The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-08

IN CiHffncO Dy tuono WIN wv
resent the financial interests beEore this
committee that they have investments
Of approximately 5000, 100000 In thisl
Industry. Unless they receive return
OF $4,000. 100000 n year how shall this
Investment of money be compared with
that investment of life and labor that
receives a return OF s2,b00, 100000
Year, By what standard can they be
compared which gives to the investment
Of life value less than that allotted
to the investment Of dollarsf BY what
reason can the interest Of things ex-
coed in value the interest OF human
beings7 He who speaks Of the Interests
OF property 90 consisting Of rights which
the property possesses disassociated
from the human right Of ownership.
reasons falsely. Our Government,
with individuals. not with things. II
10 not with the interest Of capital with
which we have to DO, but with the human
interests involved in the ownership Of
capital by human beings.
System of Production.
"All citizens are consumers. Most
citizens are producers. Those who con-
sumo and do not produce are either
oeggars or capitalists. Many who pro-
duce are also capitalists. I have al
ready shown that 100000 of the wage
earners on the railroads, producers, are
capitalists in that they hold Govern
| ment securities. Many OF those who
| hold Investments In the railroads also
serve the industry In some capacity.
It is said that many Of the organised
emp on the Pennsylvania system
also hold stock In that system. Many
omcial employees on all railroads are
the owners of railroad securities So
that these three interests are commingled
In the great body of citizens. Likewise
all producers are consumers and again
all consumers are producers, except
those who live by charity or those who
i've on interest alone. All Of organised
| iaDor are consumers, and II Is the fall
ure OF producers In industry to recog-
nise their interest as consumers that
mas made the efforts of organised labor
inenoctual In securing for its member
ship a greater share of the profits of
the industries In which they are en-
pioyed. Let me illustrate:
suppose that the shoemakers were
the nrst producers to organize industri-
ally. so that all men who were engaged
In the production Of shoes as wage
earners organized and demanded a
larger share of the profits of that in
dustry by an increase In their wage.
assume that the employees for whom
| they worked granted this increase, and
Immediately added this increased cost of
| production to the price Of shoes. to-
gether with a profit on that increase.
The consuming public. all who bought
shoes. would pay this added cost to-
gether with a profit TO the manufacturer,
ana the wage earners would receive an
| increased wage. This would be an ex-
cellent thing for the shoemalkers The
success OF their organization would the
next DAY induce the garment workers
10 perfect like organization and In
crease their wages accordingly, laying
further burden upon the public, in
which burden the shoemakers would
begin to bear a share. The success OF
those employed in these two industries
would Immediately induce the packing
mouse employees TO perfect like or
ganization and receive like benefits. The
benefits the public would pay-in the
paying OF which shoemakers and gar
ment' workers would share. The circle
or all socialized industries being COM
pleted. those employed in those indus
tries now find that every advantage
which they have received. also gives a
profit on that advantage to the owners
OF the capital employed in production.
Price Raise Plan shown.
This cycle being completed the own
ers OF the capital alone have benefited.
Wages have been increased, but all
commodities which the wage earners
must purchase have been more than
correspondingly increased in price by the
proht demanded by the owner of CAPT.
tai upon the increased cost Of production
Under such a system earning power can
never overtake spending necessity. Bun
the necessity Of purchase always out
strips the power OF buying exactly by
the profit demanded on the increased
purchasing power and to the extent of
the profit compounded by each interme-
diate handling and transportation of
the commodity. This constantly grow
ing difference between necessity for buy
ing and ability to pay must be COM
rensated by a lowering of the level OF
existence. In no other way can the
sheet be balanced. and mankind not
only here but the world over refuses to
accept that balance sheet.
"Organized labor now realizes that
further advances in wages at the ex'
pense Of a cost of living exceeding -ha'
of values are wholly futile. Equally. or.
ganized labor realizes that to correct
this vicious system the interests of both
producers and consumers must be pro
tected; that the great increase in thu
productive power Of human effort should
be reflected equally In increased earning
, power of those who produce and the de-
creased cost OF the commodity 30 pro
duced.
"In order to affect the price of al
commodities by advances IN wages L
: those who produce, then. Il would b.
, necessary to complete the entire cycle o.
Industrial production. An advance t.
the shoemakers is reflected only In tn,
advanced price of shoes II does not at
! feet any other commodity.
! But with transportation the situation
Is quite otherwise. The cost in trans.
portation Is reflected In the price OF nj
! commodities. whether transported or not
The consumer pays the freight on every.
thing that he consumes. although II may
be produced next door and may never
have passed over any line of transpor-
tation.
Heretofore railroad rates have moi
been advanced universally. A commod-
ity rate Is advanced hero. a classified
ton rate advanced there. and only those
commodities affected by such local ad-
vances reflect the Increased cost in their
price. But with the coming of the wal
a Is per cent advance was allowed by
the Interstate Commerce Commission
covering all rates and all ommodities
and reflected the next day in the pur'
chase price of everything by which we
, live. Later the Director-General agar
advanced these rates 25 per cent.
Menace to Industry.
This advance was again immediately
| AaA fad In. "A