New-York tribune., 1908-06-27
SOCI4LISM AND WAGES.
Deductions from Census Reports
Incorrect and Misleading.
To the Editor of The Tribune.


| To the Editor of The Tribune.
Sir: From time to time the socialist press pam
phlets and speakers issue statements purportng TO
| he the correct census reports on wages paid and
| wealth produced in our manufacturing establish
rnents The statement most often appears some
/ thing like this:
| The census for 1900 shows the average annual
| wage paid in this country to be $45a 80 and the
wealth produced 81 451 per capita per year
At other times the statement appears like this:
The workers in factories receive only II per
] cent of what they produce" And again they say
Statistics show that the wage workers produce
SO day and receive only 81 Ss Vote the SOCIALIST
ticket and get the full product of your toll
Such organs as THE Social Democratic Herald
| The Chicago Socialist" The Appeal to Reason
and nearly all the socialist leaders, as wen as
millions leaflets have circulated these untrutn-
full statements Their first great mistake is In sup
| posing allowing their readers and hearers 10
suppose that s437 so represents the income Of the
average wage Garner in our manufacturing estao-
lishments only There no census reports on the
| average wage rate for all wage workers
The second great mistake is in supposins gross
wealth to be net wealth.
Nor do the socialists figure in the labor of 3s7ISO
clerks, forenen superintendent, etc, yet thelr
| labor just necessary-even more so, accord
ing to Karl Marx-as the labor Of machine ten
ders etc These received total wage of 0is375s1
| Vol VII. United States Census for 1900. shows
the gross value of 512 TBS manufacturing estab-
ushnents to be a3014 1875 This gross value Is
| arrived at by first counting in the original raw
material which cost s2 1896, ,s5S 161, and also by
constant duplication OF values. owing to the fact
that the finished product of one plant becomes the
| material OF some other factory, in which 1t is
| changed into higher form and again included
| in value of products.
| Thus we find that the cost of raw materials and
partly manufactured materials is S,34S, ,144 It
may be noted here that imported partly manu-
factured materials the value OF SS7, 10000 Yet
| the American socialist cooily informs that the
! American workman produced this s97, 0Oo,0o0
| Then. again. there is the miscellaneous expense
amounting 10 s02s. .O33 611, not penny OF which
the workers in the factories produced.
The number of wage in the shops and
factories numbered 1916 so2 they received in wages
s. 32s 69 254. Add the wages of the clerks. fore
men, etc. and the total fund s2,7a2 s2l52s
The following table will supply the true state
ment:
Cost Of miscellaneous expense i03s o35 eli
Total $s,s76Isos66
To which add:
Total expense Sill 100 1O1 s94
Subtractfng this from the total gross value Of
manufactured wealth, s13,014,2s7,4ss, and We have
| left s., ,s05, 1S,S04.
Nor is this last sum profit If should
reckon that the workers produced this sl.s05s5,60
even then find that the workers received SO per
of the total net wealth produced Let US con-
slider all the factors in the production OF manu-
| factured wealth Not counting stockholders,
find that there 7S 623 propretors of the 52 26
| manufacturing plants. The plainly states
that the vast majority of these received salary
depending the profits in the business for the
| reward of their labor The socialists would have
you believe that these 7Os 623 capitalists loaf
ers But the truth is that least 95 per Of
| them workers in their own factories.
It is not easy to determine the value of intel
lectual labor, but according to Karl Marx this kind
| Of labor is much more valuable than common labor
For example, skilled manager will take a mill
property that being poorly organized, is conducted
at loss and turn it into profitable plant with
out any reduction of the laborers wage. Certainly
such labor hardly be valued On the whole.
then, have $4,000 capitalists who contribute
their skill the production of the gross total OF
manufactured wealth. If figured their labor at
only s15Oo year, this would represent 1915 OO0 600
| /. E., that they produced wealth to that value.
| Last, there is the plant itself representing
investment of 80 664 os7 Why the labor of the
American workers so effective Is il not for two
reasons mainIy-irst, effective and superior
| machinery and second, the splendid machines to
| make every stroke count?
I don't know work any hours any
harder while we do work than the Chinese, yet
suppose labor is nearly times effective.
AS capital is only saved labor. e.. the labor of
past generaons-it has moral right the full
product of a fair return It might be that this
would be per cent or il might be a little more,
but whatever 1t Is, II certainly is something. and
we cannot by any moral right claim that it belongs
| to the wage worker
At first thought the average reader might jump
10 the conclusion that the balance of NSo5.O0OOOo
represented profit; but, mark you, the goods have
not been sold and a considerable part OF deprecia
ton has not been paid for. Moreover, IL requires
superior intellectual labor economically TO distrib
ute the goods well TO produce them, and this
is Of tremendous benefit to society-a benefit that
we are able to enjoy only because of our individual
istic system. The real question is, How much of
the 81 eO5 600 did the workers in the factory
duce? l have clearly shown that IL the $4,000 or
more capitalist workers produced anything, and II
ca pital is entitled fair reward, then labor must
have received least 80 cent perhaps more, of
the wealth 1t produced.
saw Once destroy the present system and adopt
the socialist programme of production and distribu
ton and we will surely up against two solid
facts. First under socialism the Of distribution
would be enormously increased, and second. produc
tion would likewise decrease, that instead OF
receiving from s. 900 s5O00 year. the socialist
dreamers tell us, would be compelled to have
much less than enjoy at present.
The socialists make just big mistakes when
thew discuss any other phase OF economics. and this
is how they fool a part of the working class.
F. G.. r, GORDON.
Reading Mass. June -, 1903.
PRINCE HELlE'S MARRIAGE PLANS.