Evening star., 1937-08-08

who would be affected by the bill, but
the opinions of Lubin and Henderson
were based on more comprehensive
statistics. Their testimony shows con-
clusively that the bill will be very limit
ed in its scope, but it should be re-
membered that the committee mem
bers who drafted the bill did not intend
it to be otherwise. AS was said in their
report:
The committee realizes that unde.
sirable labor conditions of long stand
ing shown by evidence to exist in our
country cannot be blotted out over
night, and that geographical and in
dustrlal diversities in nation as large
and as heterogeneous as ours cannot
be ignored. Practical craftsmanship
suggests the wisdom of a cautious
legislative approach to the progress
sive realization Of these social and
economic objectives.'
Some Fear the Worst.
AS might be expected, testimony as
to the probable effect of the admins
tration OF the law on the economic
structure is highly speculative and in
sharp disagreement Those who are
for the bill can see no economic harm,
and those who are against it fear the
worst
Lubin, for example. told the COM
mittee he did not think there should
be anything in the bill to protect the
little fellow against chronological
advances that might be made by larger
| firms to offset the increased labor cost.
| After 1t had been brought out that
machine is being developed in the
coal mining industry that may do the
work Of 100 men. Senator Ellender of
Louisiana, asked:
What about the man in like busi-
ness who is not able to buy that ma
chine and who has to employ labor,
and who cannot, of course. undersell
the fellow who is able to buy the ma
chine? What are you going to do
about him?"
That is part OF your competitive
SYSTEM" Lubin replied. That Is
why We permit the competitive system
to exist. If man, through efficiency
whether that means the use OF men or
anything else. can produce better
| product, or the same product at q
cheaper price, We assume the busi-
ness to going to go to him. Unless yor
are willing to acknowledge that fact
you must admit you are against the
competitive system"
Prize EH>c< n;.oounA>1
Lubin also contended higher wages
and shorter hours, in theory at least
do not necessarily mean higher cost
to the consumer Il think it is i'm.
possible to say that minimum wage
will increase prices to the American
consumer in all cases. After all
there is not an industry in this coun.
try that will be affected by the mini.
mum wage that does not already have
a large number Of plants that are II
business selling goods at a profit ane
paying q wage rate equal to or higher
than the minimum In other words
their costs are not going up because
they are not going to be affected b,
this law. Costs of the fellow dowr
below will The question is what vii
the firms that are paying wages above
the minimum you are to set going Il
do? They have two alternatives
Keep their prices where they are be.
cause their costs have not gone up
and get more OF the business from thu
other fellows. or raise their prices be.
cause the other fellow wants to rails,
his prices.
Il think that is problem tha
should not concern the labor stand.
ards bill. That is problem of thu
competitive system"
Opposing these views was the test.
mony of Noel Sargent, secretary ane
economist of the National Association
; of Manufacturers, who said, however
that he favored most of the basic oh.
jectives Of the bill.
Declaring mo one can whisk ava,
the inseparable connection between
costs, output and prices" he added:
ITO increase costs before there i
incrfased demand Is to put the car
before the horse, and run the risl
Of making matters worse instead O
better.
Would Spur Volume.
Increased living standards for tn
country as whole can only resul
from an increased volume Of work
they will not be increased by simpl.
dividing up the existing volume o
the work. We need national policie
. that will increase the total VOLUME
Of work done instead Of trying II
maintain the volume Of work at exist
ing shrunken levels.
1T this bill worked q Is apparentl,
l ---G-@a .. =E71- - =