Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-26
SUMMARY SHOWS
FURTHER DECLINES
Reserve Board Business
Data Reveal August Steel
Output Lower.

Following closely on the announce
ment by steel. automobile, copper and
other corporations of wage reductions,
the Federal Reserve Board today made
public a summary of general business
in the United States showing that the
ordinarily increases in August, de
clined further to 81 per cent of capacity,
rejecting in part curtailment in auto
mobile production"
The summary showed industrial pro-
duction decreased per cent to new
low record from July to August. The
decline was from SO per cent of the
1923-25 average in July to 80 per cent
in August, which compares with the
previous low Of 81 per cent in Deem
Der. 1880.
simultaneously with the announce
ment by Walter S. Clifford, national re-
lief director and president of the Amer
lean Telephone and Telegraph Co.,
advocating the maintenance of wage
scales, officials here in Scrutinizing the
growing number of pay-cut corporations
found two new companies added to the
list. Ten per cent reductions were
ordered by the Atlantic City & Shore
Railroad Co. and the Nicholson File Co.
Of Providence, r. I.
Equivalent to Increase.
Clifford maintained that the present
scale would be equivalent to a large in
crease If commodity prices and the cost
OF living should stay down.. At the same
Time, agitation In some congressional
circles for decrease in salary for men,
berS and Federal workers received a
blow from Senator Reed, high ranking
Republican of Pennsylvania, who con-
tended that such action would elimi-
nate the poor man from Office"
Within "a hours after william Green,
president of the American Federation of
Labor, made public his estimate that
100000 persons were unemployed in
the United States, the Federal Reserve
Board backed. up the labor leader in its
views that the volume of factory en-
ployment which usually increases at
this season, showed little change from
the middle Of July to the middle of
August.
The number employed, the board said,
in the clothing and shoe industries and
in canning factories increased, while
employment in steel mills, automobile
plants, foundries and car building shops
declined. Citing the report made by
the F. w. Dodge Corporation, the board
said the value of building contracts
awarded continued to decline in August,
and for the first months of 1881
was 81 per cent less than in the cor
responding period of 1880, rejecting
decreases of 18 per cent in contracts fer
residential building, 80 per cent for
public works and utilities, 81 per cent
for factories and Sc per cent for COM
mercial building. The board also said
that lumber output decreased contrary
to seasonal tendency.
Slight Increases Offset.
According to the summary, the gen.
eral level of wholesale prices increased
from 10 per cent of the 1925 average
in June and July to 7O.2 per cent in
August, rejecting increases In the prices
OF i've stock, meats, dairy products and
petroleum. These were Offset in large
part by decrease in the prices of grains,
cotton and cotton textiles.
Meantime, President Hoover considers
nus relief organization, headed by Gif-
Ioro, adequate for coordination activi-
Ties TO relieve distress this Winter. The
administration has no notion condi-
lions In this country will reach the
oegree OF seriousness which once led to
industry.
Consequently the President does not
lntend reviving the Old Council of Ma
tional Defense which operated during
the World War. A resolution ureinS
This step was adopted by the American
legion convention at Detroit on the
motion OF Howard Cofin, a former
MEMBER OF the council.
Inc administrator believes now Is
tne lime Tor action in meeting the re-
Ie1 problem and will look to Gifford's
organization for both action and advice
"A second major committee of this
organization took up the task Yesterday
oI eVolvlng means for unifying into
community committees the many Sepa-
rate organizations now handling relief
WORK Eliot WadSworth, former Assist
ant secretary of the Treasury, is chair.
man, ana Joined in the administration
BELIEF present conditions do NOT an
proach those found during the war
Definite pledges of s,,n oo ~"i were
placed before the committee by Wads-
worth. These included a letter sent
by President Green of the labor fed
Grafton and member of the COMMITTEE
to all central labor unions. urging the
fullest measure Of support to Community
efforts. -''S
Other pledges included those from
the Y. M. G. A., the intern "a +ionoi
Kiwanis, the Lions International the
National Manufacturers' Associst;on
the American Railway Association the
knights OF Columbus, the Amar,can
Legion and General Federation IF
Women's Clubs.