The Carbon County news. [volume] (Red Lodge, Mont.) 1924-1931, 1931-03-12
FIGURES VS.. THEORIES

RITHETIC knocks in the head the argument that the
~ result of the introduction of machinery reduce the
workers share IN the product of industry The argument
sounds WE'LL but it has no basis in fact
Statistics printed in the World Almanac for 1881 derived
from official sources show that in 1879 wages paid in the
manufactures of the United States little less than Is
per cent of the value of the finished products of the factories
They show that in 192748 years ater-Wages slight
~ less than 18 per cent of the value of the finished product
During that half century the investment capital and ma
chine equipment of American factories increased between Is
and 20 fold
During that half century the average wage in all fac
tories increased from $500 in 1879 to $500 1927-n
Of 25 per cent During the 49year period the
wholesale price index of American commodities increased
from 1926 to 18S689-or little less than hundred per
cent
This Is per cent not of course as is SO often assumed
the total percentage of wages value of output About 55
per cent of production cost is for materials and semi
finished materials into which cost of labor
largely than in the finishing of products of factories
Until the beginning of the present depression the
result of initiation and speculation continued be-
of overproducon but underconsumpon incident to
temporary industrial arrangement the share of labor in the
values created by factory production increasing Be-
1919 and 1929 wages paid out increased TT per
with reduction in the number of people industray
poyed the average wage of those work increased
S1150 $780, nearly IA per cent During the per-
iod the wholesale price index dropped from 233 1885,
The figures for wages American industrial plants
not include payments for salaries officials clerical employ
ETC. Included in the 27 per cent remaining between
of materials and labor and value of the finished pro-
duct rents interest investment local and federal
heat and light salaries of managers and ceks adverts
ing financing all such costs wormens compensation and
damage SUITS accounting COSTS leaving certainly nordn
ate item of profit
While production has during the last ten years re-
duced the number of wage employed in manufac
lures at the time there has been corresponding in
in outside industries created by this production
instance production Of motor has given employ
men to hundreds of thousands of in garages gasoline
stations 1oadbudng roadside refreshmen stands and the
like while the radio has given outside employment many
thousands of electricians operators of radio stations radio
entertainers etc. not to mention the large number of people
employed in the sales forces of both these articles
The percentage of profit from industrial output has
not materially changed in years. despite vastly increased
investments in machinery and the constantly increased
Of local taXaton the federal levy of II 12 per the
profits of such corporations did not exist 20 years ago. The
value added to materials by manufacture increased four
Der cent between 1919 and 1929 against the IA per
average increase in wages per employee
While heorizing the effects of modern developments in
industry the welfare Of the Masses it might be of
value occasionally to look facts in the face