Milford chronicle., 1937-03-26
ECONOMIC HIGHLICHTS
Happenings That Affect The Dinner
Pals, dividend Checks and Tax
Bills of Every Individual

pTiCSsS ,sOHStltuteS the most inter
esting and important recent bust
ness occurrence.
Wage increase has followed wag
increase in a multitude of leadin
industries. In many cases, wage
are above the boom-time level, an,
are at all-time peaks. However, la
Dor heads are still far from salts
field. They are, in some instances
demanding further wage boosts. Ii
other instances they are demandin.
shorter working weeks without wag'
decreases which, in effect, consti
tute wage raises, inasmuch as indus
try's labor cost per unit produced
would be lifted.
Without debating the many-facet.
ed subject of whether or not labor
deserves more money. 1t is obvious
that turgid situation vitality af-
fecting workers, stockholders and
management, is developing.
Unions are in stronger position
now than they have been for many
years. Furthermore, the craft unions
are at least momentarily on the de-
cline, and the industrial unions led
by John L. Lewis, are in the ascen-
dant. The A. F. of L. is no match
for the CIO in aggressiveness or
pulling power. And the CLIO, for
good or evil, has finally reached the
stage where it can make strong de-
mands on industry and feel safe in
achieving them.
For example, the steel industry is
the great stronghold of the open
shop" Yet steel has recently Off
c:slly recognized CLIO committee as
a bargaining agent, and it is gen.
orally believed that II will accede to
some CIO demands in such matters
as wages and working hours. Rea-
son for steel's "capitulation" is
plain. 1t is looking forward to a big
production and profit year-mills are
operating close to capacity "a hours
a day, and ambitious expansion
plans are underway. Steel cannot
operate without bituminous coal.
source of energy in practically all
mills. The coal industry is nearly
100 per cent unionized now, is in
the Lewis ranks. Steel knows that,
in all probability, Mr.. Lewis and his
CIO could bring about an almost
complete cessation of coal produc-
ton by means of strike. So, rather
than take a chance OF being forced
to shut down and lose business, steel
Strings along" with the unions.
remarkable sidelight on this is
found in Mr.. Lewis recently pub
Iished tribute to the Chairman of the
Board of U. S. Steel, Myron Taylor,
for his aid and cooperation in sett-
ling difficulties.
Higher wages naturally mean
higher prices for all manner OF
commodities and services. This is
where the race, referred to by the
Annalist, comes in. VIII wages, on
a percentage basis, outrun prices?
Will the income of the public at
large go ahead along with rises in
the price index? Will the consumer
accept higher prices and not cut
down his buying? These are vital
questions, which only time can ans
Wer.
In the meantime, the reader may
consider it certain that prices will
continue to go up all along the line. |
Most commentators also regard it as
certain that shorter hours and high |
er wages are inevitably coming in
most industries. The Administration
is at least tacitly favorable to la
boris aim-state governments have
shown disinclination to enforce the
law in such matters as sit down
strikes. AS a result, some observers,
even though sympathetic with labor,
are fearful that unions may demand
more than the public can pay and
cause a collapse in the upswing in
buying and business.
The Federal Government-like all
other units of government of great
size-is wasteful and inefficient. '
There is duplication of effort. There
is overlapping of departments-in ,
some cases, ten to twenty bureaus I
exist for a job which could be done {
by one or two. There is too much
division of authority. {
These are facts recognized by prac- |
tically everyone. In the course of
its history, the government has, like /
Topsy, lust growed." Often it has l
crown without rhyme or reason.
And every administration since the {
Civil War has added to the bureau S
cratic confusion. S
AS a result, it is widely felt that l
here is a strong need for Federal I
reorganization. The highly conser- /
Tative Senator Byrd has made
tudy of the subject and offered rec |
The President ap- /
,ointed Committee in Administra- e
i've Management" to investigate and -
dyise on possible changes. 7
This committee has now made its q
eport. AS diagrammed by The Cap C
tol Daily, it recommends extensive h
within the framework t
# the constitutional checks and t
,aIances" plan. The three separate d
major branches of government-the b
Executive, the Legislative, and the t
of course, be main n
aimed. Principal act would be the il
yerhaul of more than 100 indepen- "
ent agencies, boards. authorities, a
to-, and their consolidation within O
2 major executive departments.
There are now ten major executive
apartments: State, Treasury, JUS h
ce, Post Office, Navy, War, Com b
lerce, Agriculture, Labor and In h
erior. Two new departments, whose e
eads would be Cabinet members,
-ould be created-social welfare and g
ublic works. The name of the De- e.
q Il. E<xx Irr,