The Waikato Times. With which is Incorporated The Waikato Argus. SATURDAY, JANUARY, 3, 1919. CAPITAL AND LABOUR

Waikato Times, Volume 92, Issue 14254, 3 January 1920, Page 4

The Waikato Times. With which is Incorporated The Waikato Argus. SATURDAY, JANUARY, 3, 1919. CAPITAL AND LABOUR

A book which has recently been reviewed in English magazines, gives some interesting trade figures, which have a considerable bearing on those labour questions that are vexing the body politic. The book consists of separate essays by a man who founded an engineering business end conducted it successfully for years. He points out what is well known to all those interested in trade, that the higher the possible profit the lower the average profit, and he gives the figures for the business of enginering which he says did not yield more than an average return of 5 per cent., as although an occasional employer made much more, there were two who failed for one who succeeded. We could match his figures in this part of the world where for year after year m t en are found to pursue gold-mining, in which the average wages earned by the miner and the average return obtained by the capitalist are far below the ordinary, but hope springs eternal in the human breast, and gbld mining continues. Our home employer estimated that in his business there was an average amount of £l5O employed for each workman; at the time he wrote wages were 30s per week, so that each man received £75 per annum, while the employer expected to receive £7 10s, being 10 per cent, on the wages, equal to 5 per cent, on the capital invested. He contended that unless this return could be had money would not be invested in the industry, snd was, of course, strongly opposed to the limitation of output which prevents any improvement in the position of either master or man. He points out also how little room there is for improvement: of conditions in profitsharing, for the workman would in such cases receive little benefit, as the profits if divided amongst the workmen would give but a small increase. The engineering business is more closely organised than most, and lias a trade union which was powerful before many of those in existence to-day were started. Its members are considered to be amongst the aristocracy of labour, and to be better educated and further advanced than most other trades. It is, therefore, strange to read of the big strike which they entered upon twenty years ago as a protest against the introduction of machinery and in order .to conserve their right to work machines which could be operated equally well by men or women with a- few weeks’ training. The'war has brought this whole question so largely to the front that there is but little chance that the old position can be maintained. Yet tc-day the iron moulders are on strike, and in consequence other large sections of the iron trade are held up. It is easy enough to denounce the attitude of the men, but such a course serves no good purpose, and it would be more to the point to find out how far their suspicions are justified, and whether anything can be done to allay them. Previous to the war they had achieved a secure position, with a monopoly of all the engineering work in the country at rates which were as nearly satisfactory as they could obtain. It is true their limitation of output forbade any great advance in the industry; it drove trade abroad, and imposed a tax upon all who used the products of the industry, but it did at least secure a reasonably good position for a large number of skilled workmen. This position they are quite rightly anxious to maintain, and in this respect they are like tiie railway employees who recently struck because they were threatened with a loss of the advantages they had- obtained during war. But however much we may sympathise with the demands of labour, there is always the question to consider how far it is possible to meet them. It has been pointed out by all those who give the matter any serious thought that the world is greatly impoverished, and tills is inevitable in view of what has occurred. Yet the position is hidden from our eyes by the plethora of money, and to labour it is rendered more acute by the fact that large fortunes have been made in many instances by those concerned in the supply of necessities. Tlie.se fortunes are being spent lavishly and with ostentation, are in fact often flaunted in the eyes of men who find that in spite of nominal advances in wages, their position is not as good as it was. This action on the part of the now rich adds greatly to the risk of disturbances and outbreaks. There is a movement in England to cons’’ i.i ; csSwiilily cf resuming

possession of these war fortunes, and It is recognised ■ a course is morally justified, but unfortunately it is not easy-to- earryf-eut, and every month that passe?, wiy. .make it more difficult, owing to the impossibility of distinguishing between "war profits and profits earned since.. At the same time the bitterness created by the luxury and ostentation of a small number adds greatly to the difficulties which arc caused by the unsatisfactory nature of a paper currency. There is an imperative necessity that the difficulties of the position should be realised and that the arguments on cither side should receive consideration. Unfortunately there is no indication on either side of any willingness to show moderation or reason. Labour in many cases wishes to turn employers out of any connection with trade or industry, and under the name of nationalism to introduce bureaucratic control tempered by fears of a majority, while employers arc only too often in the habit of regarding workpeople as hands, and hands of a peculiarly unreasonable and trying description. The idea that employers can be dispensed with is absurd, and would be disastrous for the State if attempted. The vast majority of employers work at least as hard as their men and bring at least as much knowledge and capacity to bear on the business. To put on one side the most active and experienced men in the community is certainly not the way to create that additional wealth which is necessary to maintain our present standards of life. At the same time the formation of big business, of combinations of businesses, and of trusts leads to positions which are full of dangers. The power which is placed by such combinations in the hands of irresponsible directors is too great for the safety of mankind, which is threatened as much by the encroachments of autocratic capital as by the demands of autocratic Labour. The problem of how to obtain the economic advantages of combination without permitting these advantages, with the accompanying power to pass into private hands is the immediate question of the future. During the war, .great use was made in England of committees of men eminent in .the industries, which the State took over: for the .time. It would he well if the Government here would try something of the same kind. State control in some form will he with us for a long time lo -cbme, arid politicians are not fitted to .carry out such control. We have a Boards of Trade, hut it apparently possesses little power, and it is certain that it will, not he granted much pow<jr unless there is an, effective demand on the part of the public. The ideal condition is»that the Government should interfere as .little •as , possible with Industry, hut as that is at present out of the question, the next best thing is some satisfactory form of control. We have no faith ini this being brought about by politicians, and we hope therefore than some lead in this direction will be given to them by the public.