The Indianapolis times., 1935-11-05

W Where is it tagging?
The Roosevelt Administration is up against its
most batting problem in the fact that the depression
seems to be over for half the country and not for
the other half
To complete matters it is the working half of
the population, which the New Deal was designed to
aid that still feels hard times
When business indces were low, the Admins
tration expected their improvement would end un-
employment. Now that indces have climbed al
most to normal, with the number of unemployed
still running around 10 Million it may have to re-
wise its whole plan.
That is why optimistic headlines on every flnan-
cial page are evokng little official comment here
In half a dozen departments tables and charts
are being studied to determine where the weak points
in recovery lie and what can be done about them.
Last week President Roosevelt admitted concern
over the fact that industrial production is about 80
per cent OF the l923-25 average, while only 80 per
cent as many persons employed and pay rolls are
only about three-fourths of the average for that
period.
FURTHER study of the figures indicates they are
made up Of excessive highs and lows
Earnings of so leading corporations increased rs
per cent in the third quarter of the year. Business
Week reports. For the first nine months of the
year, earnings IS per cent above the same pc
Rod last year.
Sixteen of the SO companies-many of them food
northumberland less in the nine month pc
riod this year, but earnings of julius Kayser g. Co.
went up 2l1 per cent; Johns-Manville 16s per
cent; Otis Steel 142 per cent; Houdaille- Hershey
1913 per cent; Libbey- Owens Ford SO per cent.
E1GURES of the Bureau of Labor Statistics for
the first six months of the year show net profits
for 662 corporations of $5e42OooOO This compares
with profits of $579OOOoOo in 1884, sl923OoOOO in
1893, and $537 100000 in 1881.
Only one of the "a groups into which these cor
peratons were classified showed losses This was the
railroad group. Automobiles showed net profit of
$99000000 public utilities $l24 900 O00 telephone
companies $93 oOO food and food products $51 300
000 chemicals and drugs $5O,OOOOOO
Within the last few days, the newspapers have
recorded per cent increase in net income of rail-
roads during September.
ELECTRIC output touched its al-time high of
~ l,895,8l7,000 kiowatt hours last week, figure
13 per cent above that for year ago.
The Commerce Department found industrial pro-
duction for october two points above September,
the first time since 1928 that the fall expansion has
exceeded the usual seasonal rise
Automobile manufacturers produced 1853 900 units,
up $4,000 from September.
Steel production went up in october instead Of
down, as it usually does Freight car loadings are
IA per cent higher than year ago. The cotton tex
tile industry according to financial commentator.
is the most promising basis for sustained recovery
since 1882.
Trade figures show the following increases: Pas
senger sales 81 per cent truck sales % per cent
machine tool orders 88 per cent, department store
sales per cent rural sales 20 per cent, paint and
varnsh sales 18 per cent oil burner shipments 38 per
cent, washing machine sales IL per cent, household
refrigerator sales is per cent.
DUT this is what the Bureau of Labor Statistics
~ finds when it looks beneath the surface:
Production is about at the 1929 level in consumer
goods industries but far below it in durable goods.
Employment is 800 of the 1923-25 level in con-
sumer goods industries but only 72 in durable goods
Pay rolls are 500 in consumer goods industries COG
in durable goods.
The same ratios are not maintained throughout
industry. Automobiles, in the first six months OF
this year, showed production at 10 per cent employ
ment at 90 per cent pay rolls at so per cent officials
read in this picture of shortened working hours and
part-time employment with workers getting less per
man in wages than in normal" times.
CTEEL production was 55 per cent, employment at
~ 70 per cent, wages 54 per cent This picture
means that employment will not increase greatly as
steel production goes up since it takes minimum
number of men to keep plant going. and better
times will simply mean more work for those already
there.
Power and light production is 100 per cent. en-
poynent 81 per cent, wages 50 per cent. More Kill
owatt hours will hardly mean more workmen. BIZ
luminous coal production is at 73 per cent and en-
poyment at II per cent rejecting decrease in
working hours but wages only SO per cent on the
average.
In many industries two or three machines have
been combined so that man instead of three
can run them. New inventions have displaced men,
Other inventions thfeaten displace thousands OF
men in the next few years.
DUT officials not discouraged about eventually
- being able to return most of the unemployed to
work. though there's chance of doing it before the
next election, or very soon after it.
One school of thought sees two approaches to the
problem.
The first has to do with building construction.
million and half of the unemployed ought to go
back into the building trades, and will when the
present building boom swes to proportions foreseen