The Daily Worker Newspaper, October 9, 1924, Page 5

Thursday, October 9, 1924 PAY ENVELOPE Dawes Plan Next Logical Step for U. S. Imperialism NOT HELPED BY B. & 0 PLAN Toiler on Big Railroad Calls lt “The Bunk” Editor’s Note: The following is the first of a series of articles sent out by the Federated Prees on the “B. & O. Plan,” which the machine of President William H. Johnstone foisted on the membership of the machinists’ union at the recent con- vention in Detroit. The “B. & O. Plan,” which must now be put to a referendum vote of the members of the machinists’ union, has been in- stalled by the machinists’ reaction- ary officialdom in the Baltimore and Ohio Railroad shops in Glenwood, Pa. Tom Tippett, in the first of the articles, tells how the “class collab- oration” plan has been working in Glenwood.: The “B. & O. Plan” of Johnston, the LaFollette follower, is the most brazen attempt up to date of the reactionary trade union officials to sell out their union mem- bership to the employers. So far, most of the trade union of- ficials have flopped to the camp of the capitalists on only one field— be it either industrial or political. But Johnston, president of the ma- chinists, has been active in attempt- ing to sell the workers on both fields of struggle. In politics, John- ston has sabotaged all attempts for independent working class political action, On the industrial fleld he has tried to sell out the membership cf his union by means of the “B. & 0. scheme.” TN i By TOM TIPPETT. (Federated Press Staff Correspondent.) ‘ GLENWOOD, Pa., Oct. 8.— After experimenting one year with the Glenwood co-operative lan the men at work in the altimore and Ohio railroad shops are beginning to wonder where their share of the results is.coming from... So.far.the plan has succeeded beyond expecta- tions, but the benefactor is the B: & O. and>unless it shows signs of including thé workers in ‘the division of returns the bottom will fall out of this new panacea. At least that is the opinion of the rank and file members of the federated shop craft unions that comprise the road’s work- ing force and are doing the co- operating. The shops employ about 400 men, most of whom are union members. (Continued from Page 1,) In the London negotiations it may have been the voices of Hughes and Mellon that were heard but the hands of Mor- gan and Lamont guided the decisions. Three Imperialist Doctrines. The Monroe, the Hay and the Dawes doctrines forge a powerful chain— link by link—bounding and limiting the spheres of influence, the vassal countries of the expanding American imperialist domain. The three doc- trines reflect three epochs, three stages in the development of capitalist imperialism in the United States. The Monroe doctriné ordained the closed door in Latin America for all other. capitalist national groups. It served notice on these capitalist powers that the political domination of the weak, industrially underdevel- oped Latin American countries was the sole privilege ,of American im- perialism. Then came.the Hay doctrine which decreed the so-called Open Door policy in the Far East, the guarantee of “equal and impartial trade with all parts of the Chinese Empire” osten- sibly for all powers, but in reality and primarily for the Yankee imperialists. Soon the Hay doctrine superseded in importance and urgency the Monroe flat, tho it did not displace the first commandment of American capitalist aggression The Hay doctrine, it will be remembered, ‘was. the foundation for the Washington conference. Dawes Plan Logical Step. Today the Dawes doctrine is the composite expression of the aims and plans of American imperialism. The Dawes doctrine, which is the last word in the attempt of our ruling class to establish their financial and com- mercial world hegemony, does not do The co-operative plan was installed here a year ago after the strike that almost destroyed the railroad organ- ization. O. S. Beyer, jr., with Wm. H. Johnston, head of the machinists’ union, induced president Daniel Will- ard of the B. & O. to try it out on that system. Beyer is now employed by the union. He installed the propo- sition here and supervise it. The plan has been extended all over the B. & O. system with the heads of the shopmen’s unions eager to expand it to other roads. The Glenwood plan is intended to’ “help the stabilization of employment on the B. & O. railroad, thereby..producing a situation of satisfaction and 4 con- tented personnel with improved mo- rale and consequently improvement in service and production by greater efficiency and better quality of work.” A biweekly co-operative meeting is held in the shop. The workers are represented by eight men. Across the table are eight bosses from the com- pany side of the house. The business OUR DAILY PATTERNS A POPULAR “STYLISH STOUT” MODEL ,4889, Striped and plain woolen ts here combined. This is a good model \ for satin, crepe or sharmeen.~ Ros~ y“hanara crepe with satin for collar and neis would be very attractive, ‘The pattern is cut in 8 sizes: 36, 38, 40,°42, 44, 46, 48 and 50 inches bust measure. ‘yards of one material, 40 inches wide. If made as illustrated ft will require 1% yards bf plain material and 3% yards of striped or figured material. The width of the dress at the foot is _ two yards. _ Pattern mailed to any address on of 12c in silver or stamps. A 38-inch size requires 4% | W A POPULAR STYLE 4684. This becoming little model may be of gingham, pongee, sateen or printed voile, It is also good for lin- en, serge or wool crepe. The guimpe may be of lawn or batiste. zs “ The pattern is cut in 4 sizes: 4, 6, 8 and 10 years. A 6-year size requires 1% yard of material for the dress and 1% for guimpe 36 inches wide, With short sleeves the guimpe will require = tern mailed to any address on receipt of 12c in silver or stamps. Send 12c *in silver or stamps for our UP-TO-DATE FALL & WINTER 1924-1925 BOOK OF FASHIONS. AWasnington gieds chiengos lOTICH TO PATTERN B ® ag - You're Hired! Until Nov. 7. THE DAILY WORKER away with the Monroe and Hay poli-] ment to the war-weakened capitalism eles but is only the logical next step|of the European countries. of these policies. The Monroe, Hay, and Dawes doc- trines are characterized by the same underlying principles. The three doc- trines have been formulated to avert “dangers” to American political in- stitutions and economic aggrandize- ment. In the three doctrines the Am- erican employing class government re- serves to itself the right of final defi- nition, interpretation and application. The three doctrines were conceived as war plans—brewing .a hell-brew that could only explode. Why the Present European Policy. If one will analyze the conditions in which the. Dawes plan took root in the United States, he will find that there were four outstanding, impelling forces making for large-scale, intense American participation in and domi- nation of European political and eco- nomic affairs. These forces, underly- ing the politico-economic situation in the United States and in Europe, have been at work simultaneously and jointly. The causes of America’s adoption of an out-and-out aggressive, active European policy may be enumerated as follows: (1) The pressing need for a foreign outlet for the superfiu- ous capital, particularly gold, which has been accumulating in the United States. (2) The imperialist plans of American capitalism to secure a firmer hold on the industries and markets of the world in order to mini- mize the detrimental economic effects of its productive system which became highly overdeveloped as a result of the artificial stimulus of the war needs. (3) The Yankee imperialists’ growing consciousness of the menace to its own economic structure in the sharp challenge of the International Communist, the revolutionary move- of the joint committee is: “To meet for frank discussion of questions relating to the planning and carrying on of work and having in mind that the specific purpose of these meetings is mutual helpfulness and not one of criticism or fault find- ing. , It is understood that these meet- ings are not for the purpose of ris- cussing or adjusting grievances.” A perusal of the minutes of such a ‘meeting on March 19 *showed that 76 separate suggestions were entertained and acted upon at this one meeting. The character of the questions and action taken may be seen in the fol- lowing items chosen at random: 1. Installation of furnace in the blacksmith shop for use of boiler force. —Referred for attention of general committee, Baltimore. 2. Opening of apprentice school— Referred to Dist. Master Mechanic but no advice rec’d. 3. Installation of separate drinking fountains for colored and white em- ployes—Ten white and four colored signs painted. 4. Condition of toilets—Referred to division engineer for handling and is taken up with Gen. Supt. 5. Suggestions that ladders be built for use of employes when performing work on locomotives to avoid loss of time by climbing up thru cabs, ete.— Referred to care foreman to have FR. 118) nounces the removal of his office to these built. So far as the local committee can remember the company has offered but one suggestion in the co-operative meetings and that was an unimpor- tant item regarding work checks. ‘The’ co-operative machinery does not in any way interfere with that of the trade unions, They cérry on their business as before or as they do gn roads where the plan is unknown. If D ENTIST Dr. S. Zimmerman Best Work Guaranteed Dentistry at Reasonable Prices Specialist in Plates and , Wxtraction X-RAY ADMINISTERED Dr. S. Zimmerman, dentist, an- 2232 North California Avenue (Cali- Othe DARE fornia and Milwaukee Avenue) Dr, of pati Zimmerman states that his new quar- ‘as re-| ters have been secured to give better transportation facilities to his clients, His new office can be reached now by California and Kedzie and Milwaukee avenue surface lines and the Lo; Square elevated. His new telephone number is Armitage 7466, Office hours 9 a, m, to 9 p. m, Rapid Course of Industrial Development. America is today not only the work- shop but the pantry of the world. As @ result of the war it has become the mightiest reservoir of capital. The war dealt’ the death-blow to the period | of financial isolation for the United States. Mr. Harvey E. Fisk in his! volume, “The Inter-Ally Debts,” pub- lished by the Bankers ‘Trust Company, has estimated that on June 30, 1923 there were invested abroad 7,650 mil- lion dollars. This sum is exclusive of} the eleven billion dolaré that is due| to the United States government by| foreign government debtors. In 1913 the total foreign investment of the| United States was only 2,605 million) dollars. Allowing for the depreciation of the value of the dollar in this dec- ade, we find that the American foreign | investment is today at least 5,000 mil-| lion 1913 gold dollars, or an increase of nearly one hundred per cent. Before 1850 the United States’ was| primarily an underdeveloped agricul- tural country. From 1850 to 1920 Am- erica’s population increased 3.6 times. In this same period, however, the physical production of agricultural crops rose 6.2 times; manufacturing increased 28 times; and mining more than 77 times. Between the years of 1900 and 1920 the volume product— not the value—of American industries increased 95 per cent, while the popu- lation increased only 40 per cent. Within the boundaries of the United States we find 40 per cent of all the installed water-power of the world; 35 per cent of the railroad mileage; 57 per cent of all telegraph and tele- phone lines; the production of 41 per cent of the world’s cereals; 71 per cent of the cotton; 50 per cent coal; 54 per ceut iron; 64 per cent’ steel eee a worker has a grievance against the boss over some quéstion covered by union agreement he applies to the union for redress. The men have diligently carried out the co-operation. Before the plan was established the material shop expensé per man was $15.08 a month. Now it is $7.43. Repair work on locomotives that used to take 60 days is now done in 21. Engines that were formerly overhatiled in contfact shops are now repaired at home at a saving of $4,000 per engine to the company. Men who would not go along with the efficiency stunts were gotten rid of, according to the men in the ships. Continuity of work, the only defi- nitely stated benefit to the workers stated in the plan has not been fully realized. There are still furloughs here as in other shops. The wages paid are mechanics, 73 cents per hour, helpers, 50 cents, laborers, 40 cents. If the company doesn’t want to carry out -@ proposal it doesn’t. My interview with the workers’ co- operative committee and the local un- ion heads brot out the following: The meeting is in the washroom of the shop at noon. There are 18 work- ers in overalls present. The question each answered in turn was: “What is your honest opinion of the co-operat- ive plan, speaking for publication.” The replies were: “The plan is all right. It gets pro- duction but we haven't got anything out of it. This is one sided co-opera- tion.” “I'd be for this thing strong if we had a@ man on the company board of directors so that we could have some- thing to say in the actual management of the road. We have a right to bene- fits for all the extra work we've done. As it is I'm not for it.” Five others—Witto, | “I'm for it strong. It isn’t working as it should but that’s because it’s new. It will take time. The com- pany isn’t coming across now but it will.” ‘ “It's the bunk. We got rid of the agitators. But the company didn’t get rid of the men we didn’t like. As an efficiency plan, this is it but we want to see the results in our pay enve- lope.” i “This plan has brot us nearer to the company. We're here talking to you and we really ought to be work- ing, that is an improvement—~(it was a few minutes past whistle time)— and we have a promise of steady work.” and petroleum; its tiniber. American Industries Top-Heavy. Discussing the economic effects of the surplus producing capacity of the United States as a consequence of the world war, Prof. Walter R. In- galls declared in the Annalist of June 2, 1924: “First class producing afd manufacturing capacity in this coun- try was abnormally expanded to meet wartime demands. We know that the excess ought to have been written off and amortized at once. But we haye tried to eat our cake and keep it too. The result today is that many indus: tries are carrying dangerous burdens of inflated overhead and personnel— perhaps in some cases even inflated financing.” And at the last convention of the National Purchasing Agents’ Associa- tion held in Boston it was authorita- tively stated that American manufac turers can ‘produce in seven months all the commodities needed for na- tional consumption during the whole year. What the speaker really meant and should have said is: all that the working and exploited farm- ing masses can buy back from the bosses on the basis of their wages and meager income gotten in twelve months in addition to the amount consumed by the owning class. According to an analysis made by the Federal Reserve Bank of New Yord and the Standard Statistics Co. on the basis of the peak of activity reached in any month in 1923 by twenty leading industries, we learn that the excess industrial capacity compared with normal requirements was 82 per cent in the motor indus- try; 52 per cent in sugar; 37 per cent in the meat industry; 30 per cent in oil; 29 per cent in shoes; 28 per cent in steel; 26 per cent in flour; 24 per cent in iron and 16 per cent in coal. In fact, many of these industries could have been operated to produce at an even higher rate than in the peak months. Seek Foreign Outlet. It is plain to the most purblind that there is getting to be less and less room for profitable re-investment in the United States for the surplus cap ital with which the American capitalist class is gorged. More and more for- eign loans have been serving as an outlet, From January to July 1, 1924, flotations in America for interests outside of the country have totalled about four hundred million dollars. ‘Foreign flotations are today running on a larger scale in New York than in London. Many expect the sum to reach @ billion dollars by the end of the year. The overbuilt, topheavy condition of American industrial plant equipments isdriving an increasing portion of the capital investment fund elsewhere. The companies taking out charters in the first five months of 1924 showed a decrease of eleven per cent in number and thirteen per cent in authorized capital as compared with the same period for 1923. One of the primary causes of the present wave of unemployment is this top- heaviness. Great Inflow of Gold. ~ Since the world war there has also been a great flow of gold from the other countries to the United States. The director of the mint has officially declared that on August 1, 1924 the United States held about fifty per cent of the world’s monetary gold, more than four and a half billion dollars worth. Since 1910 the gold stock of the United States increased 175 per cent. In the four years before the world war the American gold stock showed an average annual increase of seventy million dollars. Since the war the inflow of yellow metal has been terrific. In 1921 alone the in- crease in gold bullion was more than 800 million dollars. While America is facing this ple- thora of surplus capital, a shortage of capital is manifesting itself in many parts of the world. Germany and Po- land, for example, are forced to pay terrifically high interest rates. Sim- ultaneously, money is available for a sofig to the American capitalists. The present rate for call money is 2 per cent. Bankers’ acceptances can be had on a 1% and 2 per cent basis for thirty days. Ninety-day money can be had at 2 per cent. Four years ago the rediscount rate of the New York Federal Reserve Bank was seven per CLE WIGGILY’S TRICKS and 52 per cent offcent. At present after a third reduc: tion in one year, it is three per cent the lowest anywhere in the world and in the history of the Federal Reserve System. gold wealth swelled its bank credit. This credit structure hag been fur. ther dangerously broadened by the Federal Reserve Banks’ continued pur: chase of government curities at a time when rediscount rates were low. From November, 1923, to July, 1924, the Federal Reserve Banks hav in-| creased their holdings of government securities from seventy-three to four hundred and seventy-seven million dollars in an effort to be able to put the brake on in case the country inflation, Fear Danger to American Financial Power. The danger of this glut of the money markets due to the unprece dented flow of gold to American shores has been clearly seen by the solons of Yankee hig,finance. On May 12, 1924, the advisory council of the federal reserve board, consisting of the most eminent bankers of the dif. ferent sections of the country, held a meeting in Washington to consider the seriousness of the situation and to indorse strongly the Dawes plan as ® means of relieving this super-sat. urated credit condition. We quote in part from its significant statement: “It is obvious that our credit power cannot continue to grow indefinitely without the danger of oversaturation. If the stream of gold that floods our shores is not stemmed in time, it is to be feared that, ultimately, we will not be able to ward off its infiation- ary effects. And inflation would only aggravate the economic maladjust- ment already existing within our own boundaries; a maladjustment which not only disturbs and endangers our trade with other countries, but which makes our agricultural situation par. ticularly difficult and distressing.” Then the report goes on to urge! the re-establishment of the universal gold standard as the best way out of} the difficulties facing the capitalist world. It continues to argue strongly for the adoption of the gold standard by the Dawes plan bank issue in Ger. many in order to hasten the other countries’.adoption of the gold~basis, which is today the dollar basis. Tho this proposal is made as a solution for the world’s ills, it is funda- mentally and foremost an effort by the American capitalist class t6 save itself Altruism Threadbare. In the light of these facts, the lofty and altruistic motives that are so much emphasized in the plans of the American capitalists to aid European reconstruction become’ threadbare. The economic why and wherefore of American imperialism initiating and being for the Dawes scheme becomes plain—ugly—starkly naked. These are the economic conditions giving rise to the development of the latest stage in American imperialism — the Dawes doctrine, lose a penny through 2. A State bank. 1. Employes bonded. 2. Insured against loss. experienced bankers. Thus has America’s surplus} CHICAGO’S LABOR BANK ASSURES YOU SAFETY COMPETENTLY SUPERVISED— 1. A member of Chicago Clearing House Association whose members have not allowed any depositor to AMPLY PROTECTED— DIRECTED BY EXPERTS— 1. Officers chosen from Chicago’s most competent and RESOURCES LARGE— Capital and surplus: . 2. Resources: $2,600,000.00. These are factors which give you assurance of protection when you bank with the Amalgamated 371 West Jackson Boulevard * CHICAGO, ILLINOIS ARRANGE TOUR FOR SALZMAN IN MINNESOTA Will Visit Y. W. L. Units in Minnesota Max Gatncke om Young Work organizer for the eague, will tour the Minnesota district for the organiza- tion, | In this tour he will cover the impor. }tant industrial centers in addition to |the small mining towns, where in the past the workers have gone thru bit- » | ter struggles. again confronted with the danger of This trip is strengthen the | tion, bei made to 1e organiza also to acquaint the mem |bers with the plan of work adoptéd by the National Executive Committee of the Y. W. L. On this trip special attention will be paid to the work in the industrial }centers, where thousands of young workers are employed. The dates are as follows Monday, Oct. 13 to Wednesday, Oct , Minneapolis 1. Thursday, Oct 3, Brainerd, Friday; Oct. 24, Cromwell. Saturday and Sunday, Oct. units o 25-26. Cloquet. Monday, Oct. 27 to Monday, Nov. 8, Superior and Duluth. Tuesday, Nov. 4, Hibbing. Noy. 5, Chisholm. . 6, Orr. y. 7, Duluth, Saturd , Noy, 10, Mass. Nov. 11 and Wednesday, South Range. Thursd Noy. 133 and Friday, Nov. Nov. 15, Ishpeming. ‘ov. 16, Marquette. Nov. 17, Eben unction. 8, Munsing. | Wednesday, Nov. 19, Sault Ste Ma- rie. Thursay, Nov. ; Sunday 20, Superior. | Friday and Saturday, Nov. 21-22, | Minneapolis and St. Paul. PITTSBURGH, PA. DR. RASNICK DENTIST Rendering Expert Dental Service for 20 Years. 645 SMITHFIELD ST. 1627 CENTER AVE. ear 7th Ave. Cor. Arthur St. E. W. RIECK LUNCH ROOMS Seven Places 62 W. Van Buren ( 42 W. Harrison 169 N. Clark | 118 S. Clark 66 W. Washington | 167 N. State 34S. Halsted PHO: HARRISON 8616-7 Speciaitie: W. Rieck Boston Baked Beans and Brown Bread Fine Soups and Fresh Made Coffee Commissary and Bakery: 1612 Fulton Ct. Phone West 2549 Subscribe for “Your Daily,” the DAILY WORKER. failure since it was organized. $300,000.00. Trust and Savings Bank A LAUGH FOR THE CHILDREN