Evening star., 1936-12-17


ing any sum in excess of $4,000
without conforming to standards of
labor and working conditions pre-
scribed by the Federal Government
through the Department of Labor.
Many companies rather than set up
one set of standards on Government
contracts and another on the rest of
their orders. have refused to bid on
supplies needed by the Government.
Today approximately $4OO,000,OO0
Of purchases are affected by the
WaIsh-H -Healey law and union labor
leaders are pressing for an amend
,fent to the law so that even orders
below $4,000 will be affected. This
would involve Government purchases
of about S2,o0O,0OO,00O a year. And
If industry conforms to the Govern
ment's rules with respect to such a
vast amount of business, the chances
are it will mean application of the
same rules even to divisions of busi-
nesSes which do not produce goods
for Government use.
Sets 40-Hcur Week.
Briefly, the Governments require
ments are that a 40-hour week shall
be maintained that there shall be
no child labor and that minimum
wages shall be paid as the Secretary of
Labor after hearings are held shall
prescribe. AS yet the minimum wage
feature has not been settled. but the
Department of Labor does insist on
the 40-hour week and the child labor
clause.
The principal resistance to the Gov
ernment's desire for bids in conformity
with the Walsh-Healey law is coming
from some manufacturers of foodStuffs.
Likewise there are difficulties about
furnishing copper to the Government,
and conferences are being held be-
tween copper companies and Govern
ment officials to help straighten out
the differences of viewpoint. Gov
eminent Spokesmen say the boycott
has been broken so far as the auton1o-
bile industry is concerned, as bids
are now being received from some of
the principal manufacturers.
The forthcoming conferences with
the textile businesses will prove very
interesting, especially as the Army
and Navy request bids for clothing.
1t is said that in this category come
some sweatshop operations that will
be affected by the 40-hour week re-
quirement.
Comes out Of Taxpayer.
Naturally it is going to cost the
Government more money to get its
supplies, but that's one way by which
the taxpayer doesn't realize that the
burden is being increased. In fact,
the cutting of the Federal budget is
going to be rather difficult, as the
expenses of things the Government
buys go up irrespective of the Walsh
Healey law, and as expenses are
forced upward to consumers other
than the Government by reason of
the standards set by the Government.
What isn't generally realized, per-
i1aps, Is that all consumers aren't in
a position to get wage increases at
the same time so as to meet rising
costs in living. But the economics of
what the administration is doing in
this respect appears to be given less
consideration than the demands of
organized labor for a shortening of
work hours with the same pay.
The net effect of the Walsh-Healey
law may be to drive out of business
some of the small marginal producers
who cannot now bid on Government
contracts because of the higher costs
imposed upon them. They do not
have the capital to buy labor-saving
devices, or they do not have some of
the advantages in low capital costs
which the larger units of their indus |
tries enjoy. In other words, the large
businesses will now get much of that |
volume Of contracts which formerly |
went to smaller businesses, who in |
turn will have to release from en-
ployment many workmen who were
kept going by Government business.
Squeezing Discouraged.
But such are the pains of controlled
economy and to date the readjust-
ments to conform to the Walsh
Healey act on the part of business
and industry have not been exten-
sive. Some companies fatty refuse
to change over their operations, be-
cause they cannot operate on one
scale for Government orders part OF