Evening star., 1932-10-26

LOS ANGELES, Calf. October 26
(N,A.N.A).-In a pamphlet on THE
Practical Solution Of the Unemployment
Problem" issued recently by the Indus
trial and Banking Committee of the
Twelfth Federal Reserve District and
which has elected a demand neceSsitat-
ing the printing of thousands of copies.
occurs this statement:
TO degree unemployment is self
perpetuating in that it creates vicious
circle tending continually to widen and
aggravate its own evils. Where, by rea-
son Of unemployment, normal purchaS-
ing power is reduced, the effect OF that
decline in the motivating factor Of
business and industry is promptly mani
tested in corresponding curtailment
Of merchandising and thence Of indus
trial production, dependent in its turn
upon an unimpeded outlet for its man
ufactured commodities"
Recognition by some of the largest
employers of labor in California of the
cardinal truth in the foregoing state
ment has actuated practical method
for preventing by the spread of employ
ment the possibility of a widening de-
crease in purchasing power. In other
words, the endeavor has been to create
a beneficent circle that will tend to
widen and increase its own good
Thus by spreading out the available
work among as many employees as pos
sible and thereby saving thousands of
Jobs. a great deal has been done to
sustain buying power generally. How
favorable this condition Is can be judged
from the fact that many manufacture
ers especially Of textiles, are turning out
more production now than few months
ago to supply the new demand from
retailers
The favorable circle that is started
by the spread of work through shorter
work weeks and staggered days OF work
spreads to more work for employees in
mercantile lines and this in turn Gre
ates more work for factory workers.
The entire movement spirals up toward
a new prosperity in which al workers
have proper chance to share.
Permanency Seen
The good results attained are not re-
garded as having come from mere eX-
pediency in spreading work, but are
viewed by many employers and econo-
nists as possible of permanency through
perpetuation of the work-spread
method. the retention plan. the lob
security by -job-sharing" plan or how
ever else it may be called.
The method has passed the expert
mental stage. Some large companies in
Southern California have been using 1t
for the last two years and have tested
thoroughly its worth. One Of them. for
example, began the five-day plan
year ago for IS per cent OF its per-
sonnel and it worked out so well that
a few months ago it made the plan
general.
Concerns instituting the work-Spread
olan as essential business procedure
have ready opportunity to see and
cav cut opportunities on the humani-
to~i-1 side of it. Many interesting eX-
e2-~'os of this can be cited. For in
s-p~co. there is the following procedure
cvl'ed from the report from one OF the
larcoet California concerns:
"-f the sales manager in Arizona
need stenographer. he informed
hc~ Quarters If anywhere else in the
orcan zation there was a surplus stenog-
rapher that person was given the pref
eronce for the Arizona job. Thus the
company avoided laying off people IN
one section while possibly taking on
others elsewhere"
Cases additional to those related In
former articles of this series. may De
opportunely cited as to good results had
from the work-spread method. Had the
oil companies merely followed the easy
course of looping off all employees Tor
whom they could not provide work there
would have been thousands OF persons
added to the unemployment list.
3,008 Keep Job.
The Union. Associated. General Pc
troleum, Shell and other oil COM
panies-to cite some more OF the Tore
most producers+aggregatel employ
more than $4,000 persons, many of
them in Southern California, and it is
estimated their work-spread systems
have saved In the neighborhood of 5000
Jobs: approximately 5000 workers thus
have been kept on the pay rolls who