Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-05-28

Organized labor, squirming under
the charge Of pronteering or what
ever name may be applied to what is
commonly termed "hogging it," has
tackled the matter in one sensible way
and processes in some lines to have
obtained needed information respect
ing the exact conditions. ". j.
Lauek. consulting economis, Of the
railroad brotherhoods, has recently
submitted a survey of various COM
modities and respecting dress goods
he states: In the majority Of dress
goods. Of all kinds profits are absorb
ing approximately half the price paid
by the consumer.
AZ to unbleached cotton. the basis
Of most cotton fabrics. the survey
shows that between 1910 and 1919
the increase in the cost Of mill labor
was only Ia cents a yard; the in
crease in the cost Of all labor, plus
mill expense and the salaries OF Of
hcials only two cents . yard, while
the retail priee increased more than
20 cents. or ten times the increase Of
all labor costa BY far the largest
element in the advance of retail
priee-whieh was from Ia to 20
cents . yard-was the increase in
pront margins. These show an ad-
vance Of IL cents-approxtmately six
times the increase in the cost Of la
Dor, salary, and mill expense, and IA
per cent of the original retail price.
The exorbitant share OF the price
being taken today by the profiteer,"
he says, in the case of blue denim"
is shown by the entire cost of pro-
ducing these denims, which retailed
in 1919 for 50 cents. was only 25 is
cents yard. approximately one
half of the price paid by the con-
sumner was profit. In this instance
the same disproportion between the
increase granted to labor and the in
crease in price is shown. The in
crease in the labor item was only
l 10 cents and in labor and mill ex-
pense combined only l IL cents, as
contrasted with an increase in the
hSS0At ftANN ~ % WINS FSi soia- i AS
total profit margins for denim are
shown to have increased by 1855
cents, amounting to nearly fifteen
times the increase in labor. The mill
owners profits actually increased 500
per cent:
Turning 70 wooden goods, he says,
the first step in the increased cost Of
suits and coats is due to, rampant
profteerins in the industry. The
profits on wooden increased more
than $50 per cent, being more than
four times as great in 1890 as in 1910.
With such facts before us," said
Mr.. LAuek. I'VE are not surprised 20
find. in reports published in leading
financial manuals that the profits Of
eight large and representative textile
manufacturing corporations we're in
the years from 1916 to 1918 1--WE times
as large as during the pre-war Pc
rod"
Without questioning the purpose of
Mr.. Lauck il may be doubted wheth-
er his estimate of net profit is alto
gether accurate. though in the main
he appears 70 make strong case.
Everyone must realize that the cost
of merchandising has increased
greatly, accurate estimate of which
cannot be otherwise than difficult.
But assuming Lauek's findings ap-
proximately correct. assuming organ
lied labor to be one OF the mildest
hammered Of all the profiteers--and
we have never regarded it the biggest
hog at the troush-the fact remains
that any influence it may now exert
toward lessenins production direct
ly favcrs the conditions Of which Mr..
Lauck complains. The scarcity of
goods enables manufacturers and
merchandizers 10 exact each his
pound of flesh and there can, in the
nature Of things, be no lasting relief
until that condition is erla6