davidaulloa/AmericanStories huggingface dataset:
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26
INDUSTRIAL RECOVERY LAYS THE BASIS FOR FURTHER
BREAKDOWN OF CAPITALIST ECONOMY, CONFLICTS

the writers of the bill, Benjamin A.
Javits stated, in this regard, "As a
matter of fact, the new law is ex-
pertly calculated to increase the prof
its accruing from industry" IN. Y.
World Telegram interview, June II,
1889. If money wages are raised in any
instance, say 81 month, the drop in
the value of the money, that is in the
amount of food, rent and clothing
that this rise" will buy, will push
wages down in real value to from So
to SIS less than in the period before
initiation.
Thus the slash in wages will not be
along the old, simpler form, of mere
slash in existing pay rates, but will be
more complicated, more confusing.
In some instances there will be an
actual slash in the wages, regard
less of initiation. In others, there will
be cut in hours, the stagger plan,
an apparent piece or hour rise lin
inflated wages with cut in weekly
wages. In each instance, in the shops,
in taking up the struggle the work
ers must break through the phrases
and explain tn real meaning of the
new wage slash moves, building their
demands of struggle on this basis.
Roosevelt has the right to slash
the value of money by so per cent
But initiation is not the controlled
matter that the Roosevelt brain
trust" would have the workers be-
lieve. Hoover hoped--in fact declared
capitalism would have no crisis.
But the government deficit is grow
ing. War expenditures are growing.
Even the small measure of public
works that the new deal" contem-
plates will be paid for by the workers
through increased taxes and the in
flation that the public works will add
to the general initiation. On top Of it
all, the cartels will raise prices, the
cost of living, Immediately. In the
struggle for world markets-through
lowered production costs, consisting
basically of lowered labor costs-in-
flation will play one of the leading
roles. This is clearly seen in the Lon
don Economic Conference. America
will initiate more. Then England will
initiate. France will go off the gold
standard. Japan has already inflat-
ed. Each In turn, as result, will in
flate more-and the workers will pay.
What They Promise
Next to Roosevelt himself, perhaps
the most infatuated with the bill is
that section of the bourgoisie repre-
sented by such organs as the New
York World Telegram, This sheet
summed up what it wants the work
ers to believe is the purpose of the
bill as follows.
1.-The plan includes quick
stimulant--public works and an
equally necessary tonic for perma-
nent Observation-Disclosures opera
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26
brotherhood Chiefs, Managers
Cut Wages $75,OOO,OOO

ten per cent cut extension for an
other ten months, thereby saving the
roads some 5000 900, is without
doubt a victory for the roads. With
strikes going on in many industries
for wage increases, with the cost OF
living going up, with the papers full
of appeals for employers to raise
wages and so increase purchasing
power ito give prosperity chance"
one million railroad workers have
been juggled by their chiefs into
taking what actually amounts to
a wage cut. Says the Herald Tribune
Owned by the millionaire Ogden
Reid, such an extension must be
considered in the nature Of victory
for the arrangements, for few of
them seriously thought they would be
able to achieve this action without a
prolonged struggle" The men were
promised return of the ten per cent
cut last February. They we're sold
out. They we're again promised a
return Of the ten pee cent Novem-
Der LIST. They have again been sold
out.
For the past week road after road
has reported tremendous gains in
earnings over earlier months of the
year and over last year "A small
increase in revenues for the Illinois
Central system for May was turned
into gain of nearly sl,O00,000 in
net operating incomes last year.
The Erie Railroad reported for May
its first surplus after paying all
charges after many months. Com
pared with deficit of half millio
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

on the cotton farms.
In addition, the whole effect of the
scheme will be to make it very diff
cult for the small planters to stay
in business. Only the rich planters
with large plantations will be able
to reduce their acreage and still have
a large crop. The small planter will
be unable to reduce his acreage with
out going out Of business altogether.
In this way, the power and income
Of the large planters will tend to
increase under the Roosevelt acreage
reducing program.
Plan viii Fail
The surplus of cotton left over
from last year is one of the largest
in the history OF the country. in
addition, this seasons crop is ex-
pected to be bumper one, exceeding
even last yearS.
The Roosevelt plan faces several
severe difficulties from the very
beginning.
Since the governments action is
intended to raise prices, every planter
wants to produce as large q crop as
possible to sell at the higher prices,
Every cotton planter wants to see his
neighbor reduce his acreage, but
wishes to maintain his own.
In the second place, as soon as
cotton prices start to rise in this
country. foreign producers attempt
to sell their products here, creating
a pressure for falling prices.
Another major difficulty is the
question Of consumption. The decline
in the price of cotton was mainly due
to lack Of buying power, lack Of
markets. The Roosevelt cotton-de-
stroying program has the effect Of
aggravating this condition even fur
ther, because as the price of cotton
rises, the amount of cotton consumed
begins to drop rapidly. And this in
turn tends to bring the prices down
again
But as soon as the prices come
down and consumption begins to
rise, production starts to increase,
ana the whole cycle is pack Where IL
began.
The Small Consumer Pays
Roosevelt's program Of raising
prices through imitation and through
direct destruction of goods has al
ready brought increased hardship to
masses of small consumers. The
prices of all cotton goods have been
rising steadily since March And it
is openly predicted that they will
be SO per cent higher in the Fall.
With the cheapening of the dollar,
and with prices being forced upward
by reduced production, the cost of
living for the masses Of small buyers
is rising rapidly under Roosevelt S
price-raising schemes.
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

dustry and in the smaller industries.
The Roosevelt attempt to soft-soap
the small industries, does not wipe
out this contradiction. The bill in
tensifieS them and creates new ones.
This fact, of the new crisis rangers
to capitalism, is no secret to the
leading imperialists. These financiers,
controlling industry, want the bill
without its new contradictions.
The crisis has not left intact the
class relationships within the ruling
class itself. The ever-narrowing prof
its creates sharp conflicts, especially,
as We have pointed out, the conflict
between trustified and non trustified
industry which squeezes more and
more to the wall the smaller indus
trialists, the petty bourgeoisie, this
struggle, pivoting on the grinding
down of the workers, with the big
capitalists swallowing up and driv-
ing out the small industries and the
small banks.
Roosevelt is attempting to speed up
this process. But in doing it he still
tries to retain the support of the
petty bourgeois elements, the very
elements he expects to have swal-
lowed up, by making them promises
that they will also benefit in greater
profits.
Prosperity Comeback Illusory
We have sufficient views from the
leading Spokesman of the imperial
lists Morgan, Rockefeller, Ford, etc.
to see their attitude. Benjamin Bak-
er, editor Of the Annalist, New York
Times publication, an economist who
usually gives the holder view of the
leading bankers and industrialists, on
June 9, wrote as follows concerning
the bill:
"That the Industrial recovery
measure can bring any permanent
increase in business activity is just
as illuSory as the idea that tam
pering with the currency is the
cure for all our ills"
This is correct, and expresses the
earlier fears of some of the big capt.
talists that Roosevelt's blatant dema-
gogy, good as it is in the main, might
unwittingly throw monkey wrench
into the imperialist machine.
After the bill was passed, when the
leading imperialists, were clearly as
sured that through the working OF
fla ,,,ooc,Ira THAR Ioroipa tj0r was
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

Railroad labor leaders are con-
graduating themselves on the swift
ness with which they disarmed the
growing unrest of the membership
by agreeing to continue the 10 per
cent wage cut for another year Rail-
road labor executives are also con-
graduating themselves, because, with
plans for wholesale mergers and lay
offs, it was farthest from their minds
to push wage controversy to the
point of having labor get out Of
hand" The intervention Of Roose-
welt in the dispute, through Eastman
his rail car, proves according to
railroad union officials, that he is
the friend of labor. Roosevelt saved
us from a % IL per cent CUT is the
sentiment wherever you go,
What happened was that through
the threat of % IL per cent cut
the railroad workers are being fooled
into thinking a continuation of the
ten per cent cut is victory. 1t was
clear game of trickery. The cap
italist press predicted weeks ago that
there was no chance on earth for
more than the present ten per cent.
And after the deal was made they
acclaimed it, not as victory for rail-
road labor, but as q victory for rail-
road financiers.
A Victory for the Railroads
The fact that a million workers,
at one stroke of the pen, without a
days cessation of work, and with
only two days negotiation, took a
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

dollars for May, 1882, it showed a
profit of $134,173. The Southern
Railroad reported that its main line,
between Washington and Atlanta
earned 10 per cent on common stock
for the year ending October, 1882,
Watch Your Jobs, Railroad Workers!
"a year Of depressed traffic" accord
ing TO President Harrison, who gets
SGT 500 year salary in addition to
his Is per cent.
Now that the wage question has
been disposed of to the satisfaction Of
the roads, they are free to 60, ahead
full speed with plans for mergers and
consultations, which means lay-offs
To lay off 100000 men a year. and
this is what we may expect if the
men do not check this move at once,
means to save this entire payroll
One of the big savings around New
York and New Jersey is expected
from pooling marine equipment in
the Port of New York. Only 300 OF
1000 marine units are said to be in
use. These include lighters, eleva-
tors, tugs, barges. Each competing
road now keeps up its own marine
equipment, with of course mini
mum necessary working crew. II
this equipment is pooled many of the
men will, of course, be given the gate
One Of Eastman's first acts as raj
coordinator is to cooperate with q
committee of Eastern Trunk line re-
representatives. and the Port of New
Jersey Authority on a plan of joint
use of lighterage facilities for all
Hines serving New York.
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

ton under the eye of the government.
2-"Specifically, it substitutes sane,
planned economy for economic anar-
chy; cooperation for unfair conpe-
tition; decent treatment Of labor for
q national trend toward uncivilized
sweatshop standards.
3-"The administration Of the bill
makes possible a short work week and
a minimum wage, better labor organ
ization, curb on excess production
and unfair competition and quick en-
ploynent of men on public construc-
ton"
1t will be necessary to make a
somewhat thorough analysis of the
bill itself, as it's entire structure will
come forward again and again to
plague the workers, and the imagin-
airy, or wish-inspired interpretations
help only to expose the maze of
propaganda that surrounds it.
First, under the bill, Roosevelt is
empowered to build up a bureau
crazy of hard-boiled capitalists to
administer the bill. In this respect,
the capitalist state, the government
of the imperialists, finds it necessary
in the crisis to create new organ
TO concentrate in more potent man
ner the oppressive forces Of the cap
italists against the workers. How
closely linked these individuals, like
General Hugh S. johnson, and the
host of others. are to the greatest
enemies of the workers, the big
strike breaking corporations, con-
trolled by the leading banks, has al
ready been exposed in various issues
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

of the Daily Worker.
Besides working in the general in
tereSt of preserving capitalism in the
present crisis, this bureaucracy Gin
the style of good American capitalist
tradition) will lay the basis for an
era of graft that will put the Tea
Pot Dome scandal in the shade. In
its power Of code and rule making,
involving the quick division. Of the
existing billions of profits, of divi-
dends, ETC., graft will run riot.
To Form Cartels
In the next section of the bill, the
heart of it, so far as trustified in
dustry is concerned, all the leading
industries are required to form car
tells, associations for the regulation
OF prices. 1t is provided that these
cartels must be Representative" of
the industry, that is, they must con-
tain the leading and decisive cor
porations. This means that the lead
ing, decisive trusts. the large cor
porations, will be dominant in the
cartels, that their policy (price raises,
wage cutting. union smashing, strug-
gle for colonies and for war to get
them will rule. Realizing this, the
Roosevelt bill throws in some phras-
es about mo discrimination against
small industries" BY this he tries
to cover up the contradictions be-
tween trustified and n-trustified
industry. One Of the contradictions
of the present crisis has been the
great gap between the prices of COM
modities of the monopolized, big in
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

shops at their meeting on Friday,
night, decided to issue call for the
strike, to begin this morning.
Plans have been worked out to in
volve the greatest number of laun-
dries in the Bronx in the struggle
Attempts of the Laundry Owners As
ISOLATION to disrupt the organization
of the strike, failed The "stabiliza-
ton talk of the bosses and their
agents met with determination, on
the part of the laundry workers to
strike for improvement of conditions
The meaning of the Industrial Bill
which tends to destroy the militant
unions and to force worsening of
conditions upon the workers, was
thoroughly explained to the workers.
Te Elect Strike Committees
Plans have been made to elect
broad strike committees representing
every department in the shops, Ne
groes and white. Demands for 20
per cent increase in wages, union
recognition. for the establishment of
an Unemployment Fund paid by the
bosses, no discrimination against the
Negroes for the rights to every job,
we're discussed and approved.
The Laundry Workers Industrial
Union calls upon the workers of New
York City to support this mass strug-
gle of laundry workers and to answer
the growing attacks upon the work
ers. Through a determined struggle,
the laundry workers will defeat the
bosses and their agents of the Amer
lean Federation Of Labor, who are
being brought in to organize the
strike breaking activities against the
laundry workers.
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

Bank issued special pamphlet on
the bill written by their economist,
Benjamin M. Anderson, Jr., formerly
economist for the Federal Reserve
System under Hoover. Anderson is
very much worried by the hodge
podge of cartels. He favors the elimi-
nation of the Antitrust law for a
few industries. But" he says, off all
Of them do 1t, they will simply stran-
gle one another. :. There will be
conflicts among the different trades,
steel wanting higher prices, the rail-
roads wanting lower steel rail prices.
There will be conflicts between labor
and capital"
Then he gives Roosevelt some ad-
vice. Ee paraphfases the advice
Roosevelt is already following in his
secret conference rooms.
Let us hope" says Anderson,
that the Administration will use
these vast new powers with the
greatest caution, in the most ten
tative manner, try them out on a
very small scale, and extend the
application very gradually. A sud-
den sweeping application could ere
ate federal chaos
Anderson has inside information
and does not have to believe all the
ballyhoo about increase in employ
ment, billions in expenditures for
public works, wage rates, and so on.
THE president does not need to
do all the things that he has au-
thority to do, and there is every rea-
son for believing that he intends to
do only those things which he be-
lieves TO be necessary to get the BUSH
ness machine working"
Three Stages in the Bill
Anderson knows his presidents. He
knows what is propaganda, what is
for the consumption Of the masses
and what Roosevelt actually intends
TO do. In other words, Anderson
knows there are three phases to the
bill, which must be clearly distin-
guished. u The petty-bourgeois prop
uganda behind the bill, the political
maneuvering of the representatives
of the entire capitalist class in the
state machine struggling against a
working class growing in militancy,
against a growing demand for in
creased wages and unemployment in
surance. % The actual wording and
intent of the bill which conflicts with
this propaganda. 81 Action under the
bill, in which there will be inner
capitalist conflicts, but in which the
policy of the decisive imperialists will
rule, and in which the main attack
will be directed against the working
class in an effort to drag the heavy
chariot of American imperialism tc
safety on the bodies of the toiline
masses
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

tradictions of the bill which will ap-
pear in many instances will be cut
In real wages as the result Of an
apparent rise, by the raising of the
money wages.
More clearly how is this to work
out? The present period of the cri-
sis is one of initiation, with all the
elements of increased initiation. The
bill itself makes for initiation in its
every move. The policy of Wall
Street, as expressed in the London
Economic Conference was that of a
free road for initiation to back up
jus5 such an appearance Of rise in
the money wages while behind it an
acsual and deep slash in the real
wages takes place.
For example, the industrial re-
covery act proposes to build up
maze of cartels. The primary object
of cartel in the history of capital
ism land the Roosevelt bill does not
and cannot change it one iota) is
to increase prices through monopoly
in order to increase profits. One Of
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26
SEWING MACHINE
WORKERS GO ON
STRIKE TODAY

NEW YORK.-A general strike was
declared by the Sewing Machine Me-
chanics and Power Table Settlers
Union, a section of the Steel and
Metal Workers Industrial Union, to
begin today at 10 am.
All sewing machine mechanics,
power table settlers, electricians, steel
partition men, chauffeurs and all
other workers working in the sewing
machine line are to go out. They
are to report at Union headquarters,
100 w. 25th st.
Demands are for a 40-hour, 5-day
week and Is per cent wage increase.
Two more shops Of the Bosses AS
ISOLATION signed up with the Sewing
Machine Mechanics and Power Table
Settlers Union and all its branches.
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

the present crop, the Federal gov
eminent, through the Farm Board,
is ready to pay the rich planters
100000, 900 in cash.
This money will come from the
Reconstruction Finance Corporation,
which in turn gets it's money from
the Treasury. The Treasury expects
to raise the money by tax on all
processing of cotton. The tax, to be
levied beginning August i, will be
inevitably passed on to the consum-
ers in the form of higher prices.
The net effect of Roosevslt's pro-
posal will be to subsidize rich cotton
planters with money collected by the
Government in taxes, to raise the
price of cotton goods for all retail
CONSUMERS. and to cut down the
number of farm workers to be hired
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26
Parmelee Cab System
Cheats Drivers of
Their Earnings
by a Taxi-Dr-ver Correspondent

tBy laXI-Dr-Ver Correspondent
NEW YORK CITY-A driver for
the Parlnelee System, 10Th st. Ga
rage, whose child became i'll, found
himself short of money. He went to
Mr.. Grannls, the manager, for some
petty cash on account OF his pay
which was coming to him, He was
refused and got only curses.
I am a Parmelee driver and have
seen men with my own eyes, who,
after a day of shaving and aggraya-
ton, have thrown the meter several
times to bring up the booking. the
fear of losing the job because OF the
vicious average system" is forcing
the men to do this.
Several drivers have reported sums
ranging from 81 to $3.50 taken from
their pay checks for small scratches
on Tenders that the men claim have
been there for days previous. They
had no knowledge Of how the
scratches got there: still we are forced
To nav for them. or we lose the job.
Another gyp has been uncovered
in the 6oth st. garage. Several enve-
lopss containing the daily receipts
of drivers have been found missing.
The blame naturally is laid on the
drivers. They not only lost 40 per
cent. which are their earnings, but
so per cent also was taken out OF
their pay to cover the loss which was
no fault OF theirs.
Editors Note: Taxi drivers are
urged to register their complaints at
the Taxi Workers Union. The
Union has several groups in the ga
RACES, planning to stop these very
conditions. The office is at 80 E. 18th
St.. New York City, Room 240. Tele-
phone Gramercy 5-0857.
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26
SLIPPER WORKERS CALLED
TO MEET

A mass membership meeting, to
which all slipper workers. union and
non-union, are invited, will be held by
the Shoe and Leather Workers In
dustrial Union Tuesday night at
pm. at Manhattan Lyceum, 66 E.
4th ST.
Preparations for an intensive Or
ganizational drive in the slipper trade
will be discussed.
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

patriotic name for these ships which
are being held here to be used as
transports in the approaching i'm
perialist war. The bosses would
scuttle these ships if they didn't know
that they could carry plenty Of can
non fodder between their decks If
necessary.
--BOYL w. BENTON.
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

This is the second of a series of
articles on the Industrial Recovery
Bill. The last one covered the
Roosevelt method of continuing
the Hoover program, speeding mp
trust building, coupled to a new
attack on the workers. Future ar
ticles will discuss every phase OF
the bill and how it effects the
workers lives in the shops, in the
unions, on the bread lines, as well
as the struggle on all fronts against
this new maneuver.-Editor.)
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

out Gas all their
interests clash in
the cut throat
struggle for the
narrowed markets
and for the dwin-
ding profits, the
b asic policy OF
c a pi t a ] ism ex-
pressed through
the bill as well as
outside of 1.-THE
attack against the
workers standard
Of living - will
continue undam-
aged.
For the workers,
one of the con-
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26
By HARRY CANNES

The industrial recovery act is full
Of contradictions, full of enough dy-
Mantle not only to wreck itself put
to intensity the crisis to much deep
er levels and engulf the entire work
ing class in greater chaos and star
walton.
No matter how the act works out
in practice, no matter what section
of the big bosses behind the bill win
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-06-26

are only getting 500 month. They
have to chip and paint along with us,
and many Of them are beginning to
see that they aren't much better off
than the deck and engine-room
slaves
In the same bay with the tankers
are, four Shipping Board ships, the
America, George Washington, Mount
Vernon and the Monticello. Nice