The Barre daily times. (Barre, Vt.) 1897-1959, 1915-06-29
LABOR GETS
TWO THIRDS
Only a Third Of the Prod
uct Goes to Cap
ital
CIVIC FEDERATION
STUDIES FIGURES
Wages Increasing and Are
Proportionately
Larger

| New York, June 20.--The Natlona
Civic Federation committee on the divi
'sion of the peoples income, in a prelim
|inary report made public Sunday, finds
that capital instead of receiving foul
times as much of the product of labor
as does labor itself receives only hall
as much. The committee was appoint.
ed to investigate the oft.repeated state.
ment that labor receives in wages only
Is per cent. of the annual product.
| The members of the committee are w
~. Pape of Waterbury, Conn.,, Professor
John R.~Clark of Columbia university,
and Rev. John A. Ryan of st. Paul's
seminary, st. Paul, MINI. They have
reached their conclusions after Analysing
census figures on manufacturing, mines
and quarries, the interstate commerce
commissions figures on steam railroads
and express companies and the financial
statement of the American Telephone &
Telegraph Co.
| From these and other sources the COM
mittee concludes that in general after
miscellaneous expenses and the cost of
materials or supplies are deducted two
thirds of the. net earnings 90 to wage
earners and one-third goes to capital.
Out of this third the capitalist must pro.
vide for depreciation.
The statistics consulted cover the Ia
bors of more than 25 per cent. of the
gainfully employed, or 100000 wage
earners. 1t excludes the farm laborers,
of whom there were 6,l43,799 in 1910,
and 100000 farmers. Statistics re-
capitalists and laborers. Statistics re-
garding them are lacking.
The committee takes the stand that
the value of each worker is the differ
ence between the gross value of his prod
uct and the cost of materials, not the
value in 1899 was 81 OPS, the difference
between the gross value of his product,
S2.420, and 1895 the cost, net S2,420.
This difference the report calls added
value, or the amount of new wealth pro-
duced per wage-earner.
From this added value, it continues, |
the manufacturer must pay taxes, I'D |
yertisng, rents, royalties, insurance,
agents, etc, and his payroll |
before he can figure on his share. De-
Quoting such expenses, there was in 1899
4 fund of $3.50 per employee to be di-
sided. OF this $500, or 66.4 per cent.
vent to labor and 5000, or 1915 per cent.
10 capital.
The report finds that the census re,
.urns OF 1899 and 1904 show not only
hat wages are increasing but that they
ire larger in proportion to the total to
be divided between capital and labor.
Hence the census figures show that cap l.
tails profits are decreasing, both in the
aggregate and allowing for depreciation.
Comparing the census reports for the
asst 90 years and allowing for changes
n methods OF taking il, the committee
oncludes that the average annual wage
n manufacturing industries has increased
rom S247 20 S5ls in GO years and the |.
formal rate OF interest has decreased
'ne-fourth. The wage in rease, they :
md. was especially large from 1899 to !
900, and still continues.
In speaking Of the Ford profit sharing 4
Ian. the report says il has made big /
rofits seems criminal unless accompan- ,
d by high wages. but the extension OF r
he same pay schedules to other indus >
ries would mean widespread bankruptcy
ecause OF the small average profit mar.
in. In
The report refutes the Socialist con- !,
handbook. which quotes gen. i,
raj average figures for 100000 or 100000 !,
lctories, and a.ks: How does Henry n
ord pay such big wages out Of such i
turns as this 2" The report remarks !.
BAT the prosperity Of the Ford bus =
less or any other successful business !
Des not prove all other businesses 10
? similarly profitable
In conclusion, the report SAYS that If =
the future an increased output per :.
orker should result from betterments =
the application Of capital or labor or !,
9TH 60 industry, experience seems 90
low that the worker would secure the 4
ajor part Of such increase. :.