The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-28
FINDS CAPITAL GETS
LESS THAN LABOR
Civic Federation Committee
SAYS Wages Take Two
thirds of Earnings.
SOCIALISTS ARE REFUTED

70 Nstioua, civic Federation rom
r,.e, ON ;hc division Of the peoples
,r..mc. in q preliminary report made
mb,c vest rday, finds that capital in
.,,td pf receiving our times ms much
n Gle product Of labor as does labor
r..'! receives only half ~ much. Thu
committee was appointed to investigate
fine ot, repeated statement that labor
receives in wages only is per cent. OF
the annual product.
Tho members " the committee are w.
! Pane Of Waterbury, conn. Prof. John
u Clark OF Columoia University, and
m Rev. John a. Ryan of ST. Paul's
seminary, st. Paul. Mini They have
reached their conclusions after analyz-
ing ceneus figures on manufacturing.
mines and quarries. the Interstate Com
nerce Commissions figures on steam
railroads and express companies and the
financial statement OF the American
Telephone and Telegraph Company.
From these and other sources the
committee concludes that In general
after miscellaneous expenses n the
COS, OF materials or supplies are de-
Quoted two-thirds of the net earnings
10 to wage earners and one-third goes
10 capital. Out OF this third the capt.
talist must provide for depreciation.
Cover Isbors Of IO.OOO,OOO.
The statistics consulted cover the
hbors OF more than 25 per cent. OF the
painfully employed. or o 1000. 900 wage
earners. 1t excludes the farm laborers,
OF whom there were 6.143,7s9 In 1910.
and 5000, 900 farmers who are both
capitalists and laborers. Statistics re-
harding them are lacking.
The committee takes the stand that
me value OF each worker is the differ
erce between the gross value OF his
product and the cost OF materials. not
the gross value alone. Thus II says the
workers value in 1899 wac sl.o25, the
difference between the gross value OF his
product, s2,42o. and 1895. the cost. not
S2,420. This difference the report calls
added value, or the amount Of new
wealth produced per wage Garner.
From this added value, II continues.
ire manufacturer must pay taxes. adver-
Using. rents, royalties. insurance, travel
ling agents. &c, and his payroll before
ne can figure on his share. Deducting
such expenses. there was in 1899 a fund
OF $3.50 per employee to be divided. OF
this. $500. or 66.4 per cent. went to labor
and s299. or $40 per cent. to capital.
The report finds that the census re-
turns of 1899 and 1904 show not only
that wages are increasing but that they
are larger In proportion to the total to
be divided between capital and labor.
Hence the census figures show that capi-
tails profits are decreasing. both in the
aggregate and allowing for depreciation.
Big in Average Wage.
Comparing the census reports for the
last sixty years and allowing for changes
81 methods OF taking ", the committee
concludes that the average wage
In manufacturing industries has in
creased from s247 to s5lS in sixty years
and the normal rate OF interest has de-
creased o~ne-fourth. The wage increase
they find. was especially large from
1899 to 1909. and still continues.
In speaking of the Ford profit sharing
plan. the report says It has made big
profits seem criminal unless accompanied
by high wages. but the extension OF the
same pay schedules to other industries
would mean widespread bankruptcy, be-
cause of the small average prof. margin,
The report refutes the ooial Con.
gressional Handbook. which quotes gen.
eral average figures for 200. 900 OF
100000 factories. and asks How does
Henry Ford pay such big wages out OF
such returns as this?" The report re.
marks hat the prosperity OF the Ford
business or any other successful business
Goes not prove all other businesses to be
similarly profitable.
In conclusion, the report say that Il
n the future an increased output pei
worker should result from betterments
m tho application Of capital or labor OF
both to industry, experience seems &c
snow that the worker would secure the
major part of such increase.