Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-27
GOVERNMENT LEADS
WAY To WAGE CUTS
BY DAVID LAWRENCE
Ueased Wire Service to The Journal.
COnright. 1921

WASHINGTON, Sept. 24.-Wages
must come. down. The Harding ad-
ministration faced with an issue of
continuing the present wage scales
in the navy yard here, resisted the
appeals of organized labor and made
a drastic cut. The controversy was
carried up from the navy depart
ment to the cabinet, where President
Harding himself took a hand. AL
though private industry has been
struggling with this question for
months, the government has avoid
ed giving any moral support to Ell
Their side. When the navy yard dis
pute arose, the issue was inescap-
able, and now the word has gone
forth from the administration that
the quickest way to normalcy here
abouts is by wage cuts<
The White House malls have been
full of letters from taxpayers urg-
penditure. The administration has
felt that wage cuts, especially in
government enterprises, is an inevi-
table and logical answer to the de-
mand for economy.
Curiously enough, the business
men of the national capital pleaded
for labor in the sense that the gov
eminent was asked not to make the
wage cuts so drastic. The Washing
ton merchants were led to take this
action by the argument that cut
IN wages meant curtailment OF
buying power. Labor headquarters
admit that they have consistently
urged the relationship between the
retail community and wage scales
but nowhere has that theory been
SO conspicuously championed as here
in the national capital.
Plea Unavailing
The plea, however, was unavail-
ingt The Harding administration
stood pat.
Politically speaking. the indorse-
ment by an administration of any
has it's dangers. The Wilson admin
1stration granted practically every
demand for wage increases, and
while earning the friendship of or.
ganized labor, it lost the support OF
many employers who insisted that
the government was setting an un-
comfortable precedent.
1t is realized by administration Of
flc1als that everything the govern
ment says on the subject of wages
will be the basis of discussion by
both. sides. Fortunately for the Har-
ding administration, the railroad
problem had been passed over to the
railroad labor board, separate in
stitution, and the roads were in pri-
wage reductions did not fall on the
administration.
The situation in the navy yards
however, is one in which the ad-
mlnistration takes complete respon-
sibility. The hope, of course, is that
painful as the processes of reduced
wages may be, the aim justifies the
means and that when normally
comes the scale of living costs will
have ben adjusted also that the cut
in the pay envelope will not be SO
much resented
Labor's Position
Organized labor is in a paradoxical
position, however, with respect to
the navy yard cuts. Labor has taken
firm stand for disarmament. The
reduction in the work in the navy
eminent expenditure for armament
Labor is enthusiastic for disarma-
ment and cannot very we'll make
much of an cutlery against the lay
ing off of Worlzmen who are en-
gagged in the armament race.
On the other hand, it is reported
that the purpose of the wage reduc-
my, but an effort to transfer tc
private interests much of the work
that heretofore has been done in
government yards. The government
always has paid high grade mechan-
les scale of wages higher than
those in private yards. This has
kept within the navy yards a class
of skilled labor unexcelled outside
the government.
The drop in pay may drive these
mechanics into the private yards and
enable them to do more government
work than heretofore. 1t may be
that the movement for the abolition