The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1930-08-26
By PHILIP RAYMOND.

by PHILIP RA MOND.
THE automobile industry has been one of the
basic pillars unfolding capitastic pros
perity in the U. S. since the war. Steel, rub
Der, railroads, and other industries depend
upon automobile production for continued
activity.
High Profits For Bosses.
The auto bosses have long enjoyed increas-
ing profits. The net profits for successive
years of IL automobile companies in
round figures as follows: 1926, $236, 900, 900;
1927, $294,000,000; 1928, s349, 100000 The
net profits of General Motors was $685.
100000 in 1927, and $276,OOOOOO in 1928.
While its profits amounted to only s248, 1000
last year, the G. NJ. Corporation not only
bought out several automobile and accessory
firms in the U. S. and Europe but also &C
qured extensive properties in electric refrig
Grafton, radio, airplane, and other industries.
Wage Cuts For Workers.
Workers have not shared in automobile pros
perity. Since 1925, wages have gone steadily
downward. Through the constant introduction
of labor displacing machinery and the elm
ination of skill, through slave-driving methods,
through the cheating of workers by the mani
pulation of false bonus schemes and piece
work rates, and the replacement of men by
women at reduced wages, the average wage of
automobile workers has been cut from rs cents
to less than 45 cents per hour. Skilled work
ers who enjoyed wage rate of $1.10 per
hour now receive less than so cents hour,
while unskilled labor has dropped from 60
cents to so and 35 cents and in some cases
even as low-as Is cents an hour.
This reduction has been accompanied by
constant increase in the murderous speed-up,
longer hours, and worsening of conditions.
These conditions, plus part and full time unen1-
ployment. is how the workers have shared in
automobile prosperity. And now, the auto
manufacturers are endeavoring to throw the
burden of the growing crisis upon the Shout
ders of the workers by further naturalization,
wage cuts, unemployment, etc.
Decreasing Production.
In 1929 automobile production amounted to
over 5,600,000 cars. Production for the first
six months of this year amounted to 1920, 900
units. The last half of this year will see a
production of less than two-thirds of this
amount, making the total production for the
year about 100000 units This brings auto
mobile production back to that of 1927, in
spite of the fact that the productive capacity
of the auto industry of American plants is
about 100000 units.
The saturation point of the automobile in
dustry has been reached as far as the domestic
market is concerned The growing economic
crisis is seriously affecting even the replace
turers that a growing export trade would
bolster up the falling domestic market are
blasted In 1929 auto exports amounted to
over $722000,000 accounting for 20 per cent
of last years output. This year America
faces serious competition from European coun-
tries. In retaliation against the Smoot- Hawley
tariff, European and South American coun-
tries and also Australia, have increased their
tariff on automobile products of the U. S. to
almost a prohibtive figure. Chile increased
its tariff 10 per cent, Australia so per cent,
Spain (who used to import so per cent of her
automotive products from the U. S. has
doubled her tariff and Italy has increased its
tariff 100-167 per cent British concerns are
planning TO invade Canada which is Americas
chief customer. Pres. Mooney of the General
Motors Corporation estimates that General
Motors sales abroad this year would be 60
per cent less than in 1929.
Decline in Profits.
In spite of the wage-cuts and the speed-up
forced upon the workers, profits in the auto
industry are declining. Dividend payments of
80 companies for the first months of this
year are in round figures $l37 100000 COM
pared with $l67,000,OO0 for last year. The