The Iron Age 1934-05-31: Vol 133 Iss 22

juoted issue those type rarely erva- can full about read- that are ressed com- MANAGEMENT MAY 31, 1934 PROCESSES -:- even YEAR SERVICE THE METAL WORKING INDUSTRY 4 echnique his “form” right. The same with perform parture staff. engineers are THE IRON AGE MAY 31, 1934 Page IRON AGE, published every Thursday the TRON AGE PUBLISHING Office: Cor. Chestnut 56th Sts., Philadelphia, Offices: 239 39th New York, Y., Entered second class matter the Post Office Philadelphia under March 1879. $6.00 year S., Canada $8.50, Foreign $12.00. Vol. 133, 22. J THE IRON 31, 1934 Page Vertieal Turret Where Higher Speeds and Broader Speed are needed, this type Bullard Vertical Turret Lathe has proved successful. Obtainable sizes and meets the requirements high-speed cutting over wide range sizes. Construction Features provide for Economical Operation while the Bullard Method Cutting Time Between Cuts reduces machining costs. Ask Bullard Engineers outline the Profitable Possibilities this ma- chine some your work. THE BULLARD COMPANY Bridgeport adelphia, ider Act ath : THE IRON ACE Page MAY 31, 1934 (Inserted The Iron Age Advertising Dept Judges Select Parker Advertisement Best Republic Steel's front cover wins second place and Union Drawn Steel's insert third GROUP Age readers were asked select the best three advertisements the May issue. Sixty votes were cast. Each vote named first, second and third choice. Seventeen different advertisements had the honor scoring one more “first” votes. The Parker Rust-Proof- ing four-page insert gar- nered the greatest number firsts, the judges awarding first place. The top six were (arranged accord- ing total points—three points for first vote, two for second, one for First Parker Rust-Proof Co. Pages 75-78 (An Insert Second Republic Steel (Front Cover) Third Union Drawn Steel Co. 95-96 (An Insert) Fourth Ludlum Steel Co. Fifth The Carborundum Co. 88-89 Sixth Socony-Vacuum Corpn. 84-85 addition the foregoing, many other advertisements received one Treadwell Engineering Co., page Landis Machine Co., Inc., page Bethlehem Steel Co., page The Cleveland-Cliffs Iron Co., page 63; Youngstown Sheet Tube Co., page 73; Nukem Products Corp., page 79; American Bridge Co., page 83; Amer- ican Steel Wire Co., page 97; Baird Machine Co., page 98; Electro Metal- lurgical Sales Corp., page 101; and the Timken Roller Bearing Co., page 129. Many the remainder received honorable mention. Advertisements less than page that were included were those the Strong Steel Foun- dry Co., page 64; John Hassall, Inc., page 109; Baird Machine Co., page 98; and Cleveland-Cliffs Iron Co., page 63. The judges were simply asked choose what they regarded “the best three advertisements” the is- sue selected for the voting. While the word was not defined, the as- sumption that the judges took into consideration not only attractiveness but content well. course, the re- sults reflect only the opinion this small group readers picked ran- dom from The Iron Age list sub- scribers. entirely possible that THE JUDGES WERE .» Production Manager F. Comerford.... ..+President Cc. Campbell.. .Works Manager B. Crawford ... Vice-President D. Alger . Superintendent H. Haight Secretary alker Reynolds Vice-President . Walter ... .....e.Purehasing Agent . Anderson Vice-President ... Viee-President Industrial Engineer .. President - Broadwell .. Works Manager Not Given . ..« Superintendent Purchasing Agent Works Manager E. Shubrooks . W. Staller Engineering Dept. Chief Engineer Young . .. Treasurer H. Buckius .. .. Design Engineer F. Bennett . .. Treasurer i P. Smith . Factory Manager P. Shnable .. W. Hawker .. Seeretary N. Eaton ..+« Proprietor J. Harrigan Manager - Asst. Gen. Supt. Charles A. Clarke - President DO. Sehaffer ...... President John W. Russell .. ..,.Chemist .. H. P. Blumenauer - President Philip C. Reed .. ..»«« Superintendent Chas. L. F. Wieber.. J. R. E. L. A. T. R. R. H. Watson ... Secretary Donald L. MeCubbin . Manager i E. T. Foote : Vice-President Geo. P. Stephan, Jr. Vice-President Ww. Ireland Vice-President Chas. W. Carolin ........ President c. C. Miller - Engineer T. G. Carlson E. W. Rennick Mr. (Name Not Given) D. B. Wilson ‘ Secretary Kirke W. Connor President L. Herrmann . Vice-Pres. & Gen. R. Francis . General Manager Van Dyne T. Hedfield Purchasing Agent .. Vice-President C. Greenhill .. Sales Manager W. Johnson . Vice-President G. Ralston ..... . President W. Magnuson . General Manager Plant Manager > » another group would have voted dif- ferently. Another factor that may fairly said affect the results any survey this kind the individual interests each the judges. Those most in- terested alloy steels, lubricants machine tools any other the number products advertised The Iron Age might reasonably expected Kendall ......General Manager Jansen . .. Plant Superintendent . Oster Manufacturing Co., Cleveland Standard Computing Scale Co., Detroit .. Alliance Machine Co., Alliance, Ohio Otis Elevator Co., Harrison, N. J. Advance Pressure Castings, Ine., Brooklyn, N. Y. . Crawford Oven Co., New Haven, Conn, General Alloys Co., South Boston, Mass. Ward Leonard Electric Co., Mt. Vernon, N. Y. Alabama Pipe Co., Anniston, Ala. Pneumatic Scale Corpn., Ltd., Quincy, Mass. Reliance Elevator Co., St. Joseph, Mich. — Foundry Equipment Co., Mishawaka. nd. Philgas Co., Detroit Young & Van Supply Co., Birmingham, Ala. Republic Carbon Co., Niagara Falls, N. Y. J. R. Claney, Inc., Syracuse, N. Y. Yawman & Erbe Mfg. Co., Rochester Thomson-Gibb Electric Welding Co., Lynn, Mass. Hamilton Watch Co., Lancaster, Pa. Crescent Insulated Wire & Cable Co., Tren- ton, N. J. Stanley Works, New Britain, Conn. Meyer Devices Co., Canton, Ohio Reynolds Wire Co., Dixon, Ill. _ Eaton Manufacturing Co., Cleveland Line Material Co., South Milwaukee, Wis. Bellaire Enamel Co., Bellaire, Ohio A. N. Eaton Metal Products, Omaha, Nebr. Elk Engineering Works, St. Marys, Pa. R. Wallace & Sons Mfg. Co., Wallingford, Conn. Universal Boring Machine Hudson, Mass. _American Tool Co., Pawtucket, American Lanolin Co., Lawrence, Mass. 4reade Malleable tron Co., Worcester, Mass. Pittsburgh Plate Glass Co., Ford City, Pa. Co., Fremont, Ohio Hamilton Manufacturing Co., Two Rivers, Wis. United Boiler Heating Co., Ham- mond, Ind. Ertel Machine Co., Inc., Indianapolis Joseph T. Ryerson & Son, tnc., Cincinnati Manufacturing Co., Milwaukee Hoggson & Pettis Mfg. Co., New Haven Detroit Metal Special Corp., Detroit _ Enterprise Foundry Co., Detroit Chambersburg Engineering Co., Chambersburg, Pa. Art Metal Co., Jamestown, Bowser Co., Inc., Ft. Wayne, Ind. _Vichek Tool Co., Cleveland Defiance Automatic Screw Co., Defiance, Ohio Micromatic Hone Corp., Detroit .. Bantam Ball Bearing Co., South Bend, Ind. Kellogg Switchboard & Supply Co., Chicago Waterbury Tool Co., Waterbury, Conn. . Factory Superintendent.. Eisemann Magneto Corp., Brooklyn, N. Y. Jas. P. Marsh Corpn., Chicago . Acklin Stamping Co., Toledo, Ohio American Coil Spring Co., Muskegon, Mich. Reynolds Wire Co., Dixon, Ill. Worcester Tool & Stamping Co., Worcester . Royal Metal Mfg. Co., Michigan City, Ind. attracted most strongly adver- tisements featuring those products. thank the judges for their co- operation, and take this opportunity remark the incredible advances made the past few years the general attractiveness industrial advertising, typified not only the advertising The Iron Age but the trade press generally. | | | } | | | | | 1 A me | | | ¢ | ? | | | . | i] | | | | THE IRON Editor Managing Bditor Consulting Editor News Editor Machinery Editor Pittsburgh Detroit Boston F. L. R. A. Fiske A. I. FINDLEY L. W. Morrerr Rk. G. Cleveland Chicago Editor Washington Cincinnati May HIS issue dedicated the forty-third general meeting the American Iron and Steel Institute. records the marked progress toward recovery which the steel industry has achieved the last year. Improvements competitive relationships under the industry’s code were outlined Walter Tower, executive secre- tary the institute. Mr. Schwab emphasized the fact that the only remaining impediment complete business revival the restric- tion the flow capital into normal channels. The Gary medal was presented Eugene Grace. Two the papers delivered the Challenge Steel,” Everett Chap- man, vice-president, Lukenweld, Inc., Coatesville, and the report the institute’s technical committee, Marsh, Inland Steel Co., Chicago, were printed The Iron Age last week. Features covered the current issue include the following: Address Chairman Schwab Comments Wagner Bill, William Irvin Remarks Labor Situation, Girdler Evaluation Steel Code, Block Appeal for Solidarity, Weir Presentation Gary Medal Eugene Grace Address Walter Tower, Executive Secretary Challenge American Business, Frederick Davenport Characteristics Carbon and Alloy Steels Bain Discussions Technical Papers News Automotive Industry Markets Construction and Equipment Buying Products Advertised Index Advertisers 112 THE IRON AGE PUBLISHING COMPANY FRANK, President GRIFFITHS, Secretary BAUR, General Advertising Manager PUBLICATION OFFICE: Corner and 56th Sts., Philadelphia, Pa. Member, Audit Bureau Circulations Member, Associated Business Papers Published every Price: United Cable Address, ‘‘Ironage, EXECUTIVE OFFICES: 239 West 39th New York, Y., ADVERTISING STAFF Emerson Findley, 311 Union Cleveland Herman, 675 Delaware Ave., Buffalo, Hottenstein, 802 Otis Chicago Peirce Lewis, 7310 Woodward Ave., Detroit States and Possessions, Mexico, Cuba, Charles Lundberg, Chilton Chestnut $6.00; Canada, $8.50, including duty; Foreign $12.00 Single Copy Cents 56th Sts., Philadelphia, Pa. Ober, 239 West 39th St., New York W. B. Robinson, 428 Park Bidg., Pittsburgh Sweetser, 239 West 39th New York Warren, Box 81, Hartford, Conn. SEVENTY-NINTH YEAR SERVICE THE METAL WORKING INDUSTRY | | | | | { | 7 ices the | rial THE IRON AGE MAY 31, 1934 Page Ryerson — many new and improved steels and allied metals have been, and are being developed that difficult for those not directly touch with all producing sources keep thoroughly posted—to know whether one the newer steels will your particular job better save money pro- duction. Every day individuals well porations are coming the Ryerson Com- pany for suggestions—suggestions metals that will help the manufacturing and building their products. divisions are with them. Experienced specialists study their problems, furnish Copper, Brass Non-Ferrous Special Steels for = Special You Know— practical operating data and make tions that lead economy and improve- ment. not hesitate bring your problem Ryerson. will glad help you make the right decision materials. Ryerson stocks are the largest and most complete the country, for immediate ship- ment. you haven’t copy the Ryerson Stock List, guide these complete stocks, post card will bring return dress the nearest plant. Joseph Ryerson Son, Chicago, Milwaukee, St. Louis, Cincinnati, Detroit, Cleveland, Buffalo, Boston, Jersey City. Rivets, Bolts, Washers, Welding what todo...... what metal use Metals RAYDO, one of the newer non- sheets and strip for immediate shipment. It’s strong, ductile zine alloy with silver and copper added. Well adapted many new applications. addition well assorted stocks copper, brass and other non-ferrous metals are carried stock. See the Ryerson Stock List. MONG the newer steels find many developed partic- ularly for specific jobs, where time, cost and results are the determining factors. These special steels are improving products, lowering costs. For instance, Ryerson Abrasion Re- sisting Sheets and Plates, Tool Steel, Allegheny (Stain- less), Shock Tool Steel, Accuracy Stock, Special Sheets, Machinery Steels and many others are shown the Ryer- son Stock List. Purposes Rod, and other Steel Products YERSON steel service includes the many allied lines steel products, You will find ad- vantageous group for immediate the perienced organization equalled equipment, assures de- pendability, accuracy and speed. Use the Stock List your guide. ESTABLIS the umnist aided that engage They follow thinkin That may bigness things outcast jus pri: the tions. Ener produc compar withou ation, The of TTT Hit WN I} | Wi i| } Hit | | | \ ees | | | | | iil TT | | = SS | —_ = Hil} iH} i} { ¢ THT | THE IRON AGE ... MAY 31, 1934 ESTABLISHED 1855 Vol. 133, No. Achievement the Shadows Men these days attempted regimentation and regu- lation, idol smashing and depreciation indi- vidual enterprise, success becomes target for brickbats. Iconoclasts the Darrow type, communistic col- umnists and inexperienced economic “intellectuals,” aided thousands misguided fools who think that the way build tear down, are busily engaged selling America the herd idea. Standard- ization, beef the hoof many cents per pound! They overlook the fact that all herds automatically follow their leaders, wise old bulls who the thinking and lead the fighting. That this mischievous doctrine having its effect may seen from the popular tendency condemn bigness. the animals had little sense about these things some have, the elephant would outcast. It’s not the elephant’s fault that big, just his nature. AKE the steel industry example. com- prises the herd elephants industry, because the nature steel production, except for minor specialties, demands sizeable plants and organiza- tions. Enemies bigness would like see the steel producing business scattered among perhaps 2000 companies instead concentrated some 200. They overlook that you cannot cut elephants into pieces without making the public pay dearly for the oper- ation, well ruining the elephants. The vicious and unfair attacks that have been launched upon the steel industry both before and since codification have not been based upon the per- formance this industry. They have been con- ceived the small man’s instinctive fear and dislike bigness. The field mouse would feel that his stature was increased the mountains were leveled plain. American industry has been built encour- aging and rewarding exceptional effort; encour- aging bigness. Back every achievement human progress lie the shadows men. Being shadows, they are overlooked thoughtless people who can visualize only material things. But the shadows are more real and powerful than buildings, machinery and philosophies, for they have been the cause all these material things. MERICA must taught once more appreci- ate the public value big men who cast long should encourage the industrial elephant who enormous strength pull our load along this road, and also encourage his smaller brethren who are held economic law lesser stature but who contribute equally the common good. But should ruthlessly crush the poisonous little vipers who crawl about seeking poison the public mind with their communistic venom. shadows upon the road progress. a | 45 Vik \ x = OY Ce | — ' rew for The lron Age Af KA CHWAB, Drawn by Jol rre ae at HIS issue THE IRON AGE dedicated the American and Steel which held its forty-third general meeting last week. fitting, such issue, that the text prefaced the portrait the man who has been head this organization for the past seven years, and whose career has been deeply interwoven with the progress the industry Especially this appropriate since, his Schwab has now relinquished institute bestowed him Schwab has cast road progress. His life striking proof the oppor- tunities which have been afforded America for excep- tional talent and initiative climb from humble begin- nings high places. And scaling the heights, has, © | such men do, helped unnumbered and happier places. The Iron Age, May 31, ES ¢ iy ‘ nstitute Reviews Steel Code Experience Feasibility Self-Regulation Through Cooperation Believed Demonstrated ONFIDENCE the ability the steel industry make self-ad- justments harmonize with new conditions was emphatically indicated the meeting the American Iron and Steel Institute, held Hotel Commodore, New York, May 14. This was the forty-third general meeting the institute and the first general its kind since the signing the steel code, nine months ago. attendance, merit program fea- tures and interest expressed those present, this meeting perhaps sets all-time record date. The spirit the meeting was decided contrast the preceding one held May 25, that time, the industry, common with others, was facing the unknown results coming Also, the steel industry was just emerging operations experienced when business plumbed the depths the depression valley. Now, with nine months’ ex- perience self-regulation under code provisions, the industry confident its ability successfully harmonize the interests competing units, well and those customers, 14—The Iron Age, May 31, 1934 give square deal labor. Also, the present improved conditions with respect operations continue, there some hope that red ink may turn black the last two quarters this year. Chairman Charles Schwab the institute presided with usual geniality. His address presented full else- where this issue. departure was made from former program precedent arranging for four outstanding steel executives, each prominent code activities, present 10-min. sidelights matters high spot in- terest. The speakers were: Irvin, president, United States Steel Corpn.; Girdler, chairman, Republic Steel Corpn.; Block, chairman, Inland Steel Co., and Weir, chairman, National Steel Corpn. One the points emphasized Mr. Irvin was that the much criticized steel industry, whose depression losses have exceeded those any other major industry, has spent many mil- lions for relief employees addi- tion what has been probably the greatest any industry the President’s plan increasing purchasing power through wage rises, result this, average wages the industry are now comparable with the high point 1929 and nu- merical employment also great that time. “The steel industry not going recognize the Amalgamated any other professional union,” said Girdler, connection with comments upon the labor situation. “And have shut down our plants, won’t for long.” Employee representa- tion, Mr. Girdler believes, has done far more for the employee than the labor agent could possibly and pro- vides the most efficient form ve- hicle whereby the desires labor can conveyed and sympathetically con- sidered management. Mr. Block spoke the unselfish ef- fort that had been devoted mem- bers the industry code affairs, paid tribute the spirit that had characterized these activities and asked the membership for contin- uation its cooperation. “Now, more than said Mr. Weir, “we should hold fast the principles which have always believed and, necessary, fight for fundamental changes our principles until after the most careful delibera- tion and then not individual action but through the collective will the industry.” The addresses the foregoing four steel executives are reproduced full elsewhere these columns, also the address Walter Tower, ex- ecutive secretary the institute, who described the activities under the code and their results detail. The afternoon session was devoted the reading and discussion technical papers. “The Progress the Work the Technical Committee,” Marsh, Inland Steel Co., was discussed Kenney, Bethlehem Steel Co., and Jesse Shuman, Jones Laughlin Steel Corpn. ing’s Cha Chapman cussed tric Co., United Characte and United Steel vale Co. and this issu Annou Char meeting. post, sai conse business tion was the One duties siding the Gat friend The aw: the stee Mr. tation tance, The tute eral was researc authors Sheets.’ The was the former His sul the curred conditi the re] the the tors Corpn. the burgh. — ing’s Challenge Steel,” Everett Chapman, Lukenweld, Inc., was dis- cussed Lincoln, Lincoln Elec- tric Co., and Llewellyn, United States Steel Corpn. “Some Characteristics Common Carbon and Alloy Steels,” Edgar Bain, United States Steel Corpn., was dis- cussed MacQuaid, Republic Steel Corpn., and Cox, Mid- vale Co. The session was charge Wysor, Republic Steel Corpn., and reported detail elsewhere this Announcement his resignation chairman the institute was made Charles Schwab the dinner meeting. The relinquishment this post, said Mr. Schwab, was necessary conserve his health and lessen his business responsibilities. His resigna- tion was accepted against the wishes the membership. One Chairman Schwab’s pleasant duties his final appearance pre- siding officer was that bestowing the Gary medal upon his life-long friend and associate, Eugene Grace. The award the highest honor that the steel industry has bestow for outstanding accomplishment, and both Mr. Schwab, his speech presen- tation and Mr. Grace, his accep- tance, were obviously deeply moved. The American Iron and Steel Insti- tute medal, presented for the best technical paper read before the gen- eral meeting the preceding year, was awarded Ralph Griffis, Reid Kenyon and Robert Burns, the research laboratories the American Rolling Mill Co., who were joint authors the “Aging Mild Steel Sheets.” The principal after-dinner speaker was the Hon. Frederick Davenport, former Congressman from New York. His subject, Challenge Ameri- can Business,” was exposition the social changes which have oc- curred this country and the new conditions which industry must face. line with the policy widening the representation the industry the administration the steel code the institute, two additional direc- tors were elected. These were: Frank Frost, president, Superior Steel Corpn., and Parker, president, Columbia Steel Shafting Co. Both the new directors are from Pitts- burgh. ecovery Restriction the Flow Capital Chairman, American and Steel Institute ORE than any time the fellow-workers the steel in- dustry today, because feel that this the most hopeful and the most im- portant gathering which have held our history. atime for good cheer and clear thinking. The American public has found channel future prosperity. Over the last year have witnessed steady march toward recovery. Gov- ernmental aid has contributed this progress. Natural forces controlling the emergence from previous de- pressions have also been work. Our industry has given complete coopera- tion President Roosevelt his ef- forts bring about recovery, and confident that the Administration rec- ognizes that the time has now arrived allow business and industry con- solidate its gains and proceed under the fullest measure self-government. Happily, the steel industry are better position this than ever before. year ago you may recall that announced that the institute was lay- ing plans for great extension its program, which would real ser- vice all its members, including their employees. Fortunately while were the process working out schedule better trade practices and more widespread program representation and protection for our employees, fortunately while this was being done, the Government fostered enabling legislation which made this procedure easier. believe that the greatest accom- plishment all the legislation which have witnessed the past months has been the fostering government industry. If, out the terrible times the past four years, have learned the lesson The Iron Age, May 31, j in ee : ents on't the on- ’ ind for ur iS self-rule, the reward will worth the cost. believe that all have recog- nized too little this feature the successfully superimpose plan action unless has convinced the public that such action sound. The action the automobile, tex- tile, steel, and other formulating and executing their vari- ous codes is, therefore, the great prac- tical result which has been accom- plished thus far. principles which they adopted are line with what have advocated and hoped for over these many years. They are principles that would constitute good business practice under any circum- stances, whether there were any such thing NRA ornot. However, there has been great advantage having national fostering the idea that the forward-looking industries would not carry all the burden, while the chiselers carried without gard for the general public well-being. Business Common Sense Basis For the first time half-cen- tury the steel industry, have seen year when the business the in- dustry could conducted com mon sense basis. You men who have risen the opportunities presented the proposition self-government are congratulated upon your ac- complishment. Never has there ex- isted the industry more healthy and stabilized condition. The small producer has been placed all fours with the large producer. The small consumer has been placed basis equality with the large consumer. This due the observance cies published prices. The whole situation out the open. Any mill knows exactly what the competition is, and liberty meet beat it. All this working the stabiliza- tion the economic condition the workers, not alone the workers this industry but generally, and has far-reaching effect advantage the general public welfare. Prices Still Far Below 1923 Level The advantage the open-price policy the consumer obvious. One the most important things for manufacturer know that his materials cost low that his competitor. Under system secret > 16—The Iron Age, May 31, 1934 price agreements and other unfair trade practices, may obtain some immediate gain through making sharp trade, but can never know but that his competitor even more sharply, and the minute that happens all advantage lost. Under open-price policy the oppor- tunity for competition because any mill can file any prices chooses, and other mills have meet that competition they are going continue make that line product. The difference from former practices lies the fact that the new prices are immediately There are some hundreds different prices file here the institute. They are all open for the inspection everybody, and any consumer steel can plan his operations, confident equal basis with his competitor. While are this subject prices, wish point out that the steel industry has been leader passing its savings the public. From 1923 there was steady decline steel prices. regret say that have been penalized some econo- mists for not waiting until after 1929 reduce prices. There have been number misinformed persons who took 1929, when steel prices were al- ready down, and from that alleged that our decline prices was far short other commodities. The cur- rent level prices still per cent below the 1923 level, and even the somewhat firmer rates the past few months have not yet been sufficient put the industry profit- able basis. Labor First Beneficiary Recovery matter fact, our present recovery has differed from the recov- ery after all previous crises the fact that labor has been given the first benefits. Through voluntary ac- tion management, wage rates the steel industry are now per cent per cent above the 1929 peak. tribute the far-seeing attitude the business leaders that they have considered the well-being working forces the prime requisite. misrepresent the real relationship ex- isting between labor and management. Formerly managers were the own- ers industry. But today industry owned thousands and hundreds thousands American citizens and run employed managers who are vitally concerned with the best interests both capital Managers are responsible for results the stockholders who employ them, but they have discovered long ago— recent discovery—that they cannot produce these results without the full cooperation satisfied work- ers. Out this knowledge have come the new and harmonious relationships between management and employees about which some seem skeptical and which the public little aware, Industry Must Allowed Make Profit Recognizing the dual responsibility management, well this point emphasize that the splendid idea maintaining the purchasing power employees can continued only industries are permitted and able operate profitably. The money for high wages cannot nitely out surplus, out the stockholders’ pocket. there are unwarranted attempts batter down prices, prevent the raising capital for business devel- opment and cripple free progress industry, wages will fall along with the rest our structure. will then back where were year ago and this not want see. Employee Representation Great Boon Another great step forward for the mass employees during the past year has been the wide spread plans employees’ representation. Tried out various steel companies for over years, this principle collective bargaining has met with general acceptance. has made tremendous contribution sound in- dustrial relations. Under employees’ representation workers meet with the management and arrive agreements not only all vital questions, such hours and all Employee: that labor their men knov relationsh between tations without agencies. through has won renewed this, truly Equall accompli action with res tion gathered ent aspe Vari which dustry form industry that for good policy chiefly mation. importa being, are particu Righ coopere the like and the quite and tance ployee feel others rate busine our Wi reds and who best ults em, hey out ees ical hours and working conditions, but also all questions mutual interest. Employees’ representation recognizes that labor disputes can best settled their point origin. Practical men know that the healthiest kind relationships are developed directly between interested tations and differences are eliminated immediately, mutual conference without the interference outside agencies. Out the hard times through which have passed, labor has won its charter liberties and renewed high standard living. For this, industry and the nation should truly thankful. Public Relations Improved Equally important with the other accomplishments the year the action which the institute has taken with respect its relations with the public. now have this associa- tion central point where facts are gathered with respect all the differ- ent aspects our business. Various publications and talks which some the members the in- dustry have made have served in- form the public what the steel industry doing. not wonder that for many years have suffered good deal criticism because policy silence, which was due chiefly our failure set thor- ough-going clearing-house mation. Any major industry has important relationship public well- being, and happy see that are the right path last this particular. Right here would like ask the cooperation the full membership the work the institute. would like see the smaller companies take more active part. True, they are represented the board directors and all the committees. Some the heads the small companies are quite active affirming their views and presenting their particular problems. There should reluc- tance for the fellow with only 200 em- ployees come forward. may feel that what thinks may not carry much weight the opinion others. This mistake. The aggre- gate small companies the country accounts for the greatest volume business and the greatest number employees. They are the backbone our business structure. What here the way self-government must right for everyone going succeed. Investors Deserve Consideration Today are enjoying per cent operation. this continued, with the price schedules filed for the third quarter, most steel companies will position earn something their investment. The 500,000 stockholders our steel companies have been extremely patient over the past four years, face the at- tempts many theorists abolish the profit system. These investments stock persons all walks life represent savings, sacrifices, the wages for hours labor put away against rainy day. These people are entitled return their invest- ment, and governmental policy can endure which would pauperize any section our population. You all know that believer cooperating with President Roose- velt his efforts toward recovery. President must represent the best his ability all the elements nation—the employee, the farmer, the professional groups and business. All their interests are mutually intertwined and interdependent. not believe that the President for long going permit too drastic legis- lation the plans and proposals any group theorists stifle busi- ness, set dictatorship any special class. The Wagner Bill looked like bad threat some time, but the public soon recognized that measure proposing dictatorship labor agents can win permanent public approval. Free Flow Credit Imperative Now the time remove all bar- riers natural and normal employ- ment and this end certain legisla- tion should modified. The demand for steel dependent upon the free flow credit for manufacturing and capital goods industries. Right today there are thousands improvements and projects held because the strictures the securities act. The banking credit situation much liberalized, but this helpless the job unless there ade- quate opportunity for the financing and refinancing securities. The trouble with the securities act that many its provisions are strict that the average business man could not undertake promise follow out all the requirements. that cannot make all the guarantees required. The provisions and penal- ties the act exists are severe that responsible men simply take the position that they are unwilling into that kind business. The anxiety which business feels toward pending legislation very real. arises from what business men have experienced the past. me, however, that this condition will long permitted continue. Americans are very practical people and certain that the public now beginning appre- ciate the dangers that lie the enact- ment legislation that may unbal- ance our economic structure. The pump has been primed, the necessary stimulus recovery has been applied, the nation its way prosperity, and what need now sure back- ground for confidence and real as- surance that the period experi- mentation behind us. Skeptics have wondered whether business was capable self-govern- ment. The strides forward which have been made are without parallel our industrial history. Give our business men the opportunity those things which they believe ought done and they will come through every time. Many the Administration’s mea- sures have been beneficial. Some are causing serious concern and re- tarding the return confidence necessary recovery. Employment has come back enormous rate; the steel industry are giving employment substantially many people did the peak pros- perity 1929. The man the street, generally speaking, feels that are well out the woods. That feeling confidence the most hopeful and realistic thing our whole situation. Given freedom action work out our problems, are set for better days for number years come. The Iron Age, May 31, 1934—17 lea yer ~ nag 3 Vag Fe - Would Foment Discord Hinder Recover IRVIN President, United States Steel Corpn. OTWITHSTANDING that the losses the steel industry over the period the depression have exceeded far those any other major industry, and the face these losses has spent many millions dollars providing for its em- ployees during periods unemploy- ment, much criticism has been directed it. were one the first the ma- jor industries fall step with the National Industrial Recovery Act. have been looking with envy upon re- covery other lines, wondering their ability show earnings and our failure so. Under the present situation our business and political world, perhaps should keep silent any subject pending legislation. But will our Sen- ator from New York—Senator Wag- ner—forgive express very re- spectfully, the view that “the Wagner Bill” now before committee the Senate, contains provisions which would far defeat the very laud- able purposes which know must the mind the author the bill. see it, this bill, designed mimimize industrial conflict, would have the effect seriously increasing the chances such conflict. Instead helping our recovery program, be- lieve that would hinder it. The bill would tend lessen even prevent the constant and friendly relation be- tween employee and employer that + necessary the proper and success- ful conduct any business. not one those who believes that there should never change. favor doing everything possible improve what deem already increasing cooperation between capital and labor. But apprehend that certain the provisions this bill will set machinery antago- nism rather than real reconciliation and sympathy. not want deal with their employers long range they can face face. Both capital and labor have suf- fered seriously since 1930. Both have been and are soberly and sincerely striving live through the distressing period the better times which be- lieve are coming. Now, when the skies are clearing and when can see, not far ahead, hope, the resumption profitable operations and full-time employment, let avoid having in- jected into the situation mechanism which would tend put employers and employees into two different camps and which would thus prove serious impediment normal recovery. The relations between management and workmen throughout the steel in- dustry have been habitually coopera- tive. have never been divided into two warring camps. The threat aline legislation met with the vigorous protests our workmen. Nobody could read the testimony WILLIAM IRVIN the hearings the Wagner Bill with- out being convinced that the relations between management and men our industry are based upon mutual re- spect and desire cooperate for the benefit all. much for that. Senator Wagner knows that this opinion mine not “propaganda.” honest view one who has worked industry from the ranks and who desires above all else have employer and employee work together, hand hand. Replacement Requirements Country Are Large have been fortunate having had rather substantial increase business the steel industry for the past several months. Our percentage production for the first four months this year has been approximately per cent, compared with last for the same four months, when operations were per cent. will all agree that the improvement has been substantial. The rather liberal demand for all classes steel products during the past few months clearly indicates the need the country for the replenish- ment stocks for immediate con- sumption. has been evident that part this demand has been created Government aid for new projects and the necessary replacement transportation equipment. The auto- mobile with resp consumpt confidene future With ple and reasonab the devel together major ually of all el: There four yeé requiren come short ment, pletely come Dan hav sider are ont all tion’s trade, tard rial cha legislat reduce have would their seaport pric withou tinue all ditions tially this from States often Pittsb ports. This capita not on other ated tion. New worth and 4 _J = 18—The Iron Age, May 31, 1934 being outstanding industry, with respect demands for immediate consumption, would seem indicate confidence the buying public the future prosperity the country. mobile With renewed confidence the peo- ple and the possible loosening and expansion credit conditions, reasonable assume that activities the development needed enterprise, together with further rehabilitation major facilities will continue and grad- ually call for increasing tonnage all classes steel products. There has been built the last four years, very large replacement requirement which, necessity, must come into the market within very short period time, and, judg- ment, quickly confidence com- pletely restored, this buying will be- come active. Dangers Tariff Legislation have feeling that may con- sider the depression over and that are the upgrade, slowly but surely. all approve the Administra- tion’s efforts improve our foreign trade, but, opinion, may re- tard progress industry mate- rial change the proposed new tariff legislation which would substantially reduce the slight protection now have against foreign competition, that would permit other countries dump their surplus products our various seaports—Atlantic, Gulf and Pacific, prices substantially below the cost production this country. goes without saying, that cannot con- tinue pay high wages and corre- spondingly high prices for supplies all kinds, and meet competitive con- ditions based labor rates substan- tially one-half those now prevailing this country. many products the ocean freight from European ports the United States ports, plus duty, often less than the rail freight from Pittsburgh seaboard. This condition aggravated territory tributary our Gulf and Pacific Coast ports. This not said defense the capital structure the steel industry much defense our workmen, not only the steel industry but all other lines industry similarly situ- ated with respect foreign competi- tion. New Demands from Old Customers worthy mention most promising and agreeable new outlook old field long since established im- portant consumer steel. With de- sire render more effective service, the progressive railroads our coun- try are collaborating with both the builders equipment and the pro- ducers steel movement de- velop new rolling stock which will once light, durable, strong and eco- nomical. both passenger and freight serv- ice, new implements progress are appearing month month, saving dead weight, increasing speed, and meeting modern requirements with modern equipment. apparent that this step harmony with the spirit the times requiring not only the judicious application expert engi- neering, but also developing and en- larging market for special steels,— steels which will meet the requirements the advanced thought the field transportation. Whether call witness stain- less steel, streamlined “Zephyr,” high-tensile alloy steel hopper car, they their cousins and their aunts” are the concrete evidence new era railroading and the defi- for steel. The railroads and their suppliers are not alone this movement. Parallel developments are being advanced the electric railways, the builders automobiles, trucks and buses and airplanes; fact, every form mo- bile equipment feeling the influence new and improved design. the entire program revamping now un- der way, steel already playing its important part, and will called upon larger measure serve the needs the field transportation. Code Well Observed has been made our trade papers with regard “teeth” the steel code, which infers there may some irregularities with respect the application the provisions the code regards unfair practices. have heard, indirectly and infer- ence, that unfair practices were being indulged in, but upon investigation these charges have been shown not well founded, and far our investigations have been concluded, feel firmly convinced that all mem- bers the code have made honest effort live the conditions im- posed the code, which the law, such manner bring credit the industry, and believe this practice will continue should the code extended. Mr. Schwab Resigns Chairman his age and the state his health reasons, Mr. Schwab asked to be relieved of the duties of chairman of the institute. In his letter of resignation said: “It is with the greatest regret that I find necessary write ask you relieve from the chairmanship our institute. state health, age, inability take any active part, and the the institute, make feel that this step imperative. Needless for say how much shall miss the intimate association with friends and the di- rectors the institute, with whom have happily spent many years, and while shall disassociated with you, from a sentimental and appreciative view, will always one you. want you all know how deeply appreciate your ever kindly and friendly attitude and help president and chairman the institute, and love, esteem, and admiration for all the mem- bers of the institute will always remain a resolution acceptance the insti- tute’s directors expressed deep regret that Mr. Schwab felt it necessary to vacate a post “which he has filled with such honor and Pointing out chat Mr. Schwab has been actively identified with the institute since its organization in 1908 as member and director and that he has served president and chairman since 1927, “with distinguished ability and faithfulness its policies the resolution continues follows: “His relationship the steel industry, extending over period more than half a century, has given him a wide experi- ence all its phases and made his opinions and judgments upon bilities and its problems those of a master. His integrity and his considera- tion for the interest of all; his patriotic outlook and his unwavering belief in the future his country and its high destiny his notable services the great crisis the World War: his broadmindedness and his wise counselship have endeared him to his associates and to the American and his countless friends and ac- quaintances throughout the world. “Directors and record this greeting him distinguished indus- trialist, a wise and inspiring leader, a great American and citizen the world whose services his country, our in- dustry and to mankind have not only earned for him an eminent place among his contemporaries, but have reflected honor upon industry which his own activities formed so large a part, and upon this institute. The entire member- ship unites the earnest hope that may experience increased health and strength, and that among for many years, contributing with his sage counsel and his inspiring personality the progress the vast in- dustry his own talents have done much to create.” The Iron Age, May 31, 1934—19 Tigh + iz | : r, : e : ie, > by 4 Girdler Condemns rofessional Unions; Praises Employee Representation PEAKING extemporaneously the subject the labor situation the steel industry, Gir- dler, chairman, Republic Steel Corpn., contrasted the benefits workers se- cured under employee representation and professional union agents: “We are all reading the news- papers about big steel strike; that will either recognize the Amalga- mated Association shut said. believe that the thought everybody the industry who has given any thought, and most have, that are not going recog- nize any Amalgamated Association any other professional union. want ask this body men, that is, think, the highest class and most in- telligent body industrialists this country: Any one you who thinks will get some temporary advantage fooling around with sional labor unions, wish would Iron Age, May 31, 1934 get out his mind, because does get temporary advantage will really temporary. will help make harder for the rest us. don’t believe any you are going it. know that the men who sit around here New York, week after week, aren’t going give any- thing the professional labor unions. will deal with our own employees and spend much time they want talking things over. think the re- sult this collective bargaining plan which has been carried out success- fully some the companies for leng term years, but which new other companies, has brought mar- velous results. Company Unions “We have our company men who have been members labor unions all their lives who have told personally the last few months that they never AD GIRDLER scratched the surface labor unions compared what they are now doing dealing directly through their own representatives the companies. lot this stuff reads like story book. Read the minutes the meetings the various em- representatives. you will read the records most these em- ployee plans you will find that very large percentage cases are settled just the way the employees want them settled—a very large percentage. Why that? Because before they had this plan you did not the things you had to. Under the plan something “If anybody wants deal with Bill Green and John Lewis all the rest his life the steel industry—and don’t see why does—I don’t see how farm with few apple trees, and be- fore spending the rest life deal- ing with John Lewis going raise apples and potatoes.” govern best in Our this test before busine: The fair board This the ficers membe appoin been Irvin, the fully voted many the They not on A dA Fa { \ + er Code emands Sacrifices for Common Goo BLOCK Chairman, Inland Steel Co. are now engaged great effort determine whether industry under plan self- government can operated the best interest the country whole. Our industry plays leading role this vast undertaking and involves test leadership such has never before been offered the American business men. The administration the code fair competition the iron and steel industry under the direction the This placed great responsibility the members the board, the of- ficers the institute, and the members the various committees appointed the board. has been privilege have been very closely associated with Mr. Irvin, Mr. Grace, Mr. Filbert and all the others who have served faith- fully the creation and the admin- istration the code. They have de- voted large part their time for many months unselfish effort the interest the entire industry. They have been mindful all times not only their own problems but well the situations affecting the smallest producers and the smallest buyers the country. feel would remiss did not this time pay tribute those men. mind they merit your whole- hearted support, which construe the kind support that shares the problems the industry the same spirit that characterizes the men whom have just referred. May venture the suggestion that before you condemn any provision the code the problem thoroughly analyzed enable you ascertain whether such provision any way harmful the industry whole. Likewise, your desire suggest change revision, you should make certain that such revision the best interest the majority those involved—both buyers and sellers— and not helpful merely from selfish standpoint. With this type support from its members, our industry bound furnish quality leadership com- mensurate with the position im- portance holds the economic life our country. realize that there are still some problems questions requiring time and intense study for proper and equitable so- BLOCK lution. However, when refiect the far-flung activities our try, oper