Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-05-29
RUIN OF RUSSIA
Continued from PAGE One)

wages are actually greater than the en-
tire profits of the factories under the hest
conditions of production. The workmen,
through their committees. are in virtual
command or the factories and all bust
ness has to be submitted to them for an.
prevail. Wages in a majority of the fac
tories have already been increased from
loo to $50 per cent, but there has as vet
been no Offset by an advance in price of
the output.
In one OF the works in Petrograd the
workmen recently demanded the immedi-
ate payment of 100000 rubles-normally
Sc, 500 0O0--to cover an increase of IL ko-
PEGS an hour for each workman since the
beginning of the war. The directors Of
the organization Immediately commun,-
Gated with the government and asked to
be placed under voluntary arrest as pro-
lection against the threats CT the work
men which. as usual accompanied the de-
mand. The government finally informed
the directors that the matter would be
considered and with the demand of the
workmen held temporarily In allegiance
the directors returned to the factory.
fective in all factories.
According to the estimate Of a lead
ing manufacturer the output of these
factories has suffered an average de-
crease of 40 per cent since the revolu-
ton. He explained that all these con-
Germs were confronted with an immi-
nent shortage Of raw materials and
with bankruptcy.
Not only have the prices Of products
not met the advance in wages, but pay
ment has been so SLOW that industry
is in urgent need of working capital
The manufacturers find it difficult to
borrow money as the banks natural
ly are not eager to extend credit to
factries which are in control of tenn
porary workmer'S committees. As a
result some Of the factories, according
to this information. was compelled to
close within A month. An ironical fea-
ture Of the differences confronting the
employer is the fact that although suf-
fering serious loss they do not dare
to close the establishment owing
to threats Of bodily and material ven
gence. The power of the workmen's
committees SO far has superseded the
authority Of the owners. No man in
the factory cannot be dismissed with
out the consent of the committees
There is no way Of enforcing discipline
said one manufacturer
President Kutler of the Union Trade
and Industry attended a recent conference
of the council Of ministers and laid be-
fore it figures showing that the demands
Of the workmen of the Donets and Ural
districts far exceeded the profits which
any concerns could hore to realize, and
that the factories could operate under
present conditions for only limited time.
The Socialist ministers who were present
declared that the only possibility they
saw Of settling the question was winding
up the war first of all.
Mr.. Kutler said that in IS metal estab-
lishments in the Donets district with
capitalization Of 100000 rubles and an
nual profits of 70. 100000 rubles, the work.
men had demanded an increase Of $40, Co.,
900 rubles. The owners had agreed to
"a, 600 900 but the workmen refused to ac-
cept this.
statement of representative Of the
union, the owners decided to cede all the
profits to the workmen, but even this did
not meet their exorbitant demands
The demands in the southern Russian
factories aggregate Sooo10.00o rubles. If
these demands are met, iron and coal
would have to rise to uri1eard Of prices