Evening star., 1921-05-22
CONDITIONS ARE IMPROVING
THROUGH MORE LIQUIDATION
Wage Reductions Are Making for Better
Business-lmportant Price Concessions
Hell lp-Drastic Dividend Cutting.
by 1. A FLEMING.

Conditions are Certainly beginning
to show something tangible in the
way Of Improvement. but it is being
accomplished by drastic liquidation
in securities. which every one be-
lieved liquidated to the final stage a
year ago; liquidation in labor, con-
tested at every step. but none the less
being liquidated and by the declin-
ing trend in the cost Of production
and marketing.
These are the essential elements
that are sadly needed to further re-
cuperation. 1t is next to impossible
to produce goods at lower prices. to
return to a pre-war basis, while
wages keep on higher levels. and
this, the hardest problem. seems to
be near the final LIQUIDATION.
It has been only the beginning Of
the wage reduction, scratching the
surface. but with commodities reach
ing lower figures. wages must fol-
low.
The only argument in the wage
sight that the opponent can advance
at this time is that rents have not
come down. but have rather ad-
The housing problem; aided BY
labor graft and dishonesty of
agents" not only among union
ranks. but among material men and
even capital employed in building.
has become a serious proposition the
not be handled with gloves.
The Federal Reserve Board, In It's
latest bulletin. the May number. re-
ports the number of employees on pay
April /. 1920. as 1.7a7.717. and a year
later as 1.so3.7s2: pay roll. April l.
1920. $52,2S6,464: April 1, 1921. $685.
726,3SO, q decrease in the number OF
employees Of Is per cent. in aggregate
wages, 29.s per cent. and the average
cent. Cleveland and Atlanta dis
tricts. with Kansas City. have prac-
tically cut wages in two. These ns-
ures are based on the employees OF
number of great corporations In gen.
era1 lines.
1t is interesting to note that pay
rolls in cotton textiles have de-
creased 326 per cent: wooden textiles,
Pill per cent: silk textiles. 1856 per
cent; clothing. 1914 per cent: boots
and shoes. 24.10 per cent; lumber.
4ls per cent; building mater,as, n.,enot;an 80 -
per cent; meat packing, $40 per cent;
iron and steel. 63.2 per cent; automo-
biles, a. per cent; oil, 21.5 per cent;
farm machinery. 44.4 per cent: to-
bacco, II per cent; rubber. 1874 per
cent and public utilities wages have
increased 0.9 per cent.
These changes are real and actual.
That they have been materially ac-
centuated in the interval between
April 1 and date goes almost with
out saying. In this district. the nftn
we have little less than
the average reduction.
The railroads have issued a cnart
of the schedule of wages paid TO
employees, the book value OF road
and equipment, the percentage OF
wages per dollar earned and the ag.
ereeate return to holders OF railroad
tecurities for the nve-year pef'oo
Book. value of roads and equipment
has increased from $17,s43, 900. 900 In
1916 to $40, 900 100000 in 1920. Re-
turns to security holders fei! from
81 1,040,0s4.517 in 1915 to $6z.z64 .4zl IN
1920. while wages. following tne one
line H0x1f fE7sss. sss:s .s Sswa;s to ;s74s ss
4s6. .936 in 1920.
These facts are incontroveFtiole.
Railroads today are in dangerous
condition from an investment point
of view. Tens of thousands Of hu-
man beings are dependent on the .in-
come from railroad securities for their
support, and with the cutting and
passing of dividends their chances of
are rather poor.
When Pennsy cuts its dividend
times are not good.
Wall street today has it's DOUBTS
companies paying the usual dividend.
Aftr one Of the corporations cuts
its dividend or passes it entirely
Wall street is inclined to give the
credit for having an hon
est board of directors. inclined to
after generally refrains from attack
ing the shares Of the come-ciean cor
It is through this denation that
we shall eventually recover and
reach the much desired condition
painful process. but one that cannot
be avoided The rich have taken
their losses, so-called "unearned cap
itar has been hard hit and none has
escaped.
which have been daily
growing in popularity as other In
yestments have shrunk In value to
the uninviting point, 80 far as con-
seEvative investors are concerned.
Some Price Reeesstons.
The statistician of the National
City Bank Of New York has COM
piled values Of a number Of stable
articles, quoted At the prices In the
country from which the merchandise
is drawn, "since our valuation Of inn
ports represents the price Of the
article in the country from which it
is exported"
March. 1921, prices and March. 1920,
prices is decidedly interesting.