The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-13

The frSt tnlnR 10 De uOIle, tnlnh,
said he, would be to appoint a perma-
nent industrial commission in the
Government. Conferences with man
ufacturers would follow, such as that
which recently occurred with the steel
industry, resulting in reduction in
the cost Of steel averaging between 10
per cent. and IA per cent. Wages in
the steel industry were not reduced.
believe a similar result could be obs
tanned by using the same methods in
other industries, stabilizing them for
the commercial man, raising living
standards for the workingman, slim
ulating business for the country and
the world.
What Cost Reduction Means.
Reduction of costs without wage
reduction will Immediately increase
consumption. which will increase gem
eral prosperity. 1 am sure that tho
adoption of this plan is the contribu-
ton which employers generally can
make to reconstruction, and I am
equally certain that. II they make il.
they never will have reason to re-
greet it.
at is true that price fixing during
the war period was accompanied by
patriotic appeal. but it Is none the less
! true that manufacturers gained from
. il. 1t was a good thing all around. and
it is as necessary now as it was then.
"There are many beneficial lessons
which we all can learn from war ex-
perience, and the lesson taught hy
price fixing is among them-price fix
ing without wage reduction. During
the war it brought out the human ele-
| ment which had been forgotten in our
industry; it was a contradiction ne
that old time refusal OF one side to
recognize its interdependence with the
other which has been responsible for
most troubles in the past and which
Will be the greatest feeder Cif it il
permitted to persisD of the unrest
which now seems to be growing.
| On the other hand, the workman
has certain obligations which he had
then met and which he would meet
again If he were given opportunity.
ie would respond. He would give his
very best IL the conditions Of his life
were of the very best. He would do
his share; but it is the employers
first move. Really only these two can
do anything. The Government and
society in general must wait upon
them.
Hope for Little RadicaIisn.
PERSONALLY | devoutly hope that
mere VIII be no growth of radicalism
In the United States, and we of the
! American Federation of Labor shall do
all that lies within our power to pre-
| vent II. But ] believe that the sana
method of assuring this will be TO re-
move all possible causes of radicalism,
ana that job is not up to- the worker,
The greatest offender in pushing up
the cost of living was and is the Amer
lean retailer, The cost of living cam
not be reduced merely by reducing
manufacturers costs or charges. The
retailers and the middlemen between
them and the manufacturers must be
DEFINITELY brought to book in some
way. Their present idea Of profit must
DC revised. The retailer instead OF his
present profit of from IL to 100 per
cent, must take from TO 12 per cent.
on his investment after deductins cost
and overhead
IF he sees more than l2 per cent.
coming let him reduce his prices or
snare II with his employees, not nv
paying bonuses but by increasing
wages, and with the consumer by re-
ducing prices.
THE exact plan for bringing this
about. Including means for the en-
iorcement Of the plan, could he de-
termined by Federal commission an
pointed to obtain accurate Information
win regard to costs of operating bust
nesses as they are to-day operated
me Federal Trades Commission has
SHOWN the way TO this.
III no concern was permitted to
make more than 10 per cent. on its
investment proflteerng would dis
appear and stabilized conditions would
ensue In every branch OF trade and in
austry, Suppose I invest 500. 900:
can loan it. without violating the law
III New York State, at an interest not
higher than per cent Is it right.
men, for me 60 expect its investment
III my business TO pay 80 per cent. ?
Ihere should be as certain a limit "a
inc return which n man can get from
capital invested in business AS thers
Is upon the return which n man can
get on capital invested in loan"
Copyrighted. 1919. by Ed,cnrd ua~.
shaH Syndicate, mol