Omaha daily bee., 1919-11-27
Gcifield Wage Rate
Is Refused by Miners

i
agent or abide by it,"
There is no gentleman in the
| cabinet I respect more than Secre'
tary Wilson," DR.. Garfield replied
His powers are clearly defined
Among other things his duties are tc
effect Cancellation. But under the
labor act :se president was eni-
powered to control prices and that
duty was conferred upon the fuel ad-
ministration. You cannot tx prices
without affecting wages and you
cannot change wages without at
fecting prices.
Both Secretary Wilson and
both frankly realize this difficulty,
but I cannot allow it to stand in the
| way Of doing my duty. 1t is not my
understanding that Secretary Wilson
made a definite offer to either the
miners or operators. but that he
merely suggested basis on which
you might get together"
| DR.. Garfield said the cabinet APP
proved the basis of settlement as
presented.
Garfelds Statement.
DR.. Garheld's statement to the
Joint conference Of miners and oper-
ators follows:
ION the oath instant ] announced
that the public must not be asked to
pay more than it is now paying for
coal, unless it is necessary to do so
in order to provide reasonable wages
to the mine workers and reasonable
profit to the operators. Careful in
vestigation forces me to the conclu-
sion that in accordance with this and
the other principles set forth on the
24th instant, the public ought not to
be required to pay any increase IN
coal prices at this time.
"The prices fixed by the govern
ment on coal were calculated to in
crease production for war purposes.
Coal was basic and the increase in
production was imperative. The
operators are now in receipt OF mar
gins which were necessary to effect
that increase of production, but
which are larger than are required
under present conditions. 1t was es-
timated that the production needed
for 1918 was 600,000.000 tons. The
stimate for 1919 is 500,000,0O0.
Increase by Deduction.
Applying the principles set forth
in paragraph two of the statement Of
November "a, when the average in
creases in wages since 1918 for the
various classes of mine workers are
deducted from the increase in the
cost Of living since that time, we ar
rive at the amount Of additional in
crease in wages justihable at the
present time.
II have taken the figures of the
bureau Of labor statistics for both
cost and Twin and for the weighted
average of wage increases. Accord
ing to these figures the cost of liv-
ing has risen 1913 per cent since 1913,
and the amount necessary to bring
the average wages of mine workers
up to this point at the present time
IS IA per cent.
Fears to Add Burdens.
ESTABLISHMENTS heretofore made
since 1913 were such as to give
certain classes of mine workers an
average increase in excess of the in
crease in the cost of living and GER
tain others an average increase. be-
low the increase in the cost Of 1iv-
ing. This formal adjustment was
made in order to establish or pre-
serve certain relative basis in the
mining industry. do not think
this condition, however, ought to
result in giving to mine workers as
whole, and in consequence inn
posing upon the public, a total aver
age increase in excess of the total
average increase in the cost Of liv-
ing, because if this course be adopted
the result would be that the total
increased burden placed upon the
mining industry will be far in ex-
cess of the increase in the cost of
living. If this principle were APP
piled in industries generally it is
obvious that the resulting cost
would be passed alohg to the gen
eral public and the increased wages
would increase in rapid spiral
taking as a minimum the percentage
of increase in the cost of living. In
the long run, this would add many
new and serious burdens to the cost
of living of the entire public and
would fall more injuriously upon the
working classes than upon any
others.
Government Control.
ut seems to me that the reason
able way to deal with this situation
is to give to the industry as whole
an average increase commensurate
with the increase in the cost of liv-
ing and then let that amount of in
creases be apportioned in accord
ance with the wage bases that are
acceptable to the employers and the
employees.
Control Of prices by the govern
ment will be maintained for the
present.
"The present negotiation stands
by itself, but it is far from disposing
of the fundamental controversy be-
tween operators and mine workers.
That controversy is bound to be
continuing one as matters now