The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-26
HOW BUSINESS IS THRoTrIEp.

The railroads find themselves in
about the same situation as the labor
unions. Both have been charging the
public more than the traffic will bear.
In the case of labor this policy has
resulted in widespread idleness and
reduction in total earnings. In the
case of the railroads it has resulted in
idle rolling stock and diminished rev.
enue, It is necessary that both reduce
prices in order to induce the public
to buy,
Investigation of the threttling eff
fecis of high production costs on In
dustry, largely resulting from uneco-
Femie wages shows that the employees
a G the chief sufferers. and in many
instances that they would be. getting
q higher aggregate return with pro-
duction running smoothly and wages
much lower, than they are getting
now with the standard of wages much
Lighter but activity at a. low ebb.
This is illustrated by the WoIlman
Review. which says that in, May,
1919. the total wage payments of one
Of the smaller steel companies for the
month amounted to s22,263S2. In
May, 1921, the scala of pay was on a
basis of 100 per cent above that pre-
Willing In May eight years ago, but
the total wage payments. on ac-
count of the shutdownA in the indus
try, amounted to only $15,445.92.
This shows that not only were fewer
men employed but those who were re-
tained were working on shorter time
In the copper mining industry, it is
Fotnted out, much the same conditions
Prevail. One large producing COM
Eany states that during the normal ac-
tivity of 1913. when production was
stimulated by demand, the total aver
age daily wage payments amounted to
about $4,000 at it's mines. At pres
ent, owing to the fact that it is pro-
dueing copper at a loss and eonse-
quently is running at low capacity,
it's average daily wage payments are
about ,s1s,550, altho the miners are
receiving a scale about 10 per cent
above that in force eight years ago.
In coal mining there is a striking
illustration of the paralyzing effects
of high union wage scales when it
comes to competing with mines where
wages have been adjusted to meet the
changed economic conditions. One
large corporation with a well estab-
lished trade thruout the east is now
running on a basis of rs per cent,
with 5000 of its 5000 miners idle. A
reduction in pay of about 80 cents per
day would put practically all of them
back to work, but the union leaders in
that district are holding out against
the slightest cut in the scale. As a
result the company is merely working
on old contracts while the new bust
ness is going to less efficient Compel
itors, who are able to undersell, owing
to more favorable labor conditions.
Figures setting forth the operations
of the United States Steel Corpora
ton sustain the same principle, altho
owing to certain qualifying conditions
and circumstances the comparative
aggregate of wage payments does not
look so small.
In May. 1913. when the average
daily payment per employe amount
ed to $2.ss. the aggregate wage pay
ments pr the month were $18,703.-
$50. In May. 1921, when the average
daily wage payment was 1901, the
total wage payments amounted to
$2S,ss7,7oo. The scale. in spite of the
20 per cent reduction shows an aver
age increase Of $s.os. or 1852 per
cent. The aggregate of wage pay
ments, however. shows an increase of
only $T,ss4.25O, or 42.6s per cent.