Evening star., 1938-01-06

costs amounted to 1872 per cent in
1887. General Motors elected to
carry this burden without increasing
prices, until the period of August to
October, 1887, when price increases of
8i2 per cent were put in force on all
cars.
Shop efficiency suffered in the first
half of 1887 to a considerable extent
through strikes and unauthorized
stoppages, the actual man hour loss
being about 4O,OOO,OO0. The loss in
manufacturing efficiency has, how
ever, shown considerable improvement
since the new models were announced,
and both quality and costs are at the
present time up to expectations, and
can be expected to remain in that
position, since strikes have stopped
/ and labor relations are much i'm
proved.
Wage rates are at an all-time high,
and despite time lost in strikes. the
average annual wage in 1887 was
about S1,650 for the 80 per cent of
the men who worked full time.
Capital expenditures, appropriated
for 1887. amounted to 100000, 900, Of
which 75,000000 has been spent and
S25, ,000.0 900 will be spent in 1888, plus
the usual tool expenditures, amount
ing to an additional S20000,000 The
expansion was provided to take care
of the shorter work week agreed to
with labor and in the expectation of
business equal to 1887
New Plants Idle.
mo equipment has been transferred
in 1887 from any location for the
purpose of obtaining bwer wage rates
or better labor conditions, and the
new plants that have been built will
have to remain idle until business
conditions improve.
The corporations policy is to keep
the maximum number of people work.
! ing consistent with the demand for its
. product. Sharing of the work is prac-
'-ticed down as far as "a hours per week,
when demand Is low. and 40 hours per
week is the standard work week when
demand is normal The corporation
employs no child labor
The present situation, necessitating
reduction in the working force, Is
about as follows: Sales in 1887 were
excellent both on new and used cars
and, despite the handicap of the
strikes, were at point where it looked
as if 1896 figures would be reached or
bettered. Consequently, the factory
cnh ItY1 ~ <0 1oc
quarter of 1886 and employment ar
ranged accordingly on 40-hour-we
basis.
October and November retail de-
liveries in the United States were 225,-
109 new General Motors cars, against
sl99, $50 in 1896, and 379 ,657 used cars,
against 357.124 in 1885.
During the last To-day period in
November, however, a severe drop in
sales of both new and used cars took
place. In fact, the total dropped to
10 per cent of 1886. We still hoped
that this would be the low point and
expected to keep the men working, on
shortened hours, but when the Sec
ond period in December showed q
drop to As per cent of 1886 it became
necessary to adjust the working force,
which was done by retaining all the
men We could take care of on a a.
hour basis and laying off the balance
In order to avoid misunderstand-
ings by the men and the public gen.
orally, statement was issued by the
corporation, under date of December
%. setting forth the reason for the
adjustment.
The drop in sales in so short
period is the most severe experienced
in the history Of General Motors. 1t
was wholly unexpected and entirely
beyond our control"
Many Workers Get Overtime.
Under questioning, the witness said
most of employe wage losses through
labor trouble had been made up by
overtime work with time-and -one half
pay for more than 40 hours of work
per week.
Plant expansion was effected, he
said, to allow production of two mil
lion cars per year on the 4O-hour
week basis.
Because of the announcement of
the Hudson Motor Cal Co. of its
intention to re-employ 5000 workers,
the committee also invited A. Edward
Barit, president of the company, to
appear today. It was announced by
Chairman Byrnes, however, that Mr..
Barit will be unable to come to Wash