Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-12-22
Value of GIN Books
To Probers Questioned
Observer Says Long Study Could
Bring Wrong Decision on Pay
Rv David Laurence

Bring Wrong Decision on Pay
By David Laurence
On its face 1t would seem that If Cen
eral Motors opened its books to the
Presidents Fact-Finding Commission,
some one could figure out whether the
corporation might be able to pay 80
per cent increase in wages or Is per
cent or anything else. But is 1t as
simple as that?
Who is going to take the responsibility
for analysing an institution as big as
General Motors and deciding in any,
thing less than year of study whether
the management of the corporation is
right in its estimate of what it costs to
make car, how many cars will be sold,
what the dealers margins will be and
what factors will influence the total
quantity Of cars subsequently, com
petitive factors, such as the models Of
cars put out by other companies?
1t would be difficult for any govern
mental body to reach any conclusions
just by looking into the books. And If
it did do so, then may it not be said
that the Government Is substituting its
judgment for that Of the management
in deciding what ought or ought not to
be paid?
Risk Losing Period.
President Truman himself, In his
much discussed wage and price mes
| sage few weeks ago, conceded that
| companies might not be able to make
profits Immediately but intimated that
they should raise wages anyway in
some instances and take the risks that
sales would increase and costs would be
met. Indeed, Mr.. Truman went SO far
as to say that if the calculations proved
wrong at the end of six months, the
OPA would sanction requests for price
increases.
This is but another way of saying that
| the Government doesn't know anything
| about what the future may bring but is
| willing for industry to engage in
| gambling match, and, If the companies
lose, they pay the bill for the previous
| six months and get some price increases
| for the next ensuing period.
| Also, If the Government is to deter
mine what wages are to be paid out by
company, by looking at its books. will
| it not establish a precedent for the re-
! duction of wages the moment the sales
| fall off? Or would the Government
then argue that other items might be
| cut and other economies might be ef-
| fected first?
Plainly this process does not mean
| free enterprise system at all but the
beginnings of a controlled economy
such as led both in Italy and Germany
in the last decade into government
management of business enterprises and
finally the elimination of labor unions.
Politics With Issue.
Unfortunately. a lot of bunkum is be-
ing passed back and forth between the
Government and the unions and the
management. President Truman is los
ing prestige by playing politics with
the issue. One day he issues a state
ment that seems to help the manage
ment side. Then he evens it up with
something to help the unions. His own
Fact Finding Commission was sitting
judicially trying to solve the problem
Of how it should approach ability to
pay" when a reporters question at a
presidential press conference vas
answered by Mr.. Truman and thus the
President decided for the Fact-Finding
Commission question which it pre-
sumably was trying to decide for it
self.
Then when reporter told the Presi-
dent the company might not continue
in the fact-finding procedure if it was
asked to open its books, Mr.. Truman
without inquiring into the merits of the
problem, promptly condemned the COM
pany and said it would be bad thing
for its reputation.
Actually, it would be bad thing for
the Fact-Finding Commission and for
the President, too, to allow the motor
strike to be prolonged indefinitely by
statistical study of the books of the
General Motors Corp, which company
probably would have to bring its finan-
cial experts to explain the cost items.
its system of pricing and thousand
and one other details that certainly
have little to do with the question of
settling strike.
Decision for Management.
Assume that the Fact Finding Com
mission, which was not supposed origi-
nally to issue opinions or recommends
tons, decided that General Motors
could pay the increase. Would this per-
suade the General Motors management
that the Governments board knew what
1t was talking about? After all, unless
confiscation of business property is to
be the program of the future, manage
ment must take full responsibility for
the decisions as to what 1t shall pay
for labor or anything else.
II General Motors can pay the wage
increases, does this mean that the Gov
eminent is going to force the rates of
pay for all auto workers up to the
same level, and isn't this going to put
} crimp into the new companies being
formed to compete with General Mo-
tors? And who is to say what is fair
profit or an adequate surplus to lay
aside for the depressions that may
come? -
To look at the books isn't half Sc
important as to look inside the minds
Of management and persuade them
that the Government knows more about
how to run the motor car business than
do the private managers. When that
time comes, America might as well con-
cede that fascism has become the ma.
tional policy and Government contro
Of everything is on its way.