefit to society. a benefit that we are
able to enjoy only because Of our individual
istic, system. The real. question H. how much
of the 81 DOS. 1856, 604 did the workers In the
factory produce. II the 65O,O0 or more capt.
tslist workers. produced anything, and IL.
capital A entitled to a fair reward, then labor
must have received at least 90 per cent, per-
haps more, OF the wealth it produced.
Once destroy the present system and adopt
the Socialist programme OF production and
distribution. and we shall surely run up against
two solid facts: First. under socialism the
cost OF distribution would be enormously in
creased: secondly. production would decrease
so that instead OF receiving from 81, 900 TO
s., 900 a year. as the Socialist dreamers tell us
would be each mans portion, we should be
compelled 70 accept less than we get at
present, +. @. Il. GORDON.
NEw YoRK. November 0.
Would Not Write to Order.