The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-09-13
WAGES AND L1vINe COSTS.

the University of Chicago, in testify
ing before the Senate Committee of
Interstate Commerce, said "A careful
distinction must always be made be-
tween the relation of wages to the cost
OF living and the so-calied living
wage principle. This latter is vague
term, meaning, as has been here
shown, many things to many minds.
The relation of wages to the cost of
given to the Railway Labor Board, is
a definite statistical problem. At the
present time, the best method of com.
putting it is by the budgetary plan
where all significant local difference
are given due consideration. Even this
method for this purpose is stumbling
and faulty but with care an approx1-
nation of accuracy can be attained
To determine an absolutely accurate
living wage by this method is not only
lmpracticable. but impossible.
THE budget plan gives considera-
ton to only one side of the problem,
that is, the needs of the workmen. It
disregards entirely the diverse side;
that is, the productive effort and ca
pacity of the wage-earner. Wages can
be paid only out of the products of in
dustry. In some way or other the
workman must be paid on the basis
OF results
Following to its ultimate logical
conclusion the demand that the gov
eminent fix living wage. it would be
incumbent upon the government to
also fix prices, for, unless this can
be done, railroads or other concerns
paying the increased wages fixed by
the government would necessarily in
crease the rates or prices of their pro-
ducts with the result that there would
be an endless round of increasing first
of wages and then of prices, for every
increase in prices of commodities to be
consumed would justify another in
crease of wages based upon the cost
OF living.
During cross examination in re-
cent hearing before the Railroad
Labor Board it was admitted by the
statistician who represented the rail-
way workmen that if the government
should undertake to establish a living
wage on the basis asked by many it
would mean an expenditure of SILL
000,oo0,O00 annually in excess of the
amount now paid TO wage Gamers
This took no account of the incomes
to which workmen other than wage
earners would be ent.tled-farmers
for instance. If they were put on the
same basis of income as asked for the
railway workers
The statistician for the railway en-
ployes based his calculations on the
average sized family and assumed
that one man was expected to earn an
income sufficient to maintain that
number of persons. He assumed that
only one out of every four and one
half or five persons would be an in
come Garner and that all the others
would be dependent upon that in
come.
The total income asserted to be nee
essary in order to constitute living
wage is in the peighborhood of $4,000
a year. In asking that a Federal
Board define a living wage" the
spokesman for the railroads evidently
intends that the living wage shall be
uniform turnout the country. The abb
surdity of this is readily apparent
when one remembers that the cost If
living is far higher in cities thar it Is
in small towns and far higher in small
towns than in villages. A uniform
minimum wage fixed by a Federal
Board would be either Inadequate in
some communities or excessive in
others.
In his plea that the Railroad Labor
Board define living wage the sta
tistician gained considerable public
sympathy. The plea sounded plausible
on first thought, but careful analysis
shows that il the government under
take to establish the income of wage
earners It must also, If it is to be just,
establish the incomes of men engaged
in other lines of business where their
tho not fixed by a daily, weekly or
monthly compensation.
One OF the ipequities of government
operation of railroads was that the
government Increased the wages of
employees and thus increased the bur-
dens of the railroads without at the
same time ana in corresponding de-
gree increasing the freight and pas
senger charges thru which the rail-
roads would receive their income.
Moreover. by increasing the wages of
railroad employees and by fixing high
wages IN various enterprises engaged
in government war work, the govern
rnent drew laborers away from TIL.
farms and from other lines OF industry
thus forcing the farmers and many
others to pay excessive wages aItho
their incomes were not corresponding
~ increased.
Uncle Sans investment OF s2o.-
900. 900, in the Philippines may yet be-