Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-18
PRODUCTION BEATS
WAGE. IN CLIMBING
Eight Billion Capitalization
Goes to Twelve-Salary In
cre.-,--c Lays Behind.
STEEL INDUSTRY LEADS
IN THIS DISCREPANCY
Where There Are No Efficiency
Methods Wages Keep Pace
Better With Capital.
Star Bureau,
Metropolitan National Bank Bldg,
WASHINGTON Au0 IA

WASHINGTON, Aug. 49,,
Labor is not getting its proportions
ate share of the increasing profits in
manufactures in the, United States,
according to census figures
Values of manufactured products in
: the five years ending in 1909 showed
increases d fourth greater than in
5 the previous five-year period. The in
crease in value of products, less cost
, of materials used in manufacturing,
In the same period, was a sixth
greater than the increase from 1899
to 1904, while the increase in average
wages was one-third less for the later
period
The story of what efficiency meth
DDS in manufacturing is doing for
capital and labor, respectively in
American industries, is fairly well
shown. by the following figures:
1904 1909
Value of products
less cost of ma
terials -. So, 29s sos, 600 ss,5so,2o 900
Labor's share " r-t
wages ......... 2,610, 445 900 3,427, OBS 900
Capitals share :. 1858, 100000 Blob 23, 900
6,615,046 Wage-earners In 1909.
These wages in 1909 We're paid to
$3.50 wage earners, of whom 1872,
246 We're said to be children under 16
years, and 1.290,253 were reported as
women over 16. The average wage
for all the industrial wage-earners of
the country in 1909 was $51S, or a little
less than $40 a week. In the light of
statistics from other sources the
number of child workers given in the
census reports appears ridiculously
small. The average wage in 1904
was SAT- and in 1909 was $426
According to these figures the
wage-earners of the country re-
ceived less of the increase in the ma
tons industrial prosperity in the five
years ending IN 1909 than they did in
the five years ending in 1904.
AS compared with the percentage
of increase in production and in the
added value given materials by
manufacture for the two periods the
percentage of increase in wages in
the same periods shows the follow
ing remarkable disproportion:
1892 '04 1904 09
p. cent. p. cent.
Increased value manu-
featured products. 297 1877
Increased value added
by manufacture. ...... 1913 800
Increase in average
wage .................. IL OIL
-Four Billion Increase.
Curiously enough, while the cap
lIdllZdIlOH OI lDS VI thC
country increased from eight to
twelve billions from 1904 to 1909, or
more than so per cent, the share OF
the gross manufacturing profits that
went for other purpose than the pay
ment of wages amounted to almost
the same percentage Of the capltaliza-
ton in both years. In 1904 the snare
of added values or gross profits that
went to other purposes than wages
was a little less than 20 per cent or
she capitalization of all the industries,
while in 1909 the same share was a
trifie less than % per cent of the
total capitalization.
In no industry, probably, have so.
called efficiency methods, whlcn
consist mainly in greatly increasing
output with a small increase in wage
cost. been carried further than in the
steel industry. Because of this fact
the disproportion between the in
creased values produced and in
creased wages paid in steel works
and rolling mills is interesting and
sipnificant. These figures are as fol-
lows o
Manufacture 1882, 7s1, 900 sS2S, 222, 600
Labor's share
wages ... 1919, 491, 900 1863, POI, 900
Capitals share. 110,270000 165,O21, 900
wages Increase from $500 to $3.50.
Although the average wage paid in
this industry increased in the last
five-year period from $500 to $3.50,
labor's proportion of the gross profits
In the product of the steel and rolling
mills actually fell off, being so per
cent. in 1904 and less than so per cent
In 1909.
In industries where efficiency