The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-14
THE "EPOCHAL" Mr.. FORD.
VIII sis PHILOSOPHY Produce NUN TO
Less W OnderwOrking Manufacturers?

To THE EDITOR or THE SUN--Str: A
wave OF enthusiasm has swept over the
country as a result OF the Ford Motor
Company's announcement OF the creation
Of higher wage and profit sharing eys-
tern. That wave has been swollen BY the
flood OF hysteria already inundating the
land.
1t Is most gratifying at this time to
see that THE Sun 10 able to lift its head
above the tide and cali attention to our
possible and as some Of us believe prob
able drift.
The Ford Company's diversion Of &c.
900 900 to the payment Of higher wages
and profit sharing for the benefit of its
employees Is supposed to equal about one
half It's last years net profits OF upward
OF $50, OO0, 900 Assuming that the busi-
ness does not decline during the coming
year. then there will still be $4,000. 900 in
net profits available for dividends. or 500
per cent on the Ford Company's capital
ization of $4,000 900.
Mr.. Ford and the other stockholders
of that company may well stand this. but
what about the entrepreneurs and stock
holders of many smaller businesses which
are not such industrial wonders Of tho
world as the Ford Company? What will
he the effect OF the Ford action upon
them?
Take, for example, the case OF busi-
ness honestly capitalized tsuch phenomena
exist, current public opinion to the con-
,rary Notwithstanding at s1.00o,000. and
on gross annual income OF s5.0OO,O0o
producing net profits OF 100000. This
company Is already paying 10 each OF its
500 hands an average Of - day. An
average Increase In wages OF even ~ a
man day leaving the wages still
So under the Ford wage scale. with no
profits" added, would mean an increased
annual wage cost of $4,000! This would
not only wipe out all profits for the en-
trepreneurs and stockholders but put the
company well on the road to bankruptcy
But in the face OF the "epachar' act Of
the Ford Company, would this be likely
to deter the men from making demand
for very substantial Increase
The eyes of the laboring men of the
country are fastened upon what Is going
on in Detroit. Mr.. Gonpers yesterday
observed that the Ford plan will demon
strate its justice as well ~ its economy
and sense. 1t will give an impetus to
workers In the automobile Industry to
endeavor to get higher wages. better con.
ditions and an eight hour working day.
This Is but another demonstration OF that
which experience has shown. namely. that
labor In a given industry always demands
the most that Is received by others In the
same Industry. Labor does not limit its
demands to what n business can bear.
The very term prevailing wage is AN
epitome of this. The present clamor Tor
minimum wage" legislation Is but an
other manifestation of the same spirit.
not only by labor" but also by those who
In their hysteria and ignorance believe
that legislative enactment can transcend
economic laws
The inevitable result OF the act which
Mr. Redfield has characterized as "epochar
will be to produce widespread discon-
tent This discomfort will. OF course, "a
foreshadowed by Mr.. Gompers, manifest
itself In a demand for higher wages, not
only In the automobile industry but IN
every other industry. The demand VIII
not take into account the conditions OF
particular business. as yesterday sug'
gested by MIR Mitchell. but will concern
itself only with what Is desired. IL the
demand cannot be acceded to because oil
the conditions of competition In the cases
of businesses less profitable than the
Ford Company's. those businesses VIII
more than ever he harassed by labor
troubles. II 1t IL acceded to, the ruin
that VIII follow seems not only econom'-
cally probable. but mathematicaliy de-
monstrable. LLOYD NJ H""hLL'
NEW YORK. January IL.