September 28, 1918





RECORD   AND   GUIDE





359





"consolidation" of its position it is being generously
aided by the full power of the present national adminis-
tration, worked out through Secretary Wilson and the
Department of Labor. In the same category of pro-
ponents of the establishment of labor in a fortified
position is the Taft-Walsh Board, which has Govern-
mental sanction. The rulings of this Board, which have
so far been eminently fair, nevertheless tend to the
construction of a foundation upon which the whole
fabric in which labor and capital are jointly engaged
can be solidly and enduringly built. Stability of the
labor resources of the country is not less important
than the stability of its finances. We have the Federal
Reserve Bank, which controls by pooling the resources
of the country and equahzing the financial strain. We
are working towards the Establishment of Labor in
such manner as to bring about countrywide inter-
changeability of supply and demand at rates of pay that
are just and equitable. When this condition is arrived
at, labor can always be convertible into cash upon
favorable terms. The Labor Reserve Bank will look
out for that.

In the last few days there has come the recognition
of the eight-hour day by the most representative
corporation in the country, the United States Steel
Company. This corporation has been an open shop and
has, except for a limited number of employees, kept its
huge force at work ten hours a day. There are 275,000
workers in its many rolling mills, glass furnaces, mines
and transportation organizations and three-fourths of
these were ten-hour men.

Last spring Judge Gary declared, in announcing a
wage increase and the determination of the company to
continue the ten-hour day in the majority of its activi-
ties, that the ofĩicers believed this plan would bring
about the largest production. Now, although no official
explanation is given for the changed policy, it is under-
stood that it has been found that production wiU not
be adversely affected on the eight-hour basis; that the
company felt the necessity of yielding to the general
pressure for shorter hours to stave off labor troubles.
The action of the company means an average increase
of ten per cent. in wages and the effect of the change
in policy is already widespread. Another steel company
is arranging its business on a co-operative plan. It
will be more impossible to return to a ten-hour day
than to reduce wages.

AII of these things, and not all of the signs of the
times have been mentioned, point to the probability that
production, for some time after the war, will be carried
on upon a basis of high wage cost. If this is true,
building can only be done at the same cost that prevails
today or at a slightly lower scale and this means that
those who hold property already developed may count
on a continuation of the present returns on their invest-
ments; those who build as soon as restrictions are
removed need not fear the competition of more cheaply
constructed buildings put up a few years later. We
must accustom ourselves to a higher plane, higher
costs, and greater gross revenues, and plan accordingly.





New York's Big Asset

Considerable criticism has been aimed at State and
National authorities on the ground that the new and
immensely expensive State Barge Canal has not been
made more use of in the transportation of grain and
coal. The National Railroad Administration has been
charged with discriminating against the canal in favor
of the railroads.   These ofificials have had the temerity





to continue tending to their own business and have
said nothing. Just now their business happens to be
helping this nation in the conduct of the war.

General W. W. Wotherspoon, State Superintendent
of Puhlic Works, has made public the figures showing
the business done through the canals for this season
to August 15, which disclose the fact that there has
been an actual increase of 80,000 tons carried by the
system over the amount handled during the same period
last year.

Answering the claim that the canal has not been used
for the transportation of wheat, General Wotherspoon
states that whereas in 1917 there were 41 miUion
bushels of grain received at Buffalo by lake carriers,
only 7,300,000 bushels reached the end of the canal this
year. Notwithstanding this great decrease in the
amount of grain arriving at Buffalo the canal handled
more grain than last year, although the amount in the
entire period is small. He declares that the railroads
moved about one-half as much grain from Buffalo east-
ward as was carried by the canal. The fact is that the
grain was not there for shipment, probably because of
a lack of tonnage. The canals, however, carried a large
amount of ílour, milled in Buffalo, of which the largest
part was for military use, and the War Department
officials expressed satisfaction with the movement and
condition of the flour thus transported.

Thus another bugaboo has been laid to rest. Truth
is, the canal is a big thing. It has cost a lot of money.
It constitutes the most splendid inland waterway in the
world, says General Wotherspoon, and he ought to
know.

Like all big things it will take a little time to get
this huge machine into smooth working order. Some
day, not far off, when it is possible to have more and
larger canal boats, there will be an almost continuous
stream of commerce flowing towards New York City,
between the banks of this wonderful and cheap carrier.
The differential of 25 per cent. in the rates assures this,
and as the canal management has been separated from
that of the railroads danger of evil influences from that
quarter is removed.

The canal was built by the State, and will do much
towards making it prosperous. But the canal is after
all a big asset for this city, which will derive the great-
est benefit from it. The canal terminals must be
finished as soon as possible.   They are a war necessity.

Bill Affects Title Companies

(Continued from page 354)
viewpoint is not that of selfish interest but of the gen-
eral welfare. This is evident if we remember that the
great majority of its members are serving as the
trustees for the many billions of dollars of trust funds
placed with savings banks, insurance companies, mort-
gage companies, stockholders and estates. Both value
of real property and community prosperity involve
many iiicidents such as provision of adequate building
space at low rentals, ample mortgage funds at low in-
terest, proper rapid transit, efificient sanitation, low cost
of living, and especially the very best rail and water
terminals in the world. Public budgets and taxatipn
have now assumed new relations to all of these prob-
lems, as is reflected by our work.

"In view of the present and future needs of govern-
ment we should not overlook the fact that a closer touch
of businessmen with pubHc offĩces might produce not
only greater economy but more eíĩiciency. As a 'new
souice of revenue' there is none more desirable. Such
work requires skill and experience but the uselessness
of mere superficial critjf j§jn "5 Vprjr evi^ent,"