Evening star., 1932-09-04
TRAIL WAGE INQUIRY
|PENDS IN CONGRESS-
Fight Threatens on Bill for g.
Hour Day-KeIIogg Plan
Weighed by Hoover.
Continued From First Page.)

Continued From First Page.)
sible in an industry using continuous
process methods to add as much as 20
per cent to the number of employees.
without loss to stockholders, through
adoption OF the siX-hour day. The Kel-
logg company, worlds largest manu-
facturers Of ready-to-eat cereals, put
the plan into effect almost two years
ago as a then immediate means OF pro-
viding increased employment. 1t has
proven so satisfactory to the 1000 en-
ployes and to the company that 1t is to
be retained permanently. regardless of
future improvement In business condi-
tions.
At the same time that the working
day was shortened from eight hours to
six hours at the Kellogg plants, wage
scales were adjusted upward an average
CT 12i2 per cent, offsetting appreciably
the individuals loss in working time.
Since then there has been an additional
upward adjustment for certain classes of
employees.
Expenditures Stepped Up.
The Kellogg plants now are operating
day and night with four six-hour shifts
working every "a hours throughout
each week. Having In mind main
tenance Of its volume of business and
to stimulate further employment, the
Kellogg company also stepped up ma
terially It's expenditures in sales and
advertising. II was announced also
that contracts are being awarded i'm
mediately for construction Of a $2500 0o0
addition to the plants. Tins work is
being done at this time to provide ad-
ditional employment and in anticipa-
tion Of carly need for increased. manu-
featuring facilities.
Prompted by what he said were last
minute efforts of business leaders to
cut wages before conditions improve,
William Green. president Of the Amer
ican Federation Of Labor, appealed to
the unions afiliated with rhe fedora
ton to resist the movement. He said
he had been informed some indus
trialists were prepared to make the ex-
isting low-price levels the excuse for
further wage cuts.
The slight improvement in the. busi-
ness situation" said Mr.. Green, has
not served to reduce the number Of un-
employed. The best that can be said is
that the increase in unemployment per-
haps has been halted. Our figures
show that there are still ii 400, 900 men
out Of work in the country and We do
not propose to let that situation be-
come any more serious II we can help
it. Further wage cuts now Is short
sightedness."
The expected congressional investiga-
ton may be precipitated also into the
question of the wisdom of the recent Is
per cent increase in freight rates and
the loans now being sought by the rail-
roads for equipment purposes. The In
terstate Commerce Commission already
is investigating the six-hour day by di-
rection of Congress.
Members Of the Congressional Com
mittee believe that in considering legis-
lation for a short work day it will be
necessary to give thought to the effects
of the Six-hour day on wages and pres
ent standards Of wages.
Offered at Sessions Close.
The Pittman- -Crosser bill for a six
hour day was introduced just at the
close Of the recent session. There was
no time to take 1t up in the Senate In
terstate Commerce Committee or In. the
House Committee. Its sponsors are
planning to press Its consideration in
both committees as soon as the short
L
will insist that the six-hour- day plan
be pressed. and all of organized labor
will get behind the measure. This will
be done on the theory that II Congress
orders the six-hour basic day for the
railroads industry will have to go to the
six-hour-day program and adopt the
shorter work day and shorter work
week. :
Railroad wages have been cut 10 per
cent by an agreement which holds until
February ]. Some OF the railroad offi :
cials favor an extension of this reduc-
tion. while others favor q reduction of
20 per cent. and there is some support
for a Is per cent reduction. 1t appears
there Is strong support among the rail-
way arrangements for cut of not less
than is per cent.
1t Is expected officials representing
the railroad managements will confer
with representatives of the standard
railroad labor organizations. Efforts
will be made by the railroad manage
ments to get the employees to agree to
program for reduction of wages. One
suggestion Is that the controversy will
reach the Railroad Labor Board. Re-
Gently the leaders of the standard rail-
road labor organizations In a confer
ence declared Wage cutting must
stop. Adequate wages adequate prices
and adequate employment must be re-
stored"
Prominent representatives Of the rail-
road employees in the last few days have
declared here that the employees will
fight vigorously against further reduc-
tions OF wages. supplemented yesterday
by President Green's statement.
Complicating the situation Is the
proposed consolidation of Eastern rail-
roads into four great systems. The
railroad labor organizations are fighting
this: on the ground the interests of the
employees are, not properly protected. q.
Unless the four-system consolidation
has been put through by the time Con-
gress meets. the Senate Interstate Com
merce Committee. headed by Senator
James Couzens. Republican, Of Michi-
gan, is expected to urge committee
inquiry. Such an investigation would
give consideration to the effect Of the
consolidation on the interests Of the
employees.