Page 2
THE NEBRASKAN
Sunday, December 2, 1945
Forum Notes
Ds Later
JimsiiDffoed?
Hicks Says 'No'
(Editor's Note: This is the first in a series of ar
ticles written by university professors in conjunc
tion with the croup of old fashioned town meetings
to be held weekly on the campus ()
BY CLIFFORD M. HICKS.
At the outset, every student of this prob
lem should be cautioned, the question as
framed is far too broad a one. The very
lack of uniformity among business firms
and business fields indicates that no an
swer can be given to this question uniform
ly and categorically. The volume which
wage payments consume in total expenses
of different kinds of business varies radical
ly. For example, tobacco manufacturers
have a ratio of 19 , chemicals have a ratio
of 27, iron and steel have a ratio of 44ff ,
and automobiles and equipment have a ratio
of 487.
It should be obvious that a common wage
increase in each of these cases creates im
mensely different burdens for the com
panies. Likewise, these business firms do
not have common levels of return on the
capital used, or an equal capacity, in other
words, to contribute to wage increases. In
the year -1944, chemical industry average
return was about 11, the return for the
steel industry about 4.7 and the automo
bile industry about 12. A recognition of
these wide differences is the first step in
understanding the current problems.
Is 30 Increase Objectivo?
If the exact amount of a 30 wage in
crease is not our sole objective, but a bet
ter understanding, we should then weigh
the relative positions of the parties in
volved capital, labor and the public. Note
the addition of the public as a party to the
question since the public comprises the
consumers of the products made, it is prob
ably the most important factor in the pic
ture. At times, to listen to the arguments
you cannot recognize it.
From the standpoint of labor, the reduc
tion in overtime, decrease in hours worked,
and possible rate-down in job classification
means a serious loss of dollar pay. This
loss, when adjusted to the cost of living, as
shown by estimates, would leave an effec
tive income lower than in 1939. This is la
bor's chief point a sacrifice in the current
standard of living may be involved, with
out sdme wage adjustment.
Position of Capital.
The position of capital is not, however, a
case of protecting "swollen profits." All
industry over the war period has tended to
show profits, some having risen from deficit
periods to profitable operation in this war
peViod. But in the well-established fields
the federal taxes have absorbed much of the
dollar increase in profits. As an example,
General Motors showed profits on assets in
1938 at 10, and in 1939 at the level of
13.
By contrast, for the year 1943 the profits
on assets were 6i2, and in 1944 the. return
was 8. All of this is verified by the fact
that the stockholder of that concern is to
day getting smaller dividends. The reserves
which business firms possess today have
been created under the control of the fed
eral income tax system and are necessary
for replacement of machines, reconversion
of physical plant, and development of new
products. These provisions are necessary
in order to give employment at any wage.
"Guaranteed Market."
But perhaps the biggest problem faced by
business is the fact that in the war years
products were sold into a "guaranteed mar
ket" by virtue of the government purchas
ing program. With this influence gone,
sales volume will shrink heavily. Just what
each seller will succeed in holding of the
existing market is an uncertainty, and what
the general market will be a year or so
hence is a serious conjecture. But to keep
the market improving prices will need to be
lowered. To do this while increased costs
in wages are created is difficult. If labor
would give increased production per man
it would do much to help of fset an increase
in hourly rates.
The report of the Bureau of. Labor Statis
tics shows that in ma;iy fields of business
the productivity of labor has fallen seriously
in the war period, as in canning, cement,
printing and smelting and refining of non
ferrous metals, being less in 1944 than it
was in 1939. Business management has of
fered some wage increases as evidence of
their belief in holding up wage levels but
they know the many uncertainties ahead
will create costs not present in the war pe
riod. For example, in the war period many
firms had little or no selling expense but
now they must reconstruct sales forces and
out of current prices pay substantial ex
penses not previously existing.
Public Needs Lowered Prices.
But to speak of the public as a party to
this question. The public needs lowered
prices. The bulk of the consumers for the
general markets are not uniform members
we should remember. Many of these con
sumers have had only moderate wage in
creases, people living on invested capital
have had decreases, and salaried people
have had very modest additions. A large
increase of wages in a segment fo the
American business system will not distrib
ute itself as purchasing power over a wide
ly scattered market. Increases in costs
which result in price increases now, are cer
tain to invite a slow shrinking of markets,
ultimately both the manufacturer and his
labor will be the loser.
Slow Adjustment.
Perhaps the only conclusion which is war
ranted from the point of view of the public
would be that a slow adjustment rather than
a major grant of 30 is better. These
slower changes can be integrated into the
situation after the facts of how well sus
tained the markets prove to be, and how the
productivity of workers does compare to
dollar wage increases have been actually
demonstrated. There is more to be lost in
serious injury to the broad general market
capacity to purchase than in failure to ad
just wages at a particular rate of 30, thus
maintaining such workers at their exact war
level income. The general consumers' in
terests need to be weighed heavily in this
question.
JJul 7ld)Aa&karL
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EDITORIAL STAFF
Editor . Leslie leas Glottelty
Managing Editors Betty Loo Huston. Janet Mason
News Editors Phyllis Teagardea, Mary Alice Cawood, Shirley Jenkins. Bill Roberta
Sports Editor George Miller
Society Editor Betty King
BUSINESS STAFF
Business Manager Lorraine Abramsea
Assistant Business Manager Shirley Hampton, Dorothea Rosenberg
Circulation Manager ....... Stuart Harrison
Anderson Spots New
KosmetShow in China
Editors Note: By Staff Serjeant
Norris Anderson, a Marine Corps
Combat Correspendent, formerly
sports editor of the Daily Ne
braskan. TIENTSIN, China. (Delayed)
A successor to the most madcap
of University of Nebraska Kos
met Klub shows has been located.
Fraternity and sorority Kosmet
Klub managers, kindly board the
first plane for China if you want
a sure-fire winner.
We speak of the North China
Opera company, a collection of
harnessed bedlam that would
touch the heart of the most im
aginative Kosmet Klubber. A
night at this opera also touches
the heart of both eardrums.
Native custom dictates that the
last portion of the operatic routine
be the choicest. Therefore, it is
necessary to doze through three
hours of assorted bedlam before
viewing the feature attraction
which was a little number called
The Thirteenth Sister."
Flaming; Damsel
A damsel in a bright red gown,
with redder lips, Lei Yp Ru,
seemed to be the thirteenth sister
and the heroine of the play. Even
a bumper Theta or Delta Gamma
chorus line couldn't produce a
number like Miss Lei. She brought
cur imagination to a top peak in
one scene which typified the en
tire evening's program. Imagine
this scene in a Kosmet Klub pro
duction: .
The villain was waving a murderous-looking
hatchet at a prince
he had tied to a stake. A property
man races to the footlights with
a table and hoists Miss Lei to the
top. Then the villain rears back
to launch the stroke which was
to behead the poor heroine. But
Miss Lei turns a bow on him and
fires an imaginary arrow and,
alas, the villain drops dead.
As Miss Lei descended from
the table (supposed to represent
a rooftop), a far from cadaverous
villain arose from the floor,
brushed off his toga and sauntered
off the stage. Miss Lei stood quite
unconcernedly, sipping hot tea.
A tefrific amount of clang
clanging by Miss Lei's orchestra
(every Chinese star has a personal
orchestra) marked the end of "The
Thirteenth Sister," and brought on
another crew of Chinese Artie
Shaws. They were bearded gents,
brandishing cymbaj-like copper
discs with which they beat out
a discord equal to the loudest New
Years Eve dishpan chorus.
Music Makers
Gou men (drummers) pounded
thunderously, followed by the
hoochin (violens), labah (flutes)
and nanhoo (violas) in that order.
Even the property men, who
should be hardened to such music,
were noted to be wearing cotton
in their ears.
The 1942 Kosmet Klub show,
which featured suh a"ts as cotton-throwing
from the balcony
33
SNIPE HUNTW
with
JIDCE MASON
Thursday, November 30. . . .
Today's shopping guide uh, I mean Ne
braskan is about to go to press and here we are
with nothing better to do than write . . . and how
it breaks my heart to see George Miller method
ically knocking his head against a pencil in con
templation of composing the sports page . . . such
talent wasted, when he could be writing those hi
larious features wiuch he doesn't for fear the
Awgwan will get them.
And The Nebraskan office still has papers lit
tered about the floor while the Awgwan office
is spotlessly clean with Ruth Korb sitting on the
desk trying to look officious and at the same time
keeps her skirts in subjection to her unconquer
able wMl. . . . The Awgwan office looks so uninvit
ing that we can't see how anyone can possibly work
there amidst all the straight shelves and neatlyT
stacked papers. . . . Someone has just dragged Bob
Gillan out of the third drawer of the cabinet where
he was reading stories for the next issue and
groaning in loud, pointed tones to make his opinion
particularly clear which is not an extraordinary
feat with Bob Gillan.
Lou Huston is sitting at her desk throwing stories
into the waste basket and informing us that our
column will not make the next edition because
there are too many ads which is not a new story
to us. . . . So, she says, wait until you're on and
you can put your own column in unless, naturally,
the biz manager decides to put a fuil page ad on
editorial page at which event the editor would
again yawn and say, so what. . . . Why is it that
when buzz's tongue wags and her eyes blaze no
one will stand up for her (huh, just ask me)
so-o-o-o this column doesn't appear until well
when you see it.
From our den of iniquity down here we sit in
malicious glee and discuss everything we can't
cuss (we are getting sticky from sitting in the glee)
. . . Senator Wherry thinks that all the communists
should be taken off the payroll. . . . Good old Ne
braska senators . . . always have to pipe up once
in a while to let the rest of the congress know that
Nebraska is still in the union
By the time this comes out the six eligible bach
elors will no longer be a mystery and they will
probably have grown beards, or more likely mush
dashes (rjever did know how to pronounce that
word) which generally happens to eligible baches
sooner or later. . . . Pee Wee Novotny is dubbing
herself a sober-minded Cornhusker worker we al
ways wondered what was the matter with the
Cornhusker.
Rex Hoy has just walked in out of the library
with a book in his hand. . . . Someone must have
sold him a ticket to the new downstairs tavern.
... If anyone cares to visit it we have just taken
over complete sales rights so please see us ... . all
of which brings up our. new money-making scheme
which is to think up new rules for coeds and sell
them to AWS at ten cents each at which rate we
could finance our master's degree in less than two
years. . . . And on the subject of scholastics, brief
ly, we have figured out other things, such as
In our physics' class yesterday there were six
people asleep at one time. . . . This is an improve
ment over the last recitation period at which time
there were only four people asleep. . . . There are
twenty-three people in the class ... at this rate
according to our calculations on January 6 every
one in physics class will be asleep . . . and that is
why Christmas vacation lasts until January 7 this
year.
and a hectic minstrel show, could
not touch this.
A small crowd of onlookers
crowded the backstage during the
performance. They started the
evening by merely peeking at the
performers and wound up by
sauntering in and off the stage,
setting down on whatever props
were not in use and scattering
peanut shells everywhere.
Opera in the states usually fea
tures a snooty audience whose
main gyration is operating yard
long glasses. Here, the audience
drinks cup after cup of hot tea,
during the performance, eats pea
nuts and shouts at the perform
ers in the best Brooklyn rooting
fashion.
Miss Lei could not be reached
after the performance to sign for
a Nebraska Kosmet show. Some
other stage-door Johnny (who
spoke Chinese) had the advantage.
John Lund, appearing with
Olivia de Havilland in Para
mount's "To Each His Own," is
taking daily lessons in wrestling.
Frosh Women's.
Honorary Initiates
Alpha Lambda Delta, honorary
scholastic society for freshmen
women, initiated Helen Bengson,
Ardith Smith and Barbara Speer
in a ceremony Tuesday! nir'.t.
A 90 average for the second
semester of last year i "was the
scholastic rating required for ini
tiation into the organization, ac
cording to Bernice Young, president.