The Iron Age 1921-07-28: Vol 108 Iss 4

ESIABLISHED 1855 New York, July 28, 1921 VOL. 108: No. 4 @ Increasing Revolving Ferrous Scrap Fund Permanent Loss of Iron Reserves Pointed q Out—Importance of Scrap for Steel Manu- facture—Effect of Imports of Serap or Ore AR taught the necessity of iron, not only for the advance of civilization, but also for its protection and its potency (in the hands of the Germans, for its destruction.) Because of this, 75 per cent of the iron reserves of Germany have been given to France; this is probably the most important restriction placed upon Germany. If France can se- cure sufficient good coking coal, which is doubtful, »r develop her hydroelectric power, of which she has more than any other European country, about 6,200,000 hp., and succeed in converting these ores of Lorraine an- nexée electrically (she now has 69 electric furnaces), France may become second only to the United States as a producer of steel. The United States is divesting itself rapidly, per- manently, of its iron reserves. This is a more impor- tant consideration than the other vastly important question of the quick exhaustion of its oil reserves, which can be conserved by substitutes, as oil shales, coal and hydroelectric power. The iron ore reserves, of grades now used, are estimated to last only two generations; this reserve will go into scrap, but there s an estimated annual permanent loss of upwards of ~(),000,000 tons of iron ore, of 50 per cent iron content. Production and Sources of Scrap Ferrous scrap is produced by discarding or reject- ng iron and steel in process of manufacture, and by gathering, preparing and grading old or disused iron ind steel products. It is “secondary metal” as dis- tinguished from “primary metal,” smelted from ores. It has a higher Fe content than pig iron, has been con- erted and refined and is cheaper than pig iron. During the war every effort was made to gather it. As the larger producers of scrap know its value and carefully sort it, the War Industries Board found that ne total supply could be increased only by inducing e farmers and town people to gather their scrap; the Red Cross and other agencies made a _ patrioti- appeal to the people to cooperate in this. There are no reliable statistics of the total domestic production ot scrap; by a formula, described below, the 1919 pro- luction is estimated to have been about 18,000,000 tons. Our scrap imports are small, amounting in 1913 to 11,512 tons and in 1918 to 65,693 tons. Steel making countries, which are the largest producers, use their own scrap, so there is not a large tonnage available °y importation to replace the exhaustion of our iron reserves, estimated to be about 10,000,000 tons a year. "he large scrap producing countries, other than the nited States and Canada, are across the Atlantic, ‘nd all large producers of scrap are also large users Our imports are mostly from Canada (1913, tons; 1918, 45,518 tons). Exports from the -nited States are mostly to Canada and Italy (1913, “ Ptain, United States Army (Ordnance), investigating ‘terials and blast furnace and steel works practice ; steel expert, United’ States Tariff Commission. 187 BY WALTER GRAHAM* 102,201 tons; 1918, 22,885 tons) lack pig iron. The scrap industry is an important factor in the conservation of iron ore, coke and limestone. As the annual turnover of scrap increases, less pig iron is needed, and consequently less blast furnace, coke oven and quarry capacity, and less transportation facilities are required. The importance of the last mentioned saving is seen from the fact that transportation costs on raw materials per ton of pig iron have increased from $4.79 in 1912 to $10.55 in 1921. A ton of scrap may replace a ton of pig iron, which is made of two tons of iron ore, a ton of coke and half a ton of lime- stone, or 3% tons, approximately. : both these eountries Common Uses of Scrap As 50 per cent or more of the charge of the open- hearth steel furnace is scrap, its importance as a raw material is high, becoming more so as ‘up to 100 per cent of the charge of the electric steel furnace may be scrap. Scrap is also used in blast furnaces and chem- ical works; and, without melting, by rerolling, forging and stamping and by piling and rolling into bars of iron. Pig iron can be made from scrap in the blas furnace and the electric furnace by adding carbon and silicon. Cast iron scrap is practically pig iron, and is remelted simply in the cupola for castings. Wherever scrap and electric power can be obtained, the highest grades of steel can be made, even from low grades of scrap, as the electric furnace process is won- derfully refining, eliminating not only phosphorus, but sulphur. Steel can be made, in the absence of iron ore or coke, by utilizing scrap in the place of pig iron and substituting electric power for coke and gas coai, or oil. A nation with cheap electric power, hydro electric preferably, can become a steel producer, com- petitively, even though it possesses no iron ore or coal, once possessed of large tonnages of iron and steel in place, in the form of equipment and structures of iron and steel, a country may support a considerable stee} industry on the continual reclamation of scrap. As the conversion of scrap into steel involves an oxidation loss of some 3 per cent, and since in the long run 95 per cent only of the steel is recovered as scrap, a persistent depletion of some 8 per cent occurs. These losses are increased by exports of iron and steel, the scrap from which is not returned by countries manu- facturing steel, their production being largely based on the scrap supply, for which there is competition. Quantities of Scrap Recovered and Consumed Statistics of domestic recovery and consumption of scrap are incomplete; by a formula explained below, the following estimates are arrived at: 1910 1913 1916 1918 TOMS. ossre 8,846,816 9,742,000 15,854,588 18,372,773 VEINS coves cosens be $109,104,000 ......... $551,183,190 To arrive at these figures it is necessary to take eR a 188 THE IRON AGE into account the oxidation of carbon and silicon in the pig iron and of iron in the conversion into steel; taking these losses into consideration a formula may be used to estimate the scrap supply approximately. The for- mula is: 103,092 per cent of the steel made, minus the Fe in the Bessemer and basic pig iron made, equais 85.5 per cent of the scrap supply. The remainder, 14.5 per cent, represents rolled and rerolled iron. This formula gives a scrap total for 1916 of 15,854,588 tons. The formula is based on the figures for one year only. Efforts are being made to obtain other figures, with which to revise these estimates of scrap production. It is understood that the figures of exports and im- ports enter into this, but as the average ratios for years 1910-1918, of exports to production is 0.65 per cent and of imports 0.55 per cent, a difference of only 0.1 per cent, it is felt that until needed figures are obtained and a revision of estimates made, the present estimates can be used as fairly informative. Oxidation Losses Requiring Neutralizing Under the head of oxidation: the Bessemer process is highly oxidizing, as it blows compressed air through molten iron; iron losses, in the atmosphere and in the slag, may be conservatively stated to be from 3 to 6 per cent. The puddling process loses 5 per cent of iron in the slag as oxide. The open-hearth process loses 3 per cent of metallic iron, as iron oxide in the slag. There are iron losses also in heating furnaces and from weathering. An average of 3 per cent loss by oxidation, applied to the tonnage of steel output, is taken as a conservative figure. Pig iron losses are approximately 5 per cent by oxidation of carbon, sili- con and manganese. The excess of exports of iron and steel over im- ports in 1917 was 5,779,474 tons. The year of largest production is used, because the steel business is in- creasing, and it is felt that figures based thereon do not overestimate future conditions of the industry. Imports of scrap in 1917 nearly balanced exports, being 223,834 tons for the former and 238,666 tons for the latter. Imports of machinery, cutlery, tools, etc., although a part of the consumption, are not taken into account, as total tonnage figures are not available and the amount is but a small fraction of the total steel production. Calculation of Permanent Losses The total permanent annual loss of iron (Fe) may be stated as follows: Tons 3 per cent of 46,978,364 tons* (oxidation loss).. 1,407,850 5 per cent of 47,011,358 tons? (not returned) 2,350,567 Orin DOES TOT ic bk65 65xw a saw ks wawc si 5,779 474 Total estimated permanent annual loss. 9.537.891 Equivalent iron ore (50 per cent iron content) 19,075,782 The steady reduction of iron reserves of the United States may be judged from the above estimate. The increase of production of scrap, estimated, by the for- mula given above, more than doubled in 8 years, being in 1910, 8,846,816 tons, in 1918, 18,372,773 tons. Scrap Formerly Held in Low Esteem In the early days of the iron industry there was a remarkable disregard of the value of scrap, the old iron works paying little attention to anything but the hammered bars, which passed current almost as coin, in Virginia, at 6c. per lb. During the past generation, old slag dumps of charcoal iron works have been used in blast furnaces, having been found to contain much metallic iron of pure quality, as well as iron oxide, which made this material more valuable than iron ore. The great use of scrap began with the rapid develop- ment of the open-hearth process, about 1890; the scrap business has grown to large proportions with the growth of the basic open-hearth process, particularly. Scrap Production Vastly Increased During War The war produced vast amounts of scrap, not only by destruction and wear but in process of manufac- ture. The average rejection of shell steel at the steel *Ingot production, figured “up” to allow for oxidation, which, when deducted, leaves the net production. #Same as above, with wrought iron added. July 28, 192 mill before forging and machining was 42 per cent for rolled steel and 22 per cent for cast steel. Th percentages of rejection are interesting, as the ca steel slugs were made in inverted, hot top molds, riser, or hot top, being practically the total reject steel. This is a strong argument in favor of the verted, hot top mold. The percentage of steel in hot top (over 20) should be noted, as only 10 per « is allowed in some works experimenting with this type of mold. Turnings of guns and shells were a large item of scrap production. Blast furnaces used up to 100 p cent of these fine turnings, and open-hearth furnaces increased the percentage of scrap up to 75 per cent, and even in one case to 90 per cent. But fine scrap turnings and borings are liable to rust and admixture of dirt, and are hence not desirable in the open-heart) furnaces, and they are of unknown composition. To meet this the use was advocated of high manganese pig iron for high initial and residual manganese in the steel bath. Alloy steel scrap is increasing and is valuable, but requires expert preparation and use. The unknown percentages of nickel getting into the scrap supply, particularly from the Cuban ores, is troublesome the crucible steel makers, who use purest scrap, as the process is not a converting or refining one as are the others, particularly the electric process. An interesting use of steel scrap in the blast fur nace in a high phosphorus iron ore section is the mak- ing of Bessemer grade pig iron from basic open-hearth steel scrap, for ingot molds, to save high transporta- tion costs. Wrought iron scrap is valuable, as it is fibrous and is made into bar iron, by piling, heating and rolling. Because of its crystalline structure, steel scrap is not permissible in the higher grades of bai iron. Where the Scrap Comes From About 20 per cent of the scrap supply is “country scrap,” miscellaneous iron and steel gathered from towns and farms by peddlers and traders into scrap yards, where it is sorted and prepared for use by scrap dealers. About 25 per cent of the scrap supply is “railroad scrap,” carefully gathered by the railroads, and graded and sold to dealers and consumers; some of it is made into bars, bolts, etc., by the railroads for their own use. Some 30 per cent of the scrap is “in- dustrial scrap’ made in works and rejected in nroc- esses of manufacture, such as crop ends. Much scrap never comes on the market, being re- turned to the furnaces and remelted by the works mak- ing it. So well do the works appreciate the value 0! scrap in these days that slag dumps are hunted through for it. As scrap losses show in the monthly cost sheets, the manager endeavors to reconvert his scrap monthly. It would be well if the country at large would take this view of the scrap question. The possible perma- nent exhaustion of domestic iron reserves at the rate of 10,000,000 tons a year, which doubles (Hewitt’s for- mula) every ten years, and which will increase with the world need of our steel and the efforts being put forth by increased export agencies, merchant marine, etc., calls for constructive suggestions for its replace- ment. If an amount of scrap equal to the losses of iron could be imported, the remedy would be easily found, but this cannot be expected, so consideration must be given to the iron ore supply. Use of Vast Reserves of Low Grade Ores It is argued that the immense reserves of low grade iron ores can be utilized indefinitely, but the question arises: “Can the United States maintain the comparative advantage in the manufacture of steel by using iron ores that require expensive beneficiation, or extra fuel, flux, labor and transportation charges with lessened furnace production?” It is an axiom with blast furnace men that high grade iron ore pr duces high grade, low cost pig iron and large furnace output, and low grade ores the reverse. Very pure ores need low grade ore to increase the slag, for good furnace working and to carry off the sulphur from the coke and limestone and ore. Lars¢ ee a a ee sail uly 28, 1921 mbers of blast furnaces are located near coke and 1x and some low grade iron ores, by which hundreds empty coal cars are returning daily from the Atlan- ports, which could bring back cheaply as return eht imported iron ore. If all the world were using low grade ore or ore entrates, no doubt the United States could use gerade ores, but a study of the iron reserves of the rid shows that there is a vast reserve of pure iron in Brazil that is barely touched, and which the mans looked to before the war, and the English are vy planning to develop on a large scale, by building lern ore ships, docks and railroad and mining lipment. Ore Imports as Offset to Scrap and Oxidation Losses If Brazilian iron ores can penetrate to the Pitts- district, about 30,000,000 tons of Lake ore vould be released annually as a reserve for the middle West, to which the center of population and of the steel isiness is drifting. The by-product coking coals of West Virginia and Kentucky, a wonderful field of low sulphur, low ash, low cost coals, meet at the Lakes the Lake ores, which are almost automatically discharged nto blast furnaces, at which are located by-product ‘ke ovens. All the Lake ores are needed to maten these coal reserves, and the growth of the United States will absorb the steel made from them. Imports of Brazilian ores would obviate the long rail haul on Lake ore to the Eastern steel works, and ‘eplace our losses of iron reserve and place these works in position to export the higher grade steel, for which there is the necessary skilled labor, trained for a cen- tury. Exports of steel under these conditions would not be a detriment. Urged to Buy Coal Now WASHINGTON, July 26.—Warnings to consumers of bituminous coal again are being sent out by the Govern- ment, urging them to lay in their supplies now, in or- der to prevent a shortage this winter, due to the lack of cars or other conditions. Recently, the Interstate Com- merce Commission sent out notices to this effect to pub- lic utility organizations and a similar appeal has been subsequently issued by the Secretary of Commerce. Mr. Hoover says that there is every indication that there has been an undue slackness in the purchase of coal which may accumulate to large demands in the autumn. He expressed the conviction that due to the general de- pression in the prices of bituminous coal at the mines, it is not too high at the present time, in fact, he was of the opinion that numbers of operating coal compan- ies are making no profits whatever. “If there should be a recovery of business activities in the autumn, taken in conjunction with the large in- crease in percentage of disabled cars (from 5 per cent to 16 per cent during the past six months) and the inability of the railways to finance their maintenance, there are possibilities of development of a most seri- ous situation as regards coal movement,” Mr. Hoover stated. Ladd Metric System Bill WASHINGTON, July 26.—Efforts are being made by Senator Edwin F. Ladd, of North Dakota, to have the Senate Committee on Manufactures conduct a short hearing at the present session on his bill, providing for the compulsory adoption of the metric system. After the convening of the regular session in December, he hopes to reopen the hearings and go into the matter at ength. Present indications are, however, that no hear- ngs will be held at the present session. Senator La Follette, of Wisconsin, chairman of the committee, has stated that he is favorable to the granting of the hear- ing but doubts that it would be possible to secure the consent of any three members of his committee to act iS a subcommittee to conduct the hearings. It is the opinion of Senator LaFollette that there is other legis- ‘auion now before Congress which he considers to be of creater importance than the so-called metric system ‘, and he is unwilling to undertake the conduct of the hearing personally. THE IRON AGE SALES STOPPED Step Toward Central Bureau for Sale of Govern- ment Surplus WASHINGTON, July 26.—Pending the establishment of co-ordinating machinery for the supervision and con- trol of all Government sales of surplus material, Direc- tor of the Budget Charles G. Dawes will continue in force the order issued by him last Thursday, stopping all sales of this kind, with the exception of perishable property. The order carries no particular significance so far as it concerns surplus quantities of steel held by different branches of the Government, as there have been no important sales attempted recently, and the Shipping Board, which has the greatest bulk of surplus steel, amounting to some 300,000 tons, recently stopped all sales. The other branches having sizeable tonnage are the War and Navy Departments, whose combined total of surplus is estimated at not over 40,000 tons. The order, however, derives most interest from the fact that it is the entering wedge to some form of a centralized bureau for the sale of all Government sur- plus property, though it may be of a general character with given branches of the Government still in control as to certain details with regard to the disposal of ma- terials. Lack of co-ordinating control, according to General Dawes, has resulted in large and currently ac- cruing loses to the Government and it is the purpose of the Budget office to absolutely check this loss until the machinery for supervising the sales can be formed. Building material, steel, cement, lumber, furniture, ships, automobiles, textiles, food supplies, buildings, etc., said General Dawes, are owned by the United States and available for current use. It is the purpose to have a central body to supervise the sale of this ma- terial. “In the face of a large supply on hand,” his order to department and bureau heads said, “because of the lack of a co-ordinated control and system of survey, with facilities for bringing to the knowledge of all depart- ments the requirements of each, the different depart- ments of the Government have been buying different classes of material in the open market with little re- course to stocks on hand. “The cause of this situation, while it is primarily due to the lack of co-ordinating machinery of super- vision and control, is aggravated by the delay on the part of the different departments in declaring as sur- plus certain property unnecessary to their purposes. It is also aggravated by the delay in the preparation of inventories which are now incomplete.” Preparing to Increase Output The Athol Machine & Foundry Co., Athol, Mass., vises, is readjusting its production machinery with a view to increasing output 150 per cent when business conditions warrant. Approximately two dozen machine tools, including large drill presses, have been discarded and a broaching machine and two other less important pieces of equipment purchased. Various machines are being placed in batteries, and in sequence, according to required machining operations. A modern tool crib has been installed on the second floor of the plant, and a large number of jigs and fixtures made. In addition, a new stock department has been established, all pat- terns have been redesigned, a new directing head se- cured for the foundry department and heat treating and oil tempering equipment installed. The company’s entire line of vises has been revamped and standardized and all parts made interchangeable and in other re- spects improved. New products also are being placed on the market. S. F. French, general manager and superintendent, has been succeeded by H. R. Linton. During the first six months of 1921, industries at Youngstown, Ohio, disbursed $29,458,814 in wages, as compared with $45,923,170 distributed during the cor- responding six-month period of 1920. The June pay- roll of $3,764,116 was $283,425 less than that in May, and compares with $7,723,830 in June of 1920. hi i s 190 THE IRON AGE NEW ROTARY GRINDER An 8-in. rotary surface grinder has been brought out by the Pratt & Whitney Co., Hartford, Conn. The ma- chine is designed for grinding disks, rings and cylinders requiring flat and parallel surfaces and is provided with sensitive adjustments for the rapid production of gear blanks, washers, cutter hubs or other work re- quiring close accuracy. In addition, it is provided with means for grinding concave or convex surfaces. The machine is regularly arranged for belt drive, with idler pulleys equipped with double ball bearing mounting. The main driving pulley is 26 in. in diam- eter, taking a 4 in. belt, and the tight and loose pulley, 16 in., taking a 6% in. belt. The speed of the counter- shaft is 450 r.pm. A 7% hp. constant speed semi- enclosed motor running at 1800 r.p.m. can be furnished if required in which case the motor is mounted on an adjustable base and a spring idler provided to automatically tighten the driving belt. The main drive shaft is mounted on radial ball bearings and the chuck driving clutch equipped with a ball thrust bearing to take the load at this point A secondary shaft, carrying a chuck driving pinion and sliding two-speed gears is mounted on bronze bear- ings and equipped with a flexible coupling to take care of chuck tilt and alignment. The entire mechanism runs in oil, the bearings being lubricated by splash. The spindle is mounted on ball bearings amply lubricated and protected from dirt and moisture. Means for eliminating end play are provided and adjustments for wear can be made. The wheel is 8 in. in diameter, 3 in. high, has a rim %& in. thick, runs at 2000 r.p.m., and is mounted on a holder in a manner to facilitate easy mounting and changing. Two mounts are furnished. A safety band is clamped around the wheel which is again surrounded by a steel guard, adjusted to leave about % in. of the wheel exposed when grinding. As the wheel is raised to the idle position July 28, 1921 the guard automatically covers the wheel so that the work on the chuck can be handled with safety. The guard is adjustable for wheel wear. Lever control, similar to that used on drill presses, gives sensitive control of the wheel when grinding and an easy quick movement to the upward or idle position is provided where liberal clearance under the whee! is allowed for handling work. <A positive mechanical] stop is provided to grind to specified thickness when the lever feed is used. Finer adjustments for whee! wear and varying thicknesses are made by hand whee! graduated to 0.0002 in., operating through a worm and whee!. The hardened points of this stop are so posi- tioned that the backlash in the worm and wheel is neutralized and the wheel and slide are overweighted in order to obtain very close accuracy. For certain classes of work the lever may be locked in position and the hand wheel for finer adjustments used as a feed wheel instead, in which case one turn of the hand wheel feeds the grinding wheel down 0.05 in. The rotary magnetic chuck is 10 in. in diameter and is arranged for two speeds, 50 and 100 r.p.m., to take care of variations in the diameter or physical characteristics of the material ground. The chuck can be tilted a maximum of 2 deg. for convex or concave work, a graduated dial on the outside of the guard indicating the amount of tilt in minutes. The maxi mum longitudinal adjustment brings the chuck center 1 in. beyond the outside diameter of the wheel. The center of the chuck is bored to receive a safety whee! dresser or a centering plug used when grinding washers. Starting and stopping of the chuck is controlled by a foot pedal on the right side of the machine, leaving the operator’s hands free, and a brake operated auto matically by the foot pedal rapidly retards the chuck rotation. The magnet current, 110 or 220 volts direct current, is controlled by a switch on the right of the ma- chine. The switch also acts as a demagnetizer. A pump and piping convey the cutting lubricant from a tank within the column to the inside of the wheel, the volume of flow being regv- lated by valves. In addition, a hose is provided on the out- side for washing the work and the chuck. Access to the tank for cleaning purposes is pro- vided through a sliding set- tling pan located in front of the column. The flow of cut- ting lubricant ordinarily is controlled by the movement of the feed lever, which auto- matically turns on the water when grinding or shuts it off when the wheel is in the work handling position. This con- trol may be disconnected by a simple pull knob, allowing hand operation of the water supply. The spray is con- fined to the table by a cast guard, the front section of which can be dropped by releasing a pull knob, thus giving additional clearance while handling the work. Cost of Living Almost Stationary July figures of the National Industrial Conference Board, 10 East 39th Street, New York, show that the cost of living for the month is 61.6 per cent above the corresponding figure for July, 1914. Last month the excess was 61.9 per cent, while July of 1920 showed an excess of 104.5 per cent. Rent and light are both above the figure for last year, food and clothing are both far below the figure for last year, fuel and sundries have shown practically no change. Arthur G. McKee & Co., Cleveland, have completed the erection of a five-unit Kling-Weidlein dry 24s cleaner for the Shelton Iron & Steel Co., Stoke-On- Trent, Staffordshire, England. This is the first Kling- Weidlein Gas Cleaner to be erected in England. Seat i ae. ese Gs u Ld ie Wages in the British Steel Industry War Advances Were Large, but Readjustments Are Now in Progress—Not Many Employees Were Re- duced Before April—Workers Still Limit Output FTER more than six years of steadily advancing wages, Great Britain has entered on a period of readjustment that must inevitably result in a ation-wide reduction in the earnings of her workers. While it is doubtful if wage rates reached an unwar- ranted level during the period when commodity prices vere at their peak and the whole world was clamor- for goods, the pendulum swung too far and liqui- lation of labor prices was delayed well into the pe- iod of industrial depression that swept over the world uring the late months of 1920. Whereas the prices raw materials in England reached their highest vel in February, 1920, and the cost of living at- tained its maximum at the end of October, wages nerally continued to increase until January. Ex- ept for those trades in which there is regulation by sliding scale agreements under which wages fluctuate cording to the Ministry of Labor index number of retail prices and rents, or according to the prices of the product, comparatively few workers suffered any reduction in their nominal earnings up to the end of April. Many Idle Workers Even prior to the coal strike, unemployment in the sritish Isles had reached alarming proportions with the result that the total earnings in many important trades were greatly reduced. Unfortunately, however, this situation did not result in any considerable pres- sure upon the nominal wage levels. This condition is attributable to various causes, among which may be mentioned the granting of unemployment doles and the organized resistance of the powerful national un- s. In certain cases labor contracts are still in force vhich prevent an early readjustment to meet the eds of the present situation. The payment of un- ployment doles—amounting in the case of a single week—removes the argument of the hungry stomach and the mass of unskilled workers nsider that if they accept employment, they are work- only for the difference between the wages which et and the dole they would receive without rking at all. The attitude of the labor unions is clearly indi d by the stand taken by the coal miners, who re- ised to work except on condition that a national wages ird were set up to facilitate collective bargaining th their employers and earnings under time rates r about 30 hours’ work a week that will maintain an ven higher standard of living than they enjoyed be- re the war on the basis of a full week. While there 1 real need for improvement in total earnings of sh workers as compared with pre-war standards, in the event that the cost of living should return same levels, the workers and particularly their lers are still consistently refusing to make up the erence by increasing efficiency. “Ca’ canny” or the berate restriction of output is the persistent policy a large group of British workmen and the wage of many commodities is due more to slack per- mance on the part of the workman than to the y or weekly wages being high. The fallacy of sh labor’s economics has been urged persistently the employers’ associations and the press during ince the war and some progress has been made ng the more intelligent classes of workers, but the ry that there are not enough jobs to go around is firmly imbedded to give way easily in spite of the that from one-third to one-half of all the products OY to 20s. a e% oO tr 14 ; nsulting metallurgist, 1322 New York Avenue, Wash- D.C Mr. Tyler’s article is based on investigations e in Great Britain in recent months 191 BY PAUL M. TYLER* - -— of British industry must be sold abroad in competition with those of other countries whose standards of liv- ing are lower or whose methods of production are more efficient. Cost of Living In considering the probable readjustments in gen- eral wage levels, it is necessary to give some attention to the cost of living. The Ministry of Labor publishes a figure monthly which purports to represent the “in- crease in the cost of maintaining unchanged the aver- age pre-war standard of living of the working classes.” This figure does not strictly represent the actual in- creases in expenditures of the average family owing to the fact that variations in the amounts of increase in the prices of different commodities have tended toward the purchase of different proportions of some of the items included in making up the index and because the standard of living has been raised in many families whose earnings have been increased in greater propor- tion than prices. These figures, however, are probably mure representative than any others that can be read- ily obtained of the general increase in the cost of liv- ing in England since 1914 as they include allowances for food, rent, clothing, fuel and light, and miscel- laneous items. A tabulation of the above index number indicates that the cost of living in England increased grad- ually but steadily from a few months after the out- break of the war until the armistice, when it was 120 per cent above the pre-war average. In 1919, there was a slight fall during the spring and summer, but in the fall of that year it increased again to 125 per cent above pre-war. The increases during the greater part of 1920 were more rapid than during any previous period, reaching the maximum of 176 per cent above the pre-war level, but falling at the end of the year to 165 per cent. Living costs declined precipitously dur- ing the early months of 1921, reaching 133 per cent above the pre-war average on the first of April. On that date food prices were 238 per cent above pre-war, rent was 144 per cent higher, and clothing was 325 per cent more costly; the increase in the expenditure for fuel and light was estimated at 245 per cent and in the case of miscellaneous items 210 per cent. Mate- rial reductions were made in the cost of clothing during April and food continued to become cheaper. While predictions are dangerous, the cost of living may rea- sonably be expected to fall to less than double the pre- war average within a few months. Wages Fall with Living Cost The cost of living figures as published by the Min- istry of Labor are accepted in an increasing number of trades as the basis for the readjustment of wages. While the cost of living was advancing, the workers were quick to recognize the relation between living costs and earnings and readily accepted contracts which incorporated a cost of living bonus in addition to a basis rate. In the majority of cases, there has been no trouble in the adjustment of payments to the work- ers, in accordance with these agreements. Railroad Workers Contest Sliding Scale In the case of railroad workers, however, there was a difference of opinion as to the interpretation of the sliding scale adjustment when the index number showed a decrease instead of an increase. The rates of wages of railroad men in the conciliation grades are made up of certain standard rates (agreed upon in March, 1920, and retroactive to Jan. 1, 1920), which repre- sent the average pre-war weekly rate of pay in each 192 group plus 38s. a week, and also further increases (ranging from 2s. to over 8s. per week) granted in June, 1920, the total wages in every case being sub- ject to a reduction or increase of 1s. per week for each fall or rise of five points in the “cost of living.” Ad- justments of earnings in accordance with this agree- ment are considered at quarterly meetings of the Cen- tral Wages Board comprising representatives of the railroad managers and of the two unions involved. When this board met in March to determine wages for the three months beginning April 1, the relevant index number was 141 as compared w.th 169 at the last meeting. The trade union representatives argued that the previous ascertainment had been based upon a figure of 165, owing to the provision that only a tull five points affected the result. According to the workers’ contention, the difference between the two figures was 165 less 141, or 24, and the reduction in the cost of living bonus should be only 4s. The repre- sentatives of the railroad companies, however, urged that the cost of living index figures should carry ex: actly the same amount of bonus when descending as when ascending and, since on May 1, 1920, the index number of 141 had carried an agreed bonus of 3s., the proper reduction in the cost of living bonus was 5s In short, the employers argued that all adjustments of bonus should go back to the starting point of the scale, viz., the index number of 125 in December, 1919, from which the original bonus dated. After discus- sion the union’s claims were accepted, but a new scale was adopted in anticipation of further changes. Hence- forth when the cost of living is falling, index numbers of 160 to 156 involve a bonus of 7s. a week on the basis rates, 156 to 151, one of 6s. a week, etc.; when the cost of living is rising, index numbers of 145 to 149 involve a bonus of 4s. a week, 150 to 154 one of 5s. a week, and so on Coal Miners’ Wages Owing to the wide differences in the economic state of coal mining in the different parts of the British Isles, it is doubtful if any British industry has as great variation in wage scales in the various sections. As a result of the several flat additions and bonuses granted to colliery employees since 1914, the differ- ences are now less important than they were before the war, but, in March, 1921, just before the national strike, the average earnings of all classes of employees varied from less than £4 per week in Somerset and North Staffordshire to over £5 per week in Scotland and certain parts of Yorkshire. The wages of different grades of workers on company account seem to be re- markably similar, skilled workers receiving only com- paratively little more than those who are totally un- skilled. Miners and timbermen in South Wales, for ex- ample, received about 89s. 2d. per week, while “haul- iers” got 80s. 9d. and underground laborers received 73s. 1ld. In Cumberland the differences were even less, colliers receiving 80s. per week while other under- ground labor received 78s. 8d. and surface laborers got 71s. 4d. These earnings are for employees on time work, whereas most of the more experienced miners were on tonnage rates and for such workers, weeky earnings of £10 or more were not uncommon. It is stated, how- ever, that the average earnings of all classes of em- ployees in and about British coal mines in January, 1921, were £22 1s. 9d., or about £5 per week, and this can be taken as the maximum average earnings for all classes of workers in any one month. Prior to the war the average earnings of all classes of colliery em- ployees were about £7 10s. per month. In addition to their actual wages, however, the coal miners in Eng- land are furnished with house coal at nominal prices, and in many instances live in houses owned by the coal mine proprietors who ordinarily charge much less rent than other British workers have to pay for simi- lar accommodations. The wages of iron miners and quarrymen gener- ally come under sliding scale agreements according to the selling price of pig iron. Among the best paid miners are those in the Cumberland district, whose wages reached 26s. 1d. per shift in January and were THE IRON AGE July 28, 192) reduced to 23s. 10d. in March. In the Furness dis- trict iron miners were reduced to 16s. 6d. per shift in March as compared with a maximum rate in Januar; of acout 20s. Limestone quarrymen in West Cumbe) land were reduced in March by ls. 8d. per shift Subsequent to the change, the wages of skilled work ers ranged between 18s. and 19s. per day, while la borers got about ls. per day less. Wages in Iron and Steel Largely Scaled The wages of almost all classes of workers in th iron and steel industry in Great Britain are adjusted more or less automatically according to the ascertained prices of the products. Most of the workers in thes: trades are relatively unskilled, but during and since the war they have been relatively weil paid. The wages paid in the different sections of the country vary somewhat, but the average nominal wage of un- skilled workers just prior to the slump in February, when they were at the maximum, was approximately 70s. 4d. per week of 47 hours. The actual average weekly earnings of all classes of employees in the iron and steel industry reached a maximum of 108s. per week in September when most of the works were operating full time. Owing to restricted operation of plants as a result of the coal strike in October, actual earnings declined in October and November, but again increased in December, owing to better working condi- tions. The maximum wages, however, were being paid in February when the nominal earnings of all classes of employees in the British iron and steel industry aver- aged approximately 132s. per full week or about 18s. to 19s. per shift of eight hours. Blast furnace employees were getting approximately 20s. a day in most dis- tricts, while the wages of common labor in the steel works were somewhat less. Open-hearth heaters and mill men are ordinarily paid on tonnage rates, the most recent adjustment in South Wales (March, 1921) fixed the wages of “teemers” at 8s. 4d. per shift plus 1d. per ton on the make of the shop between three heat- ers. The earnings of ladiemen were, for first helpers, 6s. 3d. and for second helpers, 5s. 3d. per shift plus 1/6d. per ton on the output of the shop between three heaters divided among three men of each of these grades. Puddlers are invariably paid on a tonnage basis. The basis rate is 13s. 6d. per ton and this appears to be standard throughout the country. The additions to this base rate, however, vary somewhat in the differ- ent parts of the country according to the ascertained prices of wrought iron bars obtained by selected firms in each district. Decreases, amounting to from 20 to 25 per cent were recorded about April 1, bringing the puddling rate in Cleveland down to 202% per cent above standard and in Scotland to 212% per cent above the standard, or 40.8 and 42.2s. per ton, respectively. Large Earnings of Skilled Men The spread between the wages of highly skilled workers and common labor is greater in British iron and steel works than in other countries. Nearly all the men who are in charge of processes (such as head rollers, blast furnace keepers, etc.) are paid on a ton- nage basis. Their earnings vary greatly in different plants, but are always high, many of these men get- ting £25 a week or more. The wage advances in the iron and steel industry as compared with pre-war scales vary widely accord- ing to the class of work performed, being much greater for low paid men than for those who received good wages in 1914. According to figures published by the National Federation of Iron and Steel Manufacturers, the average actual earnings of all classes of workers in the iron and steel industry in Great Britain were at the rate of about £250 per year in 1920 as com- pared with £92 annually before the war, an increase of 172 per cent. Due to the fact that employment was generally better in 1920 than before the war, the in- crease in nominal wages was doubtless a little greater. Probably the largest increase for any single class was in the wages of common labor in the steel mills, which advanced from about 22s. 6d. per week in 1914 to 70s. 4d. in February, 1921, or over 212 per cent. a luly 28, 1921 \< a result of the established custom of fixing wages most branches of iron and steel manufacture by gl wages boards for each class of workers in various sections, the readjustment of wages in this try to meet changing conditions of trade is not Be om panied by the difficulties now encountered in other The principle that the workers’ tish industries. % ves should be adjusted according to the selling prices s the products is accepted by both parties concerned. % he work of the different wages boards consists mainly } he ascertainment of the average sales prices for * tain specified products, as shown by the books of necified firms. These can be ascertained easily and ‘ tickly and wages are adjusted accordingly. The ages boards ordinarily meet every three months to .e wages for the following quarter on the basis prices prevailing during the preceding three months. der this system, it will be that the workers the benefit on a declining market, whereas, when prices are rising, the employers have the advantage In order to make the system even more flexible a few .ves boards meet every two months. seen Engineering and Shipbuilding The wage increases to machinists and other em- ployees in the engineering and shipbuilding trades have taken the form of flat increases to the basis rates is existing in different sections before the war to- vether with various war bonuses. The last advance was at the end of May, 1920, when the basis rates had been advanced a total of 13s. per week and war onuses totaling 26s. 6d. plus an additional bonus of 12%. per cent on the total weekly earnings had been given to all male employees over 20 years of age. Owing to the variations in local rates, the final wages of skilled workers in these trades vary somewhat in dif- ferent sections of the country. In February, 1921, the wage for ordinary skilled machinists (fitters) ranged from 83s. 9d. to 89s. 4d. Millwrights and erec- tors generally received from 3s. to 5s. more per week. The 47-hour week is now standard throughout the country. Prior to the war the wages of skilled ma- chinists averaged about 38s. per week of 53 hours. Maintenance men in steel works and tin plate mills n South Wales were paid on a different basis until March 27 when they were given a flat rate of 100s. per week in place of the former arrangement of a basis wage of 43s. plus the then ascertained bonus (on the basis of steel prices) of 177 per cent. This wage, however, is still higher than that obtaining in other parts of the country where mechanics of similar skill get the same wages whether employed in engineering shops or on repair and upkeep of machines in other classes of production. Apprentices are largely used for running semi- automatic machines and their wages will vary accord- ing to the class of work they perform. The wages for boys and youths, however, were fixed in the Midlands on March 21, 1921, on a new scale superseding the former arrangement, which included war wages of 10s. ‘d. per week for all such workers. The present scale as follows: Vachine Shops—Boys (Per Week of 47 Hours) \ge Basis Rate Bonus Total Wages s da s d Ss d 10 O 4 0 14 0 12 0 5 0 17 0 14 0 7 O 21 90 16 6 as © 25 0 19 0 12 0 31 0 21° 6 14 6 36 6 «(OO 23 6 18 6 42 0 The above rates do not aprly to youths advanced work as stampers in drop forging nor to appren- ‘es already serving. [ron molders, although belonging to a different nion from that of the engineering workers, are paid a similar basis. The variations in the basis rates i somewhat greater than in the engineering trades, bs ‘anging from 49s. to 62s. 8d. plus the war wages, total- é ig 26s. 6d. plus 12% per cent on the total weekly arnings (i.e. from 84s. 10d. to 104s. 10d. per week of ‘; hours, according to district). Shop laborers in engineering works and foundries + THE IRON AGE 193 get from 61s. 6d. to 66s. 6d. plus 12% per cent, or 69s. ) 2d. to 74s. 10d. per week, according to the district. Wages of Women Workers Considerable numbers of female workers were em- ployed in the heavy machine trades during the war, but most of them have been weeded out and replaced by men or boys. A great many women, however, are still employed on light mach ne work and in the hollow ware and hardware trades. They are also found in the foundries as coremakers, ete., and in brass manu- facture, operating capstan lathes or polishing. During the greater part of 1920 the wages paid to such labor in the Midlands averaged about 41s. 6d. per week. In the middle of March, 1921, a new scale was adopted resulting in decreases ranging from 2s. 9d. to 8s. 5d The per week. rates now increase from 14s. 6d. per week for girls of 14 years up to 35s. per week at 20 years or over. On lighter work, or where little ex- perience is required, the wages of women are only 32s. per week of 47 hours. Piece work is common in many shops, but is not favored by the workers. The usual arrangement of piece rates is such that an average worker can earn 25 per cent more on piece work than on time work. Wages in the engineering trades had not been re- duced at the end of April, but conferences were being held for a general reduction In certain districts, notably around Birmingham and Coventry and in Scot- land, the individual shops had been able to induce their employees to remain at work and accept reductions of from 20 to 35 per cent. It is expected that the 12% per cent increase on the total weekly earnings of time workers and the corresponding war bonus of 7% per cent granted to piece workers will be removed before long and the basis rates and flat war advances will be reduced by at least 5s. per week. If this is done, the wages of skilled mechanics in England will be approxi- mately 70s. per week or only about double pre-war wages. Other Metal Trades In general, the wages of workers in other classes of metal work are similar to those paid in the engineering trades, although not adjusted on a national basis. Sheet metal workers in Halifax, for example, re- ceive 2s. 3d.. per hour, or slightly more than an ordi- nary skilled machinist. Male jewelry workers in Lon- don get 2s. 5d. an hour, while women in the same trade get ls. 3%d. an _ hour. First-class electri- cians are paid about 2s. an hour. In the metal bedstead trade (Birmingham) the stockfitters in charge get 85s. per week, second-hands 70s., while “improvers” are paid on hourly rates of 1s. 4d. per hour for frame setters, 1s. 3d. per hour for cupola men and benders, and 1s. 1%d. per hour for other work ers; all the workers in this trade receive an additional 10 per cent on basis t'me rates plus 30s. per week as a flat war bonus to all workers over 18 years of age. In the manufacture of light castings, the stand- ard rates for erinders and polishers are 41s. per week; blacksmiths, 38s.; fitters and