Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-05-07
LABOR DENIES
t PR0F|TEERS
Figures Presented to La,
bor Board to Refute
Common Charge.
RAIL BROTHERHOODS
PREPARE STATEMENT
Cite High Prices Of Various Articles
and Figures Seeking to Show How
Much Labor Shares in Increased
Cost 4. consumer-chars In
vs.ted Wealth With Profiteerins on
lts Aees,muIatins MilIions.
BY ASSOCIATED Press.

I profteering In American industry,
made under the auspices OF the
railroad brotherhoods. was presented
to the railway labor board today in
support OF, the railroad mems demand
for higher pay and to refute the
charge that increased labor costs
are responsible for the high cost OF
living.
Prepared by Charles Lauck. fromer
secretary Of the labor board. the
study seeks to show that profiteering
! Is the fundamental cause for high
prices in all commodities.
Calling attention to the many war
made millionaires, the study con-
tends that relationship exists "be-
I tween profiteers. high prices and the
war millionaires.r and says that the
increase in the wealth of persons is
an answer to the attempts to charge
labor with profiteering and the at
tempt to hold labor responsible for
the high cost Of living.
For IL invested wealth bets a
higher return" says the study-"a
larger proportion Of the national IN
come than formerly-the many who
give personal service and labor are
hound to get small proportion.
The menace Of the future lies In the
probability that the vast profits
which an, still held in reserve will
Is capitalized in order that. under q
prefext oi. fair return on capital.
.thoss Nhs, own them may continue
SIG. taxs 4 Iarxer prcportion Of nation
asesl ssssn = tlae expenss 6
- 9zkesl I.
when tho spvefhtt ttinsliat ton of waf has
passed away"
Labor Costs Shown. 2.
d OF the extraordinary increase in
the cost Of sugar, the study says.
the increase paid to labor by the
consumer was less than 15 per cent.
In the, meat packing industry.
where profits were said to have In
creased 400 per cent. the labor item
was. shown SO small that it would
add less than per cent to the total
cost Of the meat.
The increase between 1914 and
1918 was shown as eight times the
total labor cost, and the 1918 cost
represented twenty Ave times the
total labor item.
Profits absorbed approximately
one-half the retail price Of certain
kinds Of cloth. while the labor item
amounted to- one-fourteenth to one
twentieth. Of the price. The profit
item on shoes In 1914. Is was charg-
ed, absorbed nearly one-hat the
price paid by the consumer. or nearly
three times the labor cost, while in
1917 the profit items amounted to
three-6fths Of the total cost and
over five times tho labor cost.
Increases in bituminous coal were
shown at nve times the labor cost.
while this proportion OF the increase
received by the coal operator was
ahown from "a to 100 per cent.
An average of 1920 per family
Of ave during 1s1s-1s1s was declared
to be probably highly conservative
of tho cost OF corporate profiteering
to the consumer.
FormiIIates Labors Demands.
Concluding his study Mr.. Lauck
submitted the following demands:
! F,irst-Labor in general and rail-
road labor in particular must have
wage increases proportionate to liv-
Ing costs.
second-In the present crisis and
for all time to come. producers and
rniddlemen must be restrained from
advancing prices in excess OF In
creases In labor and material costs.
THIRD Producers and middlemen
must refrain from including income
and excess profit taxes in their cost
and passing them on to the con-
sumer with an added profit.
E Fourth principle Of a living
wage must be accepted and estab-
lished In order that normal produc-
tion mas. be restored and increased
production looked for.