The Barre daily times. (Barre, Vt.) 1897-1959, 1920-05-07
And Points Out That the
Wage Increases Are but
Small Part of H. C. of L.
ONLY Is PER CENT IN
SUGARS 300 PER CENT
Railway Brotherhoods Pre-
sent Results of Investiga-
ton to Railroad Board


of profteering in American industry,
made under the auspices Of the railroad
brotherhoods, was presented to the
railroad labor board to-day in support
of the railway workers demands for
higher wages and to refute the charge
that increased labor costs are response
BILE for the high cost of living
Prepared by w. j. Lauek, former
secretary of the war labor board, the
study seeks to show that profiteering
in industry is the fundamental cause
for high prices in practically all COM
modities. 1t gives many statistics to
support that contention.
Calling attention to the many war
made millionaires, the study contends
that three fold relationship exists
between high prices, profiteering and
the addition to the quota of million
aires and that the increase in the
wealth of the wealthy Ia an "unan-
elsewhere refutation' to all attempts
to charge labor with profteering ard
10 all attempts to hold labor RESPONSE.
BILE for the high cost of living.
For, if invested wealth gets a larg-
er return" says the study, "a larger
proportion of the national income than
formerly, the man who gives personal
service or labor is bound to get a
smaller proportion. The menace of the
future lies p the probability THAT the
vast profits which are still held in re
serve will be capitulated in order that,
under the pretext of fair return on
capital, those who own them may con
tinue to take the larger proportion Of
national income, even at the expense Of
very great suffering on the part of the
workers, when the over-stimulation Of
war has passed away"
OF the extraordinary increase IN the
price of sugar. now amounting to 800
per cent, the study says the increase in
labor cost paid by the consumer was
less than Is per cent. The result of
advanced prices, according to the
quoted reports of IL companies pro-
ducing over half of the sugar consumed
in the United States, was pictured in
the net profits Of these concerns which
il was said rose from an average Of
81 900 900 during the years l9l2-l4 20
$34 10000 for the years l9l6-lS.
In tbs meat packing industry where
profits were said 10 have increased be-
tween 300 and 400 per cent. the labor
item was shown 50 small that a wage
increase of 100 per cent would add less
than five per cent to the total cost OF
the meat. The increase in price be.
tween 1914 and 1915 was shown at
eight times the total labor cost, and
the 1918 price represented p times the
total labor item.
Profits absorbed approximately one,
half the retail price Of certain kinds OF
cloth, the report declared, while the
labor item amounts 10 from onefour
teenth TO one-twentieth OF the price.
Similar relations were pictured in the
manufacture of mems garments.
Shoes. according 10 the study, fur
uished splendid opportunity for the
proftcer' The profit items in 1914, it
was charged. absorbed nearly one-half
the price paid by the consumer, or
nearly three times the total labor cost,
while in 1917 the profit items amounted.
to approximately three fifths Of the 20
tai and more than five times the total
labor cost.
Increases in the retail price Of btu
minous coal were shown at four times
the increase in labor costs while the
proportion of the proceeds Of the in
dustry received by the coal operators
was shown as increased from rs to 400
per cent.
Proiteering did not stop with the ar
mistice, the report declares, presenting
figures to show that corporation prof
it, in 1919 were 40 per cent over the
pre-wsr average which means the
study added. that 1919 profits were
more than double the average for the
wears f9l2-lgl4.
An average Of $1,000 per family Of
five during the years lal6-lS was de-
clared to he probably = highly conser.
vative estimate of the sctual cost Of
corporation profiteering 20 the CON
sumer
Railroad Workers General Demands.
Concluding his study. Mr. Lauck sub
mitted the following general demands
in the name OF the railroad workers;
labor in general and railroad Ia
Dor in particular, must have wsge in
creases proportionste to advances in
living costs.
"2-In the present crisis and for all
time 10 come, producers and middlcmen
must he restrained from advancing
prices in excess Of increases in labor
and material costs.
-3-Produeers and middlemen must /
refrain from including income and eN
cess profit taxes in their costs. and
passing them on TO the consumer With !
an added profit.
THE principle Of a living wage
must be accepted and established IN /
order that normal produc; lon may be 4
restored and increased ! production I