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