THE VICIOUS CIRCLE

Dominion, Volume 14, Issue 56, 30 November 1920, Page 8

THE VICIOUS CIRCLE

EMPLOYERS AND THE 9s. BONUS

A PROTEST TO THE COURT

INDUSTRIES SAID TO BE IMPERILLED

MODE OF COMPUTING BONUSES QUESTIONED

The Arbitration Court yesterday morning commenced the hearing of argument regarding the latest- cost-of-livins: bonus. The Court, it will be remembered, recently announced that, according to the ■ Government Statistician's figures, n newbonus of 9.5. a week would bo necessary to enable tho wages of tho workers to " keep pace with) the rise in tho cost of living. As the Employers' Federation expressed a desire to be heard on the' question whether the bonus should be granted, the Court appointed a sitting' at which there should be a discussion between representatives appointed by tho employers and the workers respectively. Mr. W. Pryor, representing tlio New Zealand Employers' Federation, yesterday made a lengthy statement of the employers' side of the case. With hiin were Mr. S. E. Wright, representing the Auckland Employers' Association: Mi. W. A. Grenfell, representing tho Wellington Employers' Association; Mr. 1?. Cooper, representing the Canterbury Employers' Association; and Mr. A'. S.'Cookson, representing the Otago Employers' Association. The workers' representatives were:—Mr. M. J. Reardon, Wellington Trades and Labour Council: Mr. J. M'Combs. M.P., Canterbury Trades and Labour Council; .Mr. Brans. Otagn unions; 'Air. T. Bloodworth. Auckland unions; Mr. W. Maddison. Masterton branch of tho Carpenters and Joiners' Union; Mr. C. A. Watt, New Zealand Boot Trade Workers' Federation; Mr. C. H. Chapman, New Zealand Federated Typographical Association. After Mr. Pryor had been heard, Mr. IJcardon applied for an adjournment in order that the workers''representatives might have the opportunity of preparing a reply, and the Court granted' an adjournment till Wednesday. MR. PRYOR'S STATEMENT, ■ Mr. Pryor's address, in a slightly abridged form, is given below:— "The present occasion, if not the most important, is one of the most important in the history of the Arbitration Court. The Court is called upon to review its recent pronouncement regarding a further oostof-living bonus, and is, in effect, asked to decide whether, in view of nil the nircumstances,-it is in the best interests of the community as a whole that tho bonus should bo awarded either in whole or in part. In other words, the Court is asked to decide whether the payment of the bonus will not have a disastrous result upon employers, workers and the community generally, nnd, if 60, whether the timo has not came' to call a halt in the never-ending round of increasing wages and 'higher prices. There are tremendous issues at stake, and it is not too much to say thai upon the decision of the Court depends Mo existence of some of the industries of the Dominion, and whether -unemployment is to be precipitated or not, Great msponsibility is cast upon the Court and upon all parties conneoted with the case. "Might I say hero that the ■ attitude adopted by the New Zealand Employers' Federation is in no 6ense a challenge to labour jis has been suggested, but the action decided upon has only been taken after due deliberation an'd'in the interests •not only of employers of labour, but in the interests of the, community as a whole. I trust, therefore, that all parties concerned, in vtew of the importance of the occasion, will discuss the various issues calmly and dispassionately. and while advocating the views or those they represent will deal with tho vanous pointy raised from a national rattier than'from a sectional point of view.

• £ JJ° 18 that the position as,it is in New "Zealand to-day is duo to worldwide influences, and in a lesser, though none the leas importnnt degree, to local conditions. It is therefore necessary in orderto obtain the right perspective, to coiSuS? v.'Jiat is happening in other parts of the world. THE SITUATION GENERALLY. "In England employers as well ns workers were engaged in a mad round of increasing "wages and raising. prices when apparently almost without notice the public ceased to buy, and the Home wade showed very serious diminution, vath_ the result that after having filled existing orders for the overseas customera. trade diminished to such an oxtent that serious unemployment is being experienced. Tho position .has now been reached where only by the exercise of strictest economy, reductions in wages, increased production, and' expert management, can the situation ,be saved. Unfortunately for the country generally the workers' organisations have refused to consider reduced wages, and ifous- the avenue for a return to prosperity is for the time being closed. The spectacle is disclosed of falling prices, shortage of employment, yet with high wagc3 nominally prevailing. The lieavy taxation necessitated by the eoonomic situation is also having a depressing effect on trade, an. example of which is shown in the fact that just recently orders for seventy large steamers on the Clyde alone, were cancelled. Another indication of the altered trend of opinion is demonstrated by the decision of the Industrial Court in rejecting a claim for wages increases by engineers on the ground that the state of the industry did 1 not justify any further increases of wages. In its judgment the Court pointed out that higher wages would entail higher prices for the goods, and that tho result would' be a serious los 9 «f markets, and pointed outl that loss of trado overseas would mean unemployment at home. "On the financial side the restriction of bank credits, tho raising of the rates of interest and the limitation of the amountl of currency notes that can be issued have all had their effect in reducing the amount of money available, and have contributed largely towards stopping the continued operation of the 'vicious circle.'. It ia thorefore evident that by bitter experience the people 111 the Old Country are learning that tlio endeavour to meet high prices by increasing wages without an increase of efficiency and production can only result in disaster, and my efforts to-day will be concentrated upon preventing £ho occurrence in New Zealand of what is being experienced 'in England at the present time.

"The experience of Amorica up to a dertain point was similar to that of Great Britain. America, too, had a taste of whaVunemployment meant, but there, when it was realised that the position was serious and that the only way by which relief could be secured: was by reduced wages and increased production, it is recorded that'wages were reduced by between 25 per cent, and 50 per cenii. in all sections of trade, and that workers in many places voluntarily accepted these reduotions. Recent advices show that production has increased, and that thus the situation has been considerably relieved, andl thatl the unemployment question is not now so seriious as it was feared it would be.

"In Europe it is evident that every effort is bein# made to restore industry to a condition which will- enable those counilries to again oompete for tho world's markets. Indeed, evidence is not wanting that foreign manufacturers are already competing more or less successfully for British trade. A recent cablegram show 6 that orders aggregating hundreds of thousands of pounds passed front British dockyards to liotwrdnm nnd Amsterdam; and this was jirobnbly one of the reasons for the decision of ;(ho Industrial Court as indicated above. In '-European' countries, also, longer hours are worked and lower wages pnid than those obtaining in Britain. In coal mines, for instance, in Germany t.fen and a half hours a day are. worked, as well as work being performed on two Sundays in ®aoh month, aa against the "Brit-

miner s seven-hour day with an average of about five days per week. In Italy, workers generally work thirteen Honrs per day without payment of any overtime. Altogether, therefore, it is ovident that instead of following the practice adopted in New Zealand of raising wages and reducing working hours, ether countries are realising the neces«ty. for reduced wages, and in some cases, for extending the hours of work. Under another heading I propose i\o show the conditions obtaining in' Australia. where generally speaking the hours of work are longer and the rates of >pay lower than in New Zealand, and the ettects, in some instances at any rate, of how Australian competition is affeciA ing the New Zealand trader. THE SITUATION IN NEW ZE&IAND. "The situation in Nmv Zealand bears many points of similarity to that which has obtained in the United Kingdom, iol.owing the cessation of hostilities there 'was month after month, a continuous round of increasing wages and rising prices. Employers and workers alike, appeared to forget that such a state of affairs could not continue for any lengthy period, and that the operation P* the 'vicious circle/ if continued for a sufficient length of time, must bring disaster in, its train. The prosecution of the policy indicated above has resulted, here as elsewhere, in a continuous increase in the cost of living, followed by still higher wages, greater Government expenditure, and the necessity for more taxation, till the limit having been reached, the whole country suddenly- awoke to the fact that a serious position had arisen, and that both financially and industrially a critical state of affairs was in existence. The general public ceased buying to. tho eame extent as it had done 1 previously, credits were restricted and business hampered generally. Inquiry by the Press, the l commercial community, and other sections in the country brought to light cn-tain very disconcerting, facts. It wns ascertained that the balance of trade had becomo so markedly' against us that our credits in London were dangerously depletod, the 'banks locally could r.ot continue making advances on the same scale as previously, abnormal importations added to the difficulty, and, in nddition, tho drop in prices of some of our primary products, as well a s the ccrtain prospect of a much smaller return for this season's wool clip, all contributed to bring about the position in which we found ourselves. The wool situation itself was sufficient to cause considerable inconvenience, insomuch that with the best prices which can b& obtained, assuming that tlie'whole clip can bo disposed of, which is very uncertain, the result cannot be other than, to show a drop of at least six million pounds in the returns as compared with the commandeer years.

"In other words, the nmount asked for by the Government through its lust loan will be lost to the country as the result of tho drop in wool prices. It is evident, too, that lower prices will have to be accepted. for wheat and cheese, and although at the moment the position: with regard to meat has slightly' improved, this will be more than set off by the drop in tho value of pelts and tallow. Another factor which has operated to bring about the break is that there lias been a considerable withdrawal of capital from the Dominion. This has been causfd mainly by reason of the fact that a higher rate of interest is obtainable in Australia than hero, and that the company taxation in Australia is only about half what it is in New Zealand. As the position stands today. there does not appear much likelihood of fresh capital being obtained at present to assist in tho extension of our industrial or commercial enterprises, while It is certain that further withdrawals of capital will be experienced. "While at the moment unemployment is not a serious problem in the Dominion, there is no doubt that tho change has already had its effect in that direction, and unless care is exercised it is certain that this question will loom largely in the near-future. The position again in this connection is practically tho same as in England, and can only be met by boldly facing the situation, and by employers and Yorkers allko recognising the dominant need of the hour. A further increase in wages at the present time will surely lead to unemployment, and tlio position must bo faced that any further restriction, in the financial situation must bo met by the reduction of working expensce to tho utmost limits, which means in all probability a lower wage scale, ani points to tho necessity for increased production and more careful, scientific, and effective management. In fact, tlie solution of the present difficulty lies along the lines of prudence, economy, and hard work. POSITION OF LABOUR IN NEW ZEALAND. There is no question that the lot of the New Zealand worker is better than that of tho workers in any other part of the world. Wages comparatively are higher, the hours of work loss, and tho conditions of work superior, and in most cases immeasurably 'bettor than in many other countries. Compared with the increase in tho cost of living, the workers of New Zealand have had their wages raised during tho war period to a greater extent than workers in any other country. In addition to that, hours of work have been shortened, in some cases even during the war period, and as neither of these advantages has been accompanied by any increase in production, the breaking point has probably conic earlier than would otherwise have been tho case. It is believed that tho thinking portion of the workers in Now Zealand having been brought face to face with the position are realising that beyond the point whete value given for the wages paid, any further increases are merely absorbed by further rises in prices, and that, in fact, labour pays for them. Indeed, it is beyond question that the recont bonuses granted by the Court have necessitated still higher bonuses at the end of each period, and it has now como to the stage when the worker has to pay moro than ho actually receives in order to maintain tho process. Fortunately up to tho present tho process has not developed in this country to a sulhcieiit extent to have taken from tho worker all the value of the increases he has received during the war period, and that therefore the position is not altogether hopeless. The surplus wage in New Zealand is greater now than it was pre-war, means that the real wage of tho New Zealand worker to-day is greater than the real wage of the workers in many other countries. To the extent, therefore, to which the real wage has increased without a corresponding incrwwo in production, the trades and industries of the Dominion have suffered, and the fact that production has not increased. hut lias undoubtedly decreased, has helped materially to bring the Dominion to tho position In which it finds itsolf to-day. Generally speaking, wages in New Zealand have been raised by at least as much per cent, as tho increase in the cost of living, and in many cases a great deal more, but in addition to the actual increase in wage rates, other factors have operated which have resulted in the spending power being increased by a much greater extent than the actual percentage increase in wage rates would indicate. In every trado and calling moro constant 'employmont .luts been available during tho war period than previously. The permanent employee class has not had periods of "unemployment as in past days, while the casual worker has been so much in demand that no effort had to be made to find him constant employment, with the result that, generally speaking, ho has received

casual rntc6 of pay foe constant employment. More overtime has been worked, overtuno rates havo been increased, • and thus tho earning power of the worker has been materially improved. In the case of a man witill a family with one or more of the younger members in employment. still greater advantages have I)oeti obtained. As compared with the 66.64 per cent, increase in the cost of living as shown by the Government Statistics, apprentices ill the skilled and retail trades are now in receipt of considerably more than 100 per cent, in wages than in 1911. Office fioys and typistes who previously started work at about 10s, per week now receive anything, from 255. to 40s. pc.r week to commence with'. The position, therefore, is that a man with a family of three or foui; children with say two of the latter at work has himself received at least sufficient in increased wages and bonuses to meet the increase in the cost of living for the whole family in addition to which the family is reaping the advanfcago of the high wages paid to tire junior members w;bo are at work. Workers with young families, however, are probably no better off than before the war, especially in cases where the family is large and none nre old enough to earn wages. Another indication of the financial position of the workers in New Zealand is contained in the Post Offico Savings Bank returns. Judged from this standpoint, tho workers of the Dominion have snared to the full tho general prosperity which has been experienced' as the returns show that during the five years, 19J-4 to 1919, the amount standing to the credit of each depositor has increased on the average by 40 per cent. AMOUNT OF BONUS. "In dealing with the question of what the amount of tho bonus ought to be, I desire to make it perfectly clear that I am not in any way criticising the Department's methods of compiling its statistics. At the same time, it' is my duty to state now, that my federation does not agree with the amounts awarded by the Court as bonuses during the currant year, which the Court las stated are based upon the Statistician's figures. It is necessary, however, to understand the basis upon which tho bonus is calculated.

"In giving evidence before the Court in Christchurch in March, 1919, Mr. Eraser stated that 'the method to adopt would be it moving l average.' Following that the Court, after consultation with Mr. Eraser, decided that the six-monthly terms ending March 31 and September 30 in each year would be the best periods to seleot on which to base the calculation of the bonus. That this was tho method the Court decided to adopt is shown in the Court's memorandum dated April 19, 1919, Book of Awards, Volume XX, page 403, wherein it is stated (page 404): Tho Court has consulted the Government Statistician on this point, and he advises that for the purpose indicated tho half-yearly periods ending Maroh. 31 and September 30 would be the most equitablo that could be selected, and he has undertaken to prepare index numbers showing the variation in the cost of llv-' ing during these periods in each year.

Following ' that decision of the Court, commencing in the October, 1919, Monthly Abstract, thero has been published a table showing the 'moving six-monthly average index numbers' for the purposo of computing the amount of bonus payable on the above system as indicated in the following paragraph in the explanatory notes that month:—

In this issue of the Abstract a new table has been introduced to show tho movement of prices of fsod, housing, and fuel and light, in such maimer as to eliminate the temporary fluctuations from month to month. This 'has been done by compiling a aeries of index numbers to present the 'moving average' for each period of six calendar months since the beginning of 1914. Tlie . new fable will be found at page SG. No other construction can be placed upon that than that tho six-montliiy moving average was to be taken as the basis of calculation. In order to provide the means for the calculation, tho statistician introduced a new table altogether in the Monthly Abstract—a table showing the six-monthly moving average; and he says in his note that this has been dono to in such a manner as to eliminate tho temporary fluctuations from month to month. The new tablo shows one column dealing with food only, another with food and Tent only, and the third showing food, rent, end fuel and light combined. Particulars regarding clothing and miscellaneous items aro not included in tho table. That, however, is not essential, aa the Statistician in his notes to tho April, 1920. and September, 1020,. publications, indicates t that the figures shown for the food .'groups may bo,taken as representing the increase in the. cost of all groups. The following are the actual quotations:—

April Abstract—ln view of the impossibility of compiling reliable index numbers for tho clothing and the ''miscellaneous' groups, it might 1m concluded that composite index numbers. covering food, Tent and fuel and light, representing three-fifths of 'tlw expenditure of the average household, would give tho closest approximation attainable as to the. increase in the cost of living. While this was probably tho case prior to tho war, conditions have since changed, and for the last three years at least Hie increaso in food prices alone lias given the truest indication of the general increase in retail prices and the cost of living. September Abstract—lt will be seen from the above that ihe position remains practically the same as was pointed out in the April number of the abstract,' viz., that in the absence of comprehensive and accurate indox numbers of prices of clothing and of miscellaneous items, index numbers of food prices (though representing only 34 per cent, of tho expenditure of tho average household) give at present a better indication of the increase in the cost of living since July, "1914, than do the combined index numbers of food, rent, and fuel and light, representing approximately GO per cent, of household expenditure.

This shows definitely that in order to ascertain tho actual increase in the cost of living, references must be made to the food column in tho table, showing the 'moving six monthly average index number,' and that only thus can the amount of bonus payable be ascertained from published figures. All that is necessary, therefore, is to tako that table and having ascertained the basic wage rate as at March, 1919, which was taken at Is. 9d. per hour, find the variation in prices over each period and calculate the amount of bonus payable. "On the method of computation as agreed upon in CKristchurch, no bonus should havo been i>aid for the increase shown for, tho March, 1919, September, 1919, period, while 4s. per week was awarded by the Court. For the increase shown for tho September, 1919, March, 1920, period only 7s. 3d. should have been paid instead of tho 10s. actually awarded. ,On tho increase for tho March, 1920, September, 1920, period 13s. 3d. is .the correct amount instead of the 195., according to the Court's recent pronouncement. Thus tho workers got is. per wcok from January 1, 1920, to April 30, 1920, when they wore not entitled to any increase; 10s. per week from May l.to October 1, 1920, instead of the 7s. 3d. as shown, and are now entitled to 13s. 3d. per week instead of 19s. In other words, if the correct method of computation is adopted, and narrying out tho Court's policy with regard to the bonuses, the workers are now I entitled to only 3s. 3d. por week increiiso instead of the 9s. increase under the I Court's pronouncement. "Consideration of what is tho correct mothod of computing the bonus has necessitated investigation as to tho cause of the mistake. It is apparent that the reason lies in tho fact that the 'Monthly Dominion Index Numbers," ns shown in the Monthly Abstract, have been taken instead of the 'Moving Six Monthly Average Index Numbers,' the latter boing tho index numbers which were agreed upon as being tho best to adopt for tho computation of the bonus. This has resulted in taking the 'difference between the first month and tho last month in each period instead of tho avorage for tho period, which means that if the last munth in any period happens from nny spccial cause to carry a high index number, tho increase in the cost of living is mado to appear higher than it really is, ospccially if, as' might possibly be the case, the course of tli£ period has been one of comparatively low prices. On

the other hand, if the last month of any period indicated au exceptionally low index number au unwarranted decrease would bo shown, and tho workers penalised to that oxtunt, during tho succeeding six months.

"It is .submitted that apart from any agreement whatever or any understanding or any pronouncement of the Court that computation on the basis of tho 'Moving Six Monthly Avorngo Index Numbers' is the only method by which correct results can bo obtained. This is shown vory clearly by the quotation from tlie Statistician's notes in 1919, ivlieu he said that a new table had been introduced to show tho movement of prices in such Wanner as .to eliminate tho temporary fluctuations from month to month. Thus there can be no question as to tho method to bo adopted to ascertain the correct amounts payable, as this can only bo calculated on the basis shown by tho table specially compiled for the purpose." Mr. Justice Sflringer: This error, then, could have been detected earlier if attention had been given to it. The fact of the matter 16, I suppose, that so long as the employers could collect the bonus and tfhe profit from the public they did not take much care whether tiie bonus was rightly calculated or not; but when they come up against a position where they can no longer collect from tho ipublic, they got critical, Mr. Pryor said he thought His Honour had fairly stated the case. The employers could no longer pay tho bonus or collect it from the public.

Mr. Justice Stringer: These questions were always oyien to tho employers to raise at any time when we were granting ixmuses. It was a relevant consideration.

Mr. Pryor: Tho real fact of the matter is that until the employers found themselves up againsi! it nothing was. done, and nothing oou'.d be done. Until this last bonus came • there was no move op the part of the employers. lam glad to have the opportunity of saying that it was an immediate, spontaneous move on t:he part of the employers in protest that has caused the federation to take action, in this case.

Mr. justice Stringer: I am not complaining, if it is an error, about its being pointed out. But itl should have been pointed out earlier. Mr. Pryor: I admit that, Your Honour, nnd some of us have been getting into a little trouble because it was not pointed ouil earlier. ESTIMATED COST OF PROPOSED BONUS, "In a statement to. the Press made oii the day of the publication of the Court's pronouncement," continued Mr. Pryor, "I estimated trail the 9s. bonus would increase tho wages bill of the Dominion by two million pounds per annum, and 'that the total amount of 19s. would mean four to five millions per annum. As against my statement with regard to two million ponnds per qnnum representing iilie cost of the 9s. bonus, the Press lias reported a statement by the Prime Minister to the effect that it would mean two million pounds per annum for the Government services alone. Independent inquiry made confirms that view, which means that the cost to the whole Dominion of the proposed bonus of 9s. per week cannot. be less than five, million pounds per annum. With regard to the cost! of the two bonuses (4s. and Gs. per week) now being paid. a-nd adding to that.the 9s. per week also proposed, reference to | statistics dealing with those employed', in commerce, transport and industry, indicates that the position is a very §erious one indeed, as -the following 8 '"Table No. 1 indicates the estimated cost of the proposed bonus of 9s. per week as applied to workers engaged in commerce, transport and industry. "Table No. 2: The estimated cost of the two bonuses (4s. and 6s. per week) previously awarded. Table No. 1: NUMBER OP PERSONS EMPLOYED. Males, Females. Under ZO. Over 20. Under; 20. Over 20. 20.645 152,862 11.642 121.747 : at 3», at 9s. at 3s. at 4s. 6d. n.wk. £16lVlo £5,576,990 £90.807 £1.424,«5 Total —£5.253,247 Table No. 2: at ss. at 10s. at ss. at ss. £2M!M9 £5,574,412 £151,346 £1,562,711 T0ta1—£5,976,828 Grand total —£1i,250,075 "The above tables do not include hotel or restaurant employees, or those engaged in agricultural or pastoral pur. suits." „„ , Mr. Justice Stringer: That assumes that all these workers get the bonus, whether they aro in receipt of the minimum. rate or not. Mr. Pryor: Wo have to assumo that, because as a general rule, at any Tate, incroaflo the wage of tiho lowest-paid worker, and . you have to increase tho wages of all tho workers in that particular service. ... As a general fact, vou cannot get out of paying it. . . . Thus we have evidence of a direct increase in the wages bill of tho Dominion approximating eleven and a quarter million poiinds per annum, omitting * considerable section of tho workers who will bo affected, and without considering how much extira tho public will have to pay if the increased cost can bp passed on. As to pass on the amount would, ineaii a further increase of approximately 50 per cent., it will bo an underestimate to say that tho total amount of the burden, including all tho bonuses already imposed this year, and the one now under discussion will be at least iilteen million pounds per annum. In order, however, to meet . any possible objections that may bo raised to our method of calculation, awl to discount the above estimate as far as it can possibly be done, it will serve all necessary purposes if for the snlce of argument tho amount of the increase is takon at, say, eleven million pounds per annum. Mr Pryor proceeded to state what lie considered the effect the granting of the bonus would have upon particular industries. iAt tile conclusion of pis review he remarked: "As the result of communications received and inquiries niado by the federation, I am in possession of information, regarding practically every trado and industry in the Dominion. If tho Court m desires, I will be pleased to furnish it > with a precis of that information, which indicates that tho position is so delicate that anv upward movement in connection with tho working costs might quite definitely have very serious results.'

SHOULD ANY BONUS BE PAID? On the question whether any bonus Bliould be paid, Mr. Pryor said.: "In view of tho information I have placed Wore the Court with' regard to tho situation generally, and, taking into consideration the lalmost critical position, both fimincally, industrially,, and in connection with our primary industry, in addition to tho very definite, although, of course, inarticulate demand. by 'the community as a : whole for some relief from the high prices oi commodities which have been ruling for so 'long, the quostion must surely have suggested itself to the Court that something must be dono to meet -the situation, When, in addition to the above, it has to 1)0 admitted that the workers aro in receipt of wages which more than compensate thorn for the increase in the cost of living, and when, above all, the diro effects which may be expected to follow any further upward movement in wa<;es costs are taken into consideration, 1 feel I rfm entitled to appeal confidently to tho Court to review its pronouncement: made recently, with regard to a-vfurther bonus. In this connection I desiro to direct attontion to the provisions of tho amendment mode last session to the clauses in the War Legislation and Statute Law Amendment Act, under which the Court is given power to amend awards.

"First of all, I submit that it would not bo just and equitable to the employers or workers that awards should bo amended in the present circumstances. Secondly, it must be evident to the Court that the economic continuance of ninny of our trades and industries will be unduly imperilled should any further bonus whatever be imposed upon them, and, lastly, I anpoal to tho Court on the ground that the other relevant considerations which I have dealt with at length in the coureo of my address will not only justify the Court in deciding that no bonus whatever should bo pnid, but I respectfully submit that a caroful consideration of all the circumstances demands that in the interests of tlio community as n whole 110 further burden should bo imposed at the present time. I would respectfully suggest to the Court that tho information regarding the eifeots of high wages and high prices in the shipbuilding traaea in

tho United Kingdom, in causing the cancellation of largo orders and the passing of greater businoss to foreign competitors, indicates what might be expected from a continuation of the same policy here na was for so long in operation in tho Old Country. ■ Also, tho action of tho engineering trado Industrial Council at Home in refusing to still further increase wages, with tho example of Mr. Hughes with. regard to the Commonwealth Commission report, will, I hope, carry due weight with this Court, ana result in tho Court coming to the conclusion thatsimilar action is necessary in this country. The movement towards lower wages is abroad in the world. In my view; it is bound to come, and bound to come in the interests of the whole community. Just whether tbat will need to be accompanied by reduction in wages one would bo vory loth to say, but so long as reducing wages does not reduce the real valuo of the wages, a reduction in wages is not a serious thinf. But you cannot have increased wages without increased produc. fcion. You certainly cannot have, as you have in this country at present, increasing wages with decreased production and iower prices." QUESTIONS FOR THE STATISTICIAN After asking for an adjournment of the proceedings at this 6tage, Mr. lieardon said that there was one matter on which he wished the Court to come to som& conclusion before adjourning. "I submit," said. Mr. Heardon, ' that there are two questions which have to be answered here by tho Government Statistician, and I submit that it is the Court's duty to give tho Statistician an opportuuiy of giving evidence. Probably no other Department of State is of international importance, and surely if the Depurtmeflt is of international importance, then the Court should give thb responsible head of that Department an opportunity of establishing, if he can do so (and I submit, of course, that he must be able to do 6o) that these figures are correct. I suggest these two questions: (1) Are the figures of the Government Statistician on which the Court has been accustomed to rely correct? (2) Is the Statistician's system of calculating prices one that has the endorsement of statistical authorities in other parts of the world? ' His Honour asked- Mr. Pryor whether he was proposing to call any evidence. Mr. Pryor said that he had not pronosed to do so, but he wished, to retain fee right to make uso, if necessarj;, of those Who were with him, especially where statistical matters were concerned. His Honour: I think there should be some evidence from witnesses who can testify as to the statements, made with regard to the financial position and so forth! I don't know whether theso statements made will be challenged b t v the other side. • . • Of course, it is obviously necessary that tho Government Statistician should "have the opportunity ot considering these figures and' the mot-hod of computation. . "There is one thing that has been elicited in the course of your address, Mr. Pryor," His Honour proceeded. It satisfies me that it is very, necessary in proceedings before the Arbitration Court that the public should bo represented in addition to the parties. That, I understand, was suggested in a recent amendment of tho Arbitration Act. which was rejected; but when it is admitted, as it practically is now, that the employers are quite prepared to concede bonuses when they can pass them on to the public, and collect them from the public togetlier with the profits, I think it is liigh time the public should be, represented in order that it nvay prevent that being don-:- if possißle. It seems to me it is nothing more than a combination on the part of tho workers and the employers to rob the general pub-; lie."

Mr. F. Cooper said that ho did not know of any such laxity ins was laid to the charge of the employers. They had not let matters go by because they could pass the cost on to the public. The fact was that until the present bonus bad been announced they had not been able to say that there hnd been a, mistake or where the mistake had arisen. Until now there had been no .possibility, of proof, and no employer could have made out a satisfactory case before.

The Court adjourned till Wednesday