The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-12-21


cerned they seek only establish minimum scales and
do not interfere with the individual unionists being paid
higher than the scale for than ability Re-
memberng however the enslaving effect resulting fom
the efforts OF the pacesetng faster workingmen them
selves in economic bondage. the unions really adopted
their fundamental law-their special privilege-the
unwritten rule that each unionized line all laborers
should do the kind of work for the
amount OF money. Always was equal wage fought
for and attempt by bonuses other inducements
to individuals develop their full capacity
for work determinedly prevented. To tho mind
OF the unonst the right of workman receive moro
pay for the ability to do work in given time
than some less competent workman could do VAS CO
incident with lowering the general Of wages
deprivns less competent workmen OF jobs
Coincident with the development Of the monopoliz-
ing combinations in industry centering for con-
troll and guidance in the Money Power monopoly. has
proceeded development the consolidation OF most
unions trade federations looking control and
guidance to the gigantic American Federation OF Labor
Both and differ only in their souro-
The Money Power is controlled from above Mr. Nor.
gan and his associates the autocrats OF American
manufacturing industry. MIR. Gompers Yields the
might president OF the labor power by the will OF y
majority OF the unionsts OF the country expressed
through their delegates.
Special privilege in its logical procedure. has
forced the development Of labor power to cope with
the Money Power. The special privilege Of the
be played to balance that OF the other and vice
WAR OF CAPITAL AND LABOR
Tho socalled OF capital and labor. when viewed
IN the light the law Of special privilege is myth
Whatever there is has been between the special
privilege Of capital the special privilege OF labor
Capitals special privilege lies in the greater power OF
tho larger purchaser through the use OF which eff
cheney been encouraged in inverse ratio labor'a
special privilege fundamental principle OF
unions that all should do the same amount
work the wage in their respective
nnes This special privilege has tended to bring labor
ers to efficiency set by the least efficient
and the level OF eficencythe average-has been tend
ing lower and lower all the time.
This tendency has reacted labor in its influence
the OF living. Labor gradually becoming less
through the levelng OF its special
privilege has been producing less per man. and capital
with increased labor has had to charge more for
functions performs. 1t the labor cost of certain
article is $00 and capital sells 1t to the consumer for
$685. capitals profit is $3.50 IT, through lowering
efficiency rises $125 capital in order
to make profit Of $3.50 must sell the article for
$156A. this the dollar of capital and the dollar
OF labor tend constantly to less pow
This is expressed popularity for the moment the
higher cost OF living.
Capital under special privilege. plays its part in
bringing about higher living COSTS Capitals special
privilege has ended in monopoly. Monopoly has the
power regulate it's profit Through this power
captazes its special privilege in all the lines Of indus
it controls by issuing great quantities OF watered
securities. 1ntrnscally these securities have value
There is not dollar Of actual invested behind
them. Monopoly. however. through its power to
late profits places these at figure high enough to
earnings sufficient to justify good dividends it,
watered securities. In this value is created for
the securities and their sale investors is made posi-
BILE. This value. however, must be maintained for the
advertising effect it has future issues of watered
stock brought out by the money power. Therefore.
prices for monopolized products maintained at a
high figure. anything to increase tho cost OF
production Of monopozed article this cost 10 mme-
diaely transferred to the by raise in the
price OF the article
Labor feels this increase through tho lowered pur-
chasing Of its dollar Therefore, demands
increase in wages In q monopoized line OF indus
try it is easy grant increase pass the
in higher prices the monopoized product
The railroads met the demands Of their men with
increases and used that fact tho
commission to allow them to raise freight rates.
The raises in rates they asked would have brought
in greatly in excess of the amount involved in
paying raise in wages the Tho RAILROADS
Justified themselves by the statement that their stock
holders entitled also to better earnings and
Quenty higher dividends.
In lines of industry where special privilege compe-
ton still holds, it is not easy for labor to
in wages The competing units probably buy
ing portion all their materials monopo
lied lines OF industry fact that Increases their cost OF
production Because they competitors they not
able proportionatey raise the Of their manufac
tured product their Probably. therefore,
the very time labor makes its demand them for
q increase in wages, they ruefuy considering
diminishing net profits In this refusal OF in
is made and be obtained only by a strike.
ruinously expensive the industry labor alike This
condition continues until the Money Power. in it,
hunt for lines industries throw into tho
profit machine, absorbs this particular line and esab
fishes higher and stable prices under which labor
supposedly receives a higher wage.
theoretically trades unionists should favor the