Milford chronicle., 1936-12-04

I AdIS0 as IN pI6-uSpfSSslOu uayS-
/ while wages, in some cases, viii be
higher. Seeel's new wage rate is the
highest In its history, General Mo.
tors is 10 per cent above the 1929
average. Business Week says that
next year industry's labor costs will
possibly be the highest in all q. s,
industrial history.
What caused this amazing
change? Obvious answer is better
times-and there is no question but
what industry in general has pulled
out of depression, has entered a
period of recovery.
But that isn't the entire answer to
why business is figuratively break
ing its neck in an effort TO get as
many dollars as possible into the
hands of stockholders and workers
before 1887 dawns. Big and potent
influence is the new tax bill on I'm
distributed corporation profits,
passed by the last Congress.
This tax bill levies taxes of un-
precented severity on such profits -
taxes ranging up to q per cent. But
when the profits are distributed. in
either wages, bonuses or dividends,
the tax is avoided. And that is the
major reason why business is fol-
lowing its present lavishly generous
course. According to the New York
journal of Commerce, distributions
to stockholders ordered for the last
three months of this year directly
traceable to the tax law, total at
least $500,000,OO0.
Economists are highly dubious of
the ultimate results of the law, fear
it will prevent industry from build
ing up surpluses that are essential
if future depressions are to be sur
vived. In the meantime, however,
the tax is helping cause veritable
dividend and wage boom.
At this writing, President ROose-
velt is on his way to the inter-Amer-
lean peace conference at Buenos
Aires, where he will make speech
the first day and then return. He
was preceded south by an imposing
American delegation headed by Sec
retary of State Hull-implacable
fighter for better commercial and
diplomatic relations between coun-
tries.
There has been considerable dis
cussion concerning the value or the
futility of the conference. Some |
point out, with truth, that there is
no danger of a war arising in North |
or South America, that Europe and |
the East are the danger spots.
However, it is the Presidents be-
lief-which is shared by many-that
if the nations of the Western Hem |
isphere show Europe that a round
table discussion of issues can lead |
to amicable settlements and agree
ments, some progress toward world |
peace will be made. And it is like !
wise believed that if the President !
takes a fortnight and aggressive |
stand for peace and throws his vast |
prestige against armed conflict,
heads of powers which are now
close to war may think again before
giving the command to open hostili-
lies.
The Presidents trip to Buenos
Aires is thus in the nature Of ges-
Eure in a world which was never
nearer to armed chaos. AS a matter |
Of fact, in recent months there have
been more occurrences contributory
10 war than there were in 1912 and
1913.
Everyone hopes that gesture will
be productive of good. In the mean
line, it seems that every seasoned
news commentator and every old
line war correspondent, is certain
hat war in Europe and Asia is in
of the leading corre-
ipondents recently stated, on de-
parting for Europe, that he was go
ng to cover the next war.
The Italo- German recognition OF
he Spanish rebels has further wild
,ned the cleavage between these
powers and France and Russia. The
greatest force existing today in both
Europe and Asia is the force of hat
ed.
That old bogey, THE cost of liv-
ng," is again in the headlines.
some industries are considering
,lans whereby the cost of living in
ex will be used as a basis for wage
Increases and decreases. An ad-
ance in the index is forecast for
he near future.