Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-24
WAGE CUT DECR|ED
! BY LABOR EDITORS
Leaders "MoraIIy and Intel
IsCtuaIIy Bankrupt"
Paper Declares.
CONTINUED From First Page)

\
learn more definitely the results of tbs
wage cutting.
One of the questions which Wash
ington is anxious to have answered Is
whether the advance in prices on the
stock market yesterday. following the
wage cut announcements, are indicative
of a real confidence In business and q
return of greater business or whether
they are a mere flash in the pan. Stock
prices were up to ID points yesterday
but there was selling Off today.
Administration Is Silent.
In administration circles the silence
regarding wage cutting continued. At
the White House it was said again
that the President had nothing to say
regarding the action of the steel ana
other corporations. Other officials OF
the Government. while willing to talk
confidentially declined to allow them
selves to be quoted. A division OF opin-
ion existed in these quarters. Some OF
the Officials took the stand that the cor
porations had been unwise to announce
wage cuts at this time and criticized
them harshly. On the other hand, here
and there an opinion was expressed
that the cuts in wages may be the
signal for general readjustment which
in the end will benefit business and
| the wage earnerS, making for greater
production and employment.
While efforts were made today to OBJ
tain statements from the Departments
! Of Labor and Commerce regarding the
wage cuts, Secretary Doak and Secre-
! tary Lamont were in conference, and
| it was said later by Secretary Lamont
that the general situation had been dis
cussed by them, but what conclusion,
II any was reached, was not made pub
| lie. Not long afterward Secretary Doak
/ left Washington to go to West warwick,
| r. L. where he is to make speech
tomorrow at the Pawtuxet Valley Fair.
| The statement issued by William
] Green, president of the American Fed
Grafton of. Labor, denouncing the steel
/ corporations for the wage cuts and
! calling the policy of wage cutting
mistake morally, and economically, was
| followed by the blast from g'Labor."
/ Members of Congress IN Washington
generally speaking we're critical of the
/ wage slashes. An exception was Rep
resentative Will Wood of Indiana.
chairman of the House Appropriations
Committee, who has taken the position
| that wages ard salaries must come
down in order TO bring about read
| justment leading to more prosperous
times.
! Objections to wage cuts were voiced
! today by Representatives Dies of Texas
and Swank of Oklahoma. both Demo-
Gratis. Both said the problem in their
respective sections was one of SURPRISES
and that II the wage-cut policy became
general purchasing power would be SO
diminished as to aggravate that situa-
ton.
The two urged President Hoover to
call special session OF Congress for
relief. They said they had laid before
the President a program to prevent "a
recurrence of the ridiculous spectacle
of widespread unemployment, want and
suffering in land of plenty"
The program called for additional
construction appropriations, one-year
moratorium on mortgage foreclosures
on homeSteads, increased use by the
Government of cotton, paper and cloth,
a prohibition for five years Of all i'm
on the Stock Exchange and regulation
of the Nations banking system.
Green Denounces Cuts.
The wage cuts ordered by the United
States Steel and the Bethlehem Steel
corporations were declared by William
Green, president of the American Fed
Grafton of Labor, to be morally wrong
and economically unsound," in state
ment issued to the press last night.
Mr.. Green made no threat of strike,
but called attention TO statement
attributed to Julius Klein, Assistant
Secretary of Commerce, to the effect
that there will be hell to pay through
out the United States in the event
of a general wage reduction" Mr..
Green added that whether this predic-
ton comes true or not, at ought to be
a logical outcome of the wage-cutting
policies pursued by the highly protected
employing corporations of the Nation"
Mr. Green's statement follows:
The reduction in wages imposed and
literally forced upon the employees of
the United States Steel Corporation and
by other steel corporations is morally
wrong and economically unsound. No
greater blow than this has yet been
struck against the forces which have
been and now are serving to bring
about a return of prosperity.
THE United States Steel Corpora
| ton violated a solemn promise which
! 1t made to the people of the Nation
when 1t assured the President OF the
| United States, along with number
of other large employing interests, that
during this distressing period of Inem-
| ployment wages would be maintained
| This great corporation has now broken
! its promise. In sharp contrast to this
| action, labor has discharged its obli-
CATION and maintained the pledge which
It made to the President.
VIII Cut Buying Power.
| ut is stated that this 10 per cent re-
duction forced upon the employees of
! the United States Steel Corporation
will mean saving to this great f1nan-
! cial concern OF SIS, 900 600. That means
/. that the employees of the United States
Steel Corporation will have twenty-five
| millions OF dollars less to spend. They
viii buy twenty-five millions Of dollars
1 less goods. Their purchasing power will
| be twenty-five million dollars less. This
will reduce the volume of sales for
&! manufactured goods In an amount cor
responding to the reduction in wages
which the employees of the United States
Steel Corporation are forced to accept.
Can reasonable-minded people believe
that return to prosperity will be ac-
| ceierated through a reduction OF the
| buying spower of one section of the
J masses OF the people amounting to
: twenty-five millions of dollars?
This action of the United States
Steel Corporation seems to be a repe-
tition OF tie old story, employers OF
LABOR know enc thing and that Is to
reduce wages when economic depres-
slons come upon US. That seems to be
| tncir solution for unemployment and
. tney seem to regard 1t as their remedy
| Tor economic distress.
While reading the announcement OF