Evening star. [volume], January 15, 1937, Page A-4, Image 4

About Evening star. [volume] (Washington, D.C.) 1854-1972

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, AUTO STRIKE LOSS
Cost to G. M. C. and Work
ers Alone Is Placed at
$10,000,000.
Bt the Associated Press.
DETROIT. January 15 —The “sit
down'’ strikes affecting General Mo
tors’ plants have cost the automobile
company and its employes close to
*10.000.000 to date, an unofficial sur
vey indicated today.
Shutdowns and curtailment of opera
tions in related industries, principally
steel, flat glass and transportation,
have added several more million dol
lars to this estimate of business losses.
An Associated Press compilation,
based on the number of idle employes,
working days lost in each plant and
the company's report of $7 as its aver
age daily wage, shows that General
Motors workers "have lost approxi
mately $6,156,661. including today.
With about 115.000 General Motors
employes idle—and the number in
creasing daily—informed sources re
port that the losses of wages, cur
rent profits, prospective stock divi
dends and trade would amount to a
“staggering figure."
William S. Knudsen, vice president
of General Motors, has told newsmen
that the company's idle employes now
are losing about $1,000,000 a day in
unpaid wages.
Asked how much General Motors
was losing in current profits, he re
plied: “I hate to think about it,” but
declined to make an estimate.
Previously a General Motors official
commented that the corporation
"stands to lose” about $330,000 a day
In expectable net profits il all its
plants are closed.
Some trade quarters have mentioned
$2,000,000 as a “conservative guess" of
the company's loss of net profits, al
lowing for varying numbers of closed
plants, since the strikes started.
Merchants in cities with closed
General Motors plants have felt the
effect of stoppage of wages, as a large
part of the automotive workers’ dol
lar goes into the retail trade. Statis
ticians have reported no sharp break
yet, however, in retail business indi- '
cators.
The Associated Press compilation,
using the company's figures on how
many men are idle at various cities,
shows the following totals of employes
not working and the wages unearned: |
In Michigan: Flint, 26,359 idle
workers, $1,456,917 lost wages; De
troit, 30,772 workers. $1,221,332 lost;
Saginaw. 5,500 workers, $269,500 lost; i
Pontiac. 9.100 workers, $178,500 lost; j
Lansing. 8,400 workers, $146,300 lost; i
Grand Rapids. 1,182 workers, $91,014 !
lost: Bay City, 2.300 workers, $80,500
lost. j
In Ohio: Cleveland. 7,211 work- j
ers, $706,678 lost: Norwood. 1.769 ,
workers, $136,213 lost; Toledo, 83: ;
Workers. $58,240 lost.
Other cities: Atlanta, Ga„ 1,542
workers, $431,760 lost; Kansas City,
2.242 workers, $329,574 lost; Mem
phis, Term., 1,054 workers, $95,914
lost: Anderson, Ind.. 10,309 workers,
$731,836 lost; Harrison, N. J„ 700
workers, $49,080 lost: Janesville. Wis.,
2.467 workers, $120,883 lost; Muncie,
Ind., 1,500 workers, $52,500 lost.
In addition, the United Automobile
Workers’ Union has drawn heavily
upon the "strike fund" of the Inter
national Union for expenses, including
payment of house rent bills of "sit- I
downers,” cost of food for the strikers |
and some families and incidental i
items.
The U. A. W. A. headquarters, said
$11,000 has been donated the Strike
Committee by other labor unions, but
declined to estimate expenses,
General Motors, because of the
strike, has canceled advertising
schedules, a sizable item for news
papers and broadcasting stations.
National Guard officers, figuring
the cost of keeping a soldier in readi
ness at $5 per man each day, esti
mated the 2,300 Guardsmen mobilized
at Flint cost the State $11,500 daily.
About $2,000 of this is for rations.
-- ■ — » --
RINGLING GIVES ESTATE
AND LANDS TO STATE
-:
If Florida Does Not Accept Be
quest It Will Go to City
of Sarasota.
Bi the Associated Press.
TALLAHASSEE. Fla., January 15.— j
A codicil in the will of John Ringling,
the circus magnate, gives his art mu- |
scum and his entire estate to the State
of Florida, instead of half the estate j
as first announced.
If the State does not accept It the j
property will go to the city of Sara- j
BOta. where the Ringling museum and I
residence are located.
Attorney General Landis reported
the codicil to the State cabinet yes
terday.
Landis informed the cabinet some
reports said the Ringling estate was
insolvent, while others estimated its
value at several millions of dollars.
Two or three years probably will be
required to settle litigation about it,
he said.
Kitten on the Keys.
JERSEYVILLE. 111.—Illinois, home
of Minnie the Singing Mouse, now
comes up with Tiger, the musical
cat.
Martha Leigh Thatcher, high school
student, says her gray-striped cat
heads for the piano as soon as he gets
in the house, stands on his hind legs
end strikes the keys with the front
paws, sometimes improvising by racing
up end down the keyboard.
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State, union and labor officials in the office of Gov. Frank Murphy at Lansing,
Mich., after the announcement they had reached an agreement for negotiations
for permanent settlement of the “sit-down” strikes in the General Motors plants.
Left to right: Donaldson Brown, G. M. finance chairman; John Thomas Smith,
G. M. counsel; John E. O’Connor, Federal labor conciliator; William S. Knudsen,
executive vice president of General Motors; Gov. Murphy, James F. Dewey, labor
conciliator; Homer Martin, president of Automobile Workers’ Union, and John
Brophy, director of the Committee for Industrial Organization.
—Copyright, A. P. Wirephoto.
Texts of Strike Truee
G M. C. and Union Officials Send Their Accept
ances of Peace Talks to Gov. Murphy, Whq
Issues Statement Calling for Agreement.
By the Associated Press.
DETROIT. January 15.—Here are
the letters and an amplifying state
ment in which General Motors and
the United Automobile Workers stated
their terms for opening strike settle
ment negotiations and Gov. Frank
Murphy's formal comment:
General Motors’ letter to Gov.
Murphy:
' As a result of your very arduous
and sincere efforts to secure a basis
upon which collective bargaining can
be commenced, culminating in the
conference held in your office today
in the interest of expediting a settle
ment. we hereby state the position of
the corporation as follows:
“It having been agreed that all the
plants now occupied by sit-down
strikers, including Fisher Body plants
No. 1 and 2 in Flint, Guide Lamp
plant at Anderson, Cadillac and
Fleetwood plants at Detroit, will be
immediately evacuated. General Mo
tors Corp. representatives will meet
on Monday, January 18, at 11 am. at
its Detroit offices with the represent
atives or tne international union,
United Automobile Workers of Amer
ica for the purpose of bargaining col
lectively on the proposals contained
in the letter from the International
Union dated January 4, 1937. The
negotiations will be conducted frankly
and without prejudice to any one.
The corporation reiterates its policy
that in respect of its continuing op
eration there will be no discrimina
tion against any employe of union
affiliation
"Negotiations shall commence on
Monday, January 18, 1937, and shall
continue until a satisfactory settlement
shall be effected, if possible. Unless
such a settlement is concluded sooner,
there shall be no termination of efforts
to effect a settlement for at least 15
days from the date of commencement
of negotiations, it being understood
that the negotiations shall be con
ducted with the utmost dispatch and
every effort shall be made by both
parties to bring about a speedy settle
ment.
"The corporation has no intention to
and will not during the negotiations 1
remove any dies, tools, machinery, ma
terials <except for export trade) or
equipment from any of the plants on j
strike and agrees during said period
not to resume operation of any plant.” j
General Motors issued this statement
amplying the letter:
“The Governor was successful in
gaining the union's agreement to evac- ;
uate all the plants where there are
sit-down strikers and, in the Interest
of public peace and the general wel
fare, as well as the preservation of law
and order, the corporation was willing
to express to Gov. Murphy its inten
tions in respect to the forthcoming
negotiations with the union.
“Ample time until February 1 has
been allotted to conduct the nego
tiations, which are to commence on
Monday, January 18, at the Detroit
office of the corporation.
“In order to alleviate distress the
corporation proposes to resume oper
ations on a reduced basis at plants not
shut down as a result of the strike.
It also will remove material from
plants on strike to take care of foreign
requirements.
“It is felt that every opportunity
should be taken to effect a fair settle
ment of the matters in dispute with
strikers as soon as possible. No rights
of any worker not represented by the
union will be prejudiced in any of
the proposed negotiations."
United Automobile Workers’ letter
to Gov. Murphy:
“On behalf of the International Un
ion, United Automobile Workers of
America, we accept the terms set forth
in the letter of January 15, 1937. ad
dressed to you by the General Motors
Corp. as a basis upon which collective
bargaining shall be commenced upon
the issues involved.
“The union will in good faith en
deavor to arrive at a speedy settle
ment.
“The evacuation of the sit-down
strikers will be effectuated as soon as
practicable and before Monday morn
ing. January 18.
“We wish to express our apprecia
tion for your untiring and unselfish
efforts."
Gov. Murphy's statement:
"It seems hardly necessary to em
phasize the importance of this mat
ter to the general public. Never In
the history of our State has a strike
of any such far-reaching effects taken
place. Directly or indirectly its ef
fects will soon be felt in every home
in Michigan. None of us should think
of this matter in a mere self-centered
way. We should think of the welfare
of the whole State and its people and
of the widespread harm it is pro
ducing.
"It has become a great public ques
tion which can be solved only in a
way that gives paramount considera
tion to the public viewpoint and the
public welfare.
"I want peace and order preserved.
I have done everything I could to see
that there is no violence and will
continue to do so. At every oppor
tunity I have counseled temperance
and restraint. Each side must under
stand that the public authority is
supreme in Michigan.
"By tradition and choice we are
loyal to democracy and its institutions.
We must settle this in the American
way and in accordance with the prin
ciples of law and order. No one
should wish or attempt to place the
Governor of this State in a position
of suspending the law of the land.
This is not right and he is not going
to do it.
'•Already I have spent many hours
with representatives ol both sides, con
veying messages back and forth try
ing to bring about an agreement, but
without success. It has been better
and more satisfactory to bring you to
gether in one room where you could
face each other, hear each other and
judge each other on a basis of good
faith.
"Whatever may be done, I want your
conversations to continue in a spirit
of reason a\id good faith until you
have agreed on a basis of negotiations
among yourselves. Peaceful negotia
tions and a spirit of reason must be
substituted for rioting, threats and in
timidation. These things are abhor
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rent and we must not permit them to
continue.
"There is just one point I want to
emphasize at this juncture. Advance
ment of the social welfare and gradual
amelioration of gross inequalities may
be furthered by upholding the prin
ciples of orderly collective bargaining
on a just and representative basis in
accordance with sound democratic
principles, without prejudice to legal
rights as established by law.
"It was my thought that you might
come to a better understanding by
first conferring together frankly and
directly, but in a spirit of good will
and mutual forebearance. If it seems
advisable to you or either of you now
or later to proceed by an intermediary
I have no objection to that course.
The immediate object is to better
understand each other's viewpoint,
have in mind the paramount interest
of the great public for whose welfare
we are all in a sense trustees, and seek
to find a basis for negotiation of the
practical and underlying questions at
issue."
Homer Martin:
“The conference and agreement,
which is the basis upon which nego
tiations between the International
Union, United Automobile Workers,
and the General Motors Corp. shall
proceed, is a recognition of the In
ternational Union and forms for the
first time, in my opinion, a basis for
real collective bargaining between the
legitimate union and the General
Motors Corp.
“We will make every effort to reach
a speedy and satisfactory agreement
and establish a permanent peaceful
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John Brophy, C. I. O. representa
tive:
"The agreement reached last night
provides a basis for real collective
bargaining and opens the way for a
permanent settlement. To the sit
down strikers goes the credit for re
sults so far achieved.
•'If sit - down strikes are to be
avoided by industry, it can only come
as a result of wholehearted accep
tance by industrialists of collective
bargaining in both theory and fact.”
-- -•-- ■ -
Strike
(Continued From First Page.)
deavor to arrive at a speedy settle
ment,” Its letter to the Governor said.
The statement from General Motors
executives said the negotiations, which
will open in its office here at 11 a m.
(Eastern standard time* Monday,
"will be conducted frankly and with
out prejudice to any one.” It added
that there will be "no dlscrimlnaiion
against any employe of union affilia
tion."
"Negotiations,” said General Motors,
“shall continue until a satisfactory
settlement shall be effected, if pos
sible. Unless such a settlement is
concluded sooner, there shall be no
| termination of efforts to effect a set
tlement for at least 15 days from the
date of commencement of negotia
| tions. it being understood that the
negotiations shall be conducted with
the utmost dispatch and every effort
shall be made by both parties to lying
about a speedy settlement."
The U. A. W. A. had insisted ever
since attempts were started to arrange
for negotiations that the "sit down”
strikers would not vacate the five
General Motors plants they occupied
unless the corporation promised not
to remove equipment or resume
operations.
Three Sign Union Statement.
The union's statement to the Gov
ernor wax signed by Martin, Wvndham
Mortimer, first vice president, and
John Brophy, director of the Commit
tee for Industrial Organization. John
L. Lewis and his C. I. O. have been
supporting the striking auto workers.
General Motors’ letter bore the sig
natures of William S. Knudsen,
executive vice president; Donaldson
Brown, chairman of its Finance Com
mittee, and John Thomas Smith,
chief of its legal counsel.
These six men were called together
by Gov. Murphy, in whose offices the
discussions were held. The Governor
and James F. Dewey, Federal labor
conciliator, also were present.
During the occasional recesses two
other Federal conciliators—Edward C.
McDonald and John E. OConnor—
also talked with the conferees.
Reduced Operations Planned.
In a formal statement amplifying
General Motors’ letter to the Governor
the corporation announced that “in
order to alleviate distress the corpora
tion proposes to resume operations on
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a reduced basis at the plants not shut
down as a result of the strike."
Gov. Murphy, who spent nearly two
weeks trying to effect the first meeting
of representatives of the two groups,
appeared weary as he emerged from
the final session, but he smiled as he j
told newsmen that a truce had been
arranged which would permit the
opening of negotiations for a “perma
nent settlement" of the strikes.
Gov. Murphy said that a decision
Will be made later concerning the de
mobilization of the National Guard
units which have been called out. In
Flint 2,300 troops were billeted after
last Monday night's rioting.
“The order for demobilization will
be conditioned." he said, "upon the ne
cessity for preservation of peace and
order. I believe there is little to be
concerned about, but we want to be
abeolutely certain there is no vio
lence."
Governor Issues Statement.
The Governor also Issued a formal
statement along with copies of the let
ters given him by General Motors and
the union. In It he told the corpora
tion and the union officers that “if It
seems advisable to you or either of
you now or later to proceed by an in
termediary I have no objection to
that course.”
Martin indicated that It might be
Sunday before all of the occupied
plants are evacuated.
The union's Board of Strategy re
mained near the Governor's office
throughout the conference, and the
union leaders frequently consulted the
board members during the recesses in
the joint meeting.
Absolute secrecy was maintained
during the discussions.
four more General Motors plants
announced yesterday that they would
close, due to the strikes and lack of
parts. Bight hundred employes of the
Fisher and Chevrolet plants at Tarrv
town, N. Y., were released last night,
and the management said both would
close completely by Monday. Their
workers total 4.000. Two Chevrolet
factories at Saginaw, Mich., will close
tomorrow, Alfred G. Gulliver, manager,
announced.
In Flint, where several hundred
"sit down" strikers remained In two
Fisher body plants, the situation was
quiet.
The two regiments of National
Guardsmen mobilized after Monday
night’s riot were kept in their quarters
in an abandoned school building, two
athletic field houses and the armory
in an effort to make them as in
conspicuous as possible.
In St. Louis, w'here the Chevrolet
Fisher body plant was operating with
a curtailed force because of the strike,
a court order was issued last night
restraining strikers from interfering
with employes not In sympathy with
the walkout.
The order, issued by Circuit Judge
Charles P. Williams, forbade the dis
play of signs announcing the strike
and prohibited strikers from distribut
ing leaflets and directing abusive or
threatening language at the workers.
Delmont Oarst, secretary of the local
union, claimed 3,500 of 4,100 employes
in both divisions of the plant are on
strike. Vincent Dlrkes. superintendent
of the Fisher body division, said 882
men reported for work out of a force
of 2,275. Officials at the Chevrolet
plant, which normally employs about
1,900, would not comment.
INDIANA GOVERNOR AIDS.
INDIANAPOLIS, January 15 UP*.—
Gov. M. Clifford Townsend prepared
today to go to Detroit. Mich , if sum
moned by Gov. Frank Murphy of
Michigan to aid in mediation of the
General Motors strikes.
Townsend said Murphy had indi
cated the summons might come within
the next two days.
The General Motors strike directly
affects Indiana and Michigan.
In a telegram to Murphy Gov.
Townsend said: “We wish to lend our
co-operation to your efforts and wish
you every success in this fine under
taking. the result of which will be
fruitful of a complete and satisfactory
adjustment of this situation, which, of
course, is of Nation-wide interest and
of particular Interest to the State of
Indiana."
More than 11.000 persons are idle
at Anderson following a shutdown of
the Delco Remy plants and a "sit
down'’ strike at the guide lamp plant,
operated by the General Motors Corp.
Approximately 1,500 are Jobless at
Muncie following the shutdown of a
General Motors assembly plant.
MORE THAN $300 TAKEN
IN DISTRICT ROBBERIES
Hold-up men and housebreaker* ob
tained more than $300 in robberies
early today and last night.
Ollie Floyd, 50. of 1426 N street,
was robbed of $75 by an armed, well-1
dressed man at Thomas circle early]
today, and a little later, William sJ
Brodie. 35, of 4406 Seventh streetj
clerk at the Parkside Hotel, 1336 I
street, was held up and robbed of $37
by two men.
Jessie Chesivoir. 61, reported that
two armed colored men walked into
her store at 219 L street last night
and forced her to hand over $22 in
cash.
Theft of $170 from a safe in the
office of the Record Rental Co., was
reported by Charles Coley, 1303 U
street, proprietor of the office.
TRUNKS—
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