The labor world. [volume] (Duluth, Minn.) 1896-current, 1915-04-10
AMERICAN I | ! 4 l I I
FAR TOO SNAIL
!. SAYS PROFESSOR Pr J
Worker Should Compare His Ac.
counting Method With Bust
ness Methods.

ness Metn0QS. -
! From two-thirds to three-fourths of
the male wage earners in the leading
American industries in the northern
and eastern parts of the United States
are not paid enough wages to keep a
family of five%in decency and permit
saving to avoid dependency in old age,
according to Prof. Scott Nearing. Uni
versity of Pennsylvania, writing in
The Survey. =" =
The American worlkingman strug-.
Cling to support a. family on wages
from $3.50 to So a. day, should COM
pare his method of accounting with
that of modern business" writes
Prof. Nearing. -. -.
/ '"The worker, like the industrial
unit, represents an investment. The
expense Of his bringing up is part
of the Investment. The industrial
manager, having made his investment
decides the allowance for deprecia-
ton. He sets aside each year a. sum
that at the end of 20 years will equal
the cost Of the worn out machine.
Worker May Charge Depreciation.
THE worker may charge deprecia-
ton against his services. He has
limited term of usefulness, and bust.
ness should provide for the deprecia-
ton of it's human units as it provides
for that of it's mechanical units.
Insurance is a legitimate charge
for the human as we'll as the other
parts Of the business investment. The
machine, used up, is scrap. The man,
used up, may require support. The
sum. charged for depreciation and in
surance for the worker must cover not
only ordinary wear but must provide:
for SUPPORT when active work is over.
There is beside the charge for upkeep.
This charge for human beings is of
primary Importance. Good health and
sound physique are universally neces-
sary, and should be- paid for before
any of the other charges Of life are:
met. -
Present Wages insufficient.
investigators recently have made
an analysis of the cost of main
tanning a family of husband, wife and
three children under IA. For New
York the cost was $500; Pittsburgh,
81 900; Buffalo, $3.50; Chicago, $500;
and Fall River, $3.50. Apparently, it
requires from $3.50 to SO each work
ing day, $3.50 to $1,000 a year, to-
provide for a family of five. The
comparison of this standard with the.
wages paid by, leading American In
dustries in the. northern and eastern
sections of the United States, shows
that large proportion-perhaps two
thirds, or three-quarters-oft the adult
males receive less than enough to sup
port such a family in decency.s= The
present rates Of wages are iinsuffici-.
emit, in many instances, TO cover the
first charge which ordinary business
practice makes against an investment
the charge for upkeep. It follows
that they must fail to provide against
the charges for investment, depre-
citation and insurance.
Justice requires that the wage
cover, above upkeep, enough for de-
probation and insurance, varing with
the wage of the individual and the
character of the occupation. This
charge would not be negligible for in
many businesses where the human
hazards are high, it would usually
amount each year to at least q tenth
of the total investment. -
Wage Rates Inadequate. -
1.-The prevalence of wage rates be-
low $1,000, and the impossibility of
providing for more than bare upkeep
charges on smaller amounts prove the
inadequacy: of vast numbers of wage
rates.
1.-THE great body of male American
wage carriers receive no income.
Their wage provides bare upkeep. In
their accounts is no mention of those
stabilizing and, regulative charges
which modern business men demand
depreciation, interest and dividends.
Workers should study business book
keeping and apply their knowledge to
their own family affairs. The bust
ness man receives income after he
has met running expenses and paid
fixed charges. The ordinary worker
with family makes, in a great ma
jority Of cases, bear running ex-
penses" =. a..