Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-23
Wage Cuts.

wage cuts WOul0 nave Deen slapped on
the employees of industrial concerns In
! this country almost Immediately upon
the decline in business. The present.
day philosophy in industry in this coun-
try is vastly different. In the opinion
of far-seeing industrial leaders, labor
should not be either the first to bear
the burden Of slump in business nor
the only one to bear that burden. And
it Is along the lines of this compare
lively new philosophy in business that
the fight to prevent wage cuts has been
waged over two-year period, in the
hope, too, that the country would snap
out OF the depression that has had it
in its grip.
Whether the proposed reductions in
wages, If they spread generally through
the industrial structure In this coun-
try, win materially curtail the purchas-
ing power Of the people is a matter
to which the industrial leaders have
given earnest consideration. 1t is upon
the wage earners and the salaried en-
plcyes that business must depend for
its market. With still further cur
tailed market, how is business to i'm
prove, how is production to be stimu-
lated again and how Is greater employ
ment TO be given? On the other hand,
if there is to be no assurance of capt.
tai earnings, where is industry to find
the money needed to carry on and to
develop new fields of endeavor? The
steel corporation last Summer cut the
pay Of its salaried employees and reduced
its rate Of dividend from 81 to 81. Its
president has been one Of those who
stood steadfastly against any movement
to reduce wages of labor.
An argument advanced in support Of
cutting wages is that prices of all kinds
of commodities have come down and
that the cost CT living to the salaried
man and the wage Garner has been
materially reduced. Food and clothing
and shelter can be obtained for consid-
erably less than two years ago. IN
doubtedly the lowering OF prices of all
kinds Of commodities will lessen the
effect of reduction In wages upon the
workers. That seems to be the one
bright spot in a cloudy prospect For
burdens that fall upon the workers OF
the country fall upon the whole country
| Labor in the United States has adj
vsnced in material gains far beyond
the dreams Of labor In many other
countries. The standards of living
have been so high for all classes of
citizens that the world has marveled.
Even with the wage cuts now ordered
and which may materialize in other in
dllstries, the standard of living Is not
greatly threatened. In view OF the re-
duction in prices Of the commodities
which the wage earners must buy
Labor's great misfortune during the
business depression up to the present
time has been failure to find en-
ployment. II reduced wages ultimately
bring about increased business, that
increase in business IL bound, in turn,
to bring about added employment and
so solve the greatest problem Of all
that confronts the country today.
President Hoover at the outset Of the
depression summoned to Washington
the leaders of industry, Of labor and OF
agriculture. From them he received
pledges that wages would not be cut,
that labor would not seek increases in
pay and that industrial peace would be
maintained. Great good came out of
those conferences. At that time there
had been no reduction In the cost of
living and wage reductions would have
had a far more serious effect upon the
workers than they will have today The
President has maintained his attitude,
assumed at that time, in opposition to
wage cuts and there has been no sign
that he has changed.
Under such conditions, the demand
vc.ced by Representative VIII Wood
Chairman of the House Appropriations
Co rmittee. and Representative Tread
| way OF Massachusetts, for cuts In the
pay Of Federal employees is not likely
to meet with approval from the Chief
Executive or to get far In Congress. A
determination on the part of the Fed
cral Government to cut the pay of its
/ workers would probably be a signal for
general and further reduction of
| wages
A reduction of wages may be Justified
If it is necessary to the very ma n
tcnsnce OF an industry. 1t may not be
! Justified, however, If it Is necessary
merely to bolster up earnings for the
owners Of securities issued by the In
dustry for capitalization purposes. A
concern that is making reasonable re-
turns on It's capital investment and
which cuts wages so as to increase the
returns to a comparatively few owners
is entitled only to condemnation.