Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-23
HOOVER AGAINST
WAGE REDUCTION
Administration Keenly Dis
appointed Over Announced
Pay Cuts.
tcontinued PROM FIRST page.)

PENNSYLVANIA ana SOI11e u LAAe OtAACA AOaNl0
have cut salaries.
The hope was expressed in official
circles here today that the cuts in
wages announced by the steel corpo-
rations and In salaries by the General
Motors Corporation would not be
signal for a general reduction in wages
throughout industry. 1t Is true tnat
wages have already been cut here and
there in industry, but, generally speak
ing. wages have been maintained AZ
high levels despite the depression. Inc
situation was looked upon, however, as
grave.
In analyzing the situation, attention
was called to the fact the cost OF 1V-
ing has been reduced since the depres-
sion set in 1929 by about lit per
cent Such a reduction in the prices
of essentials, including food, clothing,
shelter, fuel and light 1t was said, would
make the blow to the wage Garner
ST the proposed reductions in wages
easier to bear. On othe other hand, the
fear was expressed that a reduction In
wages might lead to q contraction I'M
rnediately in buying by the wage earners
and thus retard still further return
of good business. added production and
greater employment.
Foodstuffs Decline.
At the Labor Department Bureau OF
Statistics it was shown that the great
est decline in the cost OF living had
taken place in foodstuffs, which have
dropped ass per cent in prices during
the two years of the depression. Clotn-
ing prices showed decline OF S.4 per
cent and rents are down 7.5 per cent.
Fuel and light have dropped per
cent and household Furnishings APP
proxin1ately IL per cent. The miscel-
ianeous column, including all neces-
saries not classified showed reouc-
ton of less than per cent.
The records Of the department showed
the decline in the cost of living has
been gradual. It did not become marked
until June, 1880. and the greatest drop
in the cost Of food occurred In the SIX
months ending last June 80.
The suggestion was advanced today
that had the wage cuts in the big In
dustries of this country been made I'M
mediately after the crash OF the STOCK
market and the beginning Of the busi-
ness depression in the Fall OF 1879 LABOR
would have been far less able to bear 1t
and maintain adequate standards OF nv
ing than It is today. with the reduction
In the cost Of living.
Pledges Are Recalled.
In this connection the comment was
made today that President Hoover. py
his call to leaders of industry. labor
and Agriculture to confer with him at
the White House in the Fall of 1929.
had accomplished great deal. AT That
time pledges were made TO him by m
dustrial leaders that wages would not
he cut and labor leaders agreed that
they would co all in their power to
prevent disputes involving labor and
employer. These pledges have been
generally kept up to the present. They
were in effect, gentlemen'S agreements.
The President, 1t was said today, Is
stiiI relying on these promises to carry
through the present depression. on
the other hand. some OF the industrial
leaders who conferred with the Presi-
dent in 1929 assert that their under
standing Of the agreements were that
they should run for the period OF one
year, period long since ended.
Hope was expressed in official quar-
fers that there would be no general
spread of wage cuts generally through
out the country, although 1t was ad-
mitted that no prediction in this mat
ter could be made now. A Govern
lnent oflcial in close touch with the
industrial world. but who declined 10
be quoted pointed out that as the de-
preston has gone forward there has
been a steady increase IN the amount
of money in the savings banks. 1t. was
his opinion that the time had about
arrived when the wage earners and
small salaried people. who undoubted-
" have been retrenching. would begin
TO spend again and give big impetus
to business and employment Of labor.
Whether the threat of wage cuts now
made would halt this trend, he could
not say.
Low Level Passed.
This oficial also said the depression
reached its low level in this country
some time ago and that the country
had been humping along on the bot
tom, but holding q fairly steady level
for sometime He said that after the
low level had been reached In August.
seasonal in part, there was reason 10
expect there would be an upward trend
of business. Buying was the crux OF
the situation, he said.
In the depression Of 1921 the wage
cuts had been made almost lmmeol-
ately 1t was recalled today.
Lamont without Comment.
Secretary of Commerce Lamont would
not comment today on the wage cuSs
tions. At the Labor Department
was indicated that an official statement
might be made later. 1t Is no secrel
that Secretary Doak Is strongly opposed
70 wage cuts at this time.
The attitude Of the White House TO-
ward the whole question OF wages anc
the need for the upkeep Of the hvlne
standards was interpreted as oloN
toward any agitation that might arise
for cuts in the pay Of Federal employees
For the Federal Government TO urge
wage cuts for its employees at this time
would be tantamount to an invitation
to all industry to follow suit, it was
said.
Chairman Wood Of the House Appro-
priations Committee yesterday made @
tentative suggestion that salaries OF
higher paid Government off1cials could
well be cut In view of the Treasury
deficit. The saving from such cuts how
ever, would be infinitesinlal when COM
pared to a four or five billion dollar
budget Of Government expense.
Clifford Views Given in April.
At the Presidents relief headquarters
where Walter s. Clifford is in charge il
was recalled that Mr.. Gifford's last pub.
lie utterances on wages was made iT
April in an address To the annual AS.
ISOLATED Press luncheon. He said then
Although the present scale OF wage:
would be equivalent TO large increas'
II commodity prices and the cost of lty'
ing should stay down. We ought. be
lieve. TO make every effort to maintain
the wage scale"
Affairs Of the steel industry were dis
cussed TODAY with President Hoover b.
Charles F. Abbott, executive director o
the American Institute Of Steel Con
struction.
Mr.. Abbott said later yesterdays &C
ton concerning wage cuts was no
discussed. He said he called solely 10
the purpose Of reporting TO Mr.. Hoove
the situation confronting the steel con
struction industry ct this time.
Politically We have Just awakened