Evening star., 1934-12-12

told what he
Alfred P. Sloan. Jr. thought of price
fixing, 30-hour
weeks, closed shop wage scales and the
economics of scarcity.
To-day the magic possibilities Of
industrial RECOMMENDATION and the So
called planned economy no longer cast
the spell of yesterday" said Sloan.
THAT spell is broken. 1t is real
progress. Men are becoming increas-
ingly aware that the strongest instru-
mentality of revival of reconstruction
Is the existing system of free enter
prise"
Prescribes for Progress.
His prescription for progress in
cluded these elements:
Increased hours of employment and
increased productivity.
A flexible wage scale that brings
the greatest wage total
A works council plan in labor re-
lationships.
A free worker, as opposed to the
closed shop.
Sloan defined the goal of industry
thus: Progress is measured by the
advancement and wellbeing, socially
and economically, Of the American
worker-those who work either for
wage or salary-those who are de-
pendent upon their own individual
effort
Then he proceeded to treat the prob
lens of industry with that objective
in view. He took up hours of labor
first
I'VE have reduced the hours of en-
ployment, and we have increased the
hourly wage-the pay envelope, as a
general policy, remaining the same
AS result we have raised the real
costs of goods and services, but we
have not raised the purchasing power
of the American worker in proportion.
Let us relegate to the museum
Of economic monStrosities the theory
Of scarcity as factor in promoting
industrial recovery"
Asks Flexible Wage Scale.
Turning to wages, Sloan objected to
holding sacred and Interchangeable the
wage scale adopted in prosperous
times, or the wage scale fixed by force
or by political consideration.
IAN inf1exible wage scale freezes
the process of recovery" the manufac-
turer averred. THE best wage scale
is that which permits the fullest pro-
ductivity; the maximum number of
jobs; the largest total of wage pay
ments. A wage level lower than that
may mean the unjustifiable exploita-
tion of the worker. A leYel higher
than that tends to throttle down the
industrial machine-fewer jobs, more
unemployment"
While the theory of the minimum
wage appeared to be accepted as a
desirable factor, Sloan said he felt its
desirability was predicated on the in
telligence with which it is employed.
He indorsed the works -council'
plan as best promoting the real in
terests of both the employer and en-
ploye."
Opposes Closed Shop.
Questioning whether industry
should adopt, instead of the works.
council plan, a national organiza-
tion-an outside interest as against
an inside interest,"" Sloan said the
latter method meant inevitably the
workers loss Of independence and
freedom.
"A national union implies the closed
shop. The closed shop is an agree
ment to employ exclusively the men,
bers of particular union - am
entirely out of sympathy with the
principles and implications of this
course believe workers should
be free"
As for price fixing, the head of
General Motors gave this dictum:
1T Is vitality essential that the price
level be established on the basis of
the most economic set-up, and this
means the most economic set-up not
only within any particular industry
but . within all competing indus
tries.
Examination of many of our
codes" he added, indicates that other
considerations have taken precedence
to that of the lowest cost" He called
1t false doctrine" to attempt to per-
petuate the inefficient or fail to rec
ognize obsolescence.
Walter B. Pitkin, author, lecturer
and educator, asserted that the cost
of crime and relief in the form of
a Government dole were the two
handicaps to be overcome before true
and continued prosperity could be
reached.
The Columbia University professor
said that ''if half of the Nations
crime bill were saved, prosperity could
be financed without any additional
capital" He estimated the annual
cost of crime at $4,000, 900.
THE $6,000000 would build 4O00.-
600 homes and $4,000 factories" he
said. |
DR.. Pitkin expressed himself as
"squarely behind the American Le-
gion'S plan to deport four million
aliens who have come to America in
the last few years and have not taken
out citizenship papers"
He predicted that America Is on
the verge Of one Of the most prosper
Gus eras in its history, and said he |
would solve the unemployment and
relief problems by placing 5000, 900
persons in subsistence villages where
they could raise garden products and
engage In SinDle inductrv