Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-24
LABOR PUBLICATION
DENOUNCES WAGE
CUTS BY INDUSTRY
Leaders Morally and Intel
lectualIy Bankrupt"
Paper Declares.
ADMINISTRATION WAITS
FOR REACTION TO MOVE
Stock Market Watched to See if
Yesterdays Rise Indicates
Return of Confidence.
BY G. GOULD LINCOLN.

Wage cuts announced several DAYS
ago by the United States Steel Corpo-
ration and General Motors were de-
scribed as ''the heaviest blow ever dealt
to our present industrial system" in an
editorial prepared today for publication
in Labor, weekly newspaper sponsor
ed by the five railway brotherhoods.
IF this Is the best our captains of
industry can do the editorial declared,
they are morally and intellectually
bankrupt and 1t is time to look for
guidance elsewhere"
Statement is Quoted.
The statement follows:
When President Green Of the Ameri-
can Federation of Labor declared, that
the wage-cutting campaign launched by
the steel trust is morally wrong and
economically unsound," he was speaking
with almost painful restraint. When
Julius Klein of the Department OF
Commerce said there wouIo zoe he'll
to pay all over the country IL this policy
is persisted in" he knew whereof he
spoke.
This is the heaviest blow ever dealt
to our present industrial system-and il
was dealt by that systems pampered
favorites.
Consider two facts. u. S. Steel
which led on in the wage cut, is OPP
Grating at 80 per cent capacity. TINS
auto industry Is running at As per cent
of the three-year average ending with
1929, and General Motors, whicn iol-
lowed steel IN the wage slash, is prob
ABLY about on level with other COM
panies.
Loss Put at So Per Cent.
This means that the employees of the
steel trust, taken JoseGner, nave al
reaoy lost So per cenG OF tneIr income
through lay-ons ana part time, and
That workers Tor General Motors have
lost So per cent OF their income in the
same fashion.
Inese wage losses have slowed up
all business III 70 cities, broken thou
sanos OF storekeepers. driven tens OF
tnousanos OF people 70 peg the bread
they would be glad TO earn. Yet nov
we are told by the high priests Of In
uustry that q ltlrEher CUT OL 10 per cent
in these pay rolls Is a constructive
move, anu win help TO restore pros-
perity. Il
III this Is the best our captains 81
industry Lail 10, hley are morally and
intellectually bankrupt, and 1t is time
TO look Tor guidance elsewhere.
This depression, II cannot be repeat
ed too often, Is 9 panic OF plenty. there
is too much 81 everything except buying
power. There is so much wheat that
people are hungry. SO much cotton
that folks are naif naked. So much
housing that in Chicago women are
sleeping in parks.
TOO Much In Hands Of Few"
THE explanation is that too much
of the naC.onal income goes into the
hanos OF q few. In 1929, according to
Government figures, 80 men had a net
income greater by many millions than
the enthe sum paid that year to 42S, 900
workers in the mills producing cotton
goods. In the same year, 504 men
including the 36--made enough clear
profit 10 buy the entire wheat and cot
ton crops OF the United States in 1880
at farm prices.
"A handful of men, with their spare
cash could buy the output OF all the
gold and silver mines o. North amer :
lea, and many sovereign State has q
Smaller income than the net profit OF
single industrial magnate.
Human beings cannot spend such
incomes They pile up to clog the eco
nomic circulation, ana to cure this con-
gestion our economic doctors propose
Continued on Page ., Column 81