The labor world., 1922-12-16
HEARST HOLDS W ACE: :RDUCTI0NS
DO GREAT HARM TO ANY COUNTRY
Whole Business Prosperity Lar gey Depends on High Wages;
Low Paid Workers are Poor Buyers. +. -.
based on good wages and consequent

based on good wages and consequent
high purchasing power. -.
Therefore, when the mine owners
and railroad owners demanded re-
!! duction of wages without absolute
necessity they committed a funda-
mental economic error. When the
Railroad Labor board authorized a
Production they sanctioned a blow not
only at the welfare OF the workers,
but at the general welfare of all bus
mess and .at the prosperity Of the
country.
@Of course, the workers, would, not
| tolerate this reduction in wages,
wholly unnecessary and unjustifiable
at this time; and. whether moved BY
selfish considerations or not, they
were performing a patriotic service
in not tolerating it. s.. J.
The plain truth of the matter is
that any management of any busi-
ness which cannot succeed and still
pay good wages is not only. ineffi-
cient. but Sun-American; because
good wages for good. work not only
is-but is recognized to be-a fun
damental American proposition.,
Most Of Our American business
men are able to conduct their bus
nesses successfully and pay high
wages; and they conduct their bust
nesses successfully not in spite of the
high wages. but on account of the
high wages-because success is q
combination of efficient management
and efficient labor. >-.-
The proof that reduction in wages
was in no way necessary at this time
in the coal mines and on the rail-
roads is shown in the fact that great
industries, like the Steel Trust. un-
der the skillful management Of Ell
bert H. Gary, were raising their
wages 20 per cent at the time that
these mining and railroad industries
were attempting to reduce wages
and Is further shown in the fact that
the coal operators have finally put
their men back to work at the old
wage, and can. and will, not only
conduct their businesses successfully
with wages at that standard, but
profiteer very handsomely in addi-
tion..
The railroads must not only event
ually pay the previously established
wage, which they attempted to re-
duce, but will probably soon have to
pay an added wage. i
The demand for labor is increas-
ing throughout the nation. Wages
will increase in proportion and the
opportunity to take advantage of the
necessities of the working man will
not exist, even for .thoes who short
sightedly desire to take such advant-
age.
The fundamental mistake, there
fore, which has precipitated all the
injury of these strikes and these in
terruptions of the business of the
country, and these burdens upon bus
mess and upon individual citizens.
which will endure as long as the
limitations on fuel and transporta-
ton endure, was made by the coal
operators and the railroad managers
when they unjustifiably demanded
lower wages, and by the Railroad
Labor board, which sanctioned these
unjustifiable demands. ~
Perhaps these mistakes may not
be made so often when it is thor.
oughly realized how important high
wages and high standard of living
and a high purchasing power, are
not only to the general prosperity
of the nation. but to the prosperity
Of every Individual business and to
your business and to every business
and profession and, occupation
throughout the whole country.
The plain truth of the matter is
that any management of business
which cannot succeed and still pay
good wages is not only, inefficient,
but un-American; because good
wages for good work not only is
but is recognized to be-a funda-
mental American proposition.