The Iron Age 1925-01-29: Vol 115 Iss 5

New York, January 29, 1925 ESTABLISHED 1855 THE IRON AGE VOL. 115, Ne. 5 Industrial Relations Plan Stands Time Test Colorado Company’s Program Embraces Works Council, Pro- visions for Recreation and Education, Pensions, Medical and Surgical Treatment and Encouragement of Prac- tical Suggestions from Employees BY GILBERT L. LACHER alone, it would long since have ceased to perplex ~ ing fundamental belief that the mutual interests of £) the labor problem could be solved by discussion Underlying the Colorado plan has been an unwaver- industry. No single question has received wider management and labor may be effectively promoted study; no subject has been treated from more numerous’ through frequent conference and voluntary cooperative angles. In fact, to venture any opinion on the labor effort. A pioneer in cultivating closer contact with its problem today is to run the risk of say- ing something trite. ia aeacige ~~ Sioa, It is refreshing, therefore, to depart 6 wore from an_ abstract treatment of the theme and to confine one's attention to August 6, 1924, actual performance. Theories, systems and plans are legion, Mr. Walter Rich, but ther are all de- e/e 16° Mill. pendent for their Dear Sir: success or failure On behalf of the Suggestion Committee I am pen =f arenes handing you herewith check and voucher for $100.00, factor, the human element. Indeed, the manner in which a given plan is ap- Wish to thank you for your efforte and con- (we. OarenveceT Pueblo, Colerade @his is in consideration of the improvements you eug- gested on the furnsce for heeting angle bere, plied may have more gratulete you on your achievements, Hope we may hear to do with its effec- from you again slong similer lines, tiveness than its own intrinsic merit. Cy GP Fe How hackneyed Cri cougl it is to say that la- - bor and manage- ment have common, and not antagonistic, interests. This state- ment, however, as- sumes the guise of reality when, through sincerity of pur- pose, frankness in HE Colorado Company Consistently Solicits Suggestions from Its discussing mutual Employees, Giving Cash age - ote ao oe ee ue ° > ° - e problems and Cee ordi aoe eioeeatineieliae aii of $100 for a aman iectieienate ness in facing for- to a furnace for heating angle bars tuitous disturbances employees, the Colo- rado company did not perfect its pro- gram without en- countering difficul- ties, but these have been largely over- come and have only served to strengthen faith in the wisdom of an undertaking which has now stood the test of actual experience and has long ago emerged from the realm of mere theoretical speculation. Foremost in the Colorado company’s labor policy is a works council plan which was adopted by a majority vote of employees at its mines in October, 1915, and at its steel works in May, 1916. Other features of its program inelude medical and surgi- cal treatment of em- ployees, recreational and educational ad- vantages, a pension- ing plan, a system of company stores, and the encourage- ment of practical which threaten industrial concord, management suc- suggestions from employees for improved practice. ceeds in winning the confidence of employees. Such an The plan for joint representation of employees and 325 attitude has actuated the Colorado Fuel & Iron Co. management in industrial relations was worked out by in the initiation and conduct of its industrial relations J. F. Welborn, president, John D. Rockefeller, Jr., E. H. program. Weitzel, now vice-president and general manager, and pean ME hacen tn ee pin i a SA il vu William L. Mackenzie-King, the present Premier of the Dominion of Canada. According to its own statement, “the Colorado Fuel & Iron Co. recognizes that there are four parties to industry—labor, capital, management and the com- munity. Its policy is to have industrial relations within the company so regulated that the rights of all these parties shall be recognized and respected. This it seeks to effect by following in its industrial relations a clearly defined method of joint representation and procedure adopted by the employees and the manage- ment in joint conference and subject to amendment only in like fashion.” For the purpose of electing representatives the em- ployees are grouped into natural divisions and once a year each division, by secret ballot, elects representa- tives on the basis of one for each 150 employees. The representatives of the management are appointed by the president of the company. A joint conference of employee and management representatives is held at the steel works and at the various mines and quarries by districts in January, at which time joint committees are selected. Each committee is composed of 12 mem- bers for the steel works, and six members for each of the other districts, of whom the employees’ represen- tatives designate one-half and the management the other half. There are separate committees on Coopera- tion, Conciliation and Wages, on Safety and Accidents, on Sanitation, Health and Housing, and on Recreation and Education. The committees are required to meet at least quarterly and to prepare complete reports of their proceedings for submission to an annual joint meeting of all representatives held in December. In addition to the joint conferences of January and the annual meeting at the end of the year, joint confer- ences of employee and management representatives are held also in May and in September. Committees Have Real Authority The standing committees are given real authority. lor example, a grievance or a dispute may be referred consecutively to foreman, superintendent or the presi- dent’s industrial representative, and if a settlement is not reached by that time, the matter may be presented to the Joint Committee on Cooperation, Conciliation and Wages, a majority decision of which is binding on all parties. In the event that this committee is dead- locked, it may select as umpire a third person who shall sit in conference with the committee and whose decision shall be final. If the committee cannot agree on an umpire, it may refer the question to arbitration or, in Colorado, request an investigation by the State Indus- trial Commission. During the nine years in which the works council plan has been in effect, only two questions have been appealed to outside parties, in both instances to the Colorado State Industrial Commission. One case was of minor importance and involved a young workman at one of the coal mines who had been asked to divide his time, during a dull period, with a carpenter who had been injured and was unable to follow his regular occu- pation. The only serious case came before the Indus- trial Commission in 1921 when the company was forced to economize both on account of slack business and in order to meet wage reductions made in certain sections of the Middle West and East, particularly by those supplying coal to competing steel plants. ‘In August of that year petitions were circulated at the company’s different coal mines asking for a reduction in wages and where the proposals were approved by a majority vote of miners, notices were posted that lower wages were in effect. The United Mine Workers then ap- pealed to the Industrial Commission for an investiga- tion, whereupon hearings were held and a decision was rendered. In both this instance and that mentioned above, the commission upheld the management. Wage Reductions Accepted It is interesting to note at this point that three con- secutive wage reductions totaling 35 per cent. were accepted by the company’s steel works employees be- tween Jan. 1 and Aug. 1, 1921. These were agreed upon in joint conference and were followed neither bv : A ap- peals to higher authorities nor by strikes — THE IRON AGE January 29, 1925 In fact, only three strikes have occurred since the joint representation plan has been in force, and in each case were attributable to interference by outside in- terests. When the nation-wide steel and coal strikes were called in 1919, employees of the company went out largely because of sympathy for their fellow workmen in other parts of the country rather than because of any grievances against their own management. At the Minnequa works, the management called the workers together prior to the strike for a frank discussion of the situation. Most of the strike demands had already been fulfilled at the Colorado steel plant and the men admitted that they had no complaint to offer as to their working conditions. A few insisted on recognition of the union, a demand that the management was not willing to grant, but it was apparent that the appeal which really determined the employees’ course of action was that their participation in the strike might aid men in other steel plants to obtain conditions of employment comparable with their own. Whatever were the dom- inant reasons, fully 85 per cent of the employees of the Minnequa works struck. The strike, however, was short-lived and it was not long before a “Back-to-Work”’ movement was organized with the result that applica- tions for reinstatement were received in large numbers long before the strike was “officially” declared ended. The coal strike, on the other hand, did not seriously affect the company’s coal production. Confidence Unshaken The experience at Minnequa works was naturally disappointing to the management, but it did not shake its confidence in the success of its industrial relations plan. That this faith was justified is indicated by the voluntary acceptance of wage reductions during the subsequent industrial depression of 1921. This was re- garded as convincing testimony that the men appre- ciate that the plan is on a give and take basis for the mutual interests of all concerned. No doubt they re- called the numerous occasions when the management had freely accepted proposals by the employees, some of which placed the company in a difficult competitive position. A notable example was the joint action of representatives of employees and management on Oct. 30, 1918, which changed the hours of labor in the steel works to eight, effective Nov. 1. Thus the Colorado company anticipated by five years the general abandon- ment of the 12-hr. shift throughout the country. It is also to be observed that all departments of the Minne- qua works are on an 8-hr. shift basis, whereas in gen- eral practice today continuous departments are on 8-hr. shifts and other departments on 10-hr. turns. Whether eight hours or ten hours comprise a proper working day is open to controversy and the Colorado manage- ment would be the last to take sides on the question. In its own particular case, it was confronted with a decided preference on the part of its employees for a uniform 8-hr. shift and, accordingly, it accommodated its operations to meet that wish. The Third Strike The third strike experienced by the company 0c- curred in.1921, when at the instigation of union labor agitators employees at certain coal mines quit work because of a proposed decrease in wages. In this case, which had already been referred to, wages were cut only at mines where a reduction was approved by 4 majority vote. Moreover, the employees who went out were located at operations where the wage reduction had not been adopted. This partial strike came to an end with the decision of the State Industrial Commis- sion upholding the company. Makes No Discrimination Notwithstanding its vexing experiences with union organizations, the Colorado company makes no discrim- ination against any of its employees on account of membership or non-membership in any society, frater- nity or union, and specifically binds itself in this regard in the articles of agreement governing the joint rep- resentation plan. There is nothing to prevent a union member from being elected a works council represen- tative. The only qualifications required to make one *eligible for office are that he be a citizen of the United January 29, 1925 States, 21 years of age or over, and that he have a record of at least one year of continuous service with the company immediately preceding the month in which elections are held. Both nominations and elections are held by secret ballot, however, to insure the untram- meled expression of the real choice of the voter. What type of employee is elected to office? When the joint representation plan was first adopted, there were times when loud-mouthed, pugnacious individuals were elected by the employees. This was due, no doubt, to a misconceptnon of the nature of the plan—a belief that aggressiveness would be required to make any HE Company has Provided Club Houses at All of Its Operations and Where the Num- ber of Employees Is Sufficient to Warrant the Employment of a Secretary, the Y. M. C. A. Is Put in Charge. The Steel Works Club at Pueblo was constructed at a cost of $500,000, which was borne jointly by John D. Rocke feller, John D. Rockefeller, Jr and the Colorado Fuel & Iron C: "THE Educational Program of the Steel Works Club at Pueblo Is Comprehensive, En bracing Both Mental and Physi- cal Training. Regular swim ming classes are held in the club pool shown in the illus tratior headway with a supposedly obdurate management The employees soon found out, however, that they were not entering a fighting game, but, on the contrary, the conference method employed in the works council plan placed a premium on level-headedness, fairness, and calm deliberation. Out of 89 employee representatives elected last year at the steel plant, iron mines, coal mines and limestone quarries, 85 per cent were married men. The average age was a little over 37 years, and the average length of service with the company 11 years. In its articles of agreement in connection with joint representation plan, the company has committed itself to pay wages and provide working conditions similar to those in effect at the plants of competing companies. Specific provisions to this effect follow: “The wage rates now in force in the several sub- divisions conform substantially with wage rates for like work under similar conditions in effect with com- panies whose products are sold in active competition with the THE IRON AGE 327 products of the Colorado Fuel & Iron Co., and that similarity of rates with those competing companies shall be maintained. The working conditions now in force shall continue, subject to adjustment and regula- tion in conformity with conditions in effect in similar operations conducted by the company’s competitors. For the purpose of making such change in wages or working conditions, a joint meeting of employees’ rep- resentatives in the divisions affected and proper officers of the company shall be called within 30 days after the change in wages or in working conditions in competi- tive operations is effective, to discuss and determine an equitable method for fix'ng the new schedule of wages or working conditions in the departments con- cerned.” Right to Hire and Discharge While the employees are given a voice in determin- ing wages and working conditions, the company def- initely reserves to itself the management and the direc- tion of the working forces, including the right to hire and discharge. This stipulation, nevertheless, is sub- ject to certain qualifications intended to safeguard the position of employees. It is stated that “the fairness of any action under this paragraph shall be a proper subject for review, according to the general provisions expressed herein.” In laying off men because of lack of work, length of service and other things considered, men with dependents are given preference. In making promotions, the primary consideration is given to length of service and ability to do the work required. Summary dismissal of an employee is warranted for Seniniieiemeetemeenei ee nS ee cena e et A a AG th et Ge SGP Og My Ranges i . U © 5 SS tee ——- 328 THE commission of any one of a list of offenses which are posted in each division and subdivision of the company. For offenses other than t se posted, employe¢ may not be discharged without first being notified in writing that a rep tition of the offen will be caus¢ r dis- n al, [he provision that t! ict f the management 1! such matters as laying off and promoting emp/oy' , for! v1 rally causes many qui ! » come ! lr} may prove a! ’ ’ rat ynsumes y 7 } t+ vn } regard bette ! ! | it t directing head Y ! I yorth while, if only to I one is left unturned t I I eat! n Problem Resulting from the War As an esample of typical problems which com be t works cour omplicated situation grew yut of war. It had bee unnounced by the compan) that no employee should suffer by joining our armed forces. When the veterans returned, it was necessary to find places for them and at the same time not en tirely disrupt the various departmental and divisional hich had been built up in the meantime. This was successfully worked out. That the industrial relations program is a living organism and not a mere “paper” plan is indicated by the records of questions adjusted in 1922 and 1923. Out of 774 questions considered in 1923, 630, or 82 per cent, were adjusted in favor of the employees directly ‘concerned. In 1922, 515 out of 660 questions, or 78 per rent, were decided favorably to the employees. Reviewing the statistics for 1923 in greater detail, it is found that out of 196 questions considered by the employees or their representatives with the local man- agement, 144 were decided in the affirmative and 52 in the negative, with two pending at the close of the year. Of 147 referred to the president’s industrial represen- tative, 117 were decided in the affirmative and 30 in the negative, with one pending. Of 431 considered by the joint committees, 369 were decided affirmatively and 62 negatively, with seven pending. The subjects at issue were classified under wages, working conditions, employment, living conditions, medical department, stores, education, recreation and miscellaneous. Wages. working conditions and living conditions furnished 58? questions, or 92 per cent of the total number consid- ered during the year. Of the questions in these thre ‘lassifications, 475 were decided in favor of the em ployees, 102 against them, while 5 remained pending it the end of the year. u Ol All Questions Settled Peacefully In a small pamphlet touching on the salient features of the joint representation plan, it is stated that through service on committees, or otherwise, employees’ representatives may help determine wage scales, work- ing and living conditions, recreational, educational and other activities which make up the life of their respec- tive committees. The records for 1922 and 1923 clearly indicate that employees are taking full advantage of . It is also worthy of comment that all questions which came up were settled peacefully. There can be little doubt that the plan has not only had the negative their privileges. advantage of preventing discord but it has likewise had the positive effect of distinctly improving the morale of the employees. - The operation of a successful works council plan is by no means simple. means : This can be readily appreciated when it is pointed out that in 1923 the Colorado com- pany had an average of 10,932 employees, comprising 54 nationalities, living in 20 separate communities. Much has been said about the handicaps imposed upon our municipal, State and Federal] governments hosnal the influx of large numbers of heterogeneous sions with ideals and traditions foreign to those of our ‘om try. In fact, one of the principal arguments for re- stricted immigration is the necessity for more thor- eugh assimilation of the foreign-born already within our borders. The industrial relations plan of the Colo- rado company has been confronted with even severer IRON AGE January 29, 1925 tests than any of our governmental bodies. The great majority of employees necessarily are common labor- ers, or at least not very far advanced in the skilled class. Upon their good judgment and sense of fair- ness the success of the program primarily depends. While an elected representative must be an American citizen who has been in the company’s employ for at least a year, every employee has the right to vote after three months of service. Cost and the Results What does the industrial relations plan cost, and do the results justify the cost? This is a natural question and is answered as fol- 1OWS: According to Government reports there were 3254 strikes and lockouts in the United States in 1920, in volving 4,000,000 workmen. The loss in money was over two billion dollars, of which more than one and one-quarter billions came out of the pockets of labor. The working time lost was equivalent to the labor of 1000 men for 161 years. This alone is convincing evi- dence that strike prevention is one of our most impor- tant economic needs. Consideration must also be given to the indirect, but nevertheless very tangible, benefits of industrial concord which find expression in mutual confidence and good will between employee and em- ployer. The avoidance of industrial disputes, therefore, has the two-fold effect of preventing losses in time and money to both men and management and of insuring gains accruing from labor’s active and enthusiastic in- terest in the success of the industry with which it is identified. The expense of the Colorado industrial relations program was $125,000 in 1923. In 1920 it reached a maximum of $216,975.79, but this represented only a little more than one-half of 1 per cent of the gross business of the company, and less than 1 per cent of its entire payroll. It has been charged by some critics that the Colo- rado plan is the altruistic hobby of a large stockholder and that it is adhered to regardless of, and often, to the detriment of profits. In answer to this it may be said that the cost of the plan is too small materially to affect profits and, furthermore, that the Colorado com- pany has 3500 stockholders, no one of whom has a con- trolling interest. Why Company Bears Expense Why does the company bear all the expense of the industrial relations plan, if the proposition is really a 50-50 one? This question has been answered by the company as follows: “All expenses are borne by the company since the promotion of harmony and good will between the man- agement and employees and the furtherance of the well- being of employees and their families in the communi- ties in which they reside are essential to the successful operation of the company’s industries in an enlightened and profitable manner.” The Colorado program for the promotion of har- mony and efficiency among employees is comprehensive, but a feature commanding particular attention is the solicitation of practical suggestions from employees. Originally suggestion boxes were distributed around the plants, but these were not productive. Under the present scheme, all suggestions are sent direct to the president’s industrial representative, who sends a letter of acknowledgment to each sponsor. In case of adop- tion, prizes are awarded, ranging from $5 to $100, ac- cording to the merit of the suggestion. Whenever an employee develops anything which can be patented, the company bears the cost of the patent, only asking the privilege of the use of the device in company opera- tions. If a suggestion is patentable but not applicable to the company’s work, the management frequently lends money to the inventor to cover the cost of patent- ing. If a suggestion is rejected, the president’s indus- trial representative writes the sponsor, setting forth reasons why it cannot be adopted. In some instances, the suggestion may be impracticable; in others, it may have been adopted previously. If a suggestion is lack- January 29, 1925 ing in some important essential but still seems promis- ing, the president’s industrial representative consults with the employee with a view to solving the difficulty. Doubters Were Convinced At first there was considerable skepticism regarding the suggestion plan, but gradually confidence has been built up until now it is highly productive. Doubters were convinced by performance. In one of the illustra- tions is a copy of a letter which accompanied a $100 check sent to an employee for a suggestion. In this case practical improvements to a furnace for heating angle bars were suggested. In the company’s Indus- trial Bulletin of May 15, 1924, the suggestions receiving financial awards since the Dec. 15, 1923, bulletin were listed as follows: Fuel Department Isaac Sandoval, Berwind, Colo. Various suggestions for conducting special sales at Colorado Supply Co. stores. Iron Department E. Spees, Minnequa Steel Works. Suggested improve- ment in building of dynamic controllers. E. J. Markert, blast furnaces, Minnequa Works. Im- provement at sintering plant. Other typical suggestions include an electric flue cleaner, which has proved an important time saver, and a chute for handling brick in the checker chambers of the open hearth furnaces. Formerly corners would break off the brick, or the fingers of men at the bottom of the chute would be smashed. The chute designed by the workman has a lever half way down the descent to lessen the speed of the brick. Likewise the bottom of the chute has been curved so that brick is swung into a horizontal plane upon delivery. Promoting Recreation and Education The company’s efforts to promote recreation and education among its employees have been as broad as in the field of industrial relations. Club houses have been provided at all of the company operations and where the number of employees is large enough to warrant the employment of a paid secretary, the Y. M. C. A. is put in charge. The Steel Works Club at the Minnequa plant is a four-story and basement brick building, which was opened in March, 1920. Its construction cost was $500,000, which was divided among John D. Rockefeller, John D. Rockefeller, Jr., and the company. The membership roll includes 1000 men, whose dependents are also accorded the privileges of the club, 250 boys and 250 women and girls. Dues for an adult employee of the company are $7.50 a year; for apprentices between 16 and 19 years of age the charge of $3.75 a year. Wives and daughters of non- members have been given a special rate of $5 a year, while minor children of non-members pay dues of $2 annually. Features of the club building are a large lounge, a reading room supplied with 65 periodicals, a library with an average circulation of 750 volumes per month, reoms for dances and banquets, bowling alleys, billiard THE IRON AGE 329 and pool tables, a swimming pool, a gymnasium, a cafeteria and an auditorium with a seating capacity of 1221. Through the management of the Y. M. C. A., both the recreational and physical activities of mem- bers are organized. There are regular gymnasium, swimming and dancing classes. Men and women mem- bers have separate locker and wash rooms and are given separate physical instruction. Games, meets and tourn- aments in the various sports are arranged to develop the who!esome rivalry incident to a contest. Amateur theatrical plays and musical concerts are encouraged and for those purposes the auditorium is utilized. Throughout the fall and winter, concerts are given every Sunday afternoon and invariably the attendance exceeds the seating capacity. The hall is equipped with a pipe organ and has forced air circulation. Many Students Enrolled The educational activities of the club are also im- portant. Over 800 students, including minors, are en- rolled in vocational, cultural, Americanization and home economics classes. Among the vocational sub- jects are mathematics, blue print sketching, mechani- cal drawing, chemistry and mechanics. Cultural sub- jects include music, dramatics, art, languages, pageants. A FLEET of 4LAmbulances Connects the Company's (ut lying Properties with its Hospi talat Pueblo The ambulance service, incident- ly, Was sug gested by Charlies Peete, works council representative at the company’s Robinson No. 1 mine. Mr. Peete is shown stand- ing next to the ear in the photo- graph Under the heading home economics may be mentioned cooking, sewing, art needlework, the making over of garments, home sanitation, nutrition, canning. In addi- tion to these classes, educational efforts find expression ir discussion clube cultural clubs for girls, story-tell- ing hours for children, illustrated lectures and motion pictures. Seasonal parties, picnics, hikes, summer camps, and lawn concerts are among the numerous other or- ganized activities fostered by the Steel Works Club. The important place the club has taken as a social center is indicated by the fact that 47 different organi- zations not directly connected with the Y. M. C. A. make use of the club building and its facilities. The club structure also contains a dormitory em- bracing 126 rooms. to accommodate 155 residents. Room rent is $12 a month. Medical and Surgical Treatment For the medical and surgical treatment of employees a large hospital has been provided at Pueblo and dis- pensaries at the Sunrise, Wyo., iron mine and at the Primero, Colo., coal mine, the two properties furthest removed from Pueblo. The Minnequa hospital at Pueblo was built in 1902 at a cost of $400,000, The buildings are located on a beautifully landscaped eight-acre tract. The main structure embraces an operating room and 226 beds. In addition, there is a separate conta- gious ward, a laundry, a power plant, a nurses’ home and a doctors’ home. The expenses of the medical depart- ment are paid from a fund provided in part by the company and by dues which employees pay and by fees paid by hospital patients other than employees. The company does not charge any rent or interest on the medical department properties and draws no earnings or profits therefrom. Each employee located where the medical depart- ment maintains a loca) physician is charged $1.50 a month for medieal dues. This amount is deducted SM epegpe, . ee orn on een enema diate tn ~ N inee aoe a. — a or from earnings each month and entitles him to medical and surgical treatment. For the rapid transportation of patients to the hos- pital from the company’s outlying properties, ambu- lances are provided. These have special bodies con- structed on Packard and Cadillac chassis and are pro- vided with regular drivers who keep the cars in good condition, so that they are ready for immediate service on call. Whenever necessary, a physician or some other qualified person accompanies the patient on the ambu- lance. The ambulance service is another concrete ex- ample of the benefits derived from the company’s em- ployee suggestion plan. The idea was first proposed by Charles Peete, an employee at Robinson No. 1 Mine, and it has proved entirely practicable notwithstanding the distances which must be traversed. The run from Canon City to Pueblo is 50 miles and from Walsenburg, 54 miles. The longest run, 120 miles, is from the Primero mine. r Renting to Employees At its outlying properties the company rents to employees over 2000 dwelling houses, representing an investment of over $2,000,000. Owing to the uncertain life of a mine, workmen cannot be expected to pur- chase homes. The company also encourages educa- tional and religious activities among its employees, but studiously avoids interfering with them. Even where it is the only tax payer, the company leaves entirely to the community the responsibility of hiring and dis- charging teachers and building and equipping public schools. Through a subsidiary, the Colorado Supply Co., the company conducts a system of stores. This organiza- tion owes its existence to the fact that the manage- ment recognized that it owed a responsibility to em- ployees whom it took to isolated communities. Food, clothing and other supplies are bought wholesale and sold at moderate prices to employees. Under the ar- ticles of agreement governing the company’s industrial relations plan, it is specifically provided that employees Structural Steel Sales Since 1913 WASHINGTON, Jan. 22.—Capacity of fabricators of structural steel during 1924 is estimated by the Bureau of the Census at 290,000 tons per month, against 285,- 000 tons in 1923, based on actual reports by 218 firms with a capacity of 261,690 tons in 1924, and estimated capacities for other firms. The table shpws the monthly 300 —_—_-—+ pn peeagneennes Monthly Fabricating Capacity ae ; | r wn 4 ’ 00 | ; t Average Monthly Bookings I \verag Mont r capacity for each year since 1913 of 218 firms report- ing these items, including 12 firms now out of business the total capacity for fabricating structural] stee] each year as estimated from these returns, the percentage of bookings to capacity each year (th figures up to 1922 being obtained from trade sources) and the total bookings computed from this percentage. - THE IRON January 29, 1925 AGE shall not be obliged to trade at these stores, but shall be at liberty to purchase goods wherever they prefer. It is significant that out of all the questions which came up for consideration in the works council last year, there was not a single charge against the manage- ment of the stores. Pension Plan A pension plan for employees was adopted by the board of directors of the company in 1917. The regular service retirement payments are 30 per cent of the average pay per month of service during the 10 years next preceding retirement, with a minimum of $20 a month. Employees eligible include all men of 65 and women of 55 after 20 years of service, men of 60 and women of 50 after 30 years of service. There are also special provisions for employees who have become permanently incapacitated in the service, and for em- ployees of advancing years after 20 years of service. This latter classification includes employees who have not yet reached the ages making them eligible for pen- sions, but who in the judgment of the board should be retired on account of senility. The brief survey which has been given of the various activities which comprise the industrial relations pro- gram of the Colorado company is necessarily incomplete in its details. It should suffice, however, to indicate the comprehensive character of the organized efforts to promote the economic, physical and educational inter- ests of employees with a minimum of paternalism. Through its works council plan, its suggestion system, its athletic and social activities, the company has aimed to stimulate individual initiative and self-dependence in the greatest possible measure. By giving employees real responsibility in industrial relations, it has at- tempted, and apparently with much success, to create a real esprit de corps throughout the entire organiza- tion. Through its medical department, its safety com- mittees, and its pension plan, it has reduced so far as possible the hazards and hardships incident to the un- certainties of life. The capacity of structural-steel shops is quite elastic in that this same capacity, when not busy on structural work, may be used for plate work, shipbuilding, etc., and similarly capacity ordinarily devoted to these other lines may be used at times for structural work. The capacity taken for this survey represents the amount of structural work that could actually be turned out, running single turn on the character and class of struc- tural work usually secured. Fabrication of Structural Steel, 1913 to 1924 (In Net Tons) Monthly Capacity—, -—Annual Bookings—, Estimated Per Cent Computed Y ir Reported Total of Capacity Tonnage 1913 192,850 210,000 50 1,260,000 1914 193,700 211,000 50 1,266,000 1915., 196,010 214,000 70 1,797,600 1916 -- 202,745 222,000 69 1,838,160 1917 210/555 231,000 60 1,663,200 1918. - 221,780 244,000 56 1,639,680 1919 . 228,920 252,000 53 1,602,720 1920 3,175 260,000 54 1,684,800 92] 975 265,000 35 1,113,000 soe 284,000 64 2,181,120 L923 285,000 65 2,223,000 ‘ 290.000 68 2,366,400 All Gary Stacks in Operation The No. 5 blast furnace of the Indiana Steel Co., Gary, Ind., was blown in Jan. 22, after having been large- ly rebuilt, following damage from an explosion last summer. The furnace is equipped with the first Brosius mud gun in the Chicago district. The mud gun is man- ufactured by Edgar E. Brosius. Pittsburgh. The going in of the No. 5 furnace places all 12 of the Gary stacks in operation. The concrete work in connection with the addition to the drop forge plant of the Endicott Forging & Mfg. Co., Ind., Endicott, N. Y., has been let to George T. Union, N. Y.; the carpenter work to E. L. Stanton, contractor, Endicott, N. Y., and the steel work to the Binghamton Bridge Co., Binghamton, N. Y. Coles, FT) “ World’s Pig Iron and Steel Output Six Post-War Years Compared with 1913—Steel Produc- tion Alone Exceeded in 1924 the Pre-War Year— Exports Gained Last Year BY EDWIN F. CONE UDGED by 1913 standards, the world’s iron and steel industry both exceeded and fell short of its pre-war performance in 1924. Using the six leading producing nations as representing the world’s total output, the combined steel production exceeds that of the pre-war year. In both pig iron output and in exports, however, the 1913 record was not reached. Again, the American steel industry is the controlling factor in production, in that the falling off in this country in 1924 was not made up by gains in other countries. The prophecy at the close of the war of a great peace-time demand for iron and steel, in compensation for four years of postponement of all but war needs, has failed for the sixth time. In exports slow progress was made last year by the producing companies. Though the total was larger than for any year since the war, the gain was only about 4 per cent over 1923. But the world’s pig iron production is still notably less than in 1915. Even in steel 1924 was only about 1,000,000 tons in excess of the pre-war year. A notable development of 1924 was the fact that France passed Great Britain as a pig iron producer. Output and Exports of the Six Leading Countries HE great bulk of the world’s pig iron and steel is made by six countries: United States, Great Brit- ain, Germany, France, Belgium and Luxemburg. A review of the pig iron, steel and exports of these six countries is presented in the following, the statistics being largely those published by the National Federa- tion of Iron and Stee] Manufacturers of Great Britain. Under “steel” is included steel castings. Scrap exports are deducted, however, from all totals. France The notable feature of the 1924 record of the six countries here reviewed was the expansion in the French industry. For the first time the British production was French Iron and Steel Output and Exports During Peace Years in Gross Tons Pig Iron Steel Exports 1912 1.860.000 4.356,000 498,000 1913 ».124.000 4,620,000 578,400 1919 2.376.000 2.148.000 232,800 1920 3,380,400 3,002,400 $95,200 1921 3,363,600 3,054,000 1,462,400 1922. 5,146,800 1,464,000 1,936,800 1923.. 5,347,200 4.899.600 2 182, g00 192 i* 7,505,600 6.767.200 5 703.600 P *Partly estimated passed by the French. In both pig iron and steel the output exceeded all previous records of war or peace. With a production of 7,505,600 tons of pig iron in France last year, the increase over 1913 was about 47 per cent. About 38 per cent of the total was made in Lorraine. A similar expansion was recorded in steel. At 6,767,300 tons in 1924 the previous year’s record was exceeded about 38 per cent. The increase over the pre- war record was 46.5 per cent. Here, too, Lorraine was a large factor, contributing about 34 per cent of the steel ingots last year. Usuario yes ne pennant Nas i REE eet ou RE ATT! Fis Papel ads At 2,703,600 tons, French exports last year were over 23.5 per cent in excess of the 1923 total, and not far from five times that of 1913, when France was hardly regarded as a factor in the world’s steel trade. In many respects this is a remarkable achievement. Belgium While the increase in Belgian pig iron and steel last year was moderate compared with that of France, it was substantial, exceeding for the first time the 1913 volume, The pig iron increase was over 27 per cent Belgian Iron and Steel Output and Exports During Peace Years in Groas Tons Pig Iron Steel Exports 12 2,304,000 2,472,000 1,494,000 1913 2,445,600 2,427,600 1,546,600 1919 247,200 328,800 174,000 1920 1,112,400 1,215,600 891,600 1921 861,600 780,000 910,800 1922 1, 578.000 1,538,400 2,110,800 923 2,149,200 2,234,400 2,494,800 19°24 2.751,400° 2,808,800° 3,318,900? *December estimated tNovember and December eati- mated 2,751,400 tons compared with 2,149,200 tons. In steel the 1924 increase over 1923 was about 20.5 per cent. The most remarkable development was in foreign trade. Belgian exports in 1924 at 3,318,900 tons show an expansion of 25 per cent over 1923 and 100 per cent over 1913. It must be remembered that in recent years the figures for Luxemburg are included because of an economic union concluded in 1922. A feature of these exports has been the large volume of semi-finished steei sent to England and other countries. United States Pig iron output at 31,300,000 gross tons was about 5 per cent under that of 1923—the country’s largest SSE) OTT a A AT SX years after the war the world’s steel consumption, based on exports, is still less than in 1913. The world’s siz leading producing nations are still making less pig iron than before the war. Only in steel is the world’s production greater than in 1913. The American industry in 1924 made 53 per cent of the world’s Py iron and 57 per cent of the steel, but exported only 14 per cent of the total for the six leading nations. France, for the first time in many years, made more pig iron in 1924 than Great Britain. huegacdath PTOI UPTURN TAGE NEA RN ARMREST, Ak A a RE OES NH RT TARE TIEN: TSN 331 si inn aN acme A 339 THE IRON AGE ann. . ; : - eer 200|GREAT BRITA in | \GREAT BRITAIN one ' | | i ‘ ater tes 2’ . - | BELGIUM ops | * y ie" chu! ,~ ¢ _———s | 4 1922 >< --1923-->* -1924. A Iron Output of Four European Countries in the I Y TI x I I France Belgiu and Luxemburg in 1924 is the feature, France ] B1 i production—and only slightly in excess of the best pre- war figure of 30,966,000 tons in 1913. The 1924 steel production of about 37,700,000, including castings, was 16 per cent under that of 1923, but about 17 per cent larger than the pre-war production of 31,300,000 tons in 1913 In exports 1924 was still less impressive. At an estimated total of 1,800,000 tons, scrap not included, the year’s showing is the poorest since the war. It is only about 60 per cent of the quantity exported in 1913 and registers a decline of 6.5 per cent from the 1923 exports. The falling off since the war has been grad- ial, until last year the total was only about 39 per cent { ‘ a Ire and Steel O tput and FI p ts Durina Peace Years in Gross Tons Pig Iron Steel Exports 9 727.000 31.251.000 2 418.00 ’ (UO. 966 000 $1.300.000 eee i 19 1.015.000 $4,671,000 1.399.000 6.926.000 $2,133,000 1.706.400 16, BSR 008 19,784,000 ao 1 °0 000 35,603,000 1.986.200 } 10 361.000 $4,943,700 1.976.900 * 31,300.01 7.670.000 1.80 *l’artly estimated of the record for all time, 4,706,400 tons, in 1920. European competition and the lack of demand from all consuming countries were the chief causes. Great Britain The British steel industry last year did not equal the record made in 1923 in production of pig iron and steel. The decrease in pig iron was 119,900 tons from 1923 or 1.6 per cent; that in steel was 273,200 tons or 3.2 per cent. In both, 1924 exceeded only the poor post- British Iron and Steel Output and Exports During Peace Years in @ross Tona Pig Iron Steel Exports 1912 8.748.000 6.792.000 4.807.200 1913 10,260,000 7,688,000 4.969 200 1919 7,404,000 7,896,000 2 993'900 19% 8,034,000 9,067,200 2950 Rn 1921 2,611,200 3,625,200 1.706.400 192°? 4.899.600 5.880.600 3.400 S00 1923 7,438,800 8,488. 800 4 320 000 19°94 7.318.900 8,215,600 3 860.0008 *December estimated. January 29, 1925 war records in 1921 and 1922. The falling off in pig iron which has marked all the years since the war was further emphasized. In steel, however, the pre-war record was again exceeded by a large margin. The feature of last year’s record was the sharp decline in the British foreign trade. At 3,860,000 tons the falling off from 1923 was 10.5 per cent. This was nearly 78 per cent of the 1913 total. In no year since the war has Great Britain attained the volume of its 1913 trade, the nearest approach having been made in 1923 at 88.5 per cent of that total. Competition from the continent, particularly France and Belgium, was the main reason for the decline last year. Luxemburg The recovery of Luxemburg’s steel industry from the effects of the war is an interesting development. As shown by the table, great gains appear in pig ” MO Luxemburg’s Iron and Steel Output During Peace Years in Gross Tons Pig Iron Steel 1913... ae 2,498,000 1,308,000 1919.. err. 608,000 364,000 eS ee 681,600 560,400 DONE i eeaeaen 955,200 742,800 GS ss sink eta 1,658,400 1,371,600 i638). <: 1,384,800 1,179,600 RPE ss oeaanes 2,020,600 1,829,300 *Partly estimated. iron and steel production. The 2,020,600 tons of pig iron in 1924 is an increase of nearly 50 per cent from 1923 and 25 per cent from 1922. It was not, however, equal to the volume of 1913. In steel the record is de- cidedly different. While the 1924 total was larger than that of 1928, it exceeded that of 1913. The contrast with the low records in 1920 and 1921 is marked in eaeh case. No record of Luxemburg’s exports is available since they are combined under those of Belgium because of an economic union established in 1922. The German Industry Data as to Germany’s pig iron and steel output are meager and unsatisfactory. Those given for 1924 are estimates but are by no means official. The same is true regarding the 1923 figures. In fact, no official data have been published since some time during the war. The increase in pig iron last year brought the OOMGREA BRITAIN 0 V 450 400 n 350 > 200 - wW 250 i o © inn + s ° , 2 s i + \/ | . \@ * % 8 LUXEMBURG eaveceel & < 1920-192] —-—>He--- 1922 -- «1923 > --1924- 4 Steel Output, Including Castings, Countries from 1920 to 1924. three of Four European The expansion of the continental countries last year stands out cit January 29, 1925 rate in 1921 and 1922 was nearly equaled. There is the claim that Germany’s capacity is not much in excess of her normal consumption, so that her competition in world trade cannot be the factor often German Iron and Steel Output and Exports During Peace Years in Gross Tons Pig Iron Steel Exports BEE sa cnaes 15,350,400* 16,075,200° 5,812,800 BOBS 4 <v'ews s 16,476,000* 17,340, 000% 6'202:800 Reais pated 5,654,000 6,732,000 No Data i A a 5,568,000 6,624,000 1,723, 200 BEES. 6 « 64 b% 6,096,000 8,700,000 2,445,600t Seas csens 6,200,000 8,750,000 1.827.600 Bes te wees a 4,760,000 5,500,000 1,366,400 Co a 7,900,000 8,400,000 1,147,600 *Excludes Luxemburg. Last six years partly estimated 1923 and 1924 data estimated. tBased on 8 months. Wspenssennennnresnoansnenenencrannsunensnmnanniatnenie nen CP Une eannnenes ress seetnes cones predicted. What has been written on this subject is largely speculation. In exports Germany made a poor record last year. The statistics are admittedly incomplete because of the Ruhr occupation. There was a sharp decline even from the small total of 1923 and nearly a 55 per cent falling off from 1921, World Output and Exports ALUABLE comparisons are possible from a combi- nation of the data of the six countries for pig iron and steel output and for exports for each normal or peace-time year since 1913. The outstanding feature of the 1924 record is that in exports alone was any gain made over 1923. Because of the falling off in this country, pig iron and steel outputs registered a decline despite the sharp increases in France, Germany and other continental countries. Despite small American exports, the 1924 total was the largest since the war. In pig iron European continental countries all made substantial gains over 1923. For the first time France made more pig iron than Great Britain. The British and American outputs both fell off. Against 65.7 per cent of the world’s total pig iron in 1923, the American share fell to 53.2 per cent. In steel as in pig iron, there were substantial gains by European continental countries and losses by the United States and Great Britain. Of the total the American last year was 57.3 per cent as against 65.8 per cent in 1923. In 1913 the proportion was 48.4 per cent. In exports the notable development last year was the expansion in the French and Belgian totals. These brought the world’s total to the largest since the war. Belgium advanced closer to Great Britain, the leading exporting nation, with France third by a comfortable margin. Again the United States is fourth. The so-called “world hunger” for steel has evidently been much overrated. In 1923 the total exports from World Production and Exports of Steel and Iron as total beyond anything since the war, while in steel the THE IRON AGE 333 producing countries were about three-quarters of the 1913 movement. Last year the proportion had ad- vanced to about 79 per cent. In 1919 and 1920 the American industry held a commanding position in this business, but in recent years the change has been Relative Exports of Iron and Steel From Six Leading Countries, Luxemburg Being Included in Belgium. The poor showing of the United States and the decline in British exports are emphasized marked. Producing 53 per cent of the iron and 57 per cent of the steel of the world last year, the United States exported only 14 per cent of the total, standing fourth, with Great Britain first, Belgium second, France third and Germany fifth. All Producing Nations Data covering the output of pig iron and