Owned and Published 
By and For Labor

Lansing Labor News

Official Weekly Newspaper of CIO Labor in Lansing
MAIL ADDRESS: P.O. Box 657, Lansing 3, Mich.

For A Better America
-60,000,000 Jobs

VOL. 1, No. 34

LANSING, MICHIGAN — NOVEMBER 8, 1945

$1.50 PER YEAR — PER COPY, 5c

Toast to World Labor

Public Discussion 
Of General Motors 
Wage Issue Asked

Walter P. Reuther, UAW-CIO vice president and director 
of the union’s General Motors Department, this week pro­
posed to C. E. Wilson, GM president, that the General Motors 
Corporation join with the union in sponsoring a public dis­
cussion in Detroit of the General Motors wage controversy in
which Reuther and Wilson 
would present the positions of 
each party to the dispute.

Behind the
Headlines in
Washington

with
IRVING RICHTER
Int. Leg. Rep., UAW-CIO

Diary of a Campaign 
Worker

DETROIT, Oct. 31 — It’s 
five days before election. The 
daily newspapers have been 
much less biased than every­
body anticipated. The chief 
reason is the slashing at­
tack made by Frankensteen 
early in the campaign, warn­
ing the people of what the 
newspapers would do to dis­
tort the news in favor of the 
big money candidate. Also, 
the many rank-and-file 
Newspaper Guild members 
helped somewhat to keep 
them honest. The same 
guildsmen gave valuable help 
in preparing our own cam­
paign newspaper—one story 
of which was devoted to an 
expose of the press.

But the press, and the 
radio, still manage to 
work against us. Yester­
day, for example, Harold 
Murphy, brother of Jus­
tice Frank Murphy, spoke 
on the air for Dick Frank- 
ensteen. The DETROIT 
FREE PRESS chief politi­
cal writer this morning 
identified him as “a clerk 
in the United States Court­
house", and left off the 
really significant news 
that he is Frank Murphy's 
brother and by his speech 
had implied that Frank 
Murphy was for us.

The radio news commen­
tators are taking sides by 
linking the Detroit elections 
with the “menace of com­
munism” in the world and in 
other municipal elections 
(New York). We demanded 
transcripts of two of these 
news” reports, and after a 
protest to the stations, were 
given the opportunity to 
write our own copy to bai­
lee the stuff we objected to.

Our radio spot an­
nouncements were refused 
by two stations — “too 
rough”, and “poor taste".
immediately filed a pe­
tition with the Federal 
Communications Commis­
sion, demanding a hear­
ing. We issued press re­
fuses giving the contents 
the spots. That gave 
good publicity. The 
banned spots were then 
^ad by Dick Frankensteen 
his regular paid politi- 
cal broadcast. We adver­
tised the broadcast as “The 
spot announcements which 
were banned as 'too rough' 
on the Mayor." Today both 
stations offered to carry 
the spots after being warn- 
ed by the Federal Com­

munications Commission.

November 1. — More 
and more people in Detroit 
See RICHTER, Page 3

In a letter to Wilson, Reuth­
er suggested that the discus­
sion be held Sunday, Nov. 11, 
or some day during the fol­
lowing week:

Following is Reuther’s let­

ter:

November 5, 1945 

Mr. C. E. Wilson, President 
General Motors Corporation 
General Motors Building 
Detroit 2, Michigan

Dear Mr. Wilson:

The present wage contro­
versy between the UAW-CIO 
and the General Motors Cor­
poration is a number one prob­
lem of our community and the 
nation. As spokesman for the 
corporation, you have stated 
that it is a matter that in­
volves the public interest. We 
have said the same thing. No 
one disputes that fact.

As you know, the union has 
proposed repeatedly that our 
negotiations be open to press 
and radio representatives. The 
corporation has rejected that 
proposal. 

The union has also stated 
repeatedly that this dispute 
should be settled, not by the 
use of arbitrary economic 
power on the part of either 
side, but on the basis of the 
facts.

You will recall that a little 
over three years ago, on March 
21, 1942, you proposed that 
you and I hold a joint press 
conference to discuss the 
UAW-CIO’s plan to convert 
the automobile industry to 
war production. At the press 
conference which was held as 
a result of your proposal and

Text of Reuther's
Brief to GM
Is On Page 5
Read on page 5 in this 
issue the actual figures on 
GM profits — complete 
text of the economic brief 
Reuther presented to Gen­
eral Motors to show that 
wages can be raised 30% 
without increasing car 
prices.

our agreement to it, you said:
 “I did not propose this con­
ference to add to the contro­
versy, but in the hope of clear­
ing it up.”

We feel that the need for 
public discussion of the cur­
rent issue is just as compel­
ling in solving the problems of 
the peace as our earlier confer­
ence was in clarifying the war 
problem of industry conver­
sion.

It is in that spirit and in 
view of the public interest in­
volved that I now propose that 
the union and the corporation 
jointly sponsor a meeting in 
Detroit, open to the public, 
where you and I, as spokes­
men for our respective organ­
izations in this ‘ dispute, will 
discuss the General Motors 
wage case and place its broad 
aspects before the public.

We suggest that such a dis­
cusion be held next Sunday, 
November 11, or some day 
during the following week, in 
Masonic Auditorium, Cass
See REUTHER, Page 2

Gen. Charles DeGaulle drinks a health to the newly formed 
World Federation of Trade Unions in Paris. With him are labor 
leaders Sidney Hillman of U. S., Walter Citrine of Great Britain and 
Louis Jouhaux of France.

—Federated Pictures

WHAT FACTIONALISM?

Jack Holt Is Elected 
New Regional Director

The wishful reporting of certain elements of the press to 
the effect that serious factional strife is undermining every 
section of the UAW-CIO was exploded in a big way at the 
special convention of Region 1-C in Flint Sunday, when the 
Lansing delegation staged a demonstration of unity which
should stand as a model for 
some time.

Victory Bond 

Though it took five ballots 
to elect Jack Holt regional dir­
ector to replace Carl Swanson, 
who resigned, the Lansing 
group voted solidly for him on 
every ballot—despite the fact 
two others from here had 
planned to enter the race and 
had ample support to make a 
good showing. But they with­
drew in favor of Holt.

Nor did factionalism appear 
as a gigantic crisis in the Flint 
group. They had several candi­
dates, but these were elimin­
ated in an orderly manner just 
as they would be in any other 
kind of an organization.

So-called factionalism in the 
UAW-CIO is no more, and 
may be a lot less serious than 
in the Republican or Demo­
cratic parties or in the Na­
tional Association of Manufac­
turers, where news of it nev­
er reaches wide public notice 
in the papers.

Though Holt the past two 
years has worked in Lansing, 
his first labor service in Mich­
igan was in Flint, where he 
was president of the Buick 
local. He was elected because 
his qualifications are widely 
known in both areas.

He made this statement to 

the press this week:

In expressing my thanks 
to the Lansing Delegation 
and the Lansing Locals for 
their support, I do so with 
full intentions of living up 
to the confidence express­
ed in my selection.

I pledge to you, as I 
pledge to every member 
and every local in Region 
1-C that I will do my best 
to give you the kind of an 
administration that will 
benefit all members, that 
will be a credit to the Re­
gion. I promise that every 
effort will be made for full 
representation so what ev­
er is done will be done for 
the best interest of this 
Union. We work together 
to complete a very diffi­
cult job, a job that will re­
quire the full efforts of us 
all. I need, and I hope that 
I can count on, your con­
tinued support so that we 
not only do a job to bene­
fit our people but one that 
will benefit our city, state 
and nation.

Drive Purpose 
Is Outlined
WASHINGTON, D. C. — 
Pointing to the absolute need 
for a successful Victory Loan 
Drive, Treasury Secretary 
Vinson in a radio address 
opening the campaign on the 
eve of the drive warned 
against the danger of winning 
all the rounds except the last 
one and thereby losing the 
fight.

His warning was a reference 
to the past seven successful 
War Bond Drives and the bul­
wark bond sales provided 
against inflation. From an an­
ti-inflationary point of view, 
Secretary Vinson pictured the 
Victory Loan as the most im­
portant of all.

At the same time he cited 
the need for funds for meet­
ing costs of mustering-out 
pay, medical care and educa­
tion of veterans.

For the Living Dead
His address follows:
“You and I are not alone to­
night as we launch this Vic­
tory Loan. We are joined in 
spirit by those who made pos­
sible this occasion, the spirit 
of the American dead who 
brought us to this wondrous 
See VICTORY BONDS, Page 4

White Collar 
Germans Are 
Organizing

First of 13 labor federations 
to be formed in the British- 
occupied zone of Germany is 
the new White Collar Workers 
Union. More than 500 leading 
persons in the new German 
union movement met last week 
in Hamburg to lay initial 
plans.

Central committees for oth­
ers of the 13 federations have 
already been chosen and so far 
a total of almost 80,000 union 
membership cards have been 
issued in Hamburg alone.

There are 1,200 applications 
for membership in the new 
White Collar Workers Union, 
which will represent workers 
in the wholesale and retail 
trades, insurance, banking and 
in cooperatives. Karl Froh- 
berger has been appointed 
temporary secretary of the 
new union.

Timekeepers 
Changed to 
Clock Cards
Timekeepers at Oldsmobile 
were changed from a salary 
to hourly method of payment 
and were required to start 
punching clock cards Nov. 1. 
No other office employees in 
the plant were changed.

This action followed certi­
fication last week of Olds Lo­
cal 652 as collective bargain­
ing agent for the timekeepers, 
who won an NLRB election 
Oct. 12.

“This is another at­
tempted bit of reprisal and 
an attempt to discourage 
other Olds office employes 
from favorable considera­
tion of a union" said V. 
E. Vandenburg, chairman 
of the timekeepers execu­
tive committee. “This ac­
tion is also a flat refusal to 
follow democratic prin­
ciples. Knowing the time­
keepers will have a voice 
in matters affecting their 
working conditions and 
wages, the proper method 
of approaching any desir­
ed change would have been 
to take it up in an orderly 
manner with the em­
ployees' elected repre­
sentatives, as provided by 
the law which now re­
quires them to bargain 
with their employees. This 
requirement will not be es­
caped by prematurely 
rushing through a batch of 
regulations, nor by laying 
off a dozen or so time­
keepers — or attempted 
firing of a couple."

Two fired from the time de­
partment after the election 
were Vandenburg and Leslie 
L. Junkerman. Action is be­
ing taken on both cases, as 
well for those who were lay- 
ed off out of line in seniority.

Shocks Senate

—Federated Pictures
An unusual representative of 
big business, Chairman Robert 
W. Johnson of Johnson & John­
son, handed the Senate commit­
tee holding hearings on 65c mini­
mum wage bill quite a shock by 
urging its adoption — with one 
change. He recommended imme­
diate raising of the minimum to 
75c because nowhere in the U. S. 
can a worker live on less than 
$30 a week.

Rubber Corp. 
Leads Field 
In Bargaining
WASHINGTON (LPA) — 
U. S. Rubber last week turned 
up as the first company in the 
industry to agree to bargain 
on a corporation-wide basis. 
Meeting with officials of the 
U. S. Tire and Rubber Co., the 
United Rubber Workers—CIO 
started their first postwar 
wage negotiations.

Under discusion were: 30c 
an hour wage increase; double 
time for Sundays and holi­
days ; 6 hour day and 30 hour 
week; time-and-a-half for Sat­
urdays and all hours over 30; 
straight time pay for holidays 
not worked; and 10c an hour 
extra for all hours worked be­
tween 6 p. m. and 6 a. m.

Suppressed U.S. Report 
Proves Case For Wages

board Nov. 1 made public a 
report by government econ­
omists which so far the gov­
ernment has suppressed. The 
report, made for the office of 
War Mobilization & Recon­
version, showed:

1—Between April 1945 
and the spring of 1946, to­
tal salaries and wages will 
have gone down $30 billion 
to $35 billion.

2—Estimated profits of 
major corporations, after 
taxes, will be $7 1/2 billion 
—higher than the wartime 
peak. For all business, the 
figure will be $11 billion.

3—The average worker's 
weekly pay in 1946 is es­
timated at $33.96, which 
will buy 3% less than the 
average wage of $26.64 in 
1941. After taxes are paid,

WASHINGTON (FP) — 
To buttress its resolution de­
manding substantial wage in­
creases, the CIO executive

Strikes Hit 
Lucky Strike 
And Others
PHILADELPHIA (FP) — 
It’s okay to walk a mile for a 
Camel, but don’t even reach 
out a hand for Lucky Strike, 
Pall Mall or Melachrino ciga- 
rets. The latter are on the for­
bidden list of striking mem­
bers of Food Tobacco & Agri­
cultural Workers (CIO) who 
voted to intensify a nation­
wide boycott of American To­
bacco products until the com­
pany agrees to meet with the 
union. Other banned products 
include La Corona, Bock y, Ca, 
Henry Clay, El Rio Tan, Ca­
banas, Antonio y Cleopatra, 
Chancellor and Cremo cigars.

Russia Asks 
Cooperatives 
For Baltics
LONDON, Sept. 12 — The 
delicate question of the status 
of the Baltic republics of 
Latvia, Estonia and Lithu­
ania was brought up by So­
viet Russia herself today at 
the International Conference 
of Cooperatives here today. 
On the motion of a Latvian 
member of the Soviet delega-
See RUSSIA, Page 4

Catholic Bishop Hits 
Big Business, Press 
For Anti-Labor Fights

CHICAGO (LPA)—The current anti-labor campaigns 
by both industry and the daily press were assailed last week 
by Bishop Bernard J. Shiel, of Chicago, one of the most 
prominent spokesmen of the Roman Catholic Church in the

Council Dance
Planned for 
November 17

The Lansing CIO Council 
will sponsor another party at 
the Council Hall, 109 E. South 
St., Saturday, Nov. 17. The 
affair begins at 9 P.M. and 
there will be both round and 
square dancing.

Everyone is welcome. Tic­
kets sell for 50c apiece and ar­
rangements are now being 
made for a foor show. Lou 
Dougherty and his orchestra 
will furnish the music.

This will be the third dance 
held at the Council Hall within 
three weeks. If they continue 
to be successful they will be 
held throughout the winter 
months.

Battle Nears 
On Poll Tax
WASHINGTON (LPA) — 
Mounting support for the bill 
to abolish the poll tax in na­
tional elections is expected to 
be reflected when the measure 
is called up on the floor of the 
Senate during the next two 
weeks.

Supporters of the bill, who 
conferred here under the aus­
pices of the Nat’l Committee 
to Abolish the Poll Tax, are 
confident that they have a 50- 
50 chance of killing off the 
proposed filibuster. Congress­
men coming from states where 
voters have to pay the tax in 
order to vote have insisted 
that they will hold the floor 
until the supporters of poll tax 
abolition yell “uncle.” Main 
attention of the conference, 
therefore, was obtaining 
sufficient numbers of Sen­
ators committed to vote for 
cloture — conclusion of de­
bate when the filibuster 
comes. This requires a two- 
thirds vote, whereas a simple 
majority is sufficient to pass 
the bill once the filibuster 
hurdle is jumped.

the 1946 income will buy 
what $23.95 bought in 
1941 — a 10% cut.

4—Reduction of over­
time, elimination of war­
time upgrading and repeal 
of excess profits taxes 
alone will reduce corpor­
ate costs in 1946 enough to 
permit a 24% pay raise.

United States.

“I am disgusted and dis­
mayed by the unreasoning 
attack that has been made 
upon labor by a powerful 
and vociferous section of 
our press," said Bishop 
Shell in an address to the 
Building Service Employes 
Union AFL. “With what 
is apparently deliberate 
malice," he continued, 
“they have embarked up­
on a campaign of distor­
tion, that has not yet 
reached its peak. Through 
the torturous months of 
war, these harbingers of 
dissension magnified every 
dispute in which labor 
unions figured."

Turning to the antagon­
ism that some sections of big 
business and industry have 
recently shown toward labor, 
Bishop Shiel said:

“American business, like 
business elsewhere, has not 
yet learned a very simple 
thing; the dollar is not al­
mighty God; but that hu­
man beings are very prec­
ious. This should be a very 
obvious principle, but those 
who advocate it are brand­
ed as radicals."

American business, if it is 
to survive, declared the Bish­
op, “must serve the people. It 
must develop a social con­
sciousness and be aware of 
its community responsibility. 
It must drop its bland disre­
gard of its obligations.”

The Catholic prelate con­
tended that “It is saddening 
to see how many business 
men scoff at the idea of full 
employment. They view the 
Olympian calm the prospect 
of millions unemployed. If 
this country is ever destroy­
ed, it will not be by foreign 
enemies, but by destitution 
and wretchedness within.”

Bishop Sheil emphasized:

“For the well-being of 
the nation, the headstrong 
power of management 
must be restricted . . . " 
Pointing out that although 
some employers have so­
cial vision he asserted 
that “it is disconcerting to 
think that an alarmingly 
large percentage of em­
ployers would like to see 
an open labor market, a pe­
riod of low taxes, low 
wages, and high profits. 
This is practically a fool­
proof pattern for depres­
sions."

Enclosed With Service Allotment Checks

A slip like the one shown above was enclosed with Army and Navy allotment checks 
and apparently is part of OPA’s campaign for price control against inflation. But Senator 
Robert A. Taft (R. O.), who doesn’t like OPA or inflation warnings or price control, claims 
it’s OPA’s campaign for continuation of OPA.

It's Your Last Chance to Buy 

Bonds to Finish Winning

The War

LANSING LABOR NEWS, INC.
MAIL ADDRESS: P. O. Box 657, Lansing 3, Mich. 
OFFICE: 109 E. South St. — Phone 2-9621

Entered as second-class matter April 13, 1945, at the post office at Lansing. 
Michigan, under the Act of March 3, 1879.

A non-profit newspaper dedicated to the interests of the commun­
ity and to the interests of labor here and everywhere. Published 
every Thursday at the Lansing CIO Council headquarters by the fol­
lowing incorporated body, representing local voting to participate.

BOARD OF DIRECTORS
PRESIDENT—Ernest Miller (Reo 650). VICE-PRES.—Maurice McNaughton 
Fisher (602). SEC.-TREAS.—Kenneth McCreedy (CIO Council). TRUSTEES— 
George Jakeway (Fisher 602). MEMBERS—Robert Richardson (Olds 652), Earl 
Watson, Charles O’Brien (Reo 650), Maurice Mac Naughton (Fisher 602), V. E. 
Vandenburg (CIO Council), Peter Fagan, Adrian Jensen (Olofsson 728), Arthur 
Chappell, Woodrow Brennen (Dairy 93), James W. Roberts, Dean Reed (SCMWA 
276); Louis Newmark (SCMWA 406); Earl McClure, Melvina Stevens (Hill 
Diesel 646). ASSOCIATE MEMBERS—Mrs. Robert Atkinson (Olds Aux.), Mrs. 
Harold Wilson (Olds Aux.), Mrs. William McCurdy (Fisher Aux.), Mrs. J. B. 
Eno (Fisher Aux.), Mrs. Evelyn Moss, Mrs. Etta Kenyon (Local 93 Aux.).

EDITOR — V. E. VANDENBURG

SUBSCRIPTIONS — Included in the dues of participating locals. In­
dividual subscription, $1.50 per year by mail.

CONTRIBUTIONS—Should be typed double-spaced on one side of paper 
and signed with author’s name, phone and address. Name will not be used 
if requested. Notes on news not written up but containing complete names 
and all the facts are acceptable too. Mail all contributions to Lansing Labor 
News, P. O. Box 657, Lansing 3, Mich.

Notes For the Record

Did you know that all the wrong votes in Congress are 
not taken on the floor? Frequently the most far reaching 
consequences result from balloting in Committee. Some­
times a committee can vote down a bill so it never does get 
to the floor. Anyway, it is generally tougher to get a good 
bill passed after it has been turned down by a committee, 
and tough to put back important features of a bill after 
the committee has taken them out.

Did you know that the war-rich industrialists are hold­
ing on to their profits while at the same time they are 
attempting to break the union movement?

Did you know that the current tax bill now in House- 
Senate conference will probably end up by both corpora­
tions and wealthy individuals getting their big cut in taxes, 
while the small tax payer will be left holding the bag.

Here is another one: Senator Alexander Wiley (Re- 
publican-Wisconsin) is working up to real pressure for es­
tablishment of a Dies Committee in the Senate in time to 
do its dirty work in the 1946 elections. He has a resolution 
(S. Res. 165) before the Senate Judiciary Committee, to 
set up such a body. He also gave a speech in the Senate 
which made it clear that the CIO-PAC was his main target.

Did you know that the Department of Labor is the 
tenth executive department of the United States govern­
ment and that it was established in 1893, the head of which 
is a member of the President’s cabinet.

Did you know that Senator Bilbo has announced he 
will run for reelection on an “up-the-rebels” platform of 
white supremacy. There is one Senator that Washington 
would definitely not miss.

—H. DEAN REED, 

Lansing PAC Director.

HANGOVER HOUSE

Let Our
People Live

A PLEA FOR A LIVING WAGE

Organized labor, supported by all 
the progressive forces in the nation, 
have established powerful beach­
heads in the war against starvation 
wages and poverty. But we still have 
a long way to go to attain final vic­
tory.

When we talk of poverty, what do 

we mean?

We are talking of the condition of 
millions of people who cannot afford 
enough clothing in which they can 
appear in the street or church, a 
good roof over their heads, medical 
care to protect their health, educa­
tion for their children, insurance 
against illness and death. We mean 
the people who cannot even afford 
enough food to eat.

Today, when we rightfully pride 
ourselves on the highest national in­
come in our history, considerably 
more than half of all our wage-earn­
ers are not getting enough income to 
assure them a standard of living on 
which they can continue without 
wrecking their health.

Many experts in the cost of living 
have figured out that a family of 
four, that is, a wage-earner and his 
wife and two small children, need 
each week at the very least: $14.45 
for food; $4.12 for clothing; $3.85 for 
housing; $3.58 for household opera­
tions; $3.31 for health, education, 
transportation, tobacco, the barber, 
postage stamps, and so on; $4.38 for 
taxes, war savings stamps, insurance. 
Thta adds up to $33.70.

To earn even that amount, a 
worker must get 87 1/2 cents an hour 
for a 40-hour work-week and be sure 
of 50 weeks' work a year, if his fam­
ily is to survive.

A fact is a very stubborn thing and 
it is a fact that fully three out of

every five wage-earners in the United 
States in the Year of our Lord 1945, 
do not earn even that little. In fact, 
millions of them earn so much less 
that 87 1/2 cents per hour sounds to 
them more like a dream than a mini­
mum wage need!

WHO ARE THESE MILLIONS?

Who are these millions of people 

receiving such low wages?

They are to be found in practically 
every factory and in every shop and 
in every store—everywhere.

There are just as many underpaid 
people in the Far-West, in the Middle- 
West, in the North-West, in New 
England, and the Eastern Seaboard 
States as there are in the South.

There are "pockets" of underpaid 
workers in practically every industry, 
even in the metal, machinery, trans­
portation equipment, rubber, printing 
and other highly organized and bet­
ter paid trades. But the greatest num­
ber of underpaid workers are in the 
consumer-goods industries, in the 
service industries, in the retail trades 
and among white collar workers. The 
greatest number of the underpaid are 
among the unorganized workers.

We talk of millions of people, of 
their occupations and their earnings. 
None of this makes sense unless we 
remember the people, the real peo­
ple, these figures and these calcula­
tions represent. How do these under­
paid Americans we talk about really 
live? How do their small earnings af­
fect their lives?

Mrs. Irene Gillespie, pants maker 
of Martinsville, Va., has been work­
ing continuously for eight years. She 
earns 45 cents per hour which comes 
to $18 a week. With her earnings she 
supports herself, her aged mother

and her three children. "If it were 
possible for you to get 65 cents an 
hour, what would be the first thing 
you would take care of?" Mrs Gilles­
pie was asked. And she replied: "I 
would first try to have the children's 
tonsils removed; next I would try to 
get them a little more milk."

Mrs. Ruth Deckert, tomato sorter, 
of Elwood, Indiana, and her husband 
work to support themselves and their 
four children. When their 11-year-old 
boy fell down and broke his arm, 
they could not afford to pay the doc­
tor for resetting it. "My boy helped 
me pay for it," she explained, "He 
picked tomatoes in the field for the 
farmers to pay for his broken arm." 
The Deckerts cannot afford medical 
care and they cannot afford enough 
food to eat unless they raise it after 
working hours in their garden, and 
they cannot afford any clothing for 
the adults. "We have been married 
18 years, and my husband has never 
had a new suit of clothes."

NO OPPORTUNITY

But worse by far than the lack of 
food and clothing and decent hous­
ing is the closing down of the oppor­
tunities for Mrs. Deckert's children. 
"My oldest boy, 15, feels now like it 
is his place to quit school and go into 
some of the factories and add to our 
family income in order that the 11- 
year-old boy can get by." And then 
she added bitterly: "It is not right for 
our young boys to quit school and go 
to work in order to help out to raise 
the younger children. That is what my 
boys have done."

Arthur Clyde Hill, textile worker of 
High Point, N. C., has a wife and 
three children to support on $20.60 a 
week. They live on a street that is 
not paved, and the whole family 
sleeps in one bedroom because it is 
the only room with any heat in it. 
When it rains, the water floods the 
house. What do they do? "Well," 
said Mr. Hill, "we just wade in and 
out." Their food and their clothing 
are no better than their housing.

The New England textile worker is 

no better off.

Mrs. Gillespie and Mrs. Deckert 
and their families, multiplied by the 
millions—each family with its own 
variation of troubles, each troubled 
because of poverty—together they 
constitute the army of our substand­
ard people. They need our help. We 
must not let them down.

There is a Bill now before the Sen­
ate of the United States (S1349) 
which was introduced by Senators 
Pepper (D. Fla.), Thomas (D. Utah), 
Murray (D. Montana), and Mead (D. 
N. Y.). A similar Bill has also been 
introduced to the House of Represen­
tatives.

The plight of America's under-paid workers, the 10 
million who don't yet earn 65 cents an hour, is one of 
our economic sores which must be cured. Until it is there 
cannot be full and fair employment in this country. The 
need for a 65-75 cent hourly minimum wage is dis­
cussed in a new CIO Political Action pamphlet, "Let Our 
People Live," written by Joseph Gaer and illustrated by 
Lynd Ward. We offer a digest for our readers, with the 
conviction that they will draw from it information and 
incentive to spur action so that the one body which can 
correct this ill, Congress, will do so immediately.

—Editor's Note.

This Bill asks that the Congress of 
the United States should amend the 
Wage and Hours Law, known as the 
Thomas-Norton Act of 1938. The 
amendment provides that as soon as 
it goes into effect, which is 120 days 
after it is passed by Congress, the 
minimum wage of all employees 
should be not less than 65 cents an 
hour; it should be raised to 70 cents 
an hour the second year; and after 
two years the minimum should be 75 
cents an hour. The amendment stip­
ulates that under no circumstances 
should the minimum become the maxi­
mum and the passing of this law 
should not be the occasion for lower­
ing the wages of people earning 
more than 75 cents an hour.

The Bill also provides for a 40-hour 
week for food workers who, up to 
now, have been working long hours 
for 14 weeks a year and then finding 
themselves jobless. The Bill asks for 
a wage minimum of 40 weeks for 
those people representing 1 1/4 million 
workers.

The Bill provides that this minimum 
wage of 65-75 cents per hour shall 
not apply to fishermen, agricultural 
workers, newspaper workers, switch­
board operators employed in places 
with less than 500 stations, profes­
sionals, and employees engaged in 
any establishment the greater part of 
whose selling or servicing is in inter­
state commerce and who are covered 
by separate bills.

7. THE UNDERPAID WORKERS. 
For millions of workers now receiving 
less than 65 cents an hour, it will 
mean the opening of a door, or more 
like the turning on of a light. It will 
mean more food.

It will mean a "Little more milk" 

for Mrs. Gillespie's children.

It will mean a suit of clothes for 
Mrs. Deckerfs husband, who has not 
had a new suit of clothes in 18 years.
It would mean a great deal more 
than that. Let Ora Green, shirt maker 
of Lawrenceburg, Tenn., tell us what 
the passing of this Bill would mean:

MOTHER'S HEARTACHE

"My youngest girl, she's 9 now, 
goes straight to the piano when we 
go to a house where they have one. 
She does want to learn to play the 
piano so bad. I've thought and 
though that maybe I could save 50 
cents or a dollar a week to buy a 
second-hand piano for her, no matter 
how old and battered it is. And that 
maybe I could see my way clear to 
spend 50 cents a week on music les­
sons for her. But try as hard as I can, 
and save and squeeze, I haven't 
found a way to do it yet. * * * 
Maybe I've been foolish to talk to 
you people about music lessons for 
one of my children when the main 
question is getting enough to eat and 
wear, or blankets to put on the bed, 
or even a chair to sit on. But down 
in Tennessee we love music and fac­
tory workers don't live by bread 
alone any more than anyone else 
does. I don't think our soldiers and 
sailors want to come back to a coun­
try where all anybody can think 
about is how to get the next meal. 
I think that after all they've been 
through they'll want a little something 
for themselves and for their children 
—a little pleasure, a little music."

2. THE BETTER PAID WORKERS.
They who now already receive bet­
ter wages also have a greater stake 
in this Bill. For as long as there are 
underpaid workers, the wage scale of 
all is insecure. Any man's poverty is a 
threat to every other man's security.

3. THE FARMERS. The farmers, too, 
have a great stake in this Bill. An 
increase in wages for the underpaid 
workers will result in the consumption 
of more milk, more food of every 
kind and more clothing.

4. THE BUSINESSMAN AND THE 
MANUFACTURER. The retail store 
owner, particularly the small busi­
nessman has as much to gain from 
this Bill. And increase in wages at the 
lowest level does not mean "money 
put into idle savings." It will all be 
spent on necessities as soon as it is 
gotten. It will increase business. It 
will create more purchasing power.
5. THE SOUTH. This Bill will be the 
greatest boon to the South and south­
ern industry. All enlightened South­
erners now know that low wages 
spells a poor economy. If the South 
is to share equally in the nation's 
prosperity it can do so only if all its 
workers likewise share in better 
wages.

Some people have asked if this 
Bill passes, will the employers who 
are now paying starvation wages be 
able to pay the increase, which may 
amount to $4 billion a year?

The answer is: Yes!
The cotton-textile industry, where 
wages are uniformly low, made a 
greater profit in the first two years of 
This war than in the 40 years preced­
ing. That is true of most of the indus­
tries where substandard wages pre­
vail.

YOUR ASSIGNMENT

7. WRITE A LETTER. Every time 
people ask us what they can do 
about almost any important issue, we 
answer: Write your Congressman. We 
have said it so often, it may begin 
to sound monotonous. But it is still the 
most important thing you can do.

You know very well that the en­
emies of the Minimum Wage Bill have 
already written or wired your Con­
gressman to vote against it.

Now it is your turn to tell the 
Senators of your State and the Rep­
resentative of your Congressional Dis­
trict what you think and what you 
want.

2. INSTEAD OF KISSING YOUR 
BABY. Next time your Congressman 
comes home arrange a welcoming 
party for him. Let him tell you 
whether he believes that people can 
live on wages of less than 65 cents 
an hour. Or belter still, you tel! him 
what living on substandard wages 
means to you.

3. LET OTHER PEOPLE KNOW. 
A plea for a living wage for every­
body is a cause worthy of a prohpet. 
Make it your sacred duty to let your 
neighbors and your friends know 
about it.

4. AT YOUR NEXT UNION MEET. 
ING. Bring up this topic and ask your 
local union to arrange community 
meetings to discuss full-employment 
and the 65-75 cents per hour mini­
mum wage.

5. DON'T THROW THIS PAMPHLET 
AWAY. Ring your neighbor's door­
bell. Let him read it. Ask him to hand 
it on to others. Obtain more copies 
from your union and distribute there 
to the people in your block.

6. WOE UNTO THEM. Woe unto 
them who hate labor and wish to 
keep in unending poverty those who 
make our bread and our clothes and 
do all other necessary work. Tell that 
to your Senators and your Congress­
man! And tell them, too, that you will 
keep them personally responsible to 
see to it that the Minimum Wage Bill 
(S-1349) is passed before very long!

That each of us be permitted 
introductory statements of 30 
minutes each, in which to pre­
sent our case, following which 
presentations representatives 
of the press and radio would 
be invited to ask questions of 
both speakers.

That at the conclusion of 
the question period, each

speaker would be allowed 10 
minutes for rebuttal and sum­
mary.

That the discussion begin at 
11 a.m., recess for lunch after 
the preliminary presentations, 
reconvene at 2 p.m. for the 
question period and final state­
ments of the speakers.

I believe you feel, as well as

I do, that we share a tremend­
ous public responsibility in 
this case. I am sure you will 
agree that by presenting all 
the facts to the public, in the 
manner I have outlined, we 
will be performing a public 
service.

It is in that spirit that I 
make this proposal. May I

expect an early answer?
Very, truly yours, 

Walter P. Reuther
Vice President UAW-CIO

REUTHER

(Continued from Page 1)
Technical High School audi­
torium or some other auditor­
ium that will accommodate as 
many listeners.

We suggest the following 

procedure:

That we agree on a person 
not associated with either the 
union or the corporation to 
serve as moderator.

That there be invited to the 
discussion representatives of 
the press and radio, educators 
clergymen, public officials, and 
the general public; that the 
union and the corporation 
each distribute half the tic­
kets to insure a fair cross sec­
tion of the community.

Truman Hits Congress 
For Forgetting Labor

WASHINGTON (FP) - President Truman in his radio speech on 
wages Oct. 30 put the finger on Congress and on specific congressional 
committees for their blunt refusal in some cases to act on labor legislation 
necessary for the national welfare and their acting contrary to the national 
good in other cases.

One portion of the President's speech was 
virtually a  call to the labor movement to go to 
work on congressional  committees more intensely, 
with the President's backing,
 for three major pieces of 
labor-supported legislation.

tion and will give the mem­
bers of the House an early 
chance to vote on this legis­
lation.”

— No. 1 —

Increased unemployment 
insurance: $25 for 26 weeks 
with federal aid to the states. 
“Several months ago,” Tru­
man said, “I urged the Con­
gress to amend the unem­
ployment compensation law 
go as to help workers through 
the difficult months of un­
employment until reconver­
sion could be effected.

“The Congress has not yet 

passed that 1egis1ation” 
(though it has meanwhile 
found time to pass several 
acts cutting corporation tax­
es and refunding wartime ex­
cess profits taxes to corpora­
tions that don’t maintain 
their normal profits during 
reconversion).

“The responsibility for 
that is solely up to Congress 
and specifically I mean the 
ways and means committee 
of the House of Representa­
tives. I hope that this com- 
mitee will fulfill its obliga­
tion to the people of the na­

Chairman of the ways and 
means committee is Rep. 
Robert L. Doughton (D, N. 
C.), House Office Bldg., 
Washington 25, D. C.

— No. 2 —

The full employment bill. 
“I am sure,” Truman said, 
“that the workers of the na­
tion . . . also feel a deep con­
cern about full employment 
legislation which is pending 
in the Congress . . . The 
American people are entitled 
to know that this govern­
ment stands for prosperity 
and jobs — not depression 
and relief . . . The responsi­
bility for the damaging delay 
in enacting this legislation is 
definitely at the door of the 
committee on expenditures in 
the executive departments of 
the House of Representa­
tives.”

Chairman of the committee 
on expenditures in executive

departments is Rep. Carter 
Manasco (D, Ga.) House Of­
fice Bldg., Washington 25, D. 
C.

- No. 3 —

Junking the U. S. Employ­
ment Service and putting its 
work under control of 48 
states with 48 sets of rules.

“I am also sure,” Truman 
said, “that the workers of the 
nation feel the same way 
about what is now happen­
ing to the U. S. Employment 
Service in the Senate and in 
the House. During the next 
year millions of workers will 
have to look to efficient and 
centralized employment offices 
to find jobs for them any­
where in the country . . .

“I hope the Congress for 
the time being will keep this 
great public service under 
federal management.”

Write your own congress­

man and senators.

CIO Spokesmen Hit 
Conscription Plan

The Sad Sad Story 
of Doctor Quack and 
His Easy Medicine

A daily paper recently featured on page 6 the story of a 
miraculous medicine that would do so very much and was so 
very very easy to take. The inventor claimed it would cure 
body sores, muscular ailments, inflammation of the joints, 
colds, bruises, hay fever, sinusitis, weak stomach, nervousness, 
and throat and lung troubles. And all you had to do was put 
a little of the stuff on the tongue several times a day to drive 
all ills away.

So very simple and so very curative. And then on page 10 
of the same paper, same day, same edition, appeared a brief 
obituary notice of the death of this patent medicine man from 
a bodily ailment that had developed quietly while he was con­
cocting a little magic to put on the tongue. The alert reader 
of our medical articles in AMMUNITION who sent us this 
newspaper thinks the patent medicine man may have taken his 
own powder. Then again, he may have known better. Any­
way he died, at the age of 58, and his estate will have to pay 
for the “feature story" if not for the obituary.

There are no secret formulas in medicine. Doctors and 
scientists who make discoveries that are really valid make them 
available to everyone. No one has invented a medical atomic 
bomb; when they do we will tell you. Medicine, to be effective, 
must be directed to the ailment it seeks to cure. No one 
medicine can cure many ailments.

If you have physical symptoms, see your doctor. He is 
trained to understand what they mean and how to cure them. 
If you have no doctor call your State Medical Society.

The UAW-CIO Health Institute will provide you with 
medical diagnoses on industrial health problems. We will be 
glad to help you.
10-3 

from Ammunition, UAW-CIO

WASHINGTON (LPA) — 
An appeal for U. S. leadership 
in obtaining agreement of the 
nations of the world to disarm, 
and to create an international 
police force, was the answer of 
the CIO Executive Board last 
week to President Truman’s 
proposal for compulsory peace­
time military training.

“We believe,” the Board 
resolution says, “that the en­

ergies of all Americans 
through their government, 
should be concentrated on the 
solution of the economic and 
social problems which produce 
war and not on the develop­
ment and acceptance of a poli­
cy of militarization which de­
fies the ideals for which we 
profess to be fighting at this 
moment.”

Sharper opposition was ex­
pressed by the president of the 
CIO’s largest union, R. J. 
Thomas of the United Auto 
Workers, who wired President 
Truman that peacetime mili­
tary training “can be of no 
contribution to world peace; it 
is a threat to our democracy; 
its cost is tremendous. We vig­
orously protest your recom­
mendation to Congress and 
consider it a major and tragic 
error of your administration.”
Hearings on the proposal 
for all youth are beginning be­
fore the House Military Af­
fairs Committee on Nov. 7

IT'S A GREAT SYSTEM!

Employers can’t see why unions won’t continue to accept 
the no-strike and wage freeze policies they endured while the 
nation was fighting the Axis.

Don't the workers know there’s a war on — against 

unions ?

Cargo vessels that were good enough to take soldiers to 

war in aren't fit to return them in, the army says.

They re good only enough to turn over to the commercial 

shipping lines to start profitable trade routes with again.

. Rep. Clare Hoffman of Michigan demands a law to keep 

pickets 20 feet apart.

A 10-foot pole is all we demand between us and Hoffman.

A friend of ours who is a little thick-headed says he un­
derstands General Motors wants a 45-hour week instead of 
40 hours so each man can work longer and leave less work for 
the unemployed to do, so there’ll be lots of jobs for everybody 
m the sweet by-and-by.

IT’S A GREAT SYSTEM !

Did you know that to protect and expand the rights 
of human beings is the main goal of the CIO, and that the 
organization that is successful is the organization that is 
useful.

CHAARD LAB—is starting 
up this week, with about 50 
women employees. They are 
going to try and create a mar­
ket for candy packages that 
will be assembled here.

I can assure you all, it’s a 
beautiful package, one that 
anyone can give to the one 
they love or hope to. I hope 
they are successful, as their 
success will mean jobs. We 
want to, we will, work with 
them to make this a reality.

I know I speak for all 
Chaard workers when I say— 
best of luck to Chaard Man­
agement on their new venture.

Starting on Atlas Contract 
this week (Don Falor repre­
senting International), John

YOU’LL BE GLAD YOU

BOUGHT THOSE

VICTORY BONDS

Around the Shops

By George Nader

In one of the closest elec­
tions ever held in this region, 
Jack Holt, who replaced Don 
Falor as Sub-Regional Direc­
tor when Don went in the ser­
vice, was elected Regional Di­
rector, replacing Carl Swanson 
who resigned.

I know I speak for all the 
staff in Lansing and in Flint. 
I know I speak for Jack Holt, 
when I say; Lansing locals can 
be proud of the job done by 
the delegates representing 
them.

Now that the election is 
over, now that a man who has 
had the respect of all fair- 
minded people in Flint, and 
who earned the respect of Lan­
sing has been elected, we must 
more than ever, unite behind 
him so that a good job can be 
done. He will need all the help 
he can get. He will need ad­
vice and support, I know he is 
the type who will seek it, and 
will use it for the best inter­
est of all members.

I feel confident that when I 
say — CONGRATULATIONS 
- Jack Holt, good luck and 
God be with you in your de­
sire to do the best job possible 
and we are with you 100%, I 
speak not only for myself, but 
for all Lansing.

Bean, Lundburg and others 
will, in a few days, start on 
wage and other cases — the 
picture looks like a busy time 
for all.

It’s my hope that the same 
spirit that has made it possible 
for Lansing to keep up with 
or ahead of other cities will 
continue — and that a good 
job be given all, honest repre­
sentation will continue to be a 
set policy that depends on co­
operation and understanding. 
I have no fear, but that will 
be your policy as well as that 
of the staff. With that kind 
of a program we can’t lose.

RICHTER

(Continued from Page 1)
comment on the national and 
international significance of 
the election. All kinds of 
people are flocking to our 
campaign. Never before has 
Detroit seen such an out­
pouring of volunteer ward 
and precinct workers — far 
more than the 1944 Presiden­
tial election.

What strikes you is the 
political savvy which work­
ers show. When they get to 
ring doorbells, hand out lit­
erature, and make speeches 
they do it just as well, and 
usually better than the pro­
fessional politician. The or­
ganizing experience which 
the average steward and 
committeemtn gets in the 
shop makes him a natural as 
a political organizer.

I've noticed that the 
Democratic professional 
politicans, in our corner, 
who started out by using 
the usual low-level poli­
tical tricks, soon found out 
that the union workers de­
mand a discussion of the 
issues. They won out, and 
swamped the ward heelers 
who wanted to repeat the 
old pattern of playing one 
nationality against anoth­
er as a vote-getting tech­
nique.

RUSSIA

(Continued from Page 1)
tion, the three countries tak­
en over by Russia were recog­
nized by the Cooperatives as 
“independent national repub­
lics and therefore eligible to 
full membership in the Inter­
national Cooperative Alli­
ance."

The resolution proved the 
sensation of the final sessions 
of the cooperative organiza­
tions’ three day gathering 
here. Earlier, members had 
voted endorsement of an in­
ternational trade policy re­
sembling that advocated by 
the United States.

The alliance claims to rep­
resent 75,000,000 families in 
thirty-five countries.

YOU’LL BE GLAD YOU 
BOUGHT THOSE 
VICTORY BONDS

Attempting to force a path for company officials, police charge 
into picket line at SKF ball bearing plant in Philadelphia, Pa. — and 
are held back. SKF workers, members of LocaI2898, United Steel­
workers (CIO), striking because of contract violations, were aided on 
the picket line by members of shipyard and other locals.

—Federated Pictures

VICTORY BONDS

(Continued from Page 1)
opportunity of building a bet­
ter world.

“Thousands of Americans 
who fought for this opportun­
ity lie beneath the earth of 
foreign lands and under the 
high seas. More thousands, 
seriously injured, are the liv­
ing dead.

“Their sacrifices, patriot­
ism and nobility are forever 
enshrined in the annals of our 
history and in our hearts. 
Their loss is an irretrievable 
loss. That cost is on the books 
for keeps. The war had other 
costs. Some of these, fortun­
ately, we can make good—can 
wipe them off the books. Al­
though these costs are also 
heavy, we can meet and con­
quer them.

“It is to conquer these costs

that we are met here tonight, 
you and I, and your neighbor 
across the street, or down the 
road on the next farm. This 
Victory Loan is for us, the liv­
ing, but the spirit of those 
who died is with us.

Where the Money Goes
“How will the money you 
put in the Victory Bonds be 
used? It will pay the costs of 
bringing home our boys; it 
will be used for mustering­
out pay; it will meet the cost 
of medical care for our injur­
ed; it will help our veterans 
to pick up their interrupted 
education or work.

“Putting your money into 
bonds, moreover, will build a 
sound economy for the Nation 
that will afford you a prosper­
ous future. As we whipped the 
enemy overseas, we beat an 
enemy here at home — infla­
tion. Inflation is the ogre that 
takes the power, the value out 
of your hard-earned money.

“There is one very bad thing 
about fighting this ogre: you

have to beat him every round. 
It would be pathetic if, after 
beating him every round all 
through the war, we should 
lose the last round and the 
fight.

No More Drama
“The challenge before us is 
great. It will be more difficult 
to meet the challenge because 
the drama is gone. Under the 
drama of war we pulled to­
gether and pulled hard. We 
must pull together and pull 
hard to turn back inflation 
and to turn down the path of 
full employment, full produc­
tion and high income. If we 
do this, we shall be prosper­
ous, and prosperity is a pre­
requisite of lasting peace.

“A successful Victory Loan 
is a big part of this picture. 
A successful Victory Loan will 
help us on the long road 
ahead. It will help you in plan­
ning for your own future. And 
it helps to keep the faith with 
those who fought for a better 
world.”

WASHINGTON SCENE

TURNING POINT FOR TRUMAN

WASHINGTON (FP) — Americans by the millions 
heard some of the fundamentals of economics in President 
Harry S. Truman’s long awaited wage-price speech Oct. 30.
Although many words were devoted to some simple 
truths most of us learned in high school, they needed say­
ing because of the way they had been distorted by spokes­
men of big business.

Labor with a big “L” has been played up as some­
thing especially dreadful and bad. Truman brought 
home the fact that a $20 billion cut in take home pay is 
more that a delightful sock in the kisser to some hor­
rible union members. He demonstrated that the 
corner butcher and drug store man will be hurt too — 
and that the end of overtime pay could lead to wide 
unemployment.

Truman avoided suggesting a definite percentage that 
wages should increase although it is an open secret that he 
has documented surveys showing that industry as a whole 
could grant at least 23 percent without hurting its profits 
position.

While labor doesn’t like the failure to set out a 
progrant it can find little wrong with Truman’s forth­
right setting out the reasons why all industry can af­
ford to grant imperative wage increases__ end of time
and half, down grading of jobs, increased productivity 
of labor, and the very favorabale profit position of 
business.

Truman seems determined that the increases be grant­
ed, and left just one major loophole for business to use as 
an escape route—his six months trial proposal.

This is a little device that those who wish to sabo­

tage the program will be sure not to miss.

This loophole offers business a chance to keep pro­
duction low, unit costs high, and come to the govern­
ment six months hence with “proof of its need for 
upward price increases.”

The danger in this game of sabotage comes not from 
the isolated instance wherein a manufacturer tries it, but 
in its wide adoption which can spread like a prairie fire 
and drop the country into the pit of depression long before 
the six months are up.

If enough firms slow down production reconver­
sion will remain a dream and there will be more than 
the anticipated 8 million Americans walking the streets 
next spring.

A more hopeful sign appears in the opening section of 
the Truman speech in which for the first time, he publicly 
takes off his gloves to slap at the tones in Congress who 
are snarling up the reconversion plan of the administration.

Truman has been long-suffering in dealings with the 
House ways and means committee and that queer bunch of 
ducks comprising the House committee on executive depart­
ment expenditures.

Apparently he has decided the honeymoon is over 
and he is ready to name names in order to bring pres­
sure for enactment of the unemployment compensation 
measure, the full employment bill, and the retention 
of the U. S. Employment Service in federal control.

We can all hope this speech marks a turning point in 
Truman’s career. He stood up to the editorial warnings of 
the big papers that no wage increases are possible without 
price boosts. He replied business can pay out of profits.

Perhaps he deserves a small cheer — while some of us 

watch the back door to the White House — just in case.

Did you know that France now has a leftest govern­
ment and that the labor and liberal parties of that country 
have won a big majority of the seats in the new assembly? 
This is the second country this year where labor has come 
out ahead in an election of importance.

Text of Economic Brief Reuther Presented to General Motors

Profits Secrets Revealed

“PRODUCE MORE AND HAVE MORE”

(3) INCREASE IN VALUE OF HOLDINGS

Here Are the Actual Figures 
On Increasing Wages Without 
Raising Price of Automobiles

Steel Company Builds Wall 
In Front of Workers’ Homes

ECONOMIC BRIEF
Part II, Section I
Presented to General Motors Corporation
BY WALTER P. REUTHER
Vice-Pres. UAW-CIO and Director, GM Dept.

LETTER OF TRANSMITTAL

Charles E. Wilson, President, 
General Motors Corporation 
Detroit, Michigan

Dear Mr. Wilson:
Herewith is presented Part II, Section 1 of the brief in 
support of the demand of the International Union, United 
Automobile, Aircraft and Agricultural Implement Workers 
of America-CIO for a thirty per cent increase in basic wage 
rates in order to maintain take-home pay without increase 
in the price of General Motors products and for other 
amendment of the agreement between this Union and the 
Corporation.

part I, presented to the Corporation on October 19, 1945, 
forth the need of GM workers and the entire economy 
for such maintenance of take-home pay, if we are to make 
the transition and full employment for peace on a stable 
and lasting basis. We showed that failure of General Mo­
ors and other durable goods manufacturers to raise wages 
without increasing prices will create a false prosperity 
lasting only a year or two followed by the worst depression 
in our history. We showed that the first step toward a full 
induction and full employment economy in which Ameri- 
cans could have the purchasing power (the wages) to con- 
sume fifty percent more than ever before is the increase of 
wage rates to maintain take-home pay. We stressed the 
Merest of farmers and businessmen in thus maintaining 
the market for their products.

Part II, Section 1 of our brief proves that:

General Motors can pay the increase in wage rates; it 
can do so without increasing the prices of its product; it 
can do it NOW.
General Motors before the war could have paid substan- 
ially higher wages without increasing prices and still have 
ad high profits—even at the relatively low levels of out- 
out then prevailing.

General Motors in the pre-war year, 1941, received more 
in profits (before taxes) for each man-hour worked by GM 
workers than it paid out in wages. The GM worker pro­
ceed $1.07 for his family and $1.09 for GM stockholders 
every hour he worked in, 1941.

Later sections of Part II will show that increased vol- 
ume of output, together with higher labor productivity in 
postwar production, will greatly increase GM profits on 
each hour worked by every GM worker, and therefore will 
Enforce its ability to pay the increased wage rates with- 
out any increase in the prices of its product. We will show, 
finally, that because of its cash reserves, its new equip­
ment furnished during the war at public expense and the 
many aids and insurances given by the tax laws, the Cor- 
poration cannot lose. It can pay thirty percent higher wages 
rates without higher prices and still get into profitable pro- 
duction early in 1946, well before it reaches anticipated 
capacity production,

Its first full year of post-war production will be aston- 
ishingly profitable.

As a supplement to Part II of our brief, which I pre­
yed October 19, I am presenting the New York Times 
October 18 report of certain statements on wages, prices 
and the welfare of the nation’s economy made by Director 
of War Mobilization and Reconversion John W. Snyder. You 
will find that he confirms and supports the facts and logic 
which we base our demand for 30 percent increase of 
rates without increase of prices.

WALTER P. REUTHER,

Vice President, Director, 
General Motors Department, 
UAW-CIO

(From the New York Times of Oct. 18, 1945)
SNYDER SAYS WAGES (AN BE RAISED 
BY INDUSTRY WITHOUT PRICE INCREASES
With Overtime Gone, Costs Are Lower, He Tells 

Connecticut Manufacturers — Excess
Profits Tax Will Help

NEW HAVEN, Conn., Oct. 17 
John W. Snyder, reconversion 
director, sad itoday that because 
decreased production costs 
industries should be able 
to grant wage increases that will 
turn mean price increases. 
he added, a “sizeable num- 
ber," of others would have high 
production costs for some months

Undressing the annual meeting 
and reconversion conference of the
connecticut Manufacturers Asso- 
ciation, Mr. Snyder said the indus- 
tries Which ought to be able to 
Wage increases were those 
grow in production who were bas- 
ing their prices “on the old cost 
of labor under the overtime condi­

tions” which were done away with 
when the war ended.

“The proposed reduction of the 
wartime excess profits tax, which 
took up to 85 percent of the high­
er wartime profits, will also assist 
industry to raise wages where 
necessary without raising prices,” 
he asserted.

He conceded that for a “sizeable 
number of businesses” the task of 
retooling, finding new markets and 
evolving new patterns of distribu­
tion would keep unit costs of pro­
duction “relatively high” for some 
months.

“Labor Demands Understandable”
Declaring that with the end of

overtime pay labor’s demands for 
higher wages were “understand­
able,” Mr. Snyder said:

“The take-home price of the es­
sentials of life remains high; the 
workers’ take-home pay has fal­
len. Squeezed in that vice, the 
worker can do only two things — 
either he gets more money, or he 
has to reduce his standard of liv­
ing. With a reduced standard of 
living, he will buy less, the pur­
chasing power of the market will 
suffer, and manufacturers will 
feel it ultimately in reduced ord­
ers.”

Whether wage increases could 
be granted, and to what extent, 
depended, Mr. Snyder said, on the 
answer to this “common sense 
question”:

“How much of an increase can 
the individual company afford to 
pay if it is left to meets its pay­
rolls and stay in business?”

He urged labor and manage­
ment to work together to achieve 
cost reductions which could be 
passed on to workers in higher 
pay and to consumers in lower 
prices.

Calls for Expanding Output
Mr. Snyder said “reconversion” 
was an unfortunate term to de­
scribe the phase through which in­
dustry was now going because it 
carried with it a sense of going 
back.

“We are. going ahead,” he said, 
to try to expand our output to 40 
or 50 percent above anything we 
ever accomplished before.

“Increased employment will ex­
pand markets and in turn make it 
possible to expand our production. 
To maintain full employment, and 
full production, we need a steady 
consumer demand that increases 
year after year. In 1940 we had 
our greatest pre-war production, a 
total of $97,000,000,000 in goods 
and services. During that year 
there were 47,000,000 men and 
women at work in the country, in­
cluding the armed forces—and we 
had 7,000,000 or 8,000,000 unem­
ployed.

“That was our greatest pre-war 
year, but we cannot afford to go 
back to that. Increased efficiency 
and the growth of our work force 
would mean than instead of 7,000,- 
000 or 8,000,000 unemployed, we 
would have millions more.”

RAISES COULD COME NOW

General Motors Corporation can pay a 30 percent in­
crease in wage rates without increasing the prices of its 
products, and it can do it NOW.

Corporation concern for the welfare of workers is illustrated in 
this photo of a high-level road which the Weirton Steel Co. built in 
front of these workers’ homes on Watson Ave., in Weirton, West Va., 
without consulting them. How to get over it is a problem solved by 
some with steps, while others climb it like the man in the background.

—Federated Pictures

of the automobile industry as a profit maker in the pre-war 
years 1936 to 1939, inclusive, as follows:

Percent Earned on Investment
Before Income  
Taxes
Automobiles
20.6%
Durable goods manufacturing 10.2%
All manufacturing
9.9%
All companies
9.8%

Percent Earned on Investment  
After Income  
Taxes
16.7%
8.3%
8.1%
8.1%

Profit Per Dollar of Sales Before Income TaxesProfit Per Dollar of Sales After Income Taxes

Automobiles
12.1c
Durable goods manufacturing 10.0c
All manufacturing
9.1c
All companies
8.4c

9.8c
8.1c
7.5c
6.9c

•

A—General Motors is one of the most profitable of 
American corporations. Its profit-making capacity has 
been consistently demonstrated throughout the 28 
years of its existence, and continues down to the pres­
ent. The profits it earned before the war on produc­
tion of peacetime products could have paid a substan­
tial increase in wages, without any increase in prices, 
leaving a high return on invested capital even at the 
relatively low levels of output that then prevailed.

Increased output and higher labor productivity on 
post-war production will even more readily permit of 
a 30 percent increase in wage rates. The rate of profit 
earned by General Motors undoubtedly will be large at 
this high volume of production. As its output ap­
proaches capacity, or 2,800,000 passenger cars a year, 
it will make profits far in excess of any year in its 
history, possibly reaching $600,000,000 a year, after 
taxes, due to the rapidity with which its profits rise 
when its production increases, as revealed by analysis 
of it past performance.

1—The automobile industry stands at the top of 

American industries in profitability.

A report on profits of 2,187 industrial corporations by 
the Office of Price Administration shows the high standing

AN EX-SERVICEMAN SPEAKS

What Do Returned Veterans
Think About Wage Demands!

2—General Motors stands at the top of the automo­
bile industry and at the top of all corporations in the 
United States in sustained profit-making capacity.

A—General Motors profits for the 1936-39 period com­
pare with the foregoing data for the auto industry as fol­
lows

Percent earned on investment, 

after taxes

Profit per dollar of sales 

Before taxes

After taxes

GM

17.7%

16.1c
13.1c

Industry

16.7%

12.1c
9.8c

B—In its Report on The Motor Vehicle Industry (1939), 
the Federal Trade Commission noted that General Motors 
profits from 1927 to 1937, inclusive, averaged “no less than 
35.5 percent”. The Commission also reported—

“General Motors Corporation is often referred to as the 
world's most complicated and most profitable manu­
facturing enterprise." (p. 419).

“General Motors earned more profits for its stock­
holders during the eleven years period 1927 to 1937, 
inclusive, than any other manufacturing corporation in 
the United States, but its total assets of $1,566,000,000 
at the close of 1937 were slightly exceeded by a few 
other domestic corporations." (p. 1060).

GENERAL MOTORS IS, AND ALWAYS HAS 
BEEN, A PRODIGIOUS MONEY MAKER
C—One thousands dollars invested in ten shares of Gen­
eral Motors Corporation at its inception in 1917 has earned 
the investor $930 a year in dividends and increase in 
value. This is a return of 93 percent per year on his original 
investment without one cent of additional outlay during 
the entire period.

(1) INCREASE OF SHARES OWNED.

A Detroit ex-serviceman wrote the following, which 
appeared in the “Letters” column of the Nov. 5 issue of 
Newsweek magazine:

In 1917, 2 shares of common stock of GM Company could 
be bought for $1,000. These were exchangeable August 
1, 1917, for 10 shares of GM Corporation.

I have read your “Letters” and gathered that the 
Army, Navy, and Marines have only one side of the 
strikes just now.

I was of their opinion until a week ago, but I now 
am discharged and have had a chance to look around 
for myself. During the two and a half years overseas 
from the limited news sources, I received a picture 
that ran like this:

Prices were constant (the OPA, you know), no 
war profits, very little change outside the fact that 
everyone had gotten rich! Huge war wages! But 
same hourly rate!

With that knowledge in mind, we thought, how 
could labor ask for still more money—or find reason 
to strike? But what did I find at home?

The car that I sold for $450 in 1942, now sells for 
$900 or more! Eggs that I remember at 38 cents a 
dozen now are 69 cents a dozen. A suit with two pairs 
of pants and a vest at $45 now sells at $45 for only 
a jacket and one pair of pants, just half a garment.

Some prices? And prices still going up! “New cars 

are going to cost more,” we are told. Why?

I wish there were some way of letting my buddies 
overseas know that you cannot live as we used to at 
our old 40 hoUr wages.

Detroit, Mich.

L. HORN 

Since that date these original shares have expanded 
through stock split-ups and stock dividends to 201 5-16 
shares of present General Motors common, without any 
additional investment by the shareholder, and without 
exercising the right to subscribe offered in 1919 and 1920.

(2) CASH DIVIDENDS

Cash dividends have been paid every year on GM Cor­
poration common. The amount of these dividends, includ­
ing the cash value of rights in 1919 and 1920, on the $1,- 
000 investment in 1917 are tabulated below.

28 YEARS OF EARNINGS ON 10 SHARES OF GM 
CORPORATION COMMON COSTING $1,000 IN 1917
Period 
beginning

Period 
covered

1917
1920
1924
1926
1927
1929

3 1/2 yrs.
4 yrs.
2 yrs.
1 yrs.
1 1/2 yrs.
16 yrs.

Total 
earnings
$ 515.00
575.12
557.66
624.84
1,068.28
8,788.13

Earnings 
per year
$147.10
143.80
278.80
624.80
712.20
549.30

28 yrs.

$433.20
During the 16 years beginning with 1929, depression 
and recovery were reflected as follows:

$12,129.03

In addition to cash dividends, the investor has shared in 
the increased value resulting from earnings retained by 
GM in its business. Present market value of the 201 5/16 
shares which the investor now holds is $14,915.62, an in­
crease of $13,915.62 over the original investment.

4. TOTAL RETURN ON $1,000 IN 28 YEARS.

The $1,000 invested in 1917 has received earnings, in cash 
and increased value, as follows:

Cash returns
Increase in value

Total

$12,129.03
13,915.62

$26,044.65

THE AVERAGE ANNUAL RATE OF RETURN IS 
$930 OR 93 PERCENT OF THE ORIGINAL 
INVESTMENT

Even in 3 years of depression this investors’ cash return 
averaged $268, or 26.8 percent of his investment.
In the war years 1942-44 he averaged a cash return of 
47 percent. With the 1944 dividend rate extending into 
1945, and with the market price of the stock rising, his 
total return for 3 1/2 years of war has amounted to 
$1,713.10 in cash and $745.78 increased value, a total of 
$2,458.88, or at a rate of $702.54 per year — better than 

70 percent on his investment.

D—The long profit record of General Motors continued 
down to the present and was strikingly demonstrated dur­
ing the most recent period in which it was engaged in manu­
facturing automobiles.

Profits after taxes have yielded a high return on the net 

investment year after year:

Annual
rate of 
return on 
investment

1933 
1934 
1935 
1936 
1937 
1938 
1939 
1940 
1941 
1942 
1943 
1944 

9.55%
10.61
17.51
24.04
19.29
9.93
17.38
18.01
17.99
13.75
11.80
13.17

Three-year totals
37.8% of investment recovered

37.8% of investment recovered

37.8% of investment recovered
53.3% of investment recovered

53.3% of investment recovered

53.3% of investment recovered
53.4% of investment recovered

53.4% of investment recovered

53.4% of investment recovered
38.7% of investment recovered

38.7% of investment recovered

38.7% of investment recovered

IN THE LAST NINE YEARS GM EARNINGS HAVE 
PAID BACK THE STOCKHOLDERS' INVESTMENT IN 
FULL AND 45.4 PERCENT IN ADDITION, A TOTAL 
RETURN OF 145.4 PERCENT.

Even in the four depression years, 1930 to 1934, when 
millions of workers were unemployed, GM earnings pro­
vided an average return of 7 1/2 percent a year, or total 
earnings of 30 percent on the stockholders’ investment.

3—Out of its huge profits on automobile production 
before the war General Motors could have paid sub­
stantially higher wages than it did pay, without any 
increase in the prices of its products, and providing a 
high annual return to stockholders.

A—In its last six years of automobile production (1936 
to 1941 inclusive) General Motors earned almost as much in 
profits as it paid out in wages to GM workers.

Profits before taxes (with which wages properly are 
compared, since GM pays no income tax on what it 
pays to workers) from 1936 to 1941, totaled:

$1,745,518,000

Wages paid to hourly-rate workers totaled:

$1,927,331,000
THUS FOR EVERY DOLLAR PAID TO GM WORKERS 
FROM 1936 TO 1941, INCLUSIVE, GM EARNED 91 
CENTS IN PROFITS BEFORE TAXES.

B—General Motors could have paid 30 percent greater 
wages than it did pay from 1936 to 1941 and would have 
earned an average net income after taxes of $132,000,000 a 
year—more than 12 percent a year on its investment.

Year

1936
1937
1938
1939
1940
1941

Cost of a 
30% increase 
to hourly 
workers
($1,000)
84,263
100,809
79,155
56,670
 107,176
150,127

Profits 
before 
taxes
($1,000)
277.591
245.130
132,909
242,597
336,455
510,836

Profits after 
deducting 30% 
wage increase
($1,000)
193,328
144,321
76,239
163,442
229,279
360,709

578,200

1,745,518

1,167,318

After paying estimated income taxes of $375,000,000 on 
these reduced profits before taxes, GM would have had 
net income after taxes of $792,318,000 for the six years.
This is an average net income (after taxes and after pay­
ing 30% more in wages) of $132,053,000 per year.
During that period the average investment (net worth) 
of the Corporation (including contingency reserves) was 
$1,093,227,000.
Therefore, GM stockholders could have received an an­
nual return of 12.8 percent on their investment during 
these six years, while GM workers would have been re­
ceiving 30 percent more in wages than they did receive.
All this could have been done in a period when GM was 
producing on the average only 1^2 million passenger 
cars a year. Now we shall look at its best production 
year, and at the future.

C—In its latest and greatest year of automobile pro- 

(Continued on Page 6.)

Period 
1929-31
beginning
1932-34
1935-38
1939-41
1942-44

Period 

3 yrs.
3 yrs.
4 yrs.
3 yrs.
3 yrs.

Total 
earnings

$1,935.00
806.25
2,418.75
2,217.19
1,410.94

Earnings 
per year

$645.00
268.75
604.69
739.06
470.31

1929-44

covered

16 yrs.

$8,788.13

$549.30

President Says It Can Be Done
“There are several reasons why I believe that in­
dustry as a whole can afford substantial wage in- 
creses without price increases.”

 
Green Urges 
Machinists 
Not to Split

NEW YORK (LPA) 
President William Green 
the American Federation of 
Labor appealed to the Int’l 
Ass’n of Machinists last  
week not to take action 
breaking its long ties with 
the Federation.

He addressed the IAM 

convention in New York, 
the Machinists’ invitation 
and declared emphatically 
even though the Machinists 
Union has ceased paying per 
capita taxes, pending adjust 
ments of a jurisdictional dis- 
pute with other AFL unions, 
he still considered the IAM 
to be part of the Federation

PRES. SAYS

Good Wages
Benefit All 
The People
WASHINGTON (FP) — 
Union-busting industrialists 
and labor-hating columnists, 
editorial writers and radio 
rodents had one of their fa­
vorite themes shot full of 
holes by Pres. Truman’s ra­
dio address on wages.

The President in his speech 
repeatedly upheld labor’s 
contention that its right for 
decent wages is fought for 
the welfare of the entire na­
tion, and not for the benefit 
of union members alone. Said 
the president of the United 
States:

“What happens to wages 
is important to all of us— 
even to those of us who do 
not work for wages.

“It is important to busi­
ness, for example, not only 
because wages represent 
an essential item in the 
cost of producing goods, 
but because people cannot 
buy the products of indus­
try unless they earn 
enough wages generally.

“What happens to wages 
is also important to the 
farmer. The income he 
earns depends a great deal 
on the wages and purchas­
ing power of the workers 
in our factories and shops 
and stores. They are the 
customers of the farmer 
and cannot buy farm pro­
ducts unless they earn 
enough wages.

“The fact is that all of 
us are deeply concerned 
with wages, because all of 
us are concerned with the 
well-being of all parts of

Louisville
Policemen
Unionized
LOUISVILLE, Ky. (LPA) 
—Despite threats from state 
officials, more than 200 mem­
bers of the Louisville police 
force have joined together to 
charter Police Officers Local 
Union No. 448 of the AFL, 
State, County and Municipal 
Workers Union.

our economic system.

“We must all recognize 
that legislation which will 
help sustain the purchas­
ing power of labor until 
reconversion is completed, 
benefits not labor alone 
but all of us — business, 
agriculture, white collar 
workers and every member 
of our economic society.

“It has been estimated 
that, unless checked, the 
annual wage and salary 
bill in private industry will 
shrink by over twenty bil­
lions of dollars. That is not 
going to do anybody any 
good — labor, business, 
agriculture, or the general 
public.

“The corner grocer is go­
ing to feel it, as well as the 
department store, the rail­
roads, the theatres, and 
the gas stations — and all 
the farmers of the nation."

It's Your Last Chance to Buy 
Bonds to Finish Winning 
The War

How Many of These Firms Do You Know?

UNLESS WE FIGHT

Why GM Can 
Raise Wages

(Continued from Page 5.)

duction, General Motors Corporation actually received 
more in profits (before taxes) for each man-hour worked 
by GM workers than it paid out in wages.

(1) Total man-hours worked 

by hourly-rate workers .......... 469,225,000 hrs.

(2) Total payroll of hourly-rate  

workers ......................................$  500,422,000
(3) Net sales...... ..........    ...$2,436,801,000
(4) Operating profits, before taxes ....$ 486,087,000
(5) Total profits, before taxes ........... $  510,836,000

Each man-hour worked therefore produced:— 

Wages (2) divided by (1) ................. $1,066
Sales (3) divided by (1) ....................... $5,193
Operating profits, before

taxes (4) divided by (1) ............... $1,036

Total profits, before

taxes (5) divided by (1) ............... $1,089

THE GM WORKER PRODUCED $1.07 FOR HIS FAMILY 
AND $1.09 FOR GM EVERY HOUR HE WORKED IN 
1941.

D—The profits made by General Motors Corporation in 
1941 (its last and largest year of automobile production) 
prove that it can now pay the 30 percent increase in wage 
rates we demand and still make record breaking profits.

This can be shown by the following approximate calcu­
lation of adjusted costs and profits on the basis of 1941 
output which makes no allowance for the economies of anti­
cipated high volume of output or for increased labor pro­
ductivity:

(1) TO ADJUST FOR PRESENT WAGE DEMANDS 

AS COMPARED WITH 1941—
The 30 percent wage demands calls for an 
average hourly rate of approximately............... $1.45
Average hourly wage paid in 1941 was .............  1.07
The increase of 38c per hr., or 35.6% 
would increase the $500 million wage 
bill of 1941 by ........................................... $178 million

(2) TO ADJUST FOR MATERIAL COST INCREASE 

SINCE 1941—

Basic materials used in the manufacture 
of automobiles have increased in price 
since 1941 by less than 5 percent. But 
assuming an increase of twice that 
amount .......................................................10%

And assuming GM’s materials cost at 
the high estimate of 50 percent of net 
sales, according to automobile industry 
date, the material cost in 1941 would 
have been .................  $1,200 million
Resulting increase over 1941 in cost of 
materials would have been....................... $120 million
(3) TO ADJUST FOR AUTOMOBILE PRICE IN­

CREASES SINCE 1941—

Prices of the 1942 models of GM auto­
mobiles exceeded average prices re­
ceived in the year 1941 by approxi­
mately .......    9%
Applying this increase to total 1941 
sales of  ................  $2,437 million
Increase over 1941 sales at 1941 rate of 
output amounts to.................................. $219 million

(4) EFFECTS ON 1941 PROFITS—

GM profits before taxes in 1941 were ....$511 million 
Adjusting these for—
Increase in sales of $219 million

Less increase in wages 

—and materials 

178 million
120

Resulting in a reduction of 1941 profits 
by ...............................       79 million

$298 million

Leaving profits before taxes of............... $432 million

This approximate adjustment to allow for a 30 percent 
increase in present wage rates, and increases of 9 percent in 
automobile prices and 10 percent in material costs over 
1941, shows that even at the low production level of 1941 
passenger cars—two-thirds of capacity) GM could have 
profited as follows:

1—Profits before taxes of $432 million. These would 
be greater than the profits before taxes in any year 
of GM history except 1943 and 1944.

2—Profits after taxes amounting to $261 million. 
These would be the largest take-home profits in any 
year of GM history except 1928.

3—But, the anticipated increase of 50 percent in car 
and truck production should increase the foregoing 
profits by a minimum of 50 percent, so that profits 
before taxes are raised to $648 million, and profits 
after taxes become $400 million. Such take-home 
profits exceeded by $150 million the best previous 
profits in GM history and are more than double its 
average profits of the last ten years.

4—Again it is emphasized that these results make no 

allowance whatever for

a—Increased economy and profitability resulting 
from increase in the volume of output from 
1,860,000 cars in 1941 to 2,800,000 cars in the 
post-war years.

b—Increased labor productivity resulting from 
technological improvement of plant facilities, 
tools and processes.

THIS CONSERVATIVE ESTIMATE ON THE BASIS 
OF 1941 PERFORMANCE PROVES THAT THERE CAN 
BE NO QUESTION OF THE ABILITY OF GENERAL 
MOTORS TO PAY 30 PERCENT HIGHER WAGE 
RATES WITHOUT RAISING PRICES ON POSTWAR 
HIGH-VOLUME PRODUCTION, AND TO EARN VERY 
SUBSTANTIAL PROFITS WHILE DOING SO.

Brown of IMA Denounces 
GM’s 45 Hour Week Plan

NEW YORK (LPA) — That organized labor is united 
against any attempt to put over a longer work week—such 
as recently proposed by General Motors — was made crys­
tal clear by President Harvey W. Brown of the Int'l Ass’n 
of Machinists at the international convention of his union 
here.

In blistering terms, Brown denounced the GM plan for 
a 45- hour work week at straight time rates as a backward
step to undermine labor’s 
gains, similar to the “open 
shop” drive launched by in­
dustry after World War I.

“It seems that they want 
to repeat that which led to a 
condition in this country 
wherein there was more suf­
fering, more losses, more 
crime, more disease, more 
premature deaths than had 
ever occurred in the history 
of the nation.

Less Hours, Not More

“Let me say on behalf of 
the 750,000 members of the 
IAM( including over 70,000 
in the armed forces that we 
are not going to move back­
ward like a crab. We believe 
that there should be a change 
in the schedule of hours, but 
instead of an upward revi­
sion, we say there should be 
a downward revision.”

Brown blamed the eco­
nomic collapse after 1929 
on the fact that industry 
tried to retain long hours, 
instituted production 
speedups and kept wages 
low. As a result of that 
policy, labor's purchasing 
power was undermined, he 
pointed out.

From 1923 to 1929, total 
wages rose by only two- 
thirds of a billion dollars,

while the value of manu­
factured products shot up 
nearly nine billions ($8,- 
800,000,000) — creating a 
gap that led inevitably to a 
breakdown on the economic 
front, Brown declared.

Labor must resist any ef­
forts of industry to restore 
such a situation, which 
would bring about whole­
sale unemployment, he 
warned.

Breeds Fascism

If mass unemployment 
does come here, the ground 
will be laid for the rise of 
Fascism, he added. It was 
such a situation in Europe 
that led to World War II, he 
insisted.

“If it had not been for 
mass unemployment and 
hunger in Italy and Germany 
there would have been no 
Mussolini and no Hitler,” 
Brown said.

THAT MAN AGAIN!

OAKLAND, Calif. (FP)— 
Gerald L. K. Smith’s appear­
ance in a high school audi­
torium brought out a “wel­
coming committee” of 3,500 
pickets shouting: ‘Smith 
must go!”

Krug Finally 
Admits Labor 
Did Something
WASHINGTON (LPA) — 
A pat-on-the-back recom­
mendation for labor’s tre­
mendous contribution toward 
winning the war was handed 
down last week by War Pro­
duction Board Chairman J. 
A. Krug on the same day he 
resigned.

Krug had previously re­
leased a report that practi­
cally smeared the record that 
had been characterized by 
top government officials as a 
“miracle of production.” Al­
though U. S. generals and ad­
mirals in both the European 
and Pacific war theaters have 
repeatedly sung labor’s war 
accomplishments in provid­
ing every bit of needed sup­
plies and on time, Krug wait­
ed until his resignation day 
to acknowledge that labor 
had something to do with the 
“production mircle.”

Other WPB officials and 
labor leaders who served in 
wartime government wartime 
posts noted that Krug gave 
his long-overdue pat-on-the- 
back to labor at the same 
time he was considering a 
$75,000-a-year position as a 
labor relations executive 
with the movie industry.

Conspicuously absent in his 
report is a statement of the 
sacrifices labor made during 
wartime (for example, the 
stabilization agreements), 
and whether now, with Mr. 
Krug’s resignation and 
WPB’s collapse, labor has a 
right to ask for recovery of 
those sacrifices and losses 
that it gave up for victory.

FARMERS TAKE SIDES

Labor Paper 
In Kenosha 
To Celebrate

KENOSHA, Wis. (LPA) — 
The 10th anniversary of Ke­
nosha Labor, one of the na­
tion’s best known labor papers 
will be celebrated this month 
with a special edition and a 
banquet sponsored by both 
CIO and AFL unions.

Co-operatively owned and

published by the city’s unions 
Kenosha Labor is one of the 
few weekly labor publications 
in the nation that has the 
joint support of the AFL and 
CIO. The co-op owns a modern 
printing plant and has ex­
panded to take commercial 
work from unions and private 
firms.

Government and labor offi­
cials will pay tribute to the 10 
year record of Kenosha Labor 
which has become one of the 
most widely quoted union pub­
lications in the country.

YOU Are The Union

BY MAURICE W. MacNAUGHTON 
Educational Director Local 602

We often hear a great deal of talk among union mem- 
bers in the shop in regards to the things the union and its 
leaders should or should not do.

There is little doubt that the opinions expressed repre­
sent sincere opinion, but they are often expressed without 
knowing all the details regarding the subject that is being 
discussed, and almost without exception the most severe 
criticism comes from those who never attend a union meet­
ing or any other union function.

Often the opinions are based upon some bit of gossip 
that starts floating up and down the line about the union or 
one of its representatives. It is usually adverse and is very 
likely inspired by labor spies or some one in the employ­
ment of the company.

When you who are union members find occasion to 
criticise the actions of your union or the election of some 
other worker as your union representative, just stop and 
ask yourself these questions:

Do I attend union meetings? 
Do I vote at union elections?

If the answer is no, then you have no business 
criticising, for YOU ARE THE UNION. Unless you 
have a legitimate reason, (excuses usually given are 
not legitimate) you have failed to take the necessary 
few minutes of your time for the purpose of promoting 
your own welfare and therefore have no squawk com­
ing.

YOUR UNION IS ABLE TO ADVANCE YOUR WEL­
FARE ONLY TO THE EXTENT OF YOUR ACTIVE 
SUPPORT.

The management knows just how many of you attend 
your meetings. The kind of active support you give your 
union determines the kind of concessions your bargaining 
representatives can get from management.

Many of you say, “I ride with a bunch and they won’t 
go down to the meeting.” Let me point out that in general 
you are all union members, with very few exceptions, and 
if you were all sincere in wanting to do your part to ad­
vance your own selfish economic welfare you would take 
the necessary three or four hours time it would take each 
month to attend meetings.

Many of your officers spend that much time every day 
outside of their regular shop work and on their own time to 
promote your own and your family’s welfare.

ARE YOU GOOD SPORT ENOUGH TO MATCH 3 OR 
4 HOURS EACH MONTH AGAINST THE 60 TO 100 
HOURS EACH MONTH PUT IN BY YOUR ELECTED 
OFFICERS?

You are now facing a fight with G. M. that it going to 
take every bit of fighting spirit and cooperation that every 
member can muster in order to win. You are going to have 
to fight on a corporation wide basis, with every bid as much 
unity as those union people in Flint had when they carried 
the ball for all the auto workers in G. M. during December 
of 1936, and January of 1937, and forced the world’s largest 
corporation to do what it said it would never do: RECOG­
NIZE AND BARGAIN WITH THE UNION.

Have you G. M. workers in Lansing got as much intesti­
nal fortitude to help win your own fight? I think you have! 
So let’s have a revival of interest in union activities. There’s 
a job that you can do.

LET’S GO!

RISKY BUSINESS

FULL EMPLOYMENT
WASHINGTON (FP) —
Pres. Truman called on the 
House to pass a full employ­
ment measure by Thanks­
giving but indicated a com­
promise would be expedient, 
hinting it might be impos­
sible to pass the original 
Murray-Patman bill. 

Nazism Still 
Living, Warns 
Swedish Labor
STOCKHOLM (LPA) — A 
meeting of the Stockholm 
Workers Chamber on October 
17, at which Premier Per Al­
bin Hanson of Sweden was the 
leading speaker, adopted a 
resolution urging a continued 
and energetic fight against 
Nazi ideas. The importance of 
careful sifting and thorough 
control of civil servants was 
stressed. It was also pointed 
out that school courses on the 
true nature of fascism were of 
the greatest importance.

Satisfaction was voiced 
with the recent government 
decision to expell Nazi refu­
gees. Another resolution ex­
pressed the hope that all 
democratic nations, including 
Sweden, would unite in fight­
ing the Franco regime.

Cloth Being 
Withheld For 
More Profits

WASHINGTON (FP) — 
Charges of withholding 
goods from the market pend­
ing more profitable condi­
tions anticipated for 1946 
were brought against some 
companies in the textile and 
clothing industry by the War 
Production Board and the 
Office of Price Administra­
tion Oct. 31.

Reasons for withholding 
materials from normal chan­
nels of trade were found to 
be:

1—Hopes that OPA 
would lift existing price 
ceilings.

2—Hopes that pending 
1946 tax legislation would 
lower tax burdens.

3—Speculation that la­
bor would be more plenti­
ful in 1946.

4—End of overtime pay.

A survey by WPB execu­
tive John Small disclosed 
that some mills have been 
closed down completely un­
til Jan. 1946, some with sal­
able materials on hand. A 
WPB textile official said 
“there are always those who 
will try and find a way to 
make more profit.”

BUY VICTORY BONDS

The Parable of the Cow

Ten men who were financiers chipped in TEN DOL­
LARS each and bought a fine COW that gave TEN gallons 
of milk per day. These men received one, gallon each day 
as his share. Soon the neighbors far and near heard about 
the wonderful cow and said to one another:—

“Think of getting a whole gallon of milk every 
day. What a wonderful return on a ten-dollar invest­
ment. I wish I had a share in that cow."

When this talk was repeated to the ten financiers who 
owned the cow, they went into a huddle and one of them 
said, “Let’s give these people what they want. Our SHARES 
in the COW cost us ten dollars each and we can sell other 
shares in the COW at the same price.”

So they went to a printer and had him strike off 1,000 
sheets of paper bearing the legend, “ONE SHARE IN THE 
COW.” Then they sold 500 of these SHARES at $10 each, 
which brought them in $5,000 in cash. Then they divided 
the other 500 shares among themselves as their reward for 
being so smart.

Each of the ten now had 51 SHARES besides the cash, 

whereas in the beginning each man had but one share.

But one of the ten began to worry.

“Say, fellers," he said, “look here. EVERY FEL­
LOW who bought a share in this COW will expect a 
gallon of milk tonight and the COW only gives ten 
gallons. When the milk is divided into ONE THOU­
SAND and TEN parts, these SHAREHOLDERS won’t 
get a spoonful. SHARES will drop to nothing over 
night. We’d better unload when we can.

So the ten went out on the streets, to find investors. 
Each of them sold the 50 shares that had been awarded to 
him and thus, they obtained another $5,000 to be divided 
among themselves.

But now night was drawing near and again one of 
the ten began to worry. “Fellers," said he, “there’s go­
ing to be a big row at milking time tonight. Hasten 
out and persuade each of the shareholders to sign a 
PROXY, authorizing you to cast as you think best the 
vote to which the share entitles him. Then return 
with the proxies and we will do some voting "

At twilight the ten men met at the barn where the cow 
was kept, and in their hands were 1,000 signed PROXIES 
to represent the absent shareholders, and the ten were en­
titled to vote in their own right, for each still had his orig­
inal share.

“Now" said one who did the talking, “we must or­
ganize. The company needs a PRESIDENT, a 
TREASURER and EIGHT VICE PRESIDENTS. 
That gives each of us a job, and since there are TEN of 
us and the COW gives TEN gallons, it is hereby moved 
and seconded that each of us receive a salary of one 
gallon of milk per day. All in favor say "Aye.’"

And the motion was carried without a dissenting vote. 
And then — they MILKED the COW.

100% Increase
Is Approved
For Congress

WASHINGTON (FP) — 
Unions can stop clamoring for 
Pres. Truman to say exactly 
how much he thinks wages 
should go up. It’s somewhere 
between 20 percent and 100 
percent, U. S. Civil Service 
Commissioner Arthur S. Flem­
ing disclosed.

Flemming told Congress he 
was authorized to state that a 
20 percent raise for civil serv­
ice workers, 66 2-3 percent for 
cabinet officers and 100 per­
cent raise for congressmen are 
“in conformity with the pro­
gram of the President.”

Cabinet officers would be 
boosted from $15,000 to $25,- 
000; congressmen from $10,- 
000 to $20,000. Congressmen 
just received a $1,250 tax-ex­
empt expense account.

You Can Take 
$10 or Starve 
In Alabama
BIRMINGHAM (LPA) — 
The Alabama IUS, represent­
ing 50,000 CIO workers, took 
action after reviewing 
charges brought by the In­
dus. Union of Marine & 
Shipbuilding Workers—CIO. 
The IUMSWA discovered, 
according to the Alabama 
News Digest, that “Workers 
are being forced to take 
cheap employment — often 
at $10 a week — or lose their 
jobless pay benefits. Jobs be­
ing offered workers are 
mostly below “the minimum 
rate in the federal Fair 
Labor Standards Act of 40c 
an hour, “and in some cases 
are below the prevailing 
rates for jobs in the com­
munity. Yet when workers 
refuse these jobs which pay 
much lower than their pre­
vious employment, they are 
denied jobless pay.”

Nylons Gelling (loser

Nylons are nearer! American Federation of Hosiery Workers 
(CIO) meet in Philadelphia, Pa., and decide to accept a new contract 
which includes 6 percent cost of living increase and expanded vacation 
benefits.

-Federated Pictures

L. P. A.
SQUIBS
By Loren Norman

Several baseball men have 
criticized Branch Rickey, 
president of the Brooklyn 
Dodgers, for signing up a Ne­
gro shortstop to play with his 
Montreal farm club. These 
critics evidently want to junk 
the old sporting slogan “May 
the best man win” and replace 
it with another: “May the 
best white man win.”

Joe Worker says the trouble 
with too many standing com­
mittees is that they’re laying 
down.

We’ve heard rumors that 
the Japanese financial giants 
are dissolving their trusts, but 
we aren’t placing too much 
stock in them.

With the world situation in 
a state of flux, Argentine mili­
tary leaders want to be “right” 
but they’re also afraid of be­
ing “left”.

Horse sense, says a wise­
acre, is what a horse has that 
prevents him from betting on 
a man.

Press reports say that the 
United States is insisting that 
the Dutch and French must 
file the U. S. insignia off any 
lease-lend materials used in 
re-conquering Java and Indo­
China. It would never do to let

THOMAS SAYS

Foreign Policy 
of United States 
Irks Workers

DETROIT (FP) — “Serious 
misgivings” are developing 
among workers “with regard 
to the trend of American for­
eign policy,” Pres. R. J. Thom­
as of United Auto Workers 
(CIO) informed Pres. Truman 
in a letter delivered to the 
White House.

Calling for “exact observa­
tion of the Potsdam principles 
in Germany,” for “interna­
tional control over the develop­
ment of atomic energy” and 
“fullest collaboration among 
the major powers who defeat­
ed the aggressors,” Thomas 
expressed alarm at “the ap­
parent increasing emphasis on 
the maintenance of an over­
whelming armament by the U. 
S. as the primary basis for se­
curity against future involve­
ment in war.”

“Force alone is no protec­
tion” of peace, Thomas said, 
warning that withholding 
atomic energy development 
from international control 
“would stimulate a race among 
other powers to develop, in se­
crecy, their own atomic tech­
nique, with consequent sure 
destruction of humanity.”

the natives learn their drive 
for independence was blasted 
by guns from the “arsenal of 
democracy.”

Long Strike 
In Hollywood 
Finally Won
HOLLWOOD (FP)—Cheer- 
ing members and supporters 
of 15 screen locals were told 
by their leaders Oct. 30 that a 
mass return of all ex-strikers 
would take place at all struck 
studios at 1 p. m. the following 
afternoon on the basis of a vic­
tory for all their basic de­
mands.

Strike leader Herbert K. 
Sorrell, unharmed despite 
gunmen’s nearly successful at­
tempt to kill him the night be­
fore, informed the crowded 
mass meeting that points left 
Unresolved by the AFL execu­
tive council in its settlement 
of the 33-week strike had been 
satisfactorily worked out with 
the producers.

Sorrell said the producers 

had assured him:

All replacement workers 
would be ousted from their 
jobs in the jurisdiction of 
the returning unions by the 
time the ex-strikers return­
ed to work.

All contracts of the 15 
locals would be renistated 
as of March 12 when first 
picketing started with a 
strike by Screen Set De­
signers Local 1421, Bro. of 
Painters, provoked by pro­
ducers. The other 14 un­
ions respected Local 1421’s 
picket lines.

The victory meeting closed 
with three roof-raising cheers 
for Sorrell, head of the Con­
ference of Studio Unions, led 
by Intl. Rep. Frank Combiano 
of United Bro. of Carpenters, 
who represented one of the 
seven non-CSU locals among 
the 15 locals.

Recalling how the strik­
ers had withstood violence, 
teargas attacks and per­
sonal danger to win their 
victory, Sorrell said, feel­
ingly: “You people out 
there, I just love you. You 
did such a good job."

Returning strikers consider 
the settlement a defeat for the 
Intl. Alliance of Theatrical 
Stage Employes (AFL) and 
the producers, whom they 
charge with deliberately mak­
ing the strike appear like a 
jurisdictional dispute between 
the 15 locals and IATSE as a 
cover-up for their union bust­
ing aims.

It is estimated that some 
3,000 to 3,500 replacement 
workers will be ousted from 
studio jobs within the juris­
diction of the returning locals. 
A few replacements may get 
work in IATSE jurisdictions 
but it is believed most of them 
will fade out of film produc­
tion work.

Eric Johnston and Donald 
Nelson, heads of the major 
and independent producers’ or­
ganizations respectively, were 
praised by strike leaders for 
helping work out an acceptable 
settlement. The producers 
were soundly criticized for 
what strikers called their pro­
tracted, obstructive, hypocriti­
cal tactics and the NLRB was 
also hit for delaying a settle­
ment.

Foremen Are 
Waiting For 
NLRB Verdict
WASHINGTON (LPA) — 
Organized labor and indus­
try alike are waiting for a 
Nat’l Labor Relations Board 
decision oh the right of fore­
men to bargain collectively 
and join a union of rank-and- 
file workers. The ruling, 
which NLRB now says will 
not be handed down for 
three or four weeks, may be 
the final precedent-setting 
government policy.