Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-04-07
FINANCIAL.



The following. compiled for the Fcmer-Railroad Arb;
traton Board is submitted for the consideration of organ
lied labor and the investors American securities:
The American business, financial and labor world is
unsettled
Unrest uncertainty dread decentralization, are every
There main causes:
Labor with its present its present
of living If labor does increase i'll
will be compelled abandon its standard of living and
to adopt costing billion dollars less yearly.
If this practicable-t is not because labor will
volt rstte consumption of abors product would
business would into cycle back-tracing from pros
perty to "hard times"
Labor must have its increased wage-wll have it.
The employers of labor-te Nations
grant labors necessary wage increase unless
(a) They allowed to mark up the price of
their productive necessities OF the people-or
(N They voluntarily capitals return-divi-
dends.
Marking up the price of the Nations product will not
solve the day problem Increased of the peoples
necessities will bring labor back after each MAKEUP in price
for another increase
Dividends be meet 1abor's demand. It is n-
evtable that dividends will be
It is the shadow of this coming that Of
main causes of the decentralization of the market for
labor and abo productshe necessities of the people,
for capital and capitals products-socks bonds
There billions of American securities, calling
for annual dividend and interest of three billion
dollars Ten billions of these 60 billions OF stocks and bonds
represent orgina-reaLcapital invested Fifteen billions
represent the legitimate increase
The remaining IS bilons-nearly 6o9a-are fictitious
counerfeitnasmuch they do represent any real
al legitimate increase Therefore billion
quarters close 600 of the present annual dividend and
interest return represents unwarranted imitation
On the other hand there billion dollars OF labors
savings calling for annual interest return of 49, 6 billions
in savings banks and billions in other forms But while
the 6o9o imitation of capital capitals has been
taking place. the value of abor billion dollars of savings
and their 40 have remained stationary only that
but the purchasing power of the annual upon abo
billions has been two this 40 practically
iii two
THEREFORE, THERE CAN BE NO JUST COM
PLANT AGAINST A 900 CUT IN DIVIDENDS TO
MEET LABoRs ABSOLUTELY NECESSARY DE-
MANDs
There have instruments used in the llegmate
imitation OF stocks and bonds Money Trust and Stock Ex
change. But for Money Trust and Stock Exchange there
could not have been ilegitimate initiation
reform wave sweeping the Nation 1t has turned the
Government to lawmakers and administrators
pledged to reform OF present evils,
1t is the shadow of this coming money trust-stock
Exchange reform that the other of present de-
mobilization
There other contributing Increased standard
Of living tariff gold production" European wars.
etc. but they OF minor consequence
It is in the air that
Labor will its increased wage-over billion dol
lars annually.
Dividends will be cut-over billion dollars annually.
Laws will be enacted which will make it impossible
for the 60 billions be manipu-
lated that the increase be Offset by increase
in price of livng's necessities.
The people feel it, and it is this feeling that has made
present generalization Nationwide.
Holders OF American securities it themselves
face coming conditions and govern themselves accordingly
without regard the falaces OF the surface skaters OF The
financial world
The immediate result of underway reforms will be-
The settling, and settling right of labor;
drop the price of all stocks which dependent
egmate monopoly for the payment of their abnor
mally high dividends
rise of vhich