Show Labor Situation In America Ameri a Best hest In Many Mangy Years Cost Cosh of Living Lower Wages Up Special Dispatch i BADSON BABSON PARK Mass Sept 16 16 In n his weekly today Roger V. W. Babson called especial attention to statistics which are arc now available showing considerable decline In the cost of living as compared with a year ear ago In connection with this Inter Inter- interview view Mr Babson refers rc to wages and labor conditions in general HIs Ills com com- complete complete complete statement Is AS follows follows' Flat FEW LABOR LABon TROUBLES LES There has hs not been a time Jn In n 20 O years ealS when the country has suffered so little from labor troubles as at pres pres- ent It n is true that the bituminous coal strike is still on in Illinois and surrounding territory but the public Is Isery very fry little affected by this strike i The union non-union mines in the cast have to so increased their production that the country's total output now is nearly I up to the total before the strike was declared Considering the large amount of coal col that is In hi storage I the public has as yet not suffered at all As the mines mints are gradually seeing l their mistake the effect on I the general labor situation is rather healthy and beneficial Labor lead lead- leaders leaders ers also have not forgotten the disastrous dIsastrous lead lead-I trous ending of the railroad shop mens men's strike two years ear ago and the very ery noticeably changed attitude to toward to- to toward toward I ward labor on the part of or the gen sen- general general eral public Labor itself is much more sympathetic sympathetIc sympathetic I concerning capital than it ever er I Ihas has been High wages and constant employment employment due due largely to immigration immigration tion restrictions have restrictions have made capital capital- capitalists out of or many wage earners This has been brought about both through the building of homes and the pur pur- purchasing purchasing purchasing chasing of securities Even the unions un un- unions unions ions themselves have become Investors I to a greater or less extent Some the unions such as the Brotherhood of Locomotive Engineers have learned from sad experience that t Investing money and developing property is not as rosy and as easy as they antici antici- Hence the brotherhood and other unions arc not only directly in interested In- In interested now no In investments but ap ap- appreciate ap- ap appreciate appreciate as never before that em em- employers employers employers render a real service assume real risks and arc are entitled to substantial substantial profits when an undertaking is successful These experiences were doubtless an In important reason why most labor leaders took no part in the radical eruption which the Sacco- Sacco case developed eloped COST OF LIVING LI DROPS Probably the most fundamental reason for fo the peaceful attitude of labor today is the constant decline which is taking place in living costs According to the latest statistics liv liv- living living ing log cots costs are today somewhat lower than a year ear ago according to the lo locality lo- lo locality studied T jg T g as the cost of living in 1913 the year ear before the war the bureau of or labor statistics pre pre- presents presents the following figures as the stat stat- status status status us since that time Although these I figures indicate a 1 net increase of I about 75 per cent In fourteen years cars I Iet Set jet et wages show a greater increase during this same period of time These Th se figures are are re December 1914 1030 December 1915 1051 December 1916 1183 December 1917 1424 December 1918 1744 December 1919 1993 December 1920 2004 December 1921 1743 December 1922 1695 December 1923 1732 December 1924 1725 December r 1925 1779 December 1926 1756 G June 1927 1734 RAW MATERIALS VS FINISHED When studying the statistics on specific commodities compared with witha a year jear ear ago we find that rye rC and corn are higher her but that wheat and flour are a a. little lower There has been a decline in the price of or pork and coffee and the seasonal low in the price of eggs was below that of last year ear But But- Butter Butter Butter ter and sugar su ar arc about the same as a year ago Cotton is 20 per cent high high- higher er while hides are 45 per cent high high- er Wool sill silk and silk substitutes f are I slightly lower in price than last year I When studying the metals ls we find a 10 per cent decline in steel and iron I and a a. much greater greter decline in lead I zinc and some other metals Copper CopperI is about one cent less than a 2 year ago I I but is in strong statistical position Rubber and hard coal are a little off I I while crude oil is 35 per cent lower I The principal decline In the cost of living has occurred in connection with manufactured products rather than I I raw materials Owing to the very cry keen I I I competition today between manufacturers manufacturers I prices are constantly being reduced in most lines This is per per- perhaps perhaps perhaps haps most evident in with clothing and shoes The greatest price cuts however have taken t ken place in con con- connection connection connection with v motor cars and the cost of electric power p Although All hough there thele has been no de decrease de- de decrease decrease crease in the wages of the building trades yet carpenters masons and I other mechanics are giving more work per hour of labor than they the have for some time This is partly due to the J fact that so 50 many of the men work work- working working working ing in the bundling trades have be- be beI become I come property proper owners themselves and andI partly because their labor leaders I know that t building is on the decline and lower building costs are essential to encourage new building at this I time The intelligent tn labor leaders to today to- to today today day are careful students of business conditions They watch good barometers barometers barometers eters of or industrial and commercial activity They are posted pos d on current current I conditions of or business and an know that greater efficiency eCi lency on the part of or both labor and management is very necessary necessary sary in order to prolong the present period of prosperity As labor lead lead- leaders leaders leaders ers have their troubles like the rest of or us they should be commended and encouraged for these efforts to seek the Uie truth and report it to their fol fol- lowers UNIONS U O 5 LOSE MEMBERS IE In Inn view of the general prosperity of labor and the factors noted above wage workers are are becoming careless and indifferent about supporting their unions Seeing the union non-union man getting the same or perhaps higher wages than the union man labor un un- unIon union ion members tend to forget what they owe to their organizations for past work and drop out As a result the tile American Federation of Labor is steadily losing members In many ways waS this is to be regretted Notwithstanding Not Not- Notwithstanding Notwithstanding withstanding mist es which labor leaders have ha made the unions have done a lot of good and certainly have been a great factor In Jn raising the standard of ving in this country However the American Federation of Labor is only a man made man man- ade corporation corpora corpora- corporation tion and hence must expect to be sub sub- subject subject to periods of improvement and decline of decline of f prosperity and depression like like all other corporations The wheel of fortune slowly but con con- continually continually revolving in tn all industries all communities all corporations and andall andall andall all families The decline in the cost of living should tend to check chec any evident de decline de- de decline cline in general trade The lower the prices at which goods can be mar mar- marketed the more goods the public can purchase In other words It is the volume of ot consumption which keeps our industries Ind active rather than the amount of or money involved Thus a decline 1 I 1 the cost of living is a ahe healthy he sign and It should be en encouraging en- en encouraging encouraging to retail trade Further Further- Furthermore Furthermore more the general attitude of labor today should be encouraging to re re- re The uncertain element clement in the business situation is the condition of the installment craze and the amount of outstanding Installment obligations Payments which wage earners are compelled to make each month on their Installment Ins purchases purchaser must take today a a. large proportion of the weekly wage Those arbitrary and fixed pay pay- payments payments payments ments necessarily leave l 3 for cash purchases This is evidenced by the fact that such sueh sections as arc are today complaining about retail trade arc are those sections in which installment buying buying- has been most general However How How- However ever let me say lIay in closing that this condition Is of itself acting as a check and brake on further installment pur pur- chases In addition the labor unions are ara starting a campaign against reck reck- reckless reckless reckless less Installment buying baying As a re result re- re result sult of all these forces business as registered by the is 1 l per cent above normal Let us all do our best to keep it tt at its present con con- condition condition Uon and not 1 the goose that is laying the golden egg Copyright 1927 Publishers' Publishers Fi Financial Fi- Fi Financial Bureau |