Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1922-12-23
wellesley Hills. Mass. Dec. ga

Wellesley Hills. Mass. Dec. %
on the present scarcity
OF skilled labor in certain lines. Roger
W. Bahson today. issued distinct
warning to both executives and inves-
tors who would base future plans on
present conditions.
The last six months of 1922 have
been marked by scarcity of labor III
many lines, says Mr.. Bahson, par
tlcularly common labor and the skill
cd building trades. Employment con
ditlons the country over have mproV-
ed I'm these months There has, there
fore. been a general tendency on the
mart OF labor 10 seek increased wages
and on the part of employers, even
when they did not see the way clear
IA raise wages, to consent TO their
sterilization at the present or the
preceding levels. This situation IL
likely to continue for the first SIX
months Of 1928. going far enough TO
cover the usual wage settlements
which comes up IN the spring.
"F,mplovers, therefore. are going TO
he confronted with demands which l.
granted. viii Of necessity mean IN
creased production costs. In 1917 ana
1915 we were in similar position.
/ Labor was getting scarce: business
was running along briskly. and the
demand for increased wages was m
s.stent. NJ that time, my advice 10
business men was, that they should
make terms with labor as quickly as
possible. so as 10 keep their Factories
] F1fe Cfflft The
COSTS were 20 be charged up 10 the
consumer. This advice. the business
men Of the country chcerfully took,
even TO the extent Of improving upon
/ a.
AZ the present time. my advice is
directly opposite. Under no condl-
/ Ions should wage rates be Increased.
| 4 u is AZ all possible 20 avoid It, A
/ w,re rate. once established, is mill
-,one about m employers neck. The
/ fundamental long swing tendency OF
var,s and Of commodities is down
ward. This present etiffen!ng of con
ditions Is but an eddy in the main
stream. \ year from now, perhaps
/ ihe lower price tendency VIII again
he resumed. The employer who has
/ allowed himself 10 he weighted down
with increased wage rates VIII find
himself at a DISADVANTAGES when the
downward tendency Is again resumed
IL. therefore. you must pay mort
for Your help, in order 70 secure labor
and keep the peace. continued III,
S.a.!st!c!an. do il by some kind of ;
bonus which VIII be eliminated auto
u!a.clllv Wien the turn comes. II
1917 and 1918 YOU could pass the cos
on 20 the public. but that time ha'
rone The public is not looking 70
goods al any price; II Is looking 10
-ools az a lower price. and II you
goods are put into the market on III
bsr.s ~ Increased production costs
thov VIZ not find \ ready sale.
Furthermore. investors are Goin'
; 10 bc extremely cautious about puttinl
their funds into industrial enterprises
, They are going 20 ask a great man
perplexing and embarrassing cues
lions. First among the>e
roinr 20 b. the question as Q
now flr the particular plant has 60
rs production costs down 10 a per
n manent level These questions ar
T. going 20 he asked strictly from IN
/. d!v!dend-paying hass. On all side
the pnsfl;-making possibilities OF pro
y ductivc enterprises are going 10 b
: cu~ta!led Your normal margin OF prof
). n the years Just ahead Of us Is goin
= 20 ~ very much less than . has bee
n Tor the last five years. Any elemen
therefore. which tends 20 incrcas
~ production costs IL going 20 add 20 Il
,s| embarrassment ~ your company. +,
q :h.s reason. investors are going
q look beyond the advertisements as
b the assets and income and things
De- Ike kind They are going 10 ask
,. 500 your wage sheets and 10 DENIAL
Information as 70 how the wage levC
1nder which you are operating CORE
VI pond with ;h1se - SIX months and
@ -. 81. 1rr