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ISPilt *-, %*r Situation. AFL Sees Industrial Decline Temporary Check in Progress To Higher Living Standards By OLIVER E. CARRUTH Washington, D. C. (ILNS)—Optim istic views cm the present industrial decline are expressed by the American Federation of Labor in its latest monthly survey of business. "The present decline," the federa tion says, "appears to be a temporary check in our progress toward larger production volumes and higher stand ards of living, while business waits for accumulated supplies to be bought off. "Whether it will be of long dura tion depends to a very important de gree on our ability to maintain buy ing power close to its present levels, so that inventories of clothing and household supplies may be quickly consumed and a strong market pro vided for durable consumer goods such as homes and automobiles." Favorable Factors Cited Favorable factors in the pres ent situation, which the federation believes make for early resumption of the upward progress, include in crease this year in workers' and farm ers' incomes. "The volume of wage and salary payments will be of more importance than any other factor in maintaining the market for consumers' goods," the survey says. "Workers' buying power this year has been 10 per cent above last year in the first nine months, when the rise in living costs* is accounted for, a level justifying considerably larger production volumes than those of 1936." Slump Will Be of Short Duration if Buying Power Can Be Maintained, Says Federation, in Optimistic Analysis Which Does Not Neglect Serious Dangers in Present Danger in Wage Cuts Discussing favorable factors, the federation further points out others, including large depression shortages still to be made up in building, rail road and electrical equipment, indus trial machinery, and in consumers' goods. Declining prices are also listed as making for resumption of buying and it is asserted that: "Enough effective demand exists to lift production in the near future in both producer and consumer indus tries it would be folly to checkmate the forces of recovery by fear and deliberate curtailments." But the federation clearly sees se rious dangers in the "recession," as administration spokesmen call it, and it vigorously warns against wage and employment cuts, which would reduce workers' buying power. High Pay Essential Citing continued upward trend of corporation profits, the survey de clares: "Workers have done well to claim their share of the wealth produced industry can well af ford high wages at high levels of production, and high wages are essential to maintain high pro duction." The survey says measures can be taken by government and industry to prevent reduction of pui-chasing Baltimore Warehouse Union Wins Wage Boos Baltimore, Md. (AFLNS)—A union agreement extending to December 31 1938, has been secured with F. A Davis & Sons by Warehouse Employ es' Union No. 21102. The contract provides for the closed shop, the 48-hour week, with time and a half for overtime minimum wages of $18 a week, with a flat increase of $2 per week for all receiving over that amount at the time the contract was negotiated seniority rights and other benefits. power while "industrial production is checked during the waiting period." Wage Raises Advised Recommendations include: Raise wager in any industry where sustained demand and profitable oper ations make it possible. Raise wages in any industry where sustained demand and profitable oper ations make it possible. Maintain wages and employment at the highest possible level with firm determination to avoid wage cuts. Stimulate production and employ ment in heavy industries, by taking measures to make justifiable plant ex pansion and purchase of new equip ment, and to encourage building of all types. CONGRESS SHOWS Opposition To Plan For Road Work Cut By GEORGE L. KNAPP Washington, D. C. (ILNS)—Three things have happened on Capitol Hill which need to be taken together to get their full meaning. These are: The loud protests in congress against any cuts in the federal appropriations for road work the tying together of the wage and hour bill and the farm bill and the introduction of a bill to require all corporations taking any part in interstate commerce to take out a federal license. In 1936, congress authorized appro priations for road work of $238,000,000 for the fiscal years of 1938 and 1939— fiscal years end on June 30 of the year named, so we are now in the fiscal year of 1938. Oly $38,000,000 have been appropriated for the pres ent fiscal year $200,000,000 remain to be appropriated for that period, and this the president's message does not propose to cut. But he does pro pose to lower the appropriation for fiscal year of 1938. Only $28,000,000 and that for 1940 to a sum not much greater. Opposition Quick to Appear The opposition to any cuts appeared instantly. Senator Hayden, of Ari zona, was on his feet at once in a temperate but very firm protest that this must not be allowed. Not only is road work one of the best means of fighting unemployment but to cut off the sum already authorized for 1939 would be a breach of faith to the states which had made their ap propriations for road work in accord ance with the law of 1936, he con tinued. This sentiment was shown in both house and senate, more in the cloak rooms than on the floor led by west tern men but spreading all over the country. Prophecy is always danger ous but the betting on the Hill is that the road money for the fiscal year of 1939 will NOT be cut. It may well be months before the winners can collect, however. Wage-Hour Fight Pressed There is a strong comic aspect to the tying together of the wage-hour and farm relief bills though all members are deadly serious about it The wage-hour bill was chloroformed in the rules committee of the house and Southern members strove to keep it there. Those who wanted to bring that bill to the floor served notice that if this is not done, the wage-hour champions would move to cut the cot ton bill program out of the farm bill The threat got results and there was a rush to sign the petition to take the wage-hour bill away from the rules committee. Enough members signed to bring up the bill on December 13 Calling All Truck, Tractor & Auto Owners JACK FROST will be your neighbor for the next few months, so make provisions to protect your machines against freezing, and also provide for your own comfort by getting your ANTI-FREEZE, HEATERS and all of your parts and supplies at Savage's. We carry a complete line of Heaters, Defrosting Fans, Defrost ers, Trico Windshields and parts. Delco Batteries, Delco-Remy and Northeast Ignition and Starter Parts, Gaskets, Thermostats, Anti Freeze. SAVAGE AUTO SUPPLY CO. 636-649 Maple Ave. HAMILTON, OHIO- -A Home Owned Store Phone 116 (Copyright, W. K. O.) 1HE JBUT1JER COUNTY PRESS. VOL. XXXVII. No. 36 HAMILTON, OHIO, FRIDAY, DECEMBER 10,1937 ONE DOLLAR PER YEAR Asking Amendment of Housing Law to Lower Costs—Construction Held Chief Field For Pri vate Capital to Aid Recovery—Building Labor Critical of One Feature of Plan. By GEORGE L. KNAPP Washington, D. C. (ILNS)—Presi dent Roosevelt has sent in his prom ised message recommending changes in and amendments to present laws that will encourage private capital to embark on housing projects on a lai'ge scale. Senator Wagner at once introduced a bill to carry out the president's suggestions. The message begins by declaring that housing offers the most promis ing and the largest field for private capital to aid recovery. It recites that an average of 180,000 dwelling units per year has been built for the past seven years while the national need is from 600,000 to 800,000 such units. Housing Costs Rose Too Sharply "In other words," says the presi dent, "we could build over the next five years 3 or 4 million housing units, which at a moderate estimate of $4,000 per unit would mean spending from 12 to 16 billion dollars, without creating a surplus of housing accom modations, and consequently, without impairing the value of existing hous ing that is fit for decent human occu pancy." "We must recognize clearly that housing will not be built if costs are too high in relation to the consumer's income. The fact that housing costs rose sharply far to sharply—be tween September of 1936 and March of 1937 was primarily responsible for the downturn in housing and thus in recovery generally this year. Hous ing must be produced at prices, rate and rents which the mass of our people can'afford to pay. Co-Operation of All is Vital "The measures which I now sug gest are to encourage pi'ivate build ing to meet the needs of families of moderate means. These proposals cannot be effective, however, unless all elements concerned in the con struction industry—builders, contrac tors, manufacturers of materials and equipment, labor, and finance—co operate in producing housing that is within reach of the incomes of the vast majority of our citizens." Unlike most persons writing on the subject, President Roosevelt recog nizes the supreme importance in housing of the cost of financing. He says: "The cost of financing is in the long run one of the largest items in hous ing costs. In the case of rental hous ing, it is a determining factor, first, in whether construction shall be un dertaken at all, and second, in arriv ing at the scale of rentals to be charged. Cut Is Urged in Finance Costs It may be well to insert here the Just Around The Corner .#1 resident Seeks Financing Changes to Promote Building statement that during the building boom of the 1920's, the New York World uncovered one project in that city in which the financing costs were greater than the total labor costs. The president recommends: The reduction of interest and service charges on projects insured by the federal housing administration to a total of 5 per cent. The present limit is 5% per cent. Lowering the mortgage insurance premium, and making it apply only to the diminishing balance unpaid, in stead of keeping it on the basis of the original loan. To Increase Sum Loaned on Mortgage Insuring 90 per cent instead of the present 80 per cent on the appraised value of the property. Permitting blanket mortgages on groups of houses, not to cost more than $1,000 per room. Permitting the sale of housing bonds by duly chartered National Mortgage Associations. A loan of $50,000,000 from the RFC. The president believes that these measures would cut the financing costs of housing to half or less than half what they were from 1920 to the bust. Seeks Increase in Annual Wage The president then brings in the proposal that will rouse the bitterest criticism: "The goal at which both indus try and labor should aim is sus tained large-scale production at lower costs to the consumer. This will mean a larger annual wage for labor because of the larger amount of employment than is possible at high hourly rates with long periods of unemployment. ... The sharp rise in wage rates and prices in this industry, just before the last building season, reduced by 100,000 to 150,000 the number of new dwelling units that competent authorities had estimated were in prospect for 1937." In sum, the president, proposes lower hourly wage rates in return for employment that would give larger yearly incomes than building trades workers now get. This does not form any part of the bill introduced by Senator Wagner That bill embodies the recommenda tions of the president already stated. Proposes Series of Conferences The president made it clear that he relied on "a series of conferences with representatives of industry, labor and finance," to gain the con cessions which he hopes to secure on wages. Mm President Green, of the A. F. of L., gave a qualified approval to the presi dent's plan, pointing out that final approval rests with the federation building trades unions and adding: "Labor is interested," he said, "in the recommendations the president has made, and will be particularly in terested in any plan to increase the annual wage of workers in the build ing industry. However, the difficul ties of arranging that are extremely great." 'I IJ||W I 'J AMERICA'S NO. 1 home heater is here! THE GENUINE ESTATE HEATROLA T'S America's most popular home heater—and we're proud to fea ture it. For every time we install a genuine Estate Heatrola we know we've made another warm friend. It does away with cold floors and and chilly corners. Does away with dust and dirt. Does away with up keep expense. And, best of all, the Heatrola makes your coal bills small er. See the new models here now. You can't pay for a Heatrola It pays for itself with the fuel it saves HUM Wide range of styles, sizes, prices convenient terms. N/fk fit Qwfftttf -Ltmlm LEVER BROS. CO. Signs A. F. of L. Pact With Soap Workers Edgewater, N. J.—Lpver Brothers Company, makers of "Lux" soap and other products, has entered into a union contract with the A. F. of L. Union Soap and Glycerine Workers' Union No. 21257, covering employes of fifteen departments of the firm's big Edgewater plant. The agreement, which became effec tive November 15, runs indefinitely but may be terminated by either party upon 30 days' notice or amended by mutual consent. The 8-hour day and 40-hour week is established, with time and a half for overtime, including Sundays and holi days, except the regular Sunday shift in the processing plants, power house and service departments. Rates of pay are covered in 71 different classi fications, with minimum ranging from 50 cents an hour for newly hired boys and -girls, 65 cents for laborers, on up to $1.10 an hour for machinists and welders. Hourly-rate employes will continue to be paid for Decoration Day, Fourth of July, Thanksgiving and Christmas, although not required to work on those holidays. Seniority rights are to be observed and any disputes or grievances set tled promptly by negotiation. Work ers will not lose seniority when ab sent from work because of sickness. Among other provisions is one which changes pay days from every other week to every week. Chas. L. Jennings, A. F. of L. representative, assisted local union officials in negotiating the agreement. Others Oppose Hourly Pay Cut Michael J. McDonough, secretary treasurer of the A. F. of L. Building Trades department, said: "We are not in accord with the pro posal for labor to reduce its hourly wage to help promote a building boom. Similar proposals following the 1929 crash proved unsuccessful because when union officials had re duced wages to the minimum, build ing contractors held off in the hopes that wages could be forced even lower." 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