The Washington times., 1931-10-02
CuttingWa WhatItMeans

unfortunately, will hear
Solemn business will tell you workngmen bear
their share of the general defation.
Stock prices cut dividends cut omitted entirely
The workman must bear his share of the grief.
Nice words but Inaccurate shown by W. R. Hearst in
article published in all of his newspapers.
In that article Mr. Hearst said:
Several of the greatest corporations the United States
have cut the salaries Of their employees per cent by
doing have contributed their utmost toward the aggravaon
Of the depression and the accentuaon of the injustice already
inflicted upon the wage country and the ee
ments dependent the welfare of these workers
The immediate for this in wages workers is
the present difficulty that the corporations paying
dividends their stock but the elemental cause
is the issuance by these corporations Of stock than they
are capable of paying dividends on.
1t be taken automatic that if corporations issue
stock to the limit of their capacity pay dividends upon
good times they will not be able pay dividends upon
bad times
Periods Of initiation and depression alternate and it is
obvious that you capitalize to the of
the of prosperity you will to pay dividends on
this waered stock in the trough of the depression
important to the public, and particularly workers.
clear understanding of the alternating initiation and de-
preston" which Mr.. Hearst puts in few words
When workngman has fairly good position with rea.
sOnaby good with times prosperous ONE
SINGLE WORK1NGMAN getting ONE workngman's wage
Not so with the stock of big corporation.
When corporation that has been making five per cent on
It's stock finds that making per or twenty per
cent content keep the of and
60 back to the five per cent when conditions change
The number Of shares Of stock is multiplied by by four
perhaps by fifty.
The sudden profits the period of Imitation make it
possible to pay five per the shamefuy increased
stock issue Then when depression and the company
can longer dividends its inflated number of
those that issue the stock calmly say:
I'VE must reduce wages We are compelled to take re-
ducon in dividends stock surely the workman
should be content to take reduction in his wages"
though the workman in good times should suddenly
multiply himself by wo four put his the
payroll in dozen places and insist that the employer
tnue paying him dozen salaries only in times of in
fation, but in times Of depression also.
In other words boom times increase profits Increased
profits promote speculation reckless gambling Prices rise
New shares of stock issued not merely in hundreds of
thousands million but in TENS OF MILLIONS OF NEW
SHARES even exceeding in single instance than fifty
million shares.
The boom passes depression follows the initiation stock
gambling, and stock watering.
Tens Of millions of shares that have been
longer pay dividends they did in the initiation employ
ing corporation says to its workers:
You see we suffering. We have actually been
PEELED to reduce dividends Some been obliged
to discontinue them entirely. Surely you will not complain
we find necessary reduce your wages in order to
enable us to resume dividends full dvdends
""0 IN wage Dase0 on depfesons
"nie the imitation boom lasts the workman gets his
days wage and no He cant have dozen children
over night and put them the payroll without their doing
any work and collecting their money.
But the head of corporation new shares which
are his financial children, Dozen or thousand
Million but tens Of millions He puts them the payroll
He says that the industry and the boom pay dividends
on them those dividends being the corporation wages
And then he wants the workman when depression comes
to accept reduction in order that newly created
overcapltaSed stock may continue in depression
it did in initiation.
The workers of the United States will not accept that if
they interpret right and wrong.