P~AGE TWO
RTE AI l e t A A ar t.
WEDNESDAY, JULY 8, 1939
a 8 L} 1y 8 0.:F 1'! 1 V 8.F t'1 8 1 8
.WEDNESDAY,. , JULY..- ,.8, .. a....
THE MICHIGAN DAILY
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United Electrical and Radio Workers of America,
according to David Sarnoff.
Still unsettled and increasingly violent are the
labor disturbances associated with the Remington
Rand Company, which, despite a large increase
of profits of this year over last, closed up a plant
rather than open it to employes who asked an
increase in the wage rate. At their Cincinnati
plant, workers were stoned by non-workers; at
Syracuse, an estimated 4,000 Remington Rand
employes paraded with American flags to prove
their continued allegiance to America-while com-
pany officials declared the strike "broken."
Another blow to labor occured at St. Paul, where
the National Labor Relations Board was restrained
fron investigating charges against the St. Louis
plants of General Motors, the Chevrolet Motor
Company and the Fisher Body Corporation of dis-
charging thirteen employes for union activities
and of employing "an industrial spy system and
armed guards."
This critical situation in labor seems the inevit-
able result of a rising cost of living not accom-
panied by a corresponding rise in wages. If labor
does not succeed in organizing so that it can force
wages to rise at the same rate at which the reward
to capital increases, at least, then it is incompre-
hensible how one hundred million people will be
prevented from resorting to less peaceful means.
It is not a threat' it is not growing radicalism-
it is simply that a grossly unequal distribution of
wealth cannot for long be tolerable.
~As Others See ItJ
Mir. Wallace And Russia
The following is a reprint of a letter written to the
editor of The New York Times.
To the Editor:
EADERS of The New York Times of June 26
and 28 may have contrasted the proposal of
Soviet Russia, the home of Stakhanoffism, to lim-
it by constitutional means "payment for work ac-
cording to its quantity and quality" on the one
hand, with that of Henry A. Wallace that the
United States abandon free competition in favor
of cooperatives on the other. As Russia moves
toward revival of competition, Mr. Wallace leans
away from it.
Unrestricted competition has undoubted evils.
Child labor, excessive speed-up of hours of work,
over-concentration of wealth, perhaps even de-
pressions are among its sins. Blame for these
evils should not be made too personal a matter.
Under a system which takes the last ounce from
everybody as the price of survival, employers can
be, as hard. driven by necessity as the workmen
who underbid to get their work.
Does any capitalist want depressions? Can we
revive marginal industries and thus achieve em-
ployment without at the same time making bet-
ter situated industries very profitable? Is it more
logical to condemn capital for paying low wages,
for instance, than to blame a State for failure toi
pass child-labor laws and thus drive business to a
rival State? These illustrations show that it is less
the vice of individuals who operate it than of the
system that it wastes human values in the uni-
versal struggle for a living.
But while, like fire, competition has its faults.
it is as essential to rapid progress. If we destroy it,
if we remove the reward for production and the
penalty for failure, we destroy a principle under
which we have had the greatest and widest-spread
abundance of comfortable living ever seen. Pro-
duction of this abundance necessarily depends up-
on competitive incentive. Ideally, therefore, we
might keep the system, meanwhile preventing its
abuse by proper laws.
Laws ,however, mean politics, and politics, how-
ever good its aims, in practice tends toward de-
struction of the competitive system through spread
of government ownership. Political pressure to
give higher wages, "greater consumer buying pow-
er" out of taxes, to the public as labor, and lower
prices to the same public as consumers, tends to
squeeze the forgotten man who owns the business
out of the picture. He may work up for air
through two or three reorganizations, but he is
headed for the bottom. The more' the government
steps in, the smaller his profits, and the more
certain the ultimate resort to public funds to fi-
nance and thus to possess the bankrupt enter-
prise. For some of our railroads the handwriting
seems already on the wall.
If this is true we must either limit excess po-
litical interference so that we may enjoy and im-
prove, in spite of faults and breakdowns, the rath-
er luxurious car of competition; or we can em-
brace some new system which, by weakening the
premium on labor saving, avoids both the abuses
and benefits of abundance and aliows us the
greater "security" of traveling barefoot.
In some aspects this seems to be our problem.
Whatever balance we ultimately strike upon it, its
existence throws a light upon the striking paradox
of a Secretary of Agriculture under a capitalist
economy advertising the weakness of free com-
petition just at the time when our leading So-
cialist republic is rediscovering its strength.
Frank Cist.
"Americanism is not an accident of birth, but
an achievement in terms of worth. Government
does not create Americanism, but Americanism
creates government. Americanism is not a race,
but a vision, a hope and an ideal."
-Dr. Louis Mann.
"We have entered a day when men working to-
gether in organizations, and organizations working
with organizations, constitute our forces for bet-
terment." -Charles M. A. Stine.
A government census shows 31,884 sheep, lambs,
goats and kids in the four counties of Lower Rio
Grande valley compared with 14,685 in 1930.
I believe in vigorous physical exercise-for other
people.-Pres. Robert M. Hutchins, University of
Chicago. -Life.
Junior C. Of C.
To Give City
Pohece Radios
Local Council Approves
Plan T Ask GCovern ent
For Broadeastin Station
Radio figured largely at the last
meeting of the Ann Arbor city coun-
cil, with discussion of two-way radio
communication for the police de-
partment, and communication from,
the federal government relative to the
establishment of a commercial radio
station in Ann Arbor.
The council approved application to
Federal authorities for permission to
erect the radio station here, which
will come as a gift of the Junior
Chamber of Connerce to this city,
which plans also to provide for the
employment of an expert to erect the
station.
A As proposed, it would consist of a
central station in the City Hall with
ithree additional units in the scout
ears to provide two-way communica-
tion bei ween the City Hall and the
cruier:,. and between the police cars
themslves. Ypsilanti already has
such an arrangement under con-
struction.
Erection of the station would not
involve use of any city funds. but the
city would have to hire an operator
for the station.
Information was received at the
council meeting from Washington in
regard to the council's request that
applications of two outside groups for
permission to erect a commercial sta-
tion should not be granted until ap-
plication had been filed by a group of
Ann Arbor residents.
To date no such application has been
made, but an application by John E.
Fetzer of the Wolverine Broadcast-
ing Company has been dismissed at
his own request by the Vederal Com-
munications Commission. An ap-
plication filed by Coach Harry G.
Kipke, representing another out-of-
town concern, is still being studied by
the technical division of the commis-
sion before being referred back to the
broadcasting division for action.
STATE SENATOR HELD)
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TWO FEATURES!
Labor
Rond&UP
THE most vital questions brought tc
the fore by the events of this weel
are these: Does labor by and large actually prefer
company unions or is it being intimidated int(
that position by employers? Do employers have a
right to resist what they call "outside forces" at-
tempting to unionize workers in their industry? Dc
labor unions have the right to attempt to compel
workers to membership?
Whether labor, as employers have stated, ac-
tually prefers company unions to organized in-
dustry unions no-one can truthfully say. However
despite a possible resistance against organizatior
because of misplaced individualism, it would seem
that, because its best interests lie with industria
unions, the most natural attitude to expect woulk
be sympathy with unions embracing the entire
industry. Labor's best interests lie with industrial
unions because company unions offer no real
security, no real bargaining strength. If then
the prevailing attitude seems to be otherwise, we
may at least suspect that employers are exercis-
ing some coercion-and indeed there seem to be
grounds for that suspicion, as we shall show later
Secondly, we do not believe that employers have
the right to resist the union movement, From
the point of view of the employer ,it seems that
agitators are coming in from outside, stirring up
dissension among the workers in his factory, and
raising his cost of production. There are profes-
sional agitators, and an employer is justified in
objecting to the interference of one not familiar
with the problems of his particular industry, and
not motivated by sincere desire to help labor.
However, this cry ought not be raised against the
organizing efforts of laborers coming from other
plants, for laborers everywhere are bound to-
gether by this inescapable fact: unless they all
organize, they are all lost. No part of labor can
succeed in bettering conditions for itself. Hence,
since labor as a class must have unanimity for
success, and to attain that unanimity there must
be interihange of activity among workers in dif-
ferent plants of the same industry, employers
ought not have the right to interfere by discharg-
ing men active in unions. Does this abrogate the
right of employers to hire and fire as they please?
Yes, it does. Justified by the fact that only by
so doing can a more equitable distribution of
wealth be achieved under our economic organiza-
tion, it should.
Thirdly, by virtue of the same reasoning, we be-
lieve labor unions do have the right to compel-
though by peaceful and legal means only-wide-
spread acceptance and membership. This is of
course a question open to debate, and hot debate.
For an American, imbued with ideas of individual
liberty, to be compelled to membership in a union
is a radical and a painful change. Many workers
-and indeed many white collar workers, reluctant
to acknowledge themselves workers-cannot be
brought to the realization that it will continue to
be an employer's market until labor resorts to col-
lective action. As long as this group is large, the
rest of labor is still helpless, and so, because they
are responsible for; the welfare of others beside
themselves, their attitudes must be subject to the
influence of other workers. It would of course be
ideal if everyone, recognizing the usefulness of
unions, voluntarily associated themselves; since
that is not the case, we believe that the welfare
of the largest class of American people demands
the right to compel workers to membership.
i
I
DETROIT, uly 7.-(/l)-State
Senator Lee A. Gorman was held
under $500 bond today for examina-
tion July 28 on a warrant charging
him with abandoning his three minor
children in Milwaukee in 1928.
AND ----
Jack Oakie, Frances Drake "FLODIDA SPECIAL"
EXTRA! LATEST NEWS EVENTS
F'
Theory vs. Fact In Tariff Pacts
-H)ow 'Generalizing' Is Negated In Practice-
1 The following is from an article by Percy W. Bidwell,
Professor of Economics, University of Buffalo, in the
Yale Review. It appeared in its present form in the
St. Louis Post-Dispatch, from which it is reprinted.
IN THE Trade Agreements Act of 1935, Mr
Roosevelt was given wider powers with respect
to tariffs than any President had ever enjoyed
before him. He can raise or lower any and al
tariff duties by one-half of the 1930 rate. The pur-
pose of the act is to expand the market for Ameri-
can exports; reduction of the American tariff
is the means by which that end is to be
accomplished. Hence, all changes in duties and
all restrictions must result from reciprocal agree-
ments with foreign countries in which, supposedly,
their concessions to American exports balance our
tariff concessions.
The President's bargaining powers are limited
by the important provison that the new duties
and other import restrictions "shall apply to ar-
ticles the growth, produce or manufacture of all
foreign countries." In other words, the changes
are to be "generalized" and not confined in their
application solely to the countries with which
agreements are made.
* * *
Secretary Hull's policy of "generalizing" the
reductions has aroused the apprehension, and
even the opposition, of some who claim to be in
favor of tariff bargaining. They fear that if,
under the most-favored-nation clause, all coun-
tries are to be permitted to send us their goods at
the reduced rates established in the trade agree-
ments, changes in our tariff which seem unim-
portant may prove quite the opposite. Also, from
their point of view, such "generalization" is fool-
ishly unnecessary generosity.
The United States appears to be handing out
freely favors which foreign countries would, they
believe, gladly purchase with equivalent conces-
sions to American export trade. Furthermore, we
could obtain greater concessions from foreign gov-
ernments in bargaining if our negotiators could
promise each one exclusive reductions in tariff du-
ties.
Thus far, Secretary Hull has successfully upheld
the principle of "equality of treatment." In hi's.
view, it is not a "give-away" principle, for the
United States demands in return equal treatment,
and the act provides that any nation which dis-
criminates against the commerce of the United
States shall not be entitled to the benefits of any
of the rates lowered b ythe bargaining method.
In Mr. Hull's view, the United States cannot
logically demand equality of treatment from for-
eign nations unless it adheres to the same policy.
He recognizes as one of the basic purposes of the
act the removal of the discriminations against
American trade found in the tariffs of certain for-
ideal of equal treatment for all nations has suf-
fered grievously at the hands of his more realistic
subordinates, to whom the details of bargaining
were entrusted. The result is that the reductions
in duty offered to each bargaining country have,
t for the most part, applied only to those commodi-
I ties which they have supplied exclusively, or
1 practically so, to our markets.
Take the Canadian agreement for illustration.
The American tariff duties were cut on imports
of Canadian cheddar cheese, apples, fresh straw-
berries, hay, frozen blueberries, turnips, lake fish
and softwood lumber and timber, all of which
in 1934 formed about 90 per cent of our total im-
ports of these commodities. The duty on cattle
was also reduced, but only on animals weighing
over 700 pounds. Mexican and other cattle ranch-
ers would gladly profit from the new low rate, but
nearly allthe cattle they export weigh less than
700 pounds.,
In law, the benefits of all the concessions made
to Canada can be claimed by any country except-
ing Germany. In fact, none of the concessions
is worth much to any country except Canada, and
this was frankly the intention of our Department
of State. An official press release, commenting
on the Canadian agreement ,emphasized its ex-
clusive character in these words: "Countries other
than Canada will obtain relatively little benefit
from the reductions in duty made by the United
States in this agreement ... Canada is overwhelm-
ingly the principal supplier of these articles."
* * *
The narrowing of tariff classifications was used
frequently and ingeniously in the agreements with
Switzerland, Belgium and Sweden as a means of
evading the obligations of a thoroughgoing appli-
cation of the principle of equal treatment. Our
bargainers, by the way, didn't invent this ruse.
It is "an old Spanish custom," practiced for years
in European chancelleries.
In the Belgian agreement, the rate on flax was
reduced from 1.5 to 1 cent per pound, but the re-
duction was made to apply only to flax valued at
$340 a ton or more. This limitation is worth look-
ing into. A glance at the import statistics for 1934
confirms suspicions of its shrewdness. Imports of
flax were 1021 tons, with an average value of
$67 per ton. Belgian flax (two tons only were im-
ported) was a high-grade product, valued at
$282 per ton. (Next year it may be worth more).
The chief supplier was the United Kingdom, whose
flax was worth only $80 per ton. There is not
much chance of Irish flax coming in at the new
low rate.
In the Swedish agreement, the American tariff
on pocketknives was lowered, but only on "knives
with etched steel handles, valued at over $6 per
dozen." This new classification limits the con-
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EDUCATORS
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DESIDERIUS ERASMUs, whose name
is immortal, encouraged in the
people of his generation-the late
fifteenth and the early sixteenth
centuries--a keen appreciation of
education through his uncovering of
buried classics and his publication
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Testament.
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The steel situation is critical. Labor's cam-
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