Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-05-10


n.-,,, effects Of far
reaching conse-
quence
President Roosevelt has said that
State minimum wage laws were not
enough and that it was unfair to allow
one State to attract factories and
plants from other States which i'm
posed minimum wage laws and that
there was no other way to prevent this
except by a Federal law
Mr.. Roosevelt's purpose. namely to
achieve uniformity, is correct from
tho angle Of stopping discrimination
as between States, but uniformity
from an economic standpoint Is some
thing else again. Thus living costs
in one region differ from those in
another region. Also the type Of work
done by colored labor in the South
differs from the type done by white
workers in other sections Of the
country. and living standards differ.
Constitutionality in Doubt.
Yet Federal law would have to be
applied uniformly. and even though
there is talk of differential in the
law granting one section of the country
lower rates than another 1t is dificult
to see how this would be upheld in
, the Federal courts. Certainly Northern
manufacturers would carry to the
Supreme Court the contention that the
Constitution Of the United States does
not permit discrimination In favor of
c CT
and that all citizens are entitled to the
equal protection of the law.
One Of the fundamental considera-
tons which prompted the original
adherence to the union Of the thirteen
colonies was that there would be no
. tariffs as between the States. The
imposition Of minimum wage laws
upon the South is virtually the in
creasfng Of its cost Of production. and
this constitutes protective tariff for
Northern industries as surely as II
they were given a tariff benefit as
against external commerce. This,
indeed. accounts for the fact that
many Republican members Of Congress
who have been anti-New Deal on most
everything else. particularly some
New England Republicans, are behind
the proposed minimum wage and hour
pill OF the administration.
The fate of the proposed measure
lies in the hands of the Senate, where
fllibuster by Southern Senator's can
block passage. What will develop in
the next few days as to this opposi.
ton Is hard to say. because the South.
erners have not yet developed their
strategy.
Unfortunately the proposed legisla.
ton Is attracting Nationwide atten.
ton only on the minimum wage fea-
ture, when. as q matter of fact, the
most important step to be taken Is
that which relates to maximum hours.
Rate for Overtime Work.
Many manufacturers are indifYer-
ent to the proposed bill because they
are paying the requisite minimum
wage or else they are operating on
a schedule Of hours close to the one
about to be written into law. What
they overlook is that, II either the
=. House or Senate bill passes, the Fed
eral Government will determine the
rate OF pay for overtime throughout
the United States. Heretofore this
has been a matter of negotiations
with unions, or it has not been COW
cred at all, being left to the indi-
Ndual situation as it arose.
When the Congress begins, how
ever, to take jurisdiction Of overtime
pay. political pressure from various
groups can arise in the future to In. |
crease the rate for overtime pay or
to shorten the work week, which. In
most instances. is but another way
to increase labor expense.
In an industry, for example, where
1t Is proposed that there shall be q
44-hour week and where 48 hours has
been the rule the employer will have
to pay overtime at the rate of time
and half for the extra four hours
or hire new shift at regular rates
OF pay. In the first instance his
expense goes up by $50 per cent for
the extra four hours of work, or else
it goes up 100 per cent on the second
instance II he can get workers for
a short shift. But in both cases his
employees do four hours less work
and get the same pay which is Just
another way Of increasing wages with.
out increasing production.
Small Business Man Hit.
The blow will fall hardest on the
so-called marginal producers-the
small business men-and will fall
easiest on big business, which knows
that its ample reserves can see 1t
through the present depression. What
will the small business man do? He
will comply with the minimum wage
and maximum hour regulation. Of
course, but his increased expenses
will either put him deeper in the
red and ultimately force him out, in
which case big business will gobble
up his trade, or else he will make
other economies. such as through
labor-saving devices, or else he will
withhold for long time to come any
increases In pay for the group which
is above the minimum required by
Law. Thus will labor troubles be in
creased and lots Of marginal producers
injured.
But the administration feels, Just
Is 1t did with respect to the undis-
trihuted surplus tax, that the country
will digest the legislation over .
period Of time, and that reforms have
to be damned through whether or
not there's recession in business
actually going on.
Copyright. 1881