The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-03-23

the provision, but obviously they will
not be able to gain the profits out OF
the construction work that might
otherwise obtain. Succinctly, the pro-
vision requires that no contractor can
gain more than 10 per cent profit for
his risk and investment, but enforce
ment of such rule is not as simple as
1t sounds. It will be recalled that
there were "cost-plus" contracts used
during the World war construction.
and it also is a matter Of general
knowledge that the government paid
dearly as a result. The contractors
were willing to pay any kind Of wages
and hire any number Of workers they
could get, because when the costs were
totaled, they simply added their 10 per
cent, and collected.
From some Of the letters have re-
ceived from readers, l gather that they
felt I was bit jingoistic few weeks
ago when l predicted that there Is
war brewing and that 1t is likely to
engulf some parts of the world before
the end Of this year. 1 was reporting
at that time just what authorities in
Washington knew Of world conditions
and signs they could read.
While our own congress was au-
thorizing construction of a treaty-size
navy, consider the developments that
same week abroad. They include: the
French chamber of deputies naval COM
mittee approved project for construc-
ton of a 26,OOO-ton man-of-war, to be a
sister ship of the gigantic Dunkerque
that is now being built. 1t also ordered
construction of two new submarines
and a destroyer. The British adj
miralty presented 1894 estimates for
four more cruisers and twenty other
ships, and an increase in naval person
mel of 1000 men. These additions
will cost roughly $2S2,OO0,OO0.
In addition to these moves by the
British, and the French, the Italians
took quick cognizance of the action OF
their rivals, the French. While it was
not officially communicated to Washing
ton, my understanding is that the Ital-
fans are making plans to build 25,-
000-ton battleship. This, of course,
would offset the new Dunkerque that
France will commission soon.
Over in Japan, war plans go on
apace. And Japan is making faces
at Russia. For example, the Japanese
war ministry sent note to Russia the
other day, telling the SOviets, in effect,
to stay on their own side Of the inter-
national border. 1t seems the Soviet
planes had been doing little flying
by Japan out of territory taken from
China, and the japanese apparently
didn't want the Russians playing in
their back yard.
Now, concerning General Johnson's
demands on industry, it certainly can
be said that his
Johnson's theme song, as they
Worn;no say Of the movies,
was burdened with
a threat. He did come down off his
high horse long enough to say "we cam
not succeed without public support"
That was quite condescension by the
general. Yet, he had previously said
to the folks, who are the personnel of
the code supervision, that they were
going to compel industry to cut the
hours of labor and increase wages at
the same time.
"Of course" said General Johnson,
I'VE can't succeed without public support
of what we are trying to do, and want
to warn non-compliers that we are
not only going to revive public senti-
ment for the Blue Eagle insignia, but
under specific orders from President
Roosevelt we are recognizing to en-
force the penal sections Of the re-
covery act"
The administrator went on to say
that he had been too gentle" He
feels, apparently, that he has not
cracked down sufficiently hard. So,
he is going to see that more employ
ment is made by compelling industry
to take on more workers, and the
whole import of his attitude appears
to this observer as being one that will
enforce that employment whether the
particular industry needs the added
workers, or whether it can pay them
IL it hires them, or whether 1t will
bankrupt the firm If it obeys. From
this position, it appears to many with
whom I have talked that General
Tnh ha ind foh% h<
tween the devil and the deep blue sea,
and there is little choice left.
The general obviously was moved
to go the distance he did by the
definite character of Mr.. Roosevelt's
assertions which were that 1--WE are
not going back and the recovery
principles are here to stay. All of
which is very strong language. 1t is
different language than the American
nation ever has heard from Washing
ton. Some folks in the capital city
who are accustomed to thinking along
Independent lines tell me they believe
General Johnson made a mistake For
example, it was pointed out that If
enforcement of the shorter hours
causes too many firms to go bankrupt,
what can or will be done to absorb
those employees? If a plant is not
operating, surely there will be no pay
roll available. Thus, General John
son has committed the administration
to line of action that conceivably
can result in bareback, a loss of
public support and development Of
an antagonistic attitude.