Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-05
HIGH WAGE LEVELS
WIN ENDORSEMENT
Head of Cluett-Peabody Co.
Relieves Present Standards
/ Should Be Maintained.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, December 5.-When
asked G. r. Palmer, president of the
Cluett-P Peabody Co., whether he thought
it advisable to maintain high wages in
the face of declining prices, this youth
full big business leader replied:
II do not see just how lowering
wages would help the situation at ali.
1t might make it a little easier to
make a larger profit. but If high wages
could be maintained. just think OF all
the additional spending power, and
that is what makes for good times.
IT realize that in the past, he add
ed, wages always have been reduced
where commodity prices declined. do
not know who is qualified to make eco
nomic rules for it, but I happen to be
one who believes that high wages are
good for the country and that they
can be maintained"
In answer to the question whether
permanent recovery can take place
while prices continue to drop, Mr..
Palmer said:
Mental Unrest.
ais not the correction of this situa-
ton in itself the basis of recovery?
The whole thing, in my opinion, is
simply one of fear and mental unrest
There is Just all kinds of money avail
able. There is no serious overproduc-
ton in most commodities All that
needs to be corrected is the thinking
If the people would go right on buy
ing what they need We would not have
to worry about depression or unem-
ployment A little increased spending
on the part of every individual that
has the money would provide enough
additional business to make necessary
the employment Of those who. are out
of Jobs today. The danger is, while
most people agree with this, they want
to let the other fellow do it"
"Then how about the five-day week
would that help to solve the unem-
ployment problem?" I asked.
IT believe the fiye-day week is Souno
In theory" was the quick response. :!
think Just as much would be produced
in 5 days as Is now produced In 5H2
DAYS. Every one would be happier be-
cause the great majority OF people
would use the extra time to advantage.
OF course. do not know CT any
immediate means of relieving unem-
ployed distress. Work is the only thing
that will relieve it, and, as l SAID
before, If people would just buy what
they need there would not be unem-
ployment very long.
German Unemployment.
Unemployment in Germany is not
handled in the same way as 1t Is In
Great Britain. Germany had long ex-
perience with unemployment insurance
before the war, much more experience
than any other nation.
So now the German national dole is
given to the unemployed only for a
period of Is months, not indefinitely,
as in Great Britain. After that the
recipient must get what help ne can
Al. ar hack
on private charity.
In August, 1880, there were 1888
persons, or is per cent of the entire
population of 10000 of Frankfort, on
the pension rolls These were per-
sons not eligible to the national dole.
In the fiscal year Of 1929-30 this city
of half million expended 100000
marks for poor relief, or % per cent
of its total budget of 170,000,000 marks.
Oswald G.. Willard editor of the Ma
ticn. said recently that Frankfort ex-
pended in her fiscal year 1928-29. 81
per cent more than the sum expended
for the same work in 1929. The
figures are steadily rising. Where Is
the end?
So when writer refers to the 4,00o,-
900 unemployed in Germany, that is
only part Of the problem. For German
cities, too, have their unemployment
troubles Figures, to be comprehensive,
must include not only the nationally
unemployed. but the locally unemployed
as well. And this is rarely done.
Yesterday the German Reiehstag
met. Chancellor Bruening viii submit
his financial plans to their national
congress and await the results.
1T ought not to take many months
more for the so-called statesmen to
realize that the German crisis affects
everybody and that as one country
sinks, as Germany is doing, the lower
and lower standards of living gradually
affect the welfare of every other coun-
try" writes Mr.. Willard from Germany.
Still there are some who feel that the
business Of making Europe prosperous
or poor is OF no concern to America.
Utilities Earnings.
How much money is a public utility
company entitled to earn? In the re-
cent Chicago Telephone Co. case Chief
Justice Hughes, in his first important
case since his accession to the United
States Supreme Court, speaking for the
court, answered the question by saying:
"A public utility is entitled to such
rates as will permit it to earn a return
on the value Of the property which it
employs for the convenience of the pub
lie equal to that generally being made
at the same time and In the same gen.
eral part OF the country on investments
in other business undertakings which
are attended by corresponding risks and
uncertainties, but it has no constitu-
tional right to profits such as are real
lied or anticipated in highly profitable
enterprises or speculative ventures"
And then this further statement
The return should be reasonably suf-
fctent to assure confidence in the finan-
cial soundnesS Of the utility and should
be adequate under sufficient and eco
nomical management to maintain and
support its credit and enable it TO raise
the money necessary for the proper
discharge of its public duties"
While that statement is rather gen.
eral in its application, it does not
change the position which the Supreme
Court has maintained in recent years
dealing with the income of public util-
tty concerns.
(copyrieht, 1880, by North American News