Detroit evening times. (Detroit, Mich) 1921-1958, 1941-04-17
Propose a 24-Hour Day
for Every Machine
BY PAUL MALLON

90 us III OiilNSo WIZ W pl'NiNN
shortly in Federal Reserve and
branch banks.
District managers local BUSH
ness men alb are being chosen
for these salaried jobs to work
under 13 co-ordinators who will
receive 81 a year
The idea is 10 cut every posi-
BILE defense contract down by
subcontracts to a point where
every critical machine in the
F., country is working "a hours a
day.
IT SOUNDS good, yet num-
L Der of officials in the defense
commission and most of the war
department are against 1t or
only mildly against it.
That is, they are against fore
ing defense contractors TO make
subcontracts and believe that
unless force is used there will be
little subcontracting.
They contend convincingly
that forced subcontracting would
break every contract they have.
relieving the defense manufac-
turer of personal responsibility
for ftiffillneHt- eff orders on time
In their view it would promote
delay rather than speed.
THE New Dealers are going TO
.l-stielht ta-thelr- argument
against further increases in steel
prices despite wage increases
until public interest dies down
at least. They figure this way:
Net earnings of the steel in
dustry last year amounted 10
1921 .000.0 The 10-cent-an-
hour increase. applied to the
$4,000 employees of the industry
on a 40-hour week basis. would
cost SIPS .424.0O0 a year-not
counting overtime.
This means roughly the earn
ings Of the steel industry would
be cut in half by the wage in
creaSes.
The New Dealers have an idea
the earnings cut will be even less
because of expanded operations
since the middle of last year.
BY taking the last half 1910
earnings, they boost their earn
ingS estimates for this year up
to $500 600 600. On that basis
they conclude the wage increase
will cut earnings only SAC. 600, .
000-roughly one-seventh.
DUT what the New Dealers are
- overlooking entirely is the
tax increase shortly to be en-
acted by Congress.
Some New Deal senators have
said publicly this tax increase
should be 100 per cent, in which
case steel, coal and all the other
industries in which wage in
creases recently have been nego-
tiated will find themselves again
in the red. (Steel was in it five
of the last 10 years.
ONE manufacturer caught in
" this vice of increasing wages
against immovable price ceiling
has been complaining the only
alternative offered him by the
governments course is whether
to turn his business over to
Hitler or Henderson.
Another is insisting Mr.. Roose-
welt has amended his promise
that no one would make a profit
out of defense 10 read:
mo one except labor unions
shall profit from defense"
Even workers will pay a por-
ton of their increased earnings
to the government in increased
taxes. but the unions pay no
taxes. When defense m oney
reaches them, il sticks
A DANGEROUS threat to cap
"A italiSm would be presented
by this wage-price squeeze play
if the New Dealers were perma-
nently serious. But it has always
been considered good temporary
politics for statesmen 10 favor
wage increases and oppose price
increases, just as they favor
government expenditures an d
oppose taxes.
The taxes usually come along
later. when public attention has
been diverted from the cause.
In my opinion a boost in the
prices of steel, coal and other
wage-increase commodities will
be coming before long.
Distributed by King Features synd., Inc