Evening star., 1923-12-28
LOWERING FIXED
CHARGES 1924 AIM.
Wages Unlikely to Change
Very Much-Ford Has New
Efficiency Idea.
by j. c. ROYLE.
Special Dispatch to The Star.

Speclsi dispatch to The Star.
NEW YORK, December 2s.--A re-
uuction OF fixed charges" rather
than reduction Of wage scales Is
what the modern business man will
strive for in 1924. 1t has already be-
come evident that as a result of that
policy the employers far prefer to
spend $4,000 for a new machine or
appliance than TO add a $10o-a- month
clerk to the pay roll. That trend. is
noticeable today in practically every
industry. The reason for II. accord
Ing to the employers, is that q re-
duction of 'fixed charges" is the only
method of. meeting present-day COM
petition. -.-'.
The fixed charge" in the majority
OF eases is an irreducible expense A
machine, too. that will do the work of
a man paid q fixed charge on the
business is an Investment Merchants,
manufacturers and E<oducers who
have had the benefit Sf the advice of
competent induS4r1al engineers and
economists are. not supremely anxious
20 reduce Wages. That state of mind
rus pec21ne more fixed as business
~ffes have begun to cast up the
res<fts Of the last year. In nine
Businesses out of ten the acknowl-
edged authorities when asked the
reason Tor the prosperity which has
answered without hesitation that AL
most universal employment at high
wages has been responsible"
Wage Farmers Welt on.
When all is said. the majority Of
the buying public is composed of
wage earners. The high scale pre-
valling during 1923 has enabled those
IN hpiX-
than in any year where peace time
conditions prevailed. The goods they
demanded had to be produced, and
1t was this volume of production and
business on the right side Of the
ledger for. the year.
Nevertheless, there has heen strong
opposition to drastic increases in
prices. Competition has been keen
and producers have planned their
1924 programs not with the idea of
raising price levels. but of reducing
cost levels. One of the first steps to
the nation are now taking It's the
curtailment of the fixed charge"
New and up-to-date machinery Is
counted on to enable employers to
keep wages up and costs down. AL
though such machinery may involve
nigh Initial expense. 1t does not be-
come a fixed charge and can be kept
IDLE with little additional outlay or
80 upcioH VI orgdnlzatlon, such as
follows the laying off of human work
ers. Some of the textile plants of
New England were operated for a
time this year at no profit because
5ne companies involved declined to
0isfupt their working forces
Great Year for Machinery.
Consequently. 1924 will be a great
Year for machinery. The trend has
already. been strikingly illustrated
6y engineers of Lockwood, Green &
,,o 60, who claim to have perfected
oovlate the necessity for many op-
erations and labor costs previously
regarded as essential in the making
men by machines has worked ou tso
we'll on the New York subways.
through installation of automatic
turnstiles. operated. by nickel-in-
tation systems have taken similar
steps. These machines eliminated
only one or two employees, at each
to INSTALL yet the decision to make
the change from fixed charge" to
an investment which would pay for
itself over term of years was never
The difference between the older
style cars on the subway here in
wolves the hiring of from three to
equipped. Small wonder that the
raj companies are
booked months ahead.
Ford's New Efficiency Idea.
The present movement for new ma
chinery has long been a part of the.
successful business policy of Henry
Ford. The latter has ALWAYS main
tanned that efficiency increased under
high wages, but that the future of
both the wage Garner and his en-
ployer depended on installation and
proper use of up-to-date and efficient
machinery and methods.
Along this line of policy was the
purchase by the Ford company this
week of one thousand new double
deck box cars of special design, in
which closed automobiles may be
shipped two. deep instead of in one
layer, as at present. Ford expects to
make more than two million cars and
trucks in 1924. 1t is estimated that
automobiles shipped in the new
freight cars will move from factory
to dealer SIS cheaper.