Evening star., 1945-12-30
GIN Chiefs Outline Position;
Union Calls Stand |Arrooont'
Wilson and Sloan
Soy Issue Involves
American Future

Soy Issue Involves
American Future
Fy the Associated Press.
DETROIT. Dec. 29.-Tert OF a
/ statement By Alfred P. Sloan, jr.,
chairman OF General Motors,
and c. E. Wilson, president, set
ting forth issues involDed in re-
tuSaE of General Motors to par
tictpate further in proceedings
OF the Government fact finding
board, tollotDs::
General Motors has faced wha
! it believes to be a highly critica
issue. 1t has made its decision
1t is important that the publ
understand the issue. The issu
at stake transcends the interests o
General Motors. There is involve,
something far more consequential
a most vital principle.
Is American business in the fu
ture, as in the past, to be conducte,
as competitive system? Or is tn
determination Of the essential eco
nomic factors such as costs, prices
profits, ETC., upon which bushes
success and progress depend, to b
made politically by some govern
mental agency instead of by tn,
management appointed by the own
ers Of the business for that pur
pose?
America is at the crossroads. I
must preserve the freedom of eacl
unit of American business to de
termine its own destinies. Or /
must transfer to some govern
mental bureaucracy or agency, O
to a union, the responsibility o
management that has been tn
very keystone of American business
Shall this responsibility be surren
dered? That is the decision tn,
American people face. Americ:
must choose!
GM Has Made Its Choice.
General Motors has made it!
choice 1t refuses to subscribe te
what it believes will ultimately be.
come, through the process of evo.
luton, the death Of the American
system of competitive enterprise
1t will not participate voluntarily ir
what stands out crystal clear at the
end of the road-a regimenteo
economy.
If this is what the American
people want, they must make that
choice through their accredited rep
resentatives in Congress. General
Motors declines for itself to take
such great responsibility.
1t may be said that this is an
exaggeration. 1t is not! All bust
ness questions are interrelated
Costs, prices, wages. profits, sched-
ules, investments must be the re-
sponsibility of management. Politi-
cal determination of such relation
ships means regimentation.
Not Applicable to Business.
The idea Of ability to pay, what
ever its validity may be, is not ap-
plicable to an individual business
within an industry as a basis for
raising its wages beyond the going
rate.
Consider the implications of such
principle. Who would risk none,
to develop or expand bushes.
under such circumstances2' Wher.
wouldrbe the incentive to do NOR,
efficient job? Would it be intelli
gent to destroy the incentive fo
efficiency? Would it not be NOR,
intelligent to subscribe to the prin
ciple that no one should be forcet
to pay more than the going rate?
Should General Motors, assuming
it is more efficient, be required tt
pay more for materials, for trans.
fportation, for services or for wage!
than its competition? And how
much more determined by a po.
litical governmental agency?
! Do you subscribe to the belle.
that you should pay for what 70,
buy or the services you use on tn.
basis of your financial resources:
1t is clear that this is the principle
involved.
Company Was Ready.
The President of the United
States has appointed fact finding
board to inquire into the circum.
stances involved in the demands Of
the UAW-CIO upon General Motor.
o,,I fo y,,oGa raooy,o az, 10 tio,e ~
lated thereto.
General Motors stood ready tt
supply the board with all necessary
data regarding wage rates, EN-.
ployes' earnings, hours of employ
ment, and all other relvant infor'
nation regarding wages and EN-
ployment.
Howevr, the board has ruled tha
Genral Motors ability to pay viii
fbe considerd as factor in deter
mining an increase in wages. Thi
would require an appraisal of costs
prices, prospective volume of bust
ness, investment factors. expense
and the entire forward operatin;
program of the business. Thus tn,
board would assume the most vita
functions of management.
Fair Offer to Union.
Genral Motors is not contendini
that it has or has not the abilit,
to pay. 1t always has paid liberia
wages. 1t has attempted through
protracted collective bargaining ses
sions to determine what is fair an,
equitable today. 1t has made a fai
and liberal offer to the union.
Notwithstanding the importance
of re-establishing employment ant
resuming production at the earlies
possible moment, the above reason
have made it impossible for Genera
Motors to participate in the proceed
ings of the board under the pro
cedure as now established, and /
has therefore withdrawn from tn,
hearings.
1t takes that position with grea
regret. But 1t does SO in the SINGER,
belief that this action is in the long.
term interest of employees, consum.
ers, investors and of the public a!
WelI-and of higher standards fo1