When Winter Comes

Last summer President Hoover hoped the Depression would end before winter came and thus automatically relieve unemployment. When winter came he was roundly flayed for inaction. This summer the President has been informed by his experts that, even if good times should return with an unexpected rush before snow flies, next winter will bring far more hunger, cold and want among the jobless than last. Therefore last week President Hoover began to bestir himself to see what could be done before winter comes.

The President's first concern was to dam the rising tide of wage cuts. For a few hours last week it looked almost as if his administration's policy, laid down in 1929, to maintain existing pay schedules had been reversed. Representative Condon of Rhode Island, scene of recent textile strikes, wrote Secretary of Commerce Lamont complaining of wage reductions, asking for Federal support to stop them. Mr. Lamont replied: "As the period of depression lengthens, many corporations find themselves in extremely difficult positions. Many of them have already cut dividends and salaries. Some of them are faced with the prospect of closing down altogether and thus creating more unemployment or, alternatively, seeking temporary wage reductions. I very greatly regret that these cases should occur but I do not believe it is the duty of the government to interfere."

The Secretary of Commerce, apparently, sanctioned wage cuts to keep hard-pressed factories open. Alarmed at this interpretation, President Hoover spent a whole Cabinet meeting discussing wages. Then to the Press was sent out this cryptic statement which the President refused to elaborate:

"No member of the Administration has expressed the view or holds the view that the policy of the Administration in advocating maintenance of wages should be changed. It has not been changed."

As the Cabinet members strolled out later through the White House lobby, newshawks buttonholed Secretary of Labor William Nuckles Doak, the man who carries a potato for good luck. They queried him pointedly on the matter.

"The Administration is against wage cuts," he declared emphatically.

"You mean, like President Coolidge was against sin?" asked one pert newsman. "What's being done about it?"

Secretary Doak flushed angrily. "What can be done about it?" he asked.

"That's what we want to know."

"Well, regardless of what you boys say, the Administration's policy has not been changed one damned bit." And the Secretary of Labor, potato in pocket, stalked out of the White House a thoroughly irritated man.

Thankful indeed was President Hoover when U. S. Steel Corp. directors voted against wage cuts, despite a reduction in the dividend rate (see p. 43). But three days later the Rockefeller-controlled Colorado Fuel & Iron Co. announced "with the greatest reluctance" a 20% chop in its miners' pay. Meanwhile a wave of salary cutting among "white collar" workers swept across the land. Because they lacked Labor's organized force, the white collar workers took their reductions in meek silence. Office employes of Missouri Pacific R. R., of Southern Ry. and of Delaware & Hudson R. R. all were given 5%-to-10% cuts. Salaries of Armour & Co. were "readjusted" downward 10%. The same amount was chopped from the income of non-manual workers of American Writing Paper Co. While President Hoover had not stipulated maintenance of salaries along with wage, he was disturbed at Industry's growing tendency to whittle away at them.

President Hoover also canvassed the unemployment relief situation last week while Secretary of Labor Doak was proclaiming the potential benefits of a six-hour, five-day week. To the White House was called Frederick Cleveland Croxton, acting chairman of the President's Emergency Employment Committee who in May was assigned the task of mobilizing and coordinating all private welfare agencies for next winter. Chairman Croxton cited a gloomy report received from the National Association of Community Chests and Councils which had surveyed the needs in 184 larger U. S. cities, was preparing a $90,000,000 drive in October. Declared the report:

"Whatever change may come in business conditions, welfare and relief needs will be more acute next winter than last. . . . For every thousand families restored to economic independence, we shall find another thousand whose resources have become exhausted. In many cities we find the number of dependent families doubled over last year's estimate. . . . It is evident we must prepare now for a major task in social statesmanship. . . . Private philanthropy cannot possibly raise all the funds needed. The larger percentage must be met through municipal and county appropriations. In Boston 95% of the direct relief burden is being met from the city treasury. In Chicago at least half will be met out of public funds. In Cleveland, Philadelphia and New York all funds raised from private sources have been exhausted with the year only half gone. . . ."

Next President Hoover summoned Chairman John Barton Payne of the American Red Cross to the White House for a conference on relief work. The Red Cross had successfully helped the President through the politics of last year's drought emergency. It might do the same thing in next winter's jobless crisis. Chairman Payne entered the White House repeating that his organization could not relieve unemployment because it was not "an act of God." Said he: "It's a local problem, pure and simple. This country can deal with unemployment without any difficulty if it is kept where it belongs-- at home." But when he came out. Mr. Payne was saying that local chapters of his organization might cooperate with other agencies to relieve the jobless. Said he: "We're making no hard and fast rule. Our action will depend upon circumstances as they develop."

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