Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-11-03
PRODUCTION PAYS THE
WAGES.


the existing Glass struggle" any con-
scious effort to overthrow truth. Be
lief in the accuracy of the proyerb,
Truth is mighty and will prevail is
universal There IS. however, con-
siderable divergence as to what con-
stitutes truth, Many people strive to
twist and turn it to suit their own pur-
poses. The effect of this is to deny
the truth, though they do not see it
that way.
Much Of the effort now under way
designed to improve the conditions Of
Virgo workers would. if successful,
overthrow established truths. If truth
is mighty enough to prevail against
anything, those efforts are fore
doomed to failure. Wherefore, it is
worth while inquiring what is the
truth with respect to economic propo-
sitions.
One was stated the other day in an
address by Nicholas Murray Butler
president of Columbia University. He
told an audience that. IF the wage
Garner can be led 10 understand that
his wages are paid out of PRODUCT
and not out of CAPITAL or out of
profits, he will speedily assist in in
creasing production, because he viii
understand that only in that way is IL
possible to provide for any permanent
increase in wages
That led naturally to this comment:
Persons otherwise intelligent go
about the country telling US that It'll
Is mere hypocrisy to say that the in
terests of employer and employed are
the same. on the contrary. it is mere
ignorance to say they are not the
same" Acknowledgment of the truth
first stated compels acceptance of the
second proposition.
The capitalists provide money for
plants, equipment, development-I
often borrowed money-which must
have returns to pay for interest, de-
probation, and repay principal plus
dividends, after paying wages. I'm
less production and distribution are
active, default, failure and suspension
follow. Then wages stop. Unfortun-
ately the capitalist sometimes pays
too little to employees and keeps too
much for himself. But often things
are not as they seem; employees do not
know the financial straits and hard
ships Of investors and managers, nor
that industries are frequently oper-
ated for considerable periods at actual
loss while labor continues to get full
pay. There have been periods when
coal mining in New Mexico has been
conducted at a loss. perhaps during
the past year, Certainly that has
been the case all of this year with big
copper mines in this state, but they
have continued in operation because
trey needs must maintain organiza-
ton for future activities. The mines
employ hundreds of people at standard
wages for the class of labor needed,
but have sold none of the product of
the present year. and but little of the
surplus accumulated earlier. Prices
quoted in the east indicate that n
market exists. but the figures are
made by spectators who hold the war
surplus and the actual sales are in
consequential, No big copper mine
in the country can dispose of its sur
nh az
and of necessity must hold until gem
uine demand will sustain a sales price
that will repay the cost of the product
accumulated during the war and the
additional quantity some of the mines
are providing while operating at half
capacity.
Yet there are many employees and
people who suppose that such an in
dustry can go on indefinitely paying
from its earnings of the past from
which it now PAYS both labor and
dividends. or pay from capital.
The permanence of any such enter
prise depends upon the joint energy
and interest of the managers and own
crs and the men who produce the
material. These local cases are cited
but as Illustrations of the truth of
what DR.. Butler says.
Unless labor produces sufficiently
that which the employer must sell in
way TO bring back wages, interest
and profit industry ceases, when hope
ends.
Capital thrives on PRODUCTION.
]; cannot thrive on ANYTHING ELSE.
81 with LABOR.
Both capital and labor have direct