The Waterbury Democrat., 1931-09-24
.PRETENSE OF THE HOOVER REGIME
 ON WAGE CUTS
Deplores the Act of Steel Industry But Takes Sides Against President of Labor Federati0ns
BY RAYMOND CHAPTER United Press Staff CorreSpondent'

United Press Staff Correspondent
 Washington, Sept 24-7Adminis- tration officials regard wage cuts in steel and other industries as deplorabIe, but they hope conpen- sating benefits will help the gener- al business situation.
 Organized labor, however, is far less resigned.
 President William Green of the American Federation of Labor is sued a bristling statement declar- ing the wage reductions "indefen- sfble,' proposing that the tariff pro- tection be taken from the steel in- dustry in retaliation, and throwing some pointed barbs at the huge sal aries and stock didivends spooned out to higher executives and stockholders.
 Green indicated bitterness that the workers, excluded from the mellon-cuttings in times of pro- perity, are being asked to sacri- flee ten per cent of their wages in the time of diversity.
 Railroad labor leaders are watch ing the situation uneasily because they are the next big group which might be hit. The interstate com merce commission Is completing hearings On the railroads applica- tion for a flat Is: per cent freight rate increase. S~,.E.
 Though officially denied as the intention of the roads, it is per- sistently reported that if the, roads do not get higher rates they will have to pay lower wages.
 The whole wage situation, rela- lively placid throug two years of depression, is showing the first signs of boiling up. & -
 The recent statement made to this writer by Assistant Secretary of Commerce Julius Klein, who said that if there is general wage slash ing there will be hell to pay" has been requoted repeatedly since the wage cuts were announced this week.
 The situation is expected by many to sharpen agitation for higher income and inheritances taxes on the upper brackets. One of the most conservative house leaders, Rep Isaac Bacharach, repn., N. J., recently declared there was some warrant for the state- ment that the rich were getting richer and the poor were getting poorer. He advised the wealthy to assume cheerfully a heavier share of the tax burden before the mat ters were taken out their hands.
 President Hoover is represented as regretting the losses about to be inflicted upon individual earners. But he appears to see nothing that can be done in addition to the moral suasion which has already been applied. He is apperciative of the effort a number of large concerns have made to maintain wages.
 His understanding is that this has been done in face or much hostile banking pressure.
 The president disagrees with Green in interpreting the state ment of employers at the White House wage conference in 1929. He does not regard that action as a pledge binding indefinitely. It was, he thinks, promise by employers to do everything possible to avoid wage reductions.
 Though 1t is a severe political re- verse to the administration which was expecting to point to main tainance of the re-depression wage scale as a 1892 argument, hopeful points are discerned in the situa- ton. These include an estimated $2,0O0, 100000 (billion) jump in the quoted value of New York stock exchange listings. the com ment of many business men that the wage cuts will reduce produc-- ton costs and increase sales, and the fact that while wage reductions average ten per cent, the cost of living index as figured by the re- partment of labor dropped from i7O.2 in June, 1929, to 1903 two years later.