New-York tribune., 1919-08-08


thew worked granted this increase and
Immediately added this increased cost
of production to the price of shoes,
together with profit on that increase.
The consuming public, all who bought
shoes, would pay this added cost, to-
gethcr with a profit to the manufact-
urer and the wage carners would re-
ceive an increased wage. This woulS
be an excellent thing for the shoemak
ers. The success of their organization
would the next day induce the garment
workers to perfect like organization
and increase their wages accordingly,
laying a further burden upon the pub
lie, in which burden the shoemakers
would begin to bear share. The sue
cess of those employed in these two in
dustries would Immediately induce the
packing house employees to perfect a
like organization and receive like bene-
fits. The benefits the public would pay
in the paying of which shoemakers
and garment workers would share. The
circle Of all socialized industries being
dustries now find that every advantage
which they have received, but also a
profit on that advantage to the owners
of the capital employed in production,
Describes "Vicious Circle
"This cycle being completed, the
owners of the capital alone have bene-
fitted. Wages have been increased,
but all commodities which the wage
earners must purchase have been more
than spondingly increased in price
by the profit demanded by the owner
of capital upon the increased cost
of production. Under such system
earning power can never overtake
spending necessity. But the necessity
of purchase always outstrips the power
of buying exactly by the profit demand
ed on the increased purchasing power
and to the extent of the profit COM
pounded by each Intermediate handling
and transportation of the commodity.
This constantly growing difference be-
tween necessity for buying and ability
to pay must be compensated by lower
ing 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 bal
ance sheet.
"Organized labor now realizes that
further advances in wages at the ex-
pense of cost of living exceeding
that of values are wholly futile. Equal
~, organized labor realizes that to
correct this vicious system the inter
ests of both producers and consumers
must be protected; that the great in
crease III the productive power Of
human effort should be reflected equal
ly in increased earning power of those
who produce and the decreased cost
Of the comm odity so reduced.
''ln order to affect the price of all
commodities by advances in wages to
those who produce, then, it would be
necessary to complete the entire cycle
Of industrial production. An advance
to the shoemakers is reflected only
in the advanced price of shoes 1t
does not affect any other comm odity.
But with transportation the situa-
tion- is quite otherwise. The cost in
nsportation is reflected in the price
of all commodities, whether transported
or not The consumer pays the freight
on everything that he consumes, al
though it may be produced next door.
and may never have passed over any
lne Of transportation.
Reduce Rates, Says Plumb
Heretofore railroad rates have not
been advanced universally A COM
modify rate is advanced here, a classi
tication rate advanced there, and onlv
those commodities affected by such
local advances reflect the increased
cost in their price. But with the com
ing of the war a is per cent advance
was allowed by the Interstate Com
Weicc commission, covering all rates
and all commodities and reflected the
next day in the purchase price of every
thing by which we live. Later the
director general again advanced these
rates % per cent. This advance was
again Immediately reflected in the price
Of commodities. and the cost of living.
The wages earned by those who produce
constitutes the great bulk of the pur-
chasing fund Of this nation. When the
price of all commodities is advanced
due to an increased cost of transporta-
ton and the wage fund is not corre-
spondingly increased The difference is
exactly reflected by restriction in the
amount OF commodities consumed. This
scon reacts on the producing agencies,
lhey provide a restricted output to
correspond with the restricted demand.
rms again restricts the wage or pur-
chasing fund, and the cycle of rcstric-
ton endessly repeats itself. until we
ind production stifled, industry in stag
nation, unemployment and inevitable
political and social revolution.
Reverse this vicious system. Reduce
rates; The costs Of all comm odties
are then reduced accordingly. The pur-
chasing power of the wage fund is then
spondlngly expanded. A greater
volume OF commodities is consumed. |
The demand on industry is increased. |
lhere follows wider field Of employ
ment, which. IN turn. increases the |
wage or purchasing fund Of the COM !
mooiIv' rms must inevitably follow,