The Washington herald., 1919-04-11
PRICES TO RULE
CUT IN WAGES
Holland Says Reduction of
Materials Cost Must
Come First.


have caused a careful computation to
be made so that some good basis
could be obtained for fixing the price
or steel. The figures of the experts
show that increases In wages paid
to the men in the steel industry have
reached a higher figure, so far as
rate Of increase is concerned, than has
been the case with any other enlarge
ment OF wages. In four years the
skilled artisans. particularly those en-
ployed upon finished material, have
been rejoiced at an increase in wages
which averages 134 per cent. Further
more, the experts have worked out
the cost OF producing steel products
and the proportionate part in that cost
which wages bear, and have found II
10 be IS per cent.
In other words, notwithstanding the
nigh cost OF raw products, such as iron
ore, overhead charges. depreciation
and interest, nevertheless these charg-
es are approximately only Is per cent
OF the total cost OF turning out the
products
There seems to be no disposition on
the part OF any OF the leaders in the
steel industry TO reduce wages. In
stead they are anxious to maintain
the prevailing high rate, at least until
the cost OF the necessaries OF life has
been so greatly reduced as to make It
reasonable also to reduce wages.
Wages and Prices.
The experts also figured that a
certain price, which II was hoped
would be agreed upon at the meet
ing Of the steel producers at Wash
ingtOn with the Industrial Board of
the Depart ment OF Commerce. would
make il possible to continue the
production OF steel and its finished
products without compelling a re-
duction of wages. That price was
fixed upon. The public seems not to
have understood that the steel pro-
ducers, as well as the Industrial
Board. were anxious to come to
such agreement as would serve for
the welfare of those who earn wages
in that vocation
There seems to be no difference
OF opinion among the leaders in the
steel industry that any further re-
duction of price or the adoption OF
such a policy as Director General
Hines advocates would inevitably be
followed by a reduction Of wages.
The best opinion seems to be that
many months, perhaps years, will
pass before wage and price levels,
as these were in 1914. will be re-
stored. Perhaps they never will be
restored. Some Of the ablest think
ers are OF the opinion that it will
he we'll for the couutry>if they are
not restored At all events. there
appears to be no influence which
will for some time lead to a reduc-
tion in the price of foodstunfs.
But there is a deeper and more i'm
Portant significance in this desire OF
the leaders in the steel industry and
also in the oil industry to maintain
wages as long as possible or at least
until there comes. if there ever does
come. Il considerable reduction in the
price of the ueeeEsaries OF life. The
ADLER leaders are OF the opinion that
As q direct result Of the war the re-
latiOns between labor and those who
employ labor are to be fundamentally
changed. and changed for the better.
Already much comment has been
made upon the extraordinary and
very gratifying agreement which has
been reached in England whereby Ia
b0r and so-Called capital may here
after stand upon common ground,
each recognizing the function which
brought under the control or author
ity Of a great central council
It was said this morning that
whether Lloyd George is able, with
others, to perfect a satisfactory league
Of nations or not. nevertheless he has
achieved something which for Great
Britain at least Is at this time or
equal Importance. He. with the in
telligent labor leaders, has now agreed
upon a common policy which will be
Of benefit to all who are engaged In
production, whether they be the men
Of ca pital and capacity for skilltul dl-
rection of industry or whether they be
the men who are occupied as wage
earners with production.
Already several steps in this direc-
ton have been taken by industrial
leaders and Industrial workers in the
United states. The sentiment which
favors the perfeCtinE of a plan SINH
lar in principle II not in detail to the
one which has Just been established
in Great Britain is growing. There
appears to be reason to hope that at
last labor and capital can be fully
reconciled, each understanding the
Iu,portant part the other plays in pro-
duction. each having its own recog-
nized rights and privileges.
ROIr Of Labor.
Now. II by reason OF the action OF
the government authorities prices for
steel products are so fixed as to COM
pel a reduction OF wages, then there
might be a serious setback to this
impulse. What a vital part labor
bears I'm the cost Of production is now
made known by the calculations Of
the experts who have given much
study to this question so far as II
affects the steel industry. This rela-
tIon is similar to that which labor
bears to the transportation industry
ot the United States, or at least to
the cost OF it.
There is an incidental point OF view
associated with the labor situation in
the United States. This suggests that
instead Of there being an overplus of
labor in this country We are likely
to face a shortage II now looks as
though emigration from the United
States will be for some time much
greater than immigration As soon,
as ships in plenty can be provided
many thousands OF laboring men will
return to Europe. All Of the Ameri-
can representatives OF steamship lines
tell OF the magnitude Of the applica-
tions for passage tickets. They will
take, in the aggregate. a very large
amount OF money which they have
saved. The reports OF these managers