Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-25
FEDERATION WARNS|
AGAINST WAGE CUT
Organized Labor Calls Upon
Workers to Resist Any
Such Step.
BY JOHN F. SINCLAIR.

BY JOf1N f. SlNCLA1n.
NEW YORK, May IS (N4AN.A).-
"Stop cutting wages If you want to save
the economic situation" This Is the
challenge of the American Federation
of Labor, whose executive council calls
upon the workers of the country, I'M
organized as we'll as organized. to re
sist to the fullest extent" any general
wage-reduction policy. The council as
serts that the banking interests of the
Nation are stealthily and perSistently
forcing employers in this direction.
The federation holds that the return
OF prosperity is dependent on an In
crease of purchasing power sufhcient TO
absorb the surplus production OF goods.
There has not yet been convincing
argument against this idea.
It may be true that permanent re-
adjustment is in the making and that
American wages will have to be brought
into a proper ratio with the purchasing
power of the consumers. But 1t should
be a fair balance. Obviously, any ar
rangement where the worker finds his
actual purchasing power reduced Will
be a retreat from the American standard
of living. Wages may be cut. II and
when necessary, but purchasing power
should not.
A little closer relationship between
wholesale and retail commodity price
indexes would be a sound approach. and
in the field of capital waste there is yet
much to be done. Wage cuts should be
the last resort.
Despite the fact that Cuba is deep in
the throes of economic and political
unrest, she remains the third best Gus
toner for textiles from the United
States. During the past year Cuba has
absorbed over $14,o00,0oo worth OF tex
tile commodities. Only Canada, with
S39, 900, 900 purchases, and the united
Kingdom. with $28,00o,ooo, are ahead
of her.
1t is regrettable that so few Ameri-
cans realize what a great market Cuba
is for their products. Only $4,000 miles
square and with a population OF g.
zoe. 900. Cuba stands eighth on the list
81 this countrys 10 foreign buyers OF
Foods.
Cuba,s present difficulties are largely
due to her almost complete depend
ence of one crop-Sugar. The present
government of the island has tried to
stimulate diversiflcation, but TINS mas
been complicated by growing lack OF
confidence in the Machado regime.
If it is at all possible for the United
States to extend favor and assistance
to Cuba. it should be forthcoming as
matter of sound business.
Decentralization has hit the nitrogen
Industry hard. The output OF natural
and manufactured nitrogen viii reach
z 600. 900 tons in the 1882 season.
world consumption at the present tilns
is estimated at about 2,00O,OOO, OF l.
500. 900 less than production.
Chiefly. it is agriculture that mas
caused this slump in the international
nitrate industry. Nitrates flnd tneif
heaviest outlet in the MANUFACTURE Oh
fertilizers. With the present oepres,,
sion in agriculture, even the nofilai
amount may not be taken. IL,
While this situation undoubtedly wiz
affect the nitrate industry 10 some ex-
tent in the United States, the results
NAV not be as serious as appear: Inc
nitrates in this country are attLlclany
made and are only one OF many cnem-
teal products turned out by the cnem-
icaI plants producing them.
In Chile, on the other na s,,,t,, d Site
ester Though the industry in tnat
country has lately reorgani0ed 10 com
note on a lower price level Win tne
{oreion artificial producers, TINS neaVy
s,,rniIIs NAV prove fatal, since II Is
orirnariIy q one-product anairr
besides. the Chilean governnens
leans upon the nitrate Industry IneI
for financial solvency. ParaIyob "a
the nitrate organization may nl t,arr, III
coilanse of the government, turmon,
disaster and a blow at American Haue
in that country.
Although there was practically no
increase in the number OF moOor W
lnicles on American ro11s last year, Vi.
consumption of gasoline cnnloeo % p es
cent and the revenue from taHeo
CTuS, "a nor cont more than the
previous season. "A c.otes
Ths total revenue for the AZ StateS
.nd the District of Columbia came 10
airoost S4e4 600 900 for 1880. Some IN
teresting facts can be gathered rom
these statistics. Thus, the nlgnee.
taxss. 5 and cents on galon' a.
almost exclusively connneo 70 @
Southern States. the loWeSS 49,
from . to cents, are found in NortneIn
+arritorv THE Accent tax, which mign'
ha called a middle figure, appears ~
states scattered all over the country
h,,t more i'm the West than in the East
It would seem that States with iaLee
agricultural areas impose the hgnsI
taxes. while the North and East EelS
ON their varied and extensive manulac'
lures and trade for revenue. 100,
These taxss are apportloneo aILohs
States as follows: cents III seven l.,
cents In H. y n CCbeo ~ SA EL-.o
~ : cents in 10 and 6 cents In tnree
The average tax for the country IS aoou,
2 as cents per gallon. The total olrecl
tax on the Nations motorists comes =
Gao az This covers the sum OF $1,000
the average annual gasoline TAX aht
sI34I. the average annual regstratiot
fee. d. &, Al.
II the airplane industry expands IN tns
decade to come as the railroad and auV'
industries have in the past, transpar
tation will pay a very heavy portion o.
the country's total taxes.
voluntary industrial planning IS be
ing tried by the Tanners Councli o
America. All available data on proouc
ton. consumption, prices and costs 10
the previous seasons are being collected
analyzed adjusted to regional ne
and finished schedules sent TO memoe
rnanufa cturers, who are free TO use O
reject the material.
The ma jority OF tanners. however, ar
turning toward these reports Tor actua
production guidance and policy. Per
hans the reason for this Is the unlqu
stability Of the industry, which make
predictions unusually accurate.
Eigitv-five per cent Of the cattle hide
in the United States evolves into shoes
the backbone OF the tanning busines:
This is a fairly constant percentage. a
is the consumption Of shoes. Othe
products in which leather Is used, sucl
as luggage. upholsterJs harness and belt
ing. do not fuctuate wildly either.
Finally, the character of the in6ustr
itself, where the tanning process extend
over months, rlakes it possible to wor
out long-range planning In any evan
.ha rroiAct win certainly be Watche