Show LABOR GETS HEAVY HEAVY PORTION PORTON OF I WEALTH 1 Commission Commissi n Refutes Statement Statement State State- ment That Tat Working WorkingMan Man Is Underpaid NEW YORK July uly The 3 National f federation e Uon has received a lre- lre r report por from the committee on the of ot the people peoples Income income- W w. w L i. L Pap Pape of Waterbury Conn chairman Prof J J. J B. B Clark Cark Cuk of or Columbia Co- Co lumbia and the Rev J. J A. A Ryan Rya of ot St. St Paul seminary seminar St. St Paul Paul Thi This Thle committee was WI charged to In Investigate In- In the assertion that In tho division divi divi- ZIon sion of product of ot Industry the lions lion's Shar gOO 0 to capital and nd labor lons lon's gets get only a n small pittance That assertion Is Ie based baled on a a mont ment set f u Afloat B soon oon n after tho 1900 that average annual product per worker In ln Industries vas w.-ts IU 2420 40 of which ho he received only 37 in wages wages or 18 per cent cent It I Is I beA be- be to have havo been originated fl by The rhe A Appeal Appeal to Reason Realon a weekly This is not an official doctrine of or th the Socialist party PAry the Socialist congressional handbook for lor 1914 states percentage percentage per percentage per per- of ot wealth produced received by worker as Nevertheless the theis is 8 per cent proportion has been r lep le i-a- p often ofen though a ft statistical error or of the first magnitude Charge Denied The committee undertook an extended ex ox- ex- ex tended Investigation In of 01 available ista- ista fV- fV ta- ta Conclusion 11 is that in general after miscellaneous arid and dl cost of ot materials or supplies n nut net t are divided two thirds for lor and nd salaries and third one-third for tor Interest profits and upkeep of capital since out of ot this share the capitalist must or later provide for tor depreciation So Sc far aa ai al division differs in different branches It I appears appear due mainly to need for different allowances for upkeep up up- keep of or capital The wage earner does docs doe not flot produce the at which per capita capia product was valued Materials which cost 1395 must be deducted from gross gros I product The difference 1025 represents Bents value per worker which manufacturing manufacturing manu manu- produced Out of or this thin added value the te manufacturer manufacturer manu manu- must miscellaneous meet expenses ex ex- enes taxes advertising rents royalties roy roy- attics insurance traveling and tho the like as well wel as ns PI pay roll rol before ho he can car I figure on a 3 share for himself Deducting Deducting De De- De- De ducting miscellaneous expenses e there remained in 1909 per employee t tobo to tobo bo be divided between labor and capital or per cent went to labor lahos and or per cent to capital capital Part Pirt of capitals capital's share must be u sec sed fd I for replenishment of capital and I li I neither Inter interest nor profits If I thi depreciation allowance bo be estimated at at 5 6 per cent of ot capital invested It I is per ver employee which leaves for lot interest and profits n Wih With no 15 allowance allowance allow allow- alow- alow ance for depreciation the share of 01 capital appears practically half halt that of labor With allowance for tor depreciation depreciation tion share of or Interest and profit ton appear ap P- P p pear peal nr aa as a practically tenths throe that of 1 labor Similar calculations to census figures for 1899 and 1904 show that not only are payments for services hl higher her herat at each successive census but bear a larger proportion to total divisible be between be- be tween capital and and labor Aggregate return of capital is ts a n smaller proportion tion ton of this thin total and after allowance for depreciation profits and Interest combined extent lave have declined to even greater geater Interest Dec The report attempts to answer anticipated antici anUl- paled objection that some big manu manu mann industries nr are not notoriously roul profitable and says 8 How It will l be asked does dos Henry Ford pay sue such uch wl 1 hi big wages out of ot such returns ns as this But the Ford ord factory does not and an I could not meet inset present pay roll roU out a of ot f Much uch returns The figures above donot do dc donot not present earnings and expenses per r worker of 01 the Ford ord factory or a. a another un an any Jer other CO conspicuous us su success cess The They nr arf I general averages for tor between I and plants big an and little efficient ef ef- ef and The automo anton bile bUe factor factory that was In hands of ot th the I receiver In iii 1909 had the tho same relative Influence on census us figures as Q Henry i Fords Ford's factory Ford did not begin his ith t I present system of or paying labor usually described as a minimum wage of usual a L day ay until 1914 but In 1909 hi his hi busi ness Hess was vaz prospering M That It I was as ro and Is Ia prosperous no iso moro proves pro all I other automobile factories and manu mann al plants to b be plant equally prot- prot ble than Calumet Hecla proves on one copter copper mine to be bo as good 03 as another n While U average annual raim 1 in t manufacturing has Increased from 27 24 to In 51 sixty t days das normal rate of or interest t has ha decreased one fourth Wages and salaries are both still I Increasing and the sUI Increase was espe espo- chilly large from front to While early carly statistics are factory there Is no evidence that the workers worker's share sharo of ot product 1 is lessening Durin During ten years ars covered by bv three manufacturing censuses exactly comparable com coni- parable trend treni of ot percenta percentages es ha has been distinctly upward If I average c wage and I average wage salary are nrc unal It Is because average product and average net earnings of or industry j per worker are small Low Average All Mi our ou c capital w wealth of ot Invention en energy Industry and organization havo have BO so far fa enabled us to produce little more mora than 1000 per worker In tho the most t highl high high- ly 1 l developed industries most ro effective in producing wealth It J Is ia not tie ble that could tat cud the tho entire field feld of pro ducton agriculture an au well wel as ns manufactures manu manu- and all aU enterprises great and ri be ha compre compressed e Into the tho tables this tL average would be considerably di di- di All AU A that tat people n need d and ad want and hope to do mU must t for the present be paid out of these relatively te small 01 re ro turns turna tur Jf if I In an mal outPut out out- put per worker r should result sUt from tm betterments in application of capital or labor Jabor or both bot experiences 01 seems to show how that tho the worker would secure tile the major majol part of ot such Increase But whatever r the sum divided to o S' S soe se that this Is fairly apportioned without being Ic lessened d by hy high charges charge negligence holl idleness or waste wasta b by employer or wage wRe earner carer or dissipated in labor wr wars is the proper function of 01 our leaders T in business in iii labor organizations and in politics |