Evening Star Newspaper, June 7, 1931, Page 5

1 BRITAN FARD T BY EYPORT DRCP All Parties Except Commun- ists Are Striving to Solve Jobless Problem. This is the eighth of a series of mine he dole, written gfter sev- investioation ‘tn Great The series presents ai presudiced discussion of the dole. an analysis of its disadvantages its venefits. BY CYRIL ARTHUR PLAYER. By Cable to The Star. LONDON, June 6.—So acute is the unemployment problem, with its con- tingent social problem: in Great Britain today, that every party, every group, is striving to solve it: except one. ‘The Communists are being stupid. The Communist group in Great Britain is interesting. It incluces refu- gees of many tongues, among them re- spectable intelligentsia who cry over the privations of the unemployed. With these people the writer spent much time; attended a purely Com- munist motion picture show. The man- ner of this unemplovment film was as follows: 1t showed impressive pictures of prominent London edifices, illustra- tive of British contributions to democ- racy, government and the like. Flashed swiftly among these pictures were views of British regiments leveling arms and firing volleys at unperceived foes. Then followed a superb lot cf views of British industries which, however, formed a satirical comment on “ration2lization.” A picture of conveyors loading ships was followed by a view of the unem- loyed who, presumably, would have d work if conveyors had not been in- vented. A steel bore digging through coal was companioned by the faces of idle miners. The cure for all this, the film proclaimed. was obviously solidarity with the U. S. 8. R., and to prove the case there were shown long views of in- dustry and progress in Russia with giant machines—rationalization. ‘That is one extreme. The other is the subject of this article. this is the view of the employers or, if you will, of the conservative party. Employers Called Stubborn. ‘The employers have been more or less heartily damned for stubbornness in reaching settlements on wage and hours issues. It is less remarked, how- ever, that labor itself has been respon- sible for some of its own problems, nor should that fact be blinked because it may be unfashionable to say so. For example, it cannot be denied that the miners, by reason of their strength, Jargely contributed to their own ruin. ‘The beginning of the real economic trouble with the miners dates to the days immediately preceding the war, when they began to get strongly organ- ized. At that time they were organiz- ing for ghorter hours and more money, and were ably led by Prank Hodges. Hodges was a clever negotiator; knew when to cede a point; knew when to be firm, and, as a result, was respected and trusted by employers. He was an informed econori-t and had no fear of facts; often he told the men their am- bitions were {llogical and illusory, and probably that was why he lost his hold on the rank and file. That left the gate open for the fire- brand, “Emperor” A. J. Cook. who eventually obtained complete control as general secretary. Cook appealed to the Communist "element, and because those who have too little and hope for everything always relish extravagant gestures, the miners in their eventual riod of adversity put their strength hind him. Before the war the miners worked & nine-hour shift. There were two shifts. When the war came miners ‘were scarce as a result of army en- rollment. Pinally the government for- bade further recruiting of miners, and those already in the service were held, ®0 far as possible, to the mines. Be- cause of their power the miners were able to force adoption of the eight- hour shift, and then they forced the shift down to seven hours. The owners, to maintain output, had t> increase the staffs and the pay roll. But for a pay roll considerably augmented the out- ¥uz was not increased in proportion: in act, the output remained virtually sta- tionary, and at times even fell below the records of previous years. The industry at length awoke to the fact that it was grossly overmanned; that it had on thte pay roll a surfeit of labor necessary to make the whole sys- tem effective, and that this was not only costly but fatal, as the output did not cover the cost. Price of Coal Soars. ‘The price of coal soared. This re- acted on consumption figures; trade then fell off and. to complicate matters still further, the reparations scheme | went into effect and Germany began to unload coal on all former British cus- tomers in Europe—Holland, Prance, Italy and elsewhere—and the foreign | market demand for British coal fell. ‘This, in turn, affected shipping, which was in the habit of picking up coal where other goods were unnvlunb"e. The first crisis came in 1921, when there was a three months’ coal strike, and Great Britiin had to import coal to keep business going. In spite of this, scores of furnaces in the north were closed down and industry in every di- rection was affected. The strike finally was called off and un- and and the country was beginning to see day- | light when the coal strike of 1926, which developed into a costly and futile gen- eral strike. set the industrial clock back. It is only fair to state that this in- formation was not furnished by J. B. Forbes Watson, director of the National Confederation of Employers' Organiza- tlors, or by any one directly or indi-; rectly conected with the employers. | The employers, at least, have reached rock bottom, and it is apparent that,’ excluding the extremists of the Inde- rndent Labor Party and their cousins, ' he outright Communists, labor is more nearly, in sympathy with the present attitude of industry than ever before in | the history of Great Britain, | The view taken by employers in indus- ' tries normally employing 7.000,000 work- people, may begin with the statement that for some years before the world de- pressicn there was a widespread. though errcneous, belief that the restoration of this country's industrial vitality would follow from external circumstances, 117h as the restoration of financial sta- in foreign countries. Today there- is the same tendency to seek consola- tion in the fact of world depression and 12 ignore the real gravity of the situa- tion, which lies in the fact that for ears before the world depression 7an Brit2in had been continuously snable to find employment for 10 per rent of its people, even when world trad> was good and other countries were ot suffering from unemployment. | 50 T Cent Oxt of Work. Today, after 10 years of persistent tnemployment, there are, from week to wesk, some 20 per cent of the entire tyeustrial population without work. 7h> country, with a population of 45,- 012,000 to support, his to import from vher countries 60 per cent of the food $5 consumes and also a large part of its raw materials. To pay for these im- poe it has to rely on the ability of its idustries to sell their goods and serv- ices in the world's markets. Britain's export trade, therefore, is e very essence of its life, and it is the | Subscribe Today It costs cnly about 1'% cents per day and 5 cents Sundays to have Washington's best newspa- per delivered to you regularly every evening and Sunday morn- Telephone National 5000 and the delivery will start immedi- ately. The Route Agent will col- lect at the end of each month. THE SUNDAY STAR, WASHINGTON, D. C, City’s Newest Statue MEMORIAL TO GEN. ARTEMAS WARD. ized Leonard Crunell T near American University. rles Moore, the Fine Arts Commission author- , French-born Chicago sculptor, to construct the memorial to Maj. Gen. Artemas Ward, Revolutionary War hero, to be erected in a proposed circle at Massachusetts and Nebraska avenues, ‘This is how the memorial will look. Congress, in a resolution approved May 21, 1928, gave permission to the president and fellows of Harvard College for the erection of the monument. Maj. Gen. Ward took a leading part in his memory will be * affairs at Harvard. The statue here in cmmemorative of the services rendered by him to his country during the War of Independence.” serious decline in that export trade which is at the very foundation of this country’s industrial depression. The population of Britain between 1913 and 1930, has increased more 3,000,000, 8 per cent, but the volume of British produce and manufectures shows within the same period a de- crease of fully 30 per cent. The signifi- cant fact, however, is that even by 1929, before the world depression began, Brit- ish exports had fallen nearly 20 per cent as against 1913, although during the same period the trade of the world as_a whole had increased 25 per cent. The majcr reason for that loss of export trade is that British costs of production, and therefore selling prices, are too high as compared with those of competitors. When an examination is made of the disparities in the high standards of living and public expendi- ture which exist in Britain, as com- pared with those in countries, the reasons for the handicap in British production costs become manifest. First there is the disparity national taxation per head of the population. For setting Britain at 100, that of France is 64, Germany, 50; Belgium, 38, and Italy 30. The dis- parity of money wages expressed in terms of food purchasing power is Britain, 100; Germany, 74: France, 59 Belgium, 50. and Italy, 45. The dis- parity in cost per head of the popula- tion for the five social services of un- emplcyment, health, workmen's com- pensation, old age pensions and poor law relief was, a few years ago: Britain, 100; Germany, 48; France, 17; Belgium, 7, and Italy, 4. U. S. Is Self-Supporting. Any comparison between British standards and those in the United States must take account of the fact that the United States, with its great natural resources, is self-supporting and does not deperd upon its export trade fcr its existence. Its real wage level stands at 188, but its taxation level is little more than a third of the British, and, as it has not adopted the policy of providing social services for its workers other than workmen's compensation, its expenditure per head on_such services is negligible. It is idle to think that a ccuntry like Britain, which depends on its ex- port trade for its existence, can, in the industrial world of today. continue to set up and maintain standards of liv- ing and public expenditure regardless of those cf its competitors without pay- ing the price of employment. It is by pursuing that policy for 10 years that the present serious situation has arisen. The superiority of British standards dates from a time when the other nations, now Britain's industrial com- petitors, were in the early stages of their industrial development and when the British cculd afford to pursue their own standards regardlecs of what com- petitors did. That superiority was en- joyed for so long that it came to be accepted as a national prescriptive right, and that traditional attitude persisted even when Britain's competi: tors with their lcwer standards steadil. A. KAHN INC. Tokens to commemorate the GRADUATION . . . for the young man or lady, we suggest a WATCH. This ELGIN Legfonna;res ihermiost Wpopilar Smiodel dependable. movement. let attached {3 S TSI TS S>> > > > D> DI DTS >TSS DT DS S 39 Years at competing | in | included at the featured price. STATIONCRS Kahn Jnc. Arthur J. Sundlun, President overhauled the British in the contest for world trade. When it comes to remedies the em- ployers say it is realized that in the present days of keen competition and world-wide concentration on improved methods, there is a greater call than ever for raticnalization in every in- dustry; but to look to rationalization as a remedy which can of itself enable the British to overcome the disparity between British costs and those of Britain’s competitors is to igncre the essential fact that rationalization is as much open to Britain's competitors as it is to Britain, and to avold facing the fundamental disability which lies at the root of the British industrial de- pression and the whole unemployment prcblem dn this countrv. That fundamental disability. in the view of the employers, is that while the standards of Brifain's competitors are at a level which leaves little room for reduction, Britain, by setting up higher standards and insisting on their main- | tenance, has introduced into the costs of production an element of rigidity which constitutes the main obstacle to | bringing these costs down to a point | where Britain can compete successfully | with the goods of other countries in | the world's markets State intervention in industry has | made it impossible for industry itself | to remedy this rigidity in costs of pro- | duction, and specificaily the complaints |against the state are: Maladjustment | of wage levels. excessive public expen- | diture and legislative restrictions on in- | dustry. Insurance System Supported. In the matter of wage leveis, the employers complain that the state. by | fixing high rates of unemployment ben. | efit and constantly relaxing the condi- | tions for the payment of it by paving | grants to local authorities for distribu- | tion in wage rates higher than British | export _industries can afford, and by | the extension of statutory wage-fixing machinery, has not only in large meas- ure determined the general standard of wage levels, but has done so in such a way as fo make it difficult, if not impossible, for employers and workers | to_rectify ‘the maladjustments. | The “employers have supported, | throughout, a system of unemployment | insurance 'as part of the industrial | organization of the country. but only lon the principles and safeguards laid | down in the acts of 1911 and 1920. The Iatter act has seen a score of amend- | ments, by which successive governments | have yielded to the temptation of mis- |using ” the system in preference to | tackling the causes of the unemploy- | ment problem. | The progressive demoralization of the | system ' has now for many years been sapping the ind-pendence and enterprise | of the people, and by preventing trade | depression from acting as a corrective | factor in the adjustment of wage levels | has been spreading, say the employers, | the very discase the system was in- | tended to relieve. | " The remedy suggested by the em- | ployers is dealt with in the next and | final article. | (copyright, 1931, paper by North American News- Alliance, Inc.) 39 YEARS AT 935 F STREET GIFTS* GRADUATES Style and Accuracy at an Exceptionally LOW PRICE! of all ELGIN Legionnaires . .. embossed dial . . . good-looking, accurate and A New GRUEN. Cartouche in Several Styles 14-kt. Solid Gold Case. . .15 jewel GRUEN guild The open link brace- $37.50 Other famous make: both strap and pocket models. PLATI* U VMSMITHS 935 F Street ICANCELING DEBTS NOTTO CUT ARMS Germany Already Restricted in Power—War in Europe Seen Remote. This is the last of four articles by Frank Simonds on Europe and the world crists. BY FRANK SIMONDS. IV—Peace, Disarmament and Debts. (Copyright, 1931, Maclure Newsbaper Syndicate.) It remains now to discuss certain questions which have a peculiar in- terest for the American reader, those which concern first the prospects of peace or war in Europe; second, the issue of disarmament, and, finally, the related problems of reparations and interallied debts. As to war, one can say at once that nowhere is there the smallest sign of any conflict either this year or during any time for five and perhaps for ten years. War is outside the range of present possibilities and, therefore, of present discussion, because no country save France could finance a fight, and no country more than France desires to preserve a situation which is, after all, satisfactory to the French. No country, no group of statesmen in any nation or alliance, no responsible political party anywhere, save perhaps in Soviet Russia, is thinking of war— and Russia can best afford to wait. The danger in Europe arises rather from the possibility of disintegration in certain countries and even in the whole vast region of central Europe; of col- lapse within countries due alike to the economic crisis and to the political policies of other states, which can lead to disorder and even to revolution in various nations, of which Germany is the most important. Disarmament Political Issue. It follows, therefore, that the dis- cussion of disarmament is more or less academic. ~And, in fact, outside of Great Britain, the issue of disarma- ment is in the main a political ques- tion. The attitude of the continental nations, great and small, in respect to disarmament is indicated, not by the simple question of peace, but by the bearing any reduction ih military and naval forces might have on the in. terests of nations themselves. Thus, for example, the forcibly disarmed as a consequence of the peace treaties, namely, Germany, Austria and Hungary, are strongly ad- vocating disarmament. Since their own forces are cut to the bone, any reduc- tion of the standing armies of their neighbors, who were their opponents in the World War, will create a more fa- { vorable military situation for them. In |a word, since the German army, to reinforce the police in the interests of domestic order, Germany must profit by any reduction of the present French force, which counts about 400,000 in | Europe. Hungary, in the same fashion, would gain by reductions in the forces of the armies of the Little Entente. But France, Poland and the states of the Little Entente, which feel them- selves menaced by the German demand | for the revision of the territorial clauses of the peace treaties, by the Hungarian demand for similar changes or by the any reduction whatever. Thus they continue to demand that security shall | precede disarmament, and while no other guarantee of security than their armies exists, decline all proj cut down their establishments. Russia Advocates Reduction. Soviet Russia, on the other hand, of 750,000 and steadily, with German |aid, increasing the efficiency of this army both in materiel and in training, warmly advocates the most far-reach- ng | all’ other states. Every nation’s army is one of the effective reserves against that world revolution Russia is always seeking to promote. There is only one country in Europe which advocates disarmament for what one might term purely and simply pacific reasons, and that is Great Britain. The British people believe disarmament is the one sure road to peace. But in this situation the Brit- ish are unable to press théir argu- ments, because they are met by France and her allies, the armed states of the Continent, all of which demand that in return for any reduction of their armies Britain share contract to lend her navy and army to restrain and coerce any country guilty of aggression. And the British people will not stand for any such commitments. The Labor government in Britain is pushing hard for a disarmament con- ference. ,It is in fact due to its efforts that the sessions will be held at Geneva { Tailored ‘LINENS ... 15 i Tailored NUROTEX .... %20 ' TROPICAL WORSTEDS . 25 In Summer Clothing It's Tailoring. “The Tailoring Tells” countries | at | least in theory, consists of but 100,000 men, the irreducible minimum required | Russian threat, are in no mood to make | while maintaining an army of upward | program of military reduction in | HOT days are coming! ! warm aayg are here! ! next February. But outside of British Labor circles, there is not the smallest doubt anywhere in Europe that such a conference is foredoomed to failure and can hardly, esc: bringing disastrous consequences in its train. It must de- fine and accentuate existing bitterness, as the London Naval Conference ac- centuated Franco-Italian rivalries. Distrusts Intensified. ‘The recent explosion over the pro- Jected customs union between Germany and Austria has served to revive all the distrusts _existing both on the Rhine and in all of the center and east of Eu- rope, and the atmosphere all over the Continent is less propitious for a dis- armament conference than at any mo- ment since the armistice. The recent happenings in the discussion over Pranco-Italian naval adjustments and the defeat of Briand at Versailles serve to illustrate this fact. But here, again, it must be seen that the issue is politi~ cal. Italy, stricken by the economic crisis and unable to make good her claim of parity with Franre, is con- not with naval uction as such, but_with the in on of a limit on French bulldin, uatil Italy can recover from economic depression and resume her race for parity. France, having the money, is in no mood to surrender her present advantage. Unless all signs fail, Europe is more likely to incrcase than to diminish its armaments in the next few years. Thus Germany has practically served notice that if her neighbors, and France par- ticularly, do not reduce their armies to her treaty level, she will despite treaty restrictions build up to theirs. And one of the most likely cons:quences of an unsuccessful disarmament confer- ence would be a German attempt with the Soviets' aid to achieve military parity with France. Now with the question of disarma- ment, that of debts and reparations is inevitably tied in, the more because President Hoover has recently under- taken to establish the fact that the cure for the European economic diffi- culties lies not in the cancellation of allied debts but in the reduction of European military establishments. At bottom this assumes that Europe could pay its debts to America if it would |only reduce its expenditures upon | armaments. Only Germany Paying. The difficulty with any such assump- tion arises from the fact that only one country, and that Germany, is actually paying the war debts, and Germany is for all practical purposes disarmed down to the irreducible min- imum. France, Britain and Italy are paying their war debts to America out of the proceeds of German reparations, and PFrance is, in addition, drawing from the same source $125,000,000 annually, which represents the excess of what she gets from Germany over what she pays to America and Britain. If the United States were to cancel the debts of her associates in the war, and these associates were to abandon German reparations, Germany would be the sole immediate beneficiary. Moreover, France would agree only to cancel that part of the German obli- gation equal to her debts to Britain and America. If, moreover, Germany should, as she seems bound to, de- clare a moratorium in payments of reparations, France, Italy and Britain would inevitably do the same in the matter of debt payments. It follows clearly that an American offer to cancel the debts in return for an allied agreement to forego repara- tions_would not constitute any direct benefit to the former allies, and, there- fore no basis for a bargain in the mat- ter of disarmament. There would be no_reason why France should disband a battalion or Britain scrap a cruiser. | Both would stand just where they do now. The only nation directly benefit- ing would be Germany, which is al- ready disarmed. France Demands Security, It is 0 clear that if the double process of wiping out debts and repara- tions did promote an economic recovery in Europe, all nations would share in the profit, but even here dispropor- tionately. France is not interested in such a Tecovery to the same extent as Germany or Britain, as industrial coun- tries and trading nations. But it is precisely France, as the most strongly armed country in Europe and as the head of the strongest militarv combina- tion, which must be persuaded if dis- armament is to assume any practical and Great Britain _collectively or severally could offer France, to gain her assent to disarmament, would b2 some form of political and military guarantee . of her security, something ranging from_ the consultative pact of the London Naval Conference to the treaty. But it is plain that the United States is no more ready now than it was a: the time of the naval conference to accept even the relatively slight re- sponsibilities of a consultative pact, which would put certain obligations upon us in case of a European crisis. In a word, we cannot offer France any benefits, financial or otherwise, to dis- arm, but France is in the position to ask us political contracts in return for any concession on her part. As to the degree European recovery would be promoted by the double dis- appearance of debts and reparations the matter is plainly debatable. But one thing is beyond question, the psy- chology benefit in Germany would be incalculable. The German people are today in a dangerous state of mind, Mm 00! N 1 Keep cool and sweet—here's how— CLEARANCE PRICES ON ALL SPRING SUITS All $30 Spring 19_75 Sl s Extra Pants, $4 All $35 and $40 75 Spring Suits. . 23 Extra Pants, $5 All $40 and $45 5 Spring Suits . . 28 g Ex.tn Pants, $6 All $50 and $55 33,75 shape. All then, that the United States | British obligations under the Locarno | dangerous to themselves and to the | JUNE 7, 1931—PART ONE. Attend Sorority Meeting CHI SIGMA OFFICERS HERE FOR NATIONAL CONVENTION. T world, as a consequence of their con- viction that the world has sentenced Germany to death, that the repar2tions clauses of the peace treaty make Ger- many a nation of slaves, and the mili- tary clauses deprive her of all possi- bility of self-defense. German Credit at Stake. If the economic crisis continues, Ger- many cannot go on paying reparations. | But if she proclaims a_moratorium her | credit is bound to suffer and the re-| sult is that she will have less chance of obtaining abroad the loans neces- sary to her economic existence, for even if reparations payments cease, her | need of long-term loans will continue. Thus, in the last analysis, the ques-| tion of the cancellation of debts and | of the abolition of reparations comes down to the simple issue of the im-| portance to the United States of the | recovery of Germany, not merely eco- nomically, but politically and morally. | Our European allies of the war have very adroitly transferred to Germany the burden of their debts to the United States and to us the responsibility for | the continuation of German payments. | They will let up on Germany precisely to the measure we let up on them They calculate and will continue to calculate that our stake in Germany through private loans is so great that we shall presently become sufficiently alarmed over that to agree to scra debts in order to abolish reparations and thus save Germany. In sum, no conclusion was more em- | phatically forced upon me during my | European trip than that at the present moment the subject of disarmament cannot be successfully raised and any effort to press it may result in accentu- ating the suspicion and bitterness now existing, as the London Naval Confer- ence unmistakably embittered Franco- Italian relations, ‘with regrettable con- sequences to all Europe. Leaders Cynical and Anxious. In the same fashion. it appears ut- terly futile to attempt to join the questions of debt and disarmaments, | because cancellation of debts, followed by scrapping of reparations would HE annual convention of Chi Sigma Sorcrity, which opened Priday at the Mayflower Hotel, was attended by Martha Strater, president of Rho Chapter, Mansfield, Ohio; Lenora Lester, national secretary, of Washing- ton; Mary Strater of Mansfield and Peggy Bogue of Washington. —Star Staff Photo. benefit no armed nation directly and if it did end by the recovery of Ger- many, this very recovery by reawaken- ing French fears as to security might lead to further armaments on the part of Prance and her allies. This is the more likely because Germany already demands equality of military strength with France. What has recently happened in the case of the Franco- Italian naval nego- tiations is perhaps the best evidence of what might happen in any confer- ence on disarmament. In nearly eight months of travel I never encountered a continental statesman or diplimat who did not look upon the projected disarmament conference of February, | 1932, with mingled cynicism and anxiety; cynicism as to the direct con- sequences, anxiety as to the probable Indirect effects. WOMAN ASKS 325,060 FOR AMMONIA INJURY Claims Breathing Was Affected by Fumes Escaping From Razed Building. Maude Taylor, 5112 Connecticut ave- nue, filed suit in District Supreme Court yesterday to recover $25,000 damages from the L. A. Harris Wreck- ing Co. for injuries alleged to have been sustained May 9, 1930, while passing premises at 210 Ninth street northwest, where the company was razing the building. The place housed a refrigerating plant, the court was told. and it was charged that the company neglected to take precautions against the escape of ammonia fumes, which were inhaled by the plaintiff. This affected her hear- ing and caused her to spend large sums of money for treatments, the plaintiff asserted. She is represented by Attorneys Charles W. Arth and Leonard J. Ganse. A—S ° SHOUSE RETURNS HATFIELD THRUST Cites Hays’ White House {Iis- it Answering Statement on “Raskob Mortgage.” By the Associated Press. Chairman Jouett Shouse of the Dem- ocratic National Executive Committee replied yesterday to the statement Prie can, of West Virginia, describing John J. Raskob as “steadily increasing the size of the mortgage he holds” on the Democratic party. Republican National Committee,” Shouse said through the Democratic National Committee. “was a visitor at the White House Friday. “Mr. Hays, it will be recalled, was the resourceful political executive who, when the G. O. P. had a deficit follow- ing the election of President Harding, hijacked Harry Sinelair out of $200,000 Co. loot that was denounced by the Su- preme Court as the proceeds of a cor- poration ‘created for some illegitimate pu and ‘to circumvent the law and defeat public_policy.’ with President Hoover Friday, the Re. publican National Committee issued statement under the pen name of Sena- tor Hatfield of West Virginia reflecting on the loan of $40,000 by Democratic Chairman Raskob to aid in financing |the Democra‘ic National Committee's | activities as evidence of the ‘mortgag- |ing’ of the Democratic party to its chairman. “Whether this statement was a con- | sequence of or a coincidence with the closeting_of Mr. Hays with President Hoover, T do not know. But the un- derstanding in newspaper circles, or at |least my information on that subject | comes from newspaper men, is that no |statement is issued from the Republi- | can National Committee until it has the | definite O. 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