Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-24

that It proposed to force q reduction in
! wages of 10 per cent beginning Octo-
! Der /. one is reminded CT the fact that
in June, 1927, not so very long ago, this
corporation declared 40 per cent stock
dividend. It also paid cash dividends
amounting to 1904 per cent during
the period between April /, 1901, and
December 81. 1880. While paying these
stock dividends and these huge cash
dividends 1t created hugh reserve
fund cut of which dividends have been
maid chief executives during periods of
Rod of unemployms Mt which now exists.
1t seems to be the policy Of this great
corporation, as 1t Is Of many others. to
distribute earnings most generously
among its stockholders and its hipfi
paid chef executives during periods of
prosperity, and reduce the wages OF us
employees during periods of adversely
Why did 1t not share with Its employees
In the distribution of the sum repre-.
sented in this large stick dividend and
cash dividends in the shape of in
creased wages when conditions were
prosperous?
Bonuses Are Cited.
"The Bethlehem Steel CORPORATION
followed the announcement of the
United States Steel Corporation by de-
claring that a reduction in wages equal
to the amount imposed by the United
States Steel Corporation will be forced
upon the employees of the Bethlehem
Steel Corporation. This is the cor
poration which, according to- the court
records made public during the hear.
ing OF the merger proposal of the
Youngstown Sheet g. Tube Co. with
the Bethlehem Steel Corporation. paid
to its corporation officers bonuses
amounting to $25,15O.O00 during the
period between the years 1918 and
1880. The salary and bonus OF the
president of the Bethlehem Steel Cor
poration averaged $500, 1000 annually.
Besides, the records show that this
corporation declared q stock dividend
amounting to 200 per cent upon class
B common stock in February, 1917.
and dividends to the stockholders
amounting to $133, 900 900 In the period
between 1918 and 1880.
Again, these steel corporations which
are arbitrarily reducing the wages of
their employees are. the beneficiaries of
a very high protective tariff. They are
protected against competition from
abroad. The American market for the
sale OF their products is their own
They are the beneflciaries of these
special privileges granted by the Gov
eminent upon the pretense that 1t must
be given them as protection to wages
and wage earners. The protective tariff
Is based upon the theory that 1t is
necessary in order to protect the Amer
lean wage standard, American wages
and the American standard of living,
II these corporations became the bene-
flciaries of a high protective tariff in
order to protect wages, then 1t seems
reasonable that. since they accepted
this favor and reduced wages. the
tariff schedule should be reduced and
the special favOrs accorded them by
the Government withdrawn. It Is UNI
fair to expect that the American peo-
pie will throw around these specially
favored industries a wall of tariff pro-
lection when they behold these great
corporations engaged In q policy of
American standard of living. compeIl-
ing working people to sacrifice still
further the necessaries OF life.
Holds Action IndefensibIe.
THE United States Steel Corpora
ton and these other corporations which
have announced reductions in wages
have subjected themselves to the charge
that through the imposition oil a reeiuc.
ton in wages upon their employees they
have broken a solemn pledge which they
made the President Of the United States
TO maintain wages and by their action
have contributed to the development of
social unrest and industrial discomfort.
LAS one American citizen having at
heart the interests of the Nation, con-
cerned over the preservation of our free
institutions and as spokesman of the
workers of the United States
and Canada, protest most vigorously
against what l regard as the indie.
feasible action Of these steel corpora
tons in their determination to enforce
a 10 per cent reduction In wages upon
their employees.
The press reports Assistant Secre-
tary Julius Klein of the Department of
Commerce as having said that there
will be hell to pay throughout the
United States in the event of a general
wage reduction" am not sure that
Assistant Secretary Klein has been cor
rectly quoted, but 1t is my honest, sim
cere opinion, arrived at after deliberate
and calm consideration, that whether
this prediction Of Assistant Secretary
Klein may or may not come true, the
fact is that it ought to be a logical out
come of the wage-cutting policies pur
sued by the highly protected employing
corporations Of the Nation"