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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (May 31, 1920)
THE MORNING OREGONIANV MONDAY, MAY 31, 1920 'CUT; IB PRODUCTION BLAMED ON LABOR Workers Said to Be but 60 - Per Cent Efficient. THOUSANDS OF MEN IDLE lianufacturer Says Pinch Must Be Felt Before Living Cost Problem Will Be Solved. NEW YORK, May 30. (Special.) Lack of transportation facilities and decreasing efficiency of labor are given as the chiel reasons for the curtailment in production and the laying off of workers throughout the country by those leaders of industry who are willing to admit any slacking up by manufacturers. State ments to The Oregonian show: A critical condition in the hard ware industry with thousands of men out of work. The tinplate Industry bo handicap ped that the canning season will find available onlv one-half and possibly one-quarter of the cans needed for putting up food. For this reason it is predicted farmers will, not plant the usual vegetables for canning. A dropping off of 35 per cent In motor car production. Women's garment industry virtu ally at a standstill. - . - To offset this gloomy view lead ers in iron and steel production deny any likelihood of a shutdown. Workers Held Inefficient. ! S. H. Gardner of the American Hardware Manufacturers association, was less optimistic than any other of the business men interviewed. He saw as the cause of curtailment in production, which he says has hurt the hardware industry, not only In adequate transportation facilities, but the unwillingness of workers to pro duce as in years before 1916. "Despite double wages, worker are only 60 per cent efficient," said Mr. Gardner, "and this inefficiency will continue until the workingman feels the pinch which is bound to come with the cold weather. "The situation in the hardware In dustry is critical. There has been stoppage of work all over the country. It would be difficult to say how many men employed in hardware factories are out of work, but in Cleveland 17.000 men are idle, our reports show. Just the other day one company, the name of which I cannot give out, laid off 2500 men. Money la Tied Up. "The members of our association complain bitterly about transporta tion conditions. They cannot get raw materials to the factories and they canhnot ship the finished product. Great sums of money are tied up and credit is strained. It is a very serious condition. "One manufacturer recently told me he had J7.000.000 worth of cans which he cannot move. So long as his money is tied up in these cans he cannot afford to manufacture more. In a case like that It is necessary to lay off workmen.. "Hardware manufacturers are from four to six months behind In their orders. ' In some cases they are a year behind, and all because they cannot get raw materials or get ef ficiency from labor. "Also there Is & woeful lack of un skilled workers. This is due largely to Immigration conditions. More than 60 per cent of immigrant are women. Every country In Europe has placed restrictions upon emigration of men. Foreign nations realize the need of preserving man power." Fling Taken at Tax. Mr. Gardner took a fling at the excess profits tax. saying it takes double the capital to manufacture now that it did before the war. He also said he thought it was nonsense to blame conditions on war or presi dential politics. "The only solution of the high cost of living problem is to make the workingman feel the pinch," Mr. Gardner said in conclusion. Alfred Reeves, general manager of the National Automobile Chamber of Commerce, had just returned from a tour of the motor car manufacturing centers when he was asked about the report that there had been or was abont to be curtailment of 50 per cent in automobile production for the purpose of stabilizing Industrial and labor conditions because prices had reached the peak. He said: "Prices are fixed at the factories, and those is no profiteering in the automobile industry, less than 10 per cent being the usual profit. Motor car manufacturers are anxious and always have been anxious to speed production. It is an open shop busi ness and bo labor la bound to be com petitive. Wages always have been high, by comparison, and only when the manufacturers have been unable to get parts or the parts makers have been unable to get raw material has there been any let-up In production. Parta Not Obtainable. "That condition does exist at pres ent, but not to the extent that there la or is likely to be a 60 per cent cur tailment. "However, motor car production during the last SO days has dropped substantially, production being about 65 per cent of normal. It looks to me as though this will be the best the manufacturers can do for some time to come. "Last year's figures of some $110. 000,000 for exports of cars and trucks going to 81 different countries bids fair to be broken this year. March exportation of automobiles was the biggest ever recorded. Truck Aid Transportation. "Motor trucks have been utilized to move parts of all kinds and a big percentage of production - is being driven to dealers over the highways. In March, 49.778 cars and trucks were driven from the factories and in April the figures went to 61.599. "While some of the manufacturers may get back to a basis of 100 per cent, it doesn't look as though car or truck production would be within 35 per cent of normal until the rail road situation gets substantially better. "Interviews with oil men indicate that while there may be a temporary shortage of gasoline In certain sec tions of the country because of poor transportation facilities, gasoline is available in substantial quantities nearly everywhere. Figures show two gallons of gasoline are refined every day. or 700 gallons every year, for every motor car in use, whereas the average yearly consumption for a motor vehicle is 250 gallons." Garment Indaatry Quiet. The women's garment Industry is practically at a standstill. Less than 30 per cent of the members of the International Ladies' Garment Work ers' union are employed and those only on the pay-by-the-hour basis. This time last year nearly all were employed. There is not the slightest resumed actively before July 1, ac- f cording to information conveyed to union officials by the manufacturers. ' This is largely due, themanuiac turers say, to the 20 and 25 per cent slashing of prices by retail stores. It is denied .that a deliberate effort at curtailment of production is aimed at. Manufacturers, in answer to such suggestions, said yesterday: "What would be the purpose? We have the goods and as soon as orders come in we must fill them or go out of business." Benjamin Schlesinger, international preaident of the garment workers' union, said: "I can say nothing about motives, having no definite information. But I do know that the month of May is nearly out and the season's work has not started. Hardly 20 per cent of our thousands of workers are regu larly employed. We are informed that the season may not start for four or five weeks yet. This means for us a curtailment of six or seven weeks of the normal four months', ac tivity in this industry out of every six months. Abnormal Profltn Made. "Why have the retailers slashed women's garments 20 and 25 per cent, if it is not because they know they can sell at this cut price at a reason able profit? Does any one suppose they are reducing and losing at the same time? This price slashing shows the retailers nave been mak ing abnormal prohta and the buying public simply quit on them. It is plain enough if they had been con tent with reasonable profits the in dustry would not be Idle at a time when its machines should be hum ming." Elbert H. Gary, president of the American Iron and Steel Institute, and several other members of that organ ization, denied emphatically yester day anything like a curtailment in any line of their Industry, and said they were tertain the production of no essential is beirjg held back. "The supply Just now," said Mr. Gary, "is less than the demand, and to curtail production would be silly. Such -a programme would not tend to benefit business conditions, in my opinion. In the essential articles of manufacture we need a stimulated production to meet the demand. I have heard no reports of a curtail ment movement in the automobile or any other line." ' George Otis Smith, director of the United States geological survey, who was in the city yesterday to attend the meeting of the Iron and Steel institute, said: Less Leafing Needed. "Any movement to curtail produc tion in raw materials or any of the essential articles of manufacture would be a move in the wrong direc tion. We need more, not less, of coal, oil, steel, wheat and sugar more commodities, and less dollars, more work and less loafing on the job. "The best overalls movement would be to wear them in productive lbaor more hours in the day. Anything less than this will bring high prices rather than stabilize business conditions. These are the reasons I do not believe the . report from Milwaukee that a movement to curtail production . is under way." Charles M. Schwab indorsed the statement of Mr. Smith made in his hearing and denied that he had knowledge of any movement to cur tail production. He 'said the condi tion of the supply and demand at this time would make such a movement essentially an error and would hurt not help, business. In the steel in dustry, he added, he knew there is no attempt to curtail production, but a movement to stimulate and encourage it wherever possible. The epidemic of price-cutting which has spread throughout the country is, according to New Tork bankers. very largely the result of the confer ence held at Washington hy the fed eral reserve board, the advisory coun cil and the class A directors of the regional banks over the credit sit uation. Hoarding;' la Encouraged. It was decided that the banks throughout the country would inaug urate a policy of curtailing loans on non-essentials, although the prin ciple was very clearly enunciated that great care would be taken in the rationing of credits to stimulate pro duction in every possible way. It was pointed out that the con structive rationing of credits is im perative. Too drastic restrictions im posed on borrowing instead of forc ing deflation will put too great a premium on the commercial dollar and will limit production, which is the greatest remedy against inflation. It has been shown that many of the banks were lending Immense amounts of money on automobiles and other luxuries, and had been encouraging profiteering In sugar and. other hoarded foodstuffs. It is known, for instance, that one big New Tork trust company has lent great sums on Cuban raw sugar and thereby enabled the hoarders to boost the price of that commodity. In the 6outh it was found that the banks were extending immense credits to the hoarders of cotton and that the western institutions were assisting the grain speculators to withhold, the old crop from the market. Profiteers Are Stampede's, The bankers - went home from Washington determined to break up all these practices by curtailing credits and refusing to renew loans on hoarded goods. Knowing of this determination, the profiteers stam peded in all directions. Price cut ting became the practice everywhere. In some portions of the west, par ticularly in Omaha, department stores reduced their prices by 60 per cent. In the east 20 and 25 per cent has been the rule, but the movement has spread to all parts of the country and its end is not in sight. It is bringing down the high cost of living and despite the agonized cry of some of the dry goods men that it is causing a lot of spending on the part of the public, economists believe It is a wholesome movement that will rapidly restore the in dustrial equilibrium of the country. ENGLISH TROOPS READY Kight More Battalions Being Held in Reserve for Irish Service. LONDON. May 30. (Special Cable.) The Daily Mail states that eight more battalions are being held in re serve for transefr to Ireland in case of emergency. The number of troops in Ireland was recently stated in parliament to be about 40.000, but since then fresh forces have been sent. A new army order provides for re enlistments of 100 men in each of 30 regiments for service in the United Kingdom. GENERAL DECLINE I PRICES SCOUTED Cost of Living Declared Out distancing Wages. BASIC CONDITIONS SAME Both Commercial Paper and Call Sloney Affected by Wide Re vision of Interest Rates. Contlnned rVom- first Para.) cost of Jiving," the statement con- imuco. x ne movement or labor from farm to city is continuing. Various demands for hltrhAi wa0- i. i taken under advisement for the pur- i" Bringing aoout compromise adjustments. General complaint of low efficiency or small output per unit of labor is prevalent and the difficulty of getting skilled labor In some of the more highly developed lines of manufacture is now very con siderable." Husfaciwe Is Affected. "The disturbing factors" have ma terially affected many lines of manu facturing, although general manu facturing continues in substantial volume. Cancellations of orders In both cotton and wool, by the jobbing and retail trade, have not yet reached large proportiona, but they are al ready noticeable. This has resulted in some manufac turers being forced to "make conces sions to retailers" who were described as being "quits unsettled." The same situation was said to obtain in the leather trade. With respect to conditions In the various reserve districts, the review said: "No. 1 (Boston) There is noted a trend toward greater discrimination and economy in buying, but there is also noted very great difficulty in the way of actual deflation. "No. 2 (New Tork) Pries reduc tions are noted In retail stores, a growth In the cost of doing business, great reduction in securities prices, but nevertheless a continued high demand for goods and activity in trade. . "No. 3 (Philadelphia) The con gestion of freight, a quieter state of the markets and a large relative pub 11c demand for medium and lower- priced goods tend to alter In some re spects the general drift of develop ment, v "No. 4 (Cleveland) An orderly movement back toward a more solid and substantial footing is noted, al though, not all business men are agreed on the outlook. Business con ditions, however, are said to be fun damentally sound. "No. 6 (Richmond) Unrest and un certainty In commercial fields have continued and agitation against high prices has led to some curtailment in purchasing. Collections are good. "No. C (Atlanta) The peak of high prices has been reached in most lines and the tendency is downward." Un rest still prevails on account of high prices. Readjustment In Kxpeeted. "So. 7 (Chicago) Decided readjust ment in economic conditions Is antici pated, one factor in which is the growth of indications of -leral re ductions of prices. The transportation and associated difficulties appear to be especially acute in the Chicago district.- "No. 8 (St. Louis) The volume of business is enormous, the total in both manufacturing and distribution showing broad gains over the cor responding period last year. The peak of the upward movement is, however, believed to be reached. Reduction conditions have been unfavorable ag riculturally. No. 9 (Minneapolis) Crop condi tions are promising. . The demand for credit is very strong, and the business outlook is satisfactory, although there is a disposition to be cautious. - "Number 10 (Kansas City) There was during April the first real re cession from tha high tide of activ ity of the past year or more. There has been a curtailed movement of livestock and grain resulting from bad transportation conditions accom panied by severe financial hardships upon producers and shippers. Retail trade has slowed down tut the gen eral situation is regarded as of en couragement. "Number 11 (Dallas) There has been a slowing up of agricultural, business and financial operations, which, however, has had some bene ficial effect. Prices have continued upward but the falling off in demand has affected largely the higher-priced articles). There is recognition of a healthy spirit of caution among bank borrowers and users of capital. "Number 12 (San Francisco) The prospects for good crops are better than at any time this year, although the season is late. Car shortage has hurt lumbering, building has been less active, and retail trade has fallen off slightly as compared with a month ago." Frultvale Falls to Vote. YAKIMA. Wash.. May 30 (Spe cial.) Not a single vote was cast yesterday at a special election in the Frultvale school district to authorize a special tax levy to cover expendi l tures of the district. DRAFT BLAME DISPELLED THREE IDAHO BOARD MEM - BERS ARE EXONERATED.. Secretary of War Free J. W. Hart, C. A. Barton and P. H. Span genberg of Odium. BOISE, Idaho. May 30. (Special.) Secretary of War Baker formally has exonerated John W. Hart of Menan, republican, national committeeman: C. A. Barton and Paul H. Spangen berg. both of Boise, who during the war were members of the district draft board but were removed, from blame attached to exemption of their sons or to matters pertaining to their records thereof. Because of Mr. Hart's removal, an attempt was made to defeat him for republican national committeeman a position he now holds. This fight was carried to the Coeur d'Alene convention, April 28, but was not effective. Secretary of War Baker says In a letter to Senator Hart, released for publication tonight: "I am led to be lieve that your action upon this oc casion, while questionable upon its face, was in good faith and without any intent to violate either the letter or the spirit of the selective service regulations. For these reasons. X ana. constrained at this time to conclude that -you and -your associates ' who were relieved from district board in 1918 ought not to be saddled with the odium which has heretofore attached to your actions. I take this oppor tunity so to state. . STILL 'SPOTTED' FROM AIR Birdseye Photograph Used to Goride Raiders Into Hills. . DENVER, Colo.. May 30. A raoort shine raid-by airplane was accom plished yesterday when officers of the Colorado state constabulary confis cated a "still" located in the moun tains near Idaho Springs.. Colo. The plant had a capacity of 109 gallons a day. Soaring high above tha softy peaks of Mount Kvans. Colonel Clifton Wilder, superintendent of the con stabulary, and Walter Byron.- an as sistant, located the plant on Wednes day and photographed it. With the developed photographs as a guide the officers today made their way over the trailess hills disguised as fisher men,' reached the plant and brought its supplies and paraphernalia back to Denver tonight. The owners es caped. Toklo has about 45.00ft telephones and 60.000 persons are said to be seek ing the service. COZY DAIRY LUNCH & CAFETERIA 323 Washington St. (Near 6th) Choice Roasts, Steaks, Chops, Chicken, Fish, Eggs, etc 15. 20. 25 RICH HOTCAKES CRISP WAFFLES and all short orders, any time of day or night excellent Chicken Dinner Sirada Tuesday Morning at 9:30 o'Clock crz?cr). 06 & (3o T?T 1 sTl tSZMUSHED X UixO M9-ST Your Best Dress Buying Opportunity Mighty Sale Harry Collins Exclusively Designed Gowns and Other High Class Makes At A Frank and Urgent Cause Behind This Dress The plain truth is that H. Liebes & Co., as thousands of other merchants over the country, have been caught by the unusual market conditions with overstocked departments. Our next move is to unload all excessive weight and in the arrangement of this extraordinary sale we have wholly disregarded costs and former selling prices. 365 Elegant Dresses at Sweeping Reductions to m ll ii u Also Lower Priced Frocks as Well as the Higher Priced Ones Reduced 5 1 x X 2 i Mr xk Price g. I :v $ 35 Dresses Reduced to .. . $17.50 ia I $ 45 Dresses Reduced to . . . $ 22.50 WMl 1) I rpp $ 55 Dresses Reduced to ...$ 27.50 jfllSr ' ! W "'w' t ' S 75 Dresses Reduced to . . . $ 37.50 JMWM ' (f 1 $100 Dresses Reduced to ...$ 50.00 WoMbM' ' ' H fy $125 Drses Reduced to ... $ 62.50 &WpW& ! X $150 Dresses Reduced to ...$ 75.00 . " AJ I " k $175 Dresses Reduced to . . . $ 87.50 MW ' I x wWtJL $20 Dresses Reduced to ... $100.00 Wll?0 hope that the summer's work will be