Cedar Rapids Gazette, June 17, 1974, Page 4

Cedar Rapids Gazette

June 17, 1974

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Issue date: Monday, June 17, 1974

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Cedar Rapids Gazette (Newspaper) - June 17, 1974, Cedar Rapids, Iowa The Cedar Rapids Gazette: Mon., June 17, 1574 •* v <' . . 1    *<-»•    c>    -afBritish Workers Torn Over How To Get Their More By J. A. Livingston Economics Colcmnlsl Samuel Gompers, the British-born, Dutch-Jewish cigar-smoking, beer-drinking cigar-maker, who became the first president of the American Federation of Labor, made famous in a word what labor leaders and union members want throughout the world: “More.” But there’s a fundamental difference between “more” in the United States and in Great Britain. The American worker wants to get more out of the system and accepts the system. He doesn’t want to tear it down Second of a series _ even while protesting that he ought to get a greater share. He’s not at war with capitalism or with corporate profits. The bigger profits are. the more he figures he’ll get in the long run. And the results, over the year, bear him out — electricity instead of candles, airconditioned factories in place of fetid sweatshops, eight hours and time-and-a-half for overtime instead of a sunup to sundown work day. British labor leaders and British workers also want to get more — and still more — and are torn on how to do it: By collective bargaining or by changing the system? This pull — a deep and confused dichotomy, often inarticulately mixed with hate of the upper and propertied class — soon became manifest in the diverse reactions to the “social contracts” or “compact” entered into by Prime Minister Harold Wilson and a special committee of the Trades Union Congress (Sunday’s article). Wilson promised to do his best to keep prices down if lpSor leaders would voluntarily exercise restraint on wage demands. “We need to get away from the confrontation and disputes of the last three years,” he said. Disputes had racked the economy, cost much-needed production, and given Great Britain the unsavory reputation within the Common Market of being industrially anarchic. Reforms Rejected In his searching book. “The Battle of Dow ning Street ”, Peter Jenkins noted the irritation of Wilson during his previous tenure at IO Downing street. A dispute involving a woman cleaner caused 2,400 workers in the motor industry to be laid off. At a Midlands engineering plant, 60 supervisors stopped work after one had been fired for parking his car in front of a director’s. How feudally (and futilely!) can a management behave? Wilson tried to remedy such economic absurdities with a law to reform industrial relations. But his own constituents, the leaders of the labor unions, would have none of it. Edward Heath was later to follow Wilson along the dead-end path to confrontation with British labor. This year, after his election, Wilson rejected legislation. He’d enlist the “social conscience” of labor leaders in the fight against inflation. He’d learned his lesson. Key Mal The monitor of this social conscience — and hence the man in the middle of British labor’s response to Wilson — is Len Murray. He took over as general secretary of the TUC last September, and plunged directly into strife. Fortunately, for five years, he’d been assistant general secretary and prior to that head of the TUC’s economics department. He was, and is, no stranger to the statistics of man-days lost due to strikes, wage rates, retail prices, stop-and-go economic growth, and Great Britain's hard-pressed battle with balance-of-payorients deficits. Murray was in his post barely a month when the National Union of Miners banned overtime. The nation needed file Investors Quide By Sam Shulsky Q — I’m 32, married, two children. I’d like to invest about $2,000 now and add $300-$400 a year. If I put it into 71/4 percent deposits I figure I would have $40,000 to $50,000 by the time I’m 60-65 — assuming, of course, that interest rates remain high. W’hat would you suggest? A — I realize it is only natural to talk in terms of dollars when planning investments, pension programs, etc., etc. Dollars are what we work for. spend, handle every day and use to measure our financial position. But to talk of $40,006-$50,000 today and — in the same breath — $40,000-$50,000 in the year 2004, unfortunately, makes very little sense. Today, we know for certain that $50,000 invested at 8% percent would earn $4,375 a year — enough to buy. for example, a good medium-size car, enough to pay for a year’s rent of a comfortable apartment; enough to buy, shall we say, IO good-size color TV sets. So — $50,000 today means something you can get a handle on But when you talk of arriving at retirement, 30 years hence, with $50,000 you still have two unknowns in a three-item formula. (Let s put aside because there’s no point to arguing it anyway — what interest rates will be over the next 30 years.) Let's arrive at the year 2004 with $50,000. What will interest rates be then - AND for the balance of your lifetime? And will cars then cost $4,300 or $14,300 or $43,000. And the same goes for housing costs, TV sets, bread and cheese. I’ve taken the long way around to get to the point. And I suppose I’ve done so because one of the principal answers I feel I must give you has been rendered less than believable by stock market events of the last half dozen years; that is, ownership of common shares. It seems to me you will have to assume such ownership for the next 30 years on faith, in the belief that if a company turning out automobiles and housing and food and copper is going to see its product prices lifted in a continuing inflationary spiral, there will be, over the long-term, some reflection in higher figures in the company’s per share earn ings, in its dividends and in the market price of its stock. And if you tell me that, lately, this has not proved so for the vast majority of common shares or other equity investments, I can reply only — “You’re perfectly right!” And if common stocks over the next 30 years can’t manage a total annual return (dividends plus market gains) of at least 8 or f) percent — or whatever interest rates prevail in the money market — then you’ll be perfectly right in the year 2004, too. IF ... IF ... IE I have no IOO percent positive answers for you because the last six to eight years have been discouraging ones for common shares. Has our basic economic picture been so thrown out of line that this cloud will hover over us for the next 30 years? I must doubt that. There’s “no hiding place down here,' and no sure way to plot a financial course over 30 years. But I have a feeling that a young man has to take some risks. And given the long-term decline in the dollar vs. the shorter-term decline in equities, I have to assume that some equities must be included in a young man s long-term financial planning. * * * Q - We have no idea of how to go about investing our money properly. Can you help us? A — I calid try if you at least gave me an idea of your age, resources, immediate needs and the necessity to leave an estate. And if you included a stamped, self-addressed envelope for a reply. * * * Q — I ve noticed that most utilities are raising capital by selling common. This dilution disturbs me. A - I think you’ll find that most utilities attempt to maintain a fixed relationship between equity and debt capital. If one sells common instead of a new bond issue, it is because the equity portion of its total capital is below its formula level. • • * MORTGAGE BOND: A borid secured by a mortgage on a specific piece of property. Default on the bond could lead to bondholders' seizure of the property. Mr. Shutshy welcome* written gu«>> Non*, but he will be oble to provide on*wer% only through the column For list* of growth end dividend iUx k%, pieose include a self addressed, stamped en veiope Address your requests to Sum Shulsky, rare of The Ga/efte coal. But in the inflation scramble for higher pay, the miners had lost their “relativity” — their high place on the wage totem pole. Besides, since the work is dirty, difficult and dangerous, a pay raise was urgent to stop the outflow of miners from the pits. No Com promise The TUC urged Prime Minister Heath to make an exception — grant miners a percentage increase beyond the limits of Stage III wage control. In return, Murray promised that constituent unions would not use the miners’ step-up in pay as a bargaining yardstick. But since the TUC has no direct power to enforce compliance by the more than IOO unions that comprise it, the Conservative government after extensive negotiations, said no. Then followed a miners’ strike, the three-day work week, lower production and higher unemployment. Difficulties were compounded by the oil embargo. And early in February, Heath called for a general election If he couldn’t persuade the unions to follow his wage guidelines, he’d seek a mandate from voters. “New Class” It’s fair to say that Murray heads a “new class” in British labor. He’s 51, and an Oxford graduate, who majored in economics. His given name is Lionel, but he uses Len. His role as the keeper of labor’s conscience under the social contract, can be likened to that of a policeman without a nightstick, uniform, or authority. He can say “No, no, please don’t,” but he can’t discipline. Indeed, he can hardly censure. Suppose a union leader broke the social contract by demanding and getting a big wage increase. Could Murray say to the workers: “Give it back, it’s more than the TUC thinks you’re entitled to.” If he tried that, the TUC would soon be out of business! But he can’t duck the responsibility. In a speech to the National Federation of Profes sional Workers, he candidly stated that the social contract tests the TUC’s credibility: “The present government has put forth a positive and coherent set of policies for producing the kind of situation we have been asking for. The issue facing us fairly and squarely is: What sort of response do we give?” The responses were mixed. Jack Jones, head of the Transport and General Workers Union (TGWU), the nation’s largest, and a leading advocate of the social contract, called on his members to put forth “realistic claims” in response to the “socially just measures brought in by a sympathetic government.” Hugh Scanlon, head of the Amalgamated Union of Engineering Workers (AUEW), next to the TGWU in size, gave a conditional endorsement, declaring that “working class incomes must at least keep pace with rising costs.” In short, no drop in living standards. Blast System But the president of the white-collar technical and supervisory section of the AUEW gave vent to the deep antagonism within the labor movement toward employers, profits, and the ruling class: “In this society, whether we are restrained or restrain ourselves, the end product is the same — the rich get richer. The fallacy that inflation, price spirals, etc., are caused by wage increases has to be exploded.” Another officer of the union said: “Within the capitalist system any form of wage restraint will go against the worker and only help the employer. We are therefore opposed to the concept of the social compact, which will further erode the standard of the workers and make bigger and better profits for the ruling classes.” I encountered this same resentment a half-mile down in the Oakdale colliery in South Wales. A miner complained about high profits. I said: “But you own the mines. They’re nationalized. The profits are yours.”, WIN AT BRIDGE By Oswald & James Jacob' Oswald: “There are any number of ways for a good bridge player to make more tricks than one of lesser ability, but none is more apparent than the expert’s willingness to give himself extra chances.” Jim: “Here is a case in point. South (a fair player) started by cashing his three top diamonds. The suit failed to break so he led a club to dummy’s ace and a second one back to his queen. West took his king; cashed the last diamond and got out with a heart. South led a third club and was down one when that suit failed to break ” i Oswald: “South had given the hand a fair play He would have made it if either minor suit had broken or if East had held the club king.” Jim: “A fair play, but one that failed to give himself bvery chance. He was right to cash the diamonds and lead a club, but the first club play from dummy should have been a small one. He would get in with a heart or spade and lead a second club. This would collect West’s king and give him the second club trick he needed.” Oswald: “This play would have cost him an unimportant overtrick if East had started with three clubs to the king. As WCRRDcfrtt** it was it would give him the extra chance that would bring home the contract.” Tile bidding has been 17 West North East South u Double 24 49 44 Pass Pass Dbl* Pass 59 54 Pass Pass 69 Pass Pass 64 Pass Pass *) You, South, hold: 4654fj74324AQ9 7 * 3 What do you do now7 A —Double. Your partner is obviously void of spades, but you still don’t want lo try for seven TODAY*8 QUESTION Again your partner doubles one spade This time you hold: 46 S 4 9K J 4 3 2 4A Q 9 7 +3 What do you do now7 Answer tomorrow GOP in New York Sets Javits, Wilson UNIONDALE, N. Y. (AP) -The New York Republican party has nominated Gov. Wilson and Sen. Javits for reelection in November. Wilson’s mentor during his 15 years as lieutenant governor, former Gov. Rockefeller, stood at his side as Wilson accepted the GGP state committee's unanimous designation for a full four-year term. Wilson. 60, succeeded Rockefeller last December when Rockefeller resigned du/ing his fourth term. Democrats have not selected their nominees. ON THIS DATE in 1967, Communist China announced it had exploded its first hydrogen bomb. He pointed to a conveyor belt carrying coal: “What about them? The company that makes those belts is private. It makes a profit.” “No Anesthetic” In the steel works at Port Talbot, also iii South Wales, a shop steward said: “We’ve had two governments — Labour and Conservative. Both failed to control profits. In a period of inflation, people who work for a living are in pain without an anesthetic. We can only get money from the employer.” In another steel works in South Wales, a group of shop stewards assured me: “We’re all socialists, but we’re not Communists.” By that they meant that they didn’t object to nationalization of industry, but they were “bloody-well opposed’’ to totalitarianism. “This is a democratic society, and Communists will never get control of our government.” Cam monist Power But Communists and their ideological offshoots — Maoists, Trotskyites, Workers Revolutionists, and just plain anarchists — have a profound influence in labor unions. Why? Because as unionists they do a job. They make forceful speeches, go to all meetings, and take on responsibility. In confrontations with management,they often win what the workers want: More. So, they get elected. And they cater to the inherited rancor of unpropertied workers — the feeling that “what’s good for them is had for us." Deep down, the British society is a that’s-not-for-the-likes-of-me society. Sure, there’s upward mobility. Aneurin (Nye) Bevan rose from the pits. But who your parents are, whom you know, and where you went to college still mean much — far more than in the U.S., where what you’ve done is your badge in the socio-economic hierarchy. And the attitude of workers — stay in your class — plays its part. There’s limited mobility geographically and industrially as well as socially. Coal miners, steel mill hands, dockers and so on tend to cohere to their group and craft. And they often expect their sons and daughters to follow the same life path. The tendency to educate For Better Health AMA Studying Guidelines To Permit Elderly Drivers NORTH 17 ♦ 632 V 432 ♦ 7 54 2 ♦ A7 5 WEST EAST ♦ Q95 ♦ J 10 8 4 f J987 ¥ Q10 6 ♦ J 1096 ♦ 83 A K 8 A J IO 9 3 SOUTH (I)) ♦ A K 7 f AK5 ♦ AEQ A Q6 4 2 Neither vulnerable West North East South 3 N T. Pass Pass Pass Opening lead - 4 J By Dr. S. L. Andrlman Anyone who is getting on in years or has an elderly parent or friend will be glad to know that the American Medical Assn. is studying the possibility of developing a set of guidelines to aid the physician in evaluating and counseling his older patients who drive autos. The guidelines would follow a pattern set through the joint efforts of the AMA and the American Assn. of Motor Vehicle Administrations (AAMVA) in developing a videotape program for the upgrading of driver license examiners. Criteria In addition to helping physicians evaluate older drivers, the AMA and AAMVA also plan to develop criteria to aid driver license examiners in dealing with the problems of elderly drivers. The criteria will avoid penalizing a driver solely because of age but will require frequent physical and mental evaluations to be sure the person can function as a good driver. These new programs are an outgrowth of the recent National Conference on the Aging Dr. S. I. Andelman Utah Plans, To Jog Justice SALT LAKE CITY (UPI) -Utah will soon have its own treadmill of justice. In a split decision, the Utah board of examiners approved the purchase of a $145 jogging machine for the state supreme court. “This machine should get their blood circulating for awhile,” said Court Clerk Allan Mecham. “You sit behind a desk and work on cases for eight hours a day and you get kind of stale.” Governor Calvin Hampton and Secretary of State Clyde Miller voted to approve the purchase. Attorney General Vernon Romney, who jogs every morning around a high school track, thought the purchase unnecessary. “They could come out and jog with me at 6:30 in the morning,” Romney said Mecham said the jogging machine is simply a treadmill on which justices could run in place. He noted the U. S. supreme court has a complete gymnasium in Washington where the justices may exercise. Driver sponsored by the AMA and AAMVA. In opening that conference, Dr. George Reader of Cornell university said, "Much^of our elderly population is socially isolated in areas where services needed for daily living are not readily available without private transportation.” Removing a driver’s license from such a person would be part of the process that tends to isolate the aging person, causing him to withdraw and reducing his ability to cope. Restricted The conference proposed that retraining courses be developed to help older drivers overcome some age-related driving handicaps and that states consider limited and restricted licenses that would still permit the older driver to get around his neighborhood. Older drivers should be the target of broad educational efforts to make them more aware of licensing problems. Programs to develop alternative transportation for older people whose licenses have been removed or restricted were also recommended by the conference. In addition, older people should have comprehensive vision tests, including night and lateral vision. The tests should In* done in person and should include on-♦ he-rood driving Prince Begins Drive For Bird Reserve LONDON (UPI) - Prince Bernhard of The Netherlands has begun a campaign to raise $180,000 to establish a wildfowl reserve in northeast England. Prince Bernhard, husband of Queen Juliana and president of the World Wildlife Fund, said the reserve would cover 105 acres of land and lakes among factories and sewage plants near Washington, 287 miles from London. 4- To Order Your Action-Ad, Dial 398-8234 t ¥ * ¥ ¥ * * * ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ A* • * ¥ ¥ ¥ ¥ ¥ NOTICE! Cedar Rapids Homeowners Homestead Exemption and Military Exemption Applications Must be Filed in the City Assessor's Office, 5th Floor City Hall BEFORE JULY I, 1974 / Come In Early, Avoid The Roshi OPEN MON. THRU FRI. 8 a.m. to 5 p.m. youngsters upward and out of the parental groove is far less prevalent than in the ll.S. Consequently, the union eard is the ticket to a higher standard of living. You move up with your group — not away from it And this compounds the difficulties ahead for Murray Doesn't Square No matter to whom I talked, whether it was Sir David (Dai) Davies, head of the steel union, or workers in factories or mines, the refrain was the same: “Wages keep chasing prices.” Yet that doesn’t square with reality. Most workers, especially manual workers, have had pay gains exceeding price increases even in 1973. And their living standards — the renting of color TVs to replace black-and-white, increases in hire-purchases of furniture, refrigerators, and other things — bear this out. But now that’s going to cease. It has to cease. Prices — under the social contract — are almost certain to go up as fast, if not faster, than wages. And sums taken out of pay checks for taxes, pensions, and national health — will go up. Implication From Prime Minister Wilson down, the economic implications are unvoiced hut wellknown. Chancellor Healey told the house of commons that his budget was “neutral.” It would have neither a plus nor a minus impact on the Gross National Product. But an analytical dis cussion with him leaves the distinct impression that it s likely to Im* more minus than plus. Implication: If Greut Britain is not to continue living excessively beyond its means — im porting foodstuffs arid other raw materials on the cuff to raise living standards — the consumption level must fall. If so, wages won’t keep pace with prices. This would not mean that Wilson had not carried out the government’s part in (he social contract. The pledge was not that prices wouldn’t rise. The pledge was that the government would do its best to keep prices from rising too much. A conflict impends. The right wing of the labor movement will try to persuade workers to accept the inevitable. The left wing will play upon the rich-get-richer discontent to further their own objectives — greater strength in British labor and a change in the system. There’ll be no red carpet for the social contract. Next: “In Place of Strife". Rare Pandas Pandas are very rare — from 45 to 1,000 survive — and are found in the cold, damp bamboo forests on the rugged hillsides of eastern Tibet and Szechwan province in remote southwest China. They eat nine kinds of bamboo. DRIVE SAFELY BIG GEORGE! Virgil Partch “You’d better call in sick, George. You left a tip.’ Save *20 Hydro-Glass,M) Convertible Jet Pump Vi-HP Regular ilM.SS 94 88 Jet Extra It's tho most corroHon-resistant pump we sell, with Power Bonus motor for peak performance. Hold* pressure at .’10*50 lbs. from shallow or deep wells. Save *10 Captive Air™ Tank 65 36-gal Regular $73 H SHOP AT SEARS ANI) SAVE Efficient design keens uir and wutcr completely separated to avoid “waterlogging." 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