Daily capital journal. (Salem, Oregon) 1903-1919, 1916-05-05

nomenal, particularly upon those en-
gagged in iron and steel productions For
example, the United States Steel cor
poration S net earnings during the last
quarter were reported at about $4,000
600, or five times what they were a
year ago. Similar results are being re-
ported by other concerns in this indus
try, although it must be remembered
that comparisons are made with a per.
iod of depression. Copper mining com.
panies are making extraordinary profits
and their combined output for this year
will considerably exceed 2,000,000,00O
pounds, which at current average prices
would approximate considerably over
$5O0,000,000 in value of product com.
pared with S2S0,000000 last year. More.
over, the entire output for 1916 is said
to have been sold to the allies, who seem
to have secured all the surplus copper I'm
the country. When the war is over there
will be tremendous vacuum in Ger
many which this country win be called
upon to fill The oil companies are also
securing their full share Of present un-
! precedcnted activity. Since January |
the Standard Oil companies have dis
tributed about S30,000000 in stock div
idends, and many of the companies have
accumulated sWpluscs almost equal to
their capital stock. A number Of the
chemical cOmpaics, especially those
tmaking clements for explosives, nrc
having similar experiences, showing
| profits several times those of a year
ago. Some of the textile concerns hav-
ing war contracts are also enjoying
unusual prosperity. As for the muni-
tion companies, their experiences are
too familiar TO call for rciteration.
further than the fact that orders for
munitions from the allies are still com
ing forward more freely than at one
time anticipated.
Effect of Big Profits.
Such bulging profits, pleasing as they
may be, are not altogether satisfactory.
They are much exaggerated by high
prices and inflationary conditions. Be
yond question they create n species of
dangerous intoxication in business af-
fairs. The whole industrial fabric, while
running at top speed, is put more or less
out Of gear. Costly changes and i'm
provements are being made that may be
suddenly wiped out of existence when
peace comes. Commissions are many
and heavy. Extravaganza is inevitable
and careless business methods take the
place of economies formerly enforced
by necessity, Opportunities for graft
and greed are innumerable, and the NOR
ale Of many establishments is seriously
impaired or destroyed, A hazardous sit
uation is being created which, though
recognized, is often, lightly regarded be-
cause Of the immense profits in immedi-
ate view. Foresight may effcctualIy
l prevent the disasters which would ordi-
narily follow such cXcesses, but the
effect is demoralizing alike to capital
and labor. The latter naturally cx-
l poets share in these extraordinary re-.
suits, and is securing it without much
difficulty. Many concerns are disposed
to deal literally with their help, nr'
numerous wage advances have already
occurred in industries making these un.
paralleled profits. 1t would probably
have been better for all concerned. if
instead of higher wages bonuses had
been given the men, with the assurance
that they would be continued as long
as present extraordinary conditions last.
When war contracts cease aud cOndi.
tions settle down to nomal--if not to u
period of positive rcaction-thc wages
question may become acute; for the
men, not clearly understanding the situ.
alton, will be unwilling to submit to n
return to former wages, regardless of
whether manufacturers will be able to
continue on the present basis or not
Some better and more flexible method
of adjusting wage differences should
be found than strikes. Capital needs
more fair-mindcd and more liberal lead
crship. Labor needs more intelligent
and less prcjudiced leadership. Each
needs to consider the others point of
view. Blind selfishness should give
place to intelligent self interest, and
the spirit Of fair play should animate
the leaders of both interests. The war
like spirit which prevails between cap
ital and labor is simply absurd and in.
furious to both Capital and labor are
unavoidablly partners, one Of which as
sumes the risk and management while
the other gives manual skill and labor.
Railroads and Labor.
For both sides harmony is better than
friction, and the share allotted TO each
out Of the social product should be the
outcome Of Open-minded negotiation;
not brute force or brigandagc on either
side. The issues between the railroads
and labor must shortly be met. II is
very evident that the demands Of the
trainmen, who are only one-fourth Of
the railroad employees, for an advance
in wages amounting 10 about 100000
600, have neither the support Of pub
lie opinion nor the warrant of facts
\ These men already receive relatively
4 high wages, and concessions made to
them would soon have to be made to
others. The result to the railroads
would be an added burden which, ir
spite Of recent betterment in their
financial condition, tnoy cannot in all
justice be compelled to pay. For some
Of the roads these exactiOns would prob
ably mean bankruptcy. If enforced the
public will have to pay the bill, either
in impaired service, or higher freight
and passenger rates The power Of the
unions to enforce their will and create
widespread public loss, confusion and
inconvenience needs some LEGAL re-
straint not yet provided. No organiza.
tion Of capital would be allowed for one
moment to precipitate such crisis MS
these men have Threatened; nor would
they be allowed to imperil public inter