The Iron Age 1935-05-30: Vol 135 Iss 22

THE IRON AGE MAY 30, 1935 ESTABLISHED 1855 Vol. 135, No. Its Time Listen Good Soldier Speaks steel industry has been good soldier ever since the recovery movement was inaugurated the present Administration. From the first, steel companies have co- operated wholeheartedly with Washington spread em- ployment and raise wage levels. exaggeration say that what has been done, freely and willingly, exceeded what was asked expected. Engrossed this constructive effort, the steel industry, now, has had relatively little say about the recovery ex- periment whole. has been content its own iob well, hoping that the rest the recovery program would show commensurate progress. But its hopes have not been fulfilled. Political experimentation has gained the ascendancy and re- covery lagging. Pending legislation, which threatens incite class conflict, destroy flexibility operations and impose tax burdens, stifling latent enterprise and stopping the flow private capital indispensable normal business revival. The steel industry, represented leaders whose ad- dresses are published succeeding pages this issue, has finally raised its voice protest. has emotional bias its attitude toward proposed legislation. view the matter fact one recognizing and pointing out the dangers measures that impede and threaten nullify the unremitting efforts great business group shake off the shackles the depression. After all, good soldier merits respect and, length, 4 Pat 4 7 i ; BSERVERS who have at- tended, with regularity, the annual meetings American Iron and Steel Institute, could detect something new and different connection with the current one May the Hotel Commodore, New York. The dif- ference was not connection with new faces among the membership, for there little “turnover” from year year executive person- nel the industry. Nor was there expressed, the speakers the program, any inclination advise the industry depart from the strict adherence the recovery objectives set forth through NRA which has signalized the steel in- dustry during the past two years. The new note, reflected the speeches and the audience, was that faithful compliance had con- ferred upon the industry not only the right but the obligation speak its mind, frankly and fully, upon trends legislation and Gov- ernment administration. that are deemed contrary antag- mistic the welfare the in- dustry and the public. put figuratively, one might say that the honeymoon over. the words honor and obey” will added the phrase “object when specific objections were registered the addresses this with the vacillating Government program, lack it, which has prevented the return confidence and, through the intimidation investors, kept steel demand from demonstrating the buoyancy which accumulative obsolescence and starvation diet IRON AGE, May 30, 1935 New Note Struck Faithful Compliance Has Given Industry capital goods could easily give it, and would give it, under as- sured and definite program. Equally definite objections were registered the speakers the Wagner labor bill, characterized perhaps the most notorious piece class legislation yet attempted and designed for the sole purpose enabling the American Federa- tion Labor achieve, Gov- ernment mandate, what has been unable earn, either merit appeal. Condemned with ness and severity were the 30- hour week bill, which would im- pose impossible burden upon the industry, and the labor secur- penalize those workers the steel industry who are now enjoying greater benefits from privately in- stituted employment insurance and pension plans. each case, was shown that labor itself would the loser through the operation these impractically conceived plans, because inevitable lower- ing living standards. was definitely indicated that the constitutionality such acts would challenged they were successful becoming law, par- ticularly the Wagner labor act, which was characterized driv- ing wedge between employer and employee relations. Reed Warns Against Panaceas the banquet, former Senator David Reed Pennsylvania, warned against experimentation time when world-wide recovery get under way. has come fastest,” declared, those lands, such Australia, which have seen the fu- tility trying legislate prosper- Rl | Steel Institute Meeting the Right Speak Its Mind ity through destroying wealth and piling mountains upon the individual, and which have realized that this depression, like its many predecessors, can solved only hard work and thrift.” Calling attention the unfor- tunate experience Germany, Austria, and other nations with currency inflation, quoted sage saying, “We learn from history that men never learn anything “There are many millions our citizens,” Senator Reed declared, “who think that the process currency changing, there some magic that will heal their wounds.” They forget, added, that the same leaders who two years ago recommended revalua- tion the dollar cure for our ills are now urging unsupported emissions currency. Yet, though the dollar was devalued, our trou- bles have persisted. Referring unemployment re- lief and old age pensions, Senator Reed declared that these can best administered the local units Government, stances and individuals known, where frauds can de- tected, where the interest the community lies preventing un- necessary expenditure. The effort administer these matters central Government vast na- tion, stated, necessarily leads incredible waste and unnecessary millions public debt. “Common sense the end will win and the wasters and the tyrants will back the obscur- ity which they belong,” the speaker declared his remarks. Medals Presented The Gary medal, which award- annually for most outstanding service the industry, was pre- sented President Grace John Tytus, vice-president, American Rolling Mill Co. graduate Yale, Mr. Tytus first worked his father’s mill. When that mill was destroyed fire, entered the construction business. But steel attracted him and 1904 entered the employ the Amer- ican Rolling Mill Co. standing turn matcher and doubler the sheet mills. was soon advanced regular rougher sheet mill crew. 1905 became assist- ant the general manager the Muskingum works the company and from then advanced step step through the operating de- partments his present position. The American Iron and Steel Institute medal, awarded the author the most meritorious technical paper presented before general meeting the institute, was bestowed upon Edgar Bain for his paper, “Some Character- istics Common Carbon and Alloy Steel.” After being graduated from Ohio State University, Mr. Bain did further work Wiscon- sin and Columbia. 1928 join- the staff the research labora- tory the United States Steel Corpn. Kearny, J., and sub- sequently was advanced the post assistant the vice-presi- dent. 1929 was awarded the Robert Hunt medal and 1931 the Henry Marion Howe medal. 1932 was memorial lec- turer and memorial lecturer. meeting the directors existing officers the institute were reelected. Hook, presi- dent, American Rolling Mill Co., succeeded Mr. Grace the com- mittee foreign relations. Roemer, president, Sharon Steel Hoop Co., Hackett, president, Jones Laughlin Steel Corpn., the membership com- mittee. Fairless, vice-presi- dent, Republic Steel Corpn., suc- ceeded Mr. Hook the committee tariff. THE IRON AGE, May 30, wt “ty EARLY two years ago the President the United States asked for the coopera- tion American business his efforts toward recovery. fact that the response was gen- eral and the steel industry par- ticular was one the first’ lend its complete cooperation. Since August, 1933, have en- deavored carry out the utmost good faith the provisions the steel code then formulated and sub- sequently revised. have ac- knowledged openly its obligations, and there should sense pride every member this body that have carefully and conscien- tiously given the Government our fullest cooperation. have hon- estly and earnestly tried apply and enforce those code requirements which were designed right the wrongs unfair practices and which provided for minimum wages, maximum hours and collective bar- gaining for the employees. The results are tangible. The industry employing 420,000 workers, almost peak-time force; wage rates are above the 1929 prosperity levels. unbelievable degree self-government has been attained within the industry. Yet spite these efforts have failed achieve the desired goal, namely, recovery. Five years depression long pull. Certainly have rea- son concerned that the aver- age operating rate for the steel in- dustry for the five-year period from 1930 through 1934 was less than per cent, and the current rate still only about per cent. The financial condition the steel in- dustry indeed indication how little reserve there 14—THE IRON AGE, May 30, 1935 weather any more adversity when remember that the steel indus- try lost $268,000,000 the three years 1932 1934 inclusive. Politics Chief Barrier Recovery Having done our part, nat- urally ask why greater degree recovery has not taken place. believe the chief barrier recov- ery political—the economic un- certainties underlying too many experiments and the proposals regiment American business and labor. Business ready forward. being halted undue empha- sis reform, unsound, biased and perhaps even unconstitutional leg- islative proposals, political maneu- vering, unrestrained public expen- ditures, currency tinkering and increasing tax burdens. There can disloyalty the part those who have whole-heart- edly cooperated, the end reasonable period they point the results and ask for rational con- sideration the facts determine where are going and voice their opinion that additional experi- menting will not cure but probably will further delay recovery. There are lack confidence and lack definiteness planning for the future. have not com- pletely shaken off the illusion that can spend our way recovery, nor have yet fully abandoned the vain premise that the way out high wages, high prices and restricted production. Industry Must Prosper for All Prosper many has not yet come the realization that industry and com- merce must prosper make pros- perous world; that capital must attracted into enterprise the hope reasonable profits from its use; that the creation and not the destruction wealth that leads prosperity; that high wages and / \ \ \ ) Recovery high prices are the result and not the cause prosperity; that re- stricted production produces less and not more income; that recov- ery and reform are two distinct problems and that unwise, not unfair, seek reform the expense recovery. about time had little old-fashioned economy, that en- couraged efficiency and thrift, and stopped holding out false illusions based the theory that the re- sources the state are unlimited. are told that unemployment the chief menace before the coun- try. What the answer this manent and socialistic legislation? think not. believe the answer private industry those nor- mally attached it. may sound commonplace say that the only real cure for unem- ployment employment, yet many fail recognize that industry saddled with restrictive and damag- ing legislation under which profits are unattainable will seriously delay, not completely prevent, the reemployment normal forces. believe that encouraging and constructive program adopted instead the unsettling legislative being were proposals now ° ° ° EUGENE GRACE President, American Iron and Steel Institute ° ° ° considered, the chief barrier eco- nomic recovery would removed. This would give business the neces- sary confidence forward. Must Not Jeopardize Those Now Employed Obviously, the relief the needy is, and always has been, prime situation and should handled strictly emergency basis. new problem, has always been with us, varying degree. has never been necessary, however, jeopardize the security our em- ployed population alleviate want and suffering. Surely caring for the helpless and needy should not made political football. practical matter, permanent recovery will return only through business becoming profitable. Take our own industry. Given the de- mand, were never better po- sition forge ahead. The com- mercial structure has been purged unsound practices. Consumers steel products planning their businesses now know where they ==! == stand. Our laboratories are dili- gently and effectively exploring the potentialities for new uses steel. The relations between employees and management are cordial and cooperative. Large reservoirs private capital stand ready fiow into private industry with re- sumption business. word, the internal economy the steel industry was never better. With rise the demand for steel all the elements will benefit. The real “forgotten man,” the stockholder, might again hope for return his investment. The outlook for the employee better than any time the past. With his present wage rate the only thing that stands between the worker and prosperous pay envelope stricted hours work. Pent-Up Capital Must Released Now, this will come about only when there return confi- dence, resulting both releasing and employing free flow pri- vate credit. Particularly will con- fidence stimulate the capital good: industries, upon which great degree further upturn steel depends. know that there are billions dollars that could, should and THE IRON AGE, May — Be 4 | | may sound common- place say that the only real cure for unemploy ment employment, yet many fail recognize that industry saddled with re- strictive and damaging legis- lation under which profits are unattainable seriou delay, not completely pre vent, the reemployment normal would expended meet accumu lated needs for replacement and construction were not for the economic uncertainties that are cropping every day. Recent es- timates have placed these accumu- lated needs high figure billion dollars, enough re- employ million workers. The employment private capital this pent-up demand then the real answer sound and permanent economic recovery. other words, money must back work. Then men can reemployed. old-fashioned enough be- lieve that only through private in- dustry feasible obtain the volume business necessary bring back normal times. dollars for public works and relief projects may prove be, would well recognize that this sum less than per cent the coun- try’s normal annual business billion dollars. Who are the advocates these legislative proposals that are undermining business confidence? Certainly they not emanate from business men, nor recogized econ- omists, nor for that matter from anyone who has practical edge economic history, nor the proposals conform the de- sires the great mass Ameri- can workers. Business Thrives Only Under Private Management and large the champions Government permanently into the field private endeavor have had direct connection with, experi- ence in, industry business. They not understand that the very basis business progress con- IRON AGE, May 30, fidence and that Government regi- mentation automatically destroys that confi- dence and results down private industry. one thing for the Government per- form extraordinary functions emergency; quite another mat- ter enact permanent legislation providing for Government per- form those functions which nor- mally ought and best can per- formed through private initiative. Such functions must performed through private initiative are enjoy the progress, prosperity and freedom which the Constitu- tion contemplates. The talent necessary direct the private business activity this na- tion not found Government. The courage, wisdom and skill nec- essary properly conduct business cannot found the political arena. will come only from peo- ple who have grown business. The road endless one full hard work, thrift and sacrifice. the only one that will work. Car- negie and Edison were not products Government. Government Should Not Come Between Employer and Employee Business men are not alone viewing these proposals with ap- prehension. Workers, too, are be- coming alive the inherent dan- gers. They are beginning realize that many the proposals said benefit them will the long run adversely affect They are beginning realize that there are subtle influences work alienate them from their employ- ers. significant that this was one the chief points stressed the United States Supreme Court Va \ + j \ \ \ If —3\ \\ \ \\ when recently voided the Rail- way Retirement law. deliver- ing the majority opinion the Court, Mr. Justice Roberts said: Assurance security truly gives, intended connote efficiency, loyalty and continuity service, the surest way destroy any privately owned business substitute legis- lative largess for private bounty and thus transfer the drive for pensions the halls Congress and transmute loyalty employer into gratitude the legislature. This opinion expresses the fun- damental proposition which has made for many decades success- ful industry this country. recognizes that peace and prosper- ity industry rest upon the firm foundation friendship and amity between employer and employee. this fundamental truth were more generally appreciated, and labor leaders and their sympathizers were law held accounting for their acts and the moneys col- lected and disbursed, would have far less meddling with business. feel, therefore, that this the time squarely appraise the prin- ciples and policies essential healthy and prosperous steel indus- try and state our position upon current influences that are con- flict with the sound and construc- tive principles upon which our in- dustry has been built, principles which know through long ex- perience right. Steel Industry Stands for Open Shop stand squarely for the open shop. know this for the best interests employees, employ- ers and the general public. be- lieve our workers should tected their right belong not belong labor organizations matter personal privilege. tect them this right. Moreover, believe that the duty the Government see that nothing done interfere with this, their constitutional liberty. believe = x « > ] + x the principle collective bar- gaining, and have practiced for many subscribe the doctrine ex- pressed President Roosevelt the settlement the threatened automobile strike year ago when said: The only duty secure absolutely uninfluenced free- dom choice without coercion, re- source. For many years employees and management number indus- tries have successfully through plans employees’ repre- sentation. These plans, where effect, have kept industry singu- larly free from difficulties. They have promoted efficiency and morale and bettered the standards living the employees. The steel indus- try has been outstanding exam- ple this field. fallacious and unfortunate view held people who not under- stand, those who not want understand, the relationship that exists under these employees’ rep- resentation plans. There are those who cling the out-worn view that the normal relationship between employees and management that conflict, and the very fact that workers and managers particu- lar company not want fight 2ach other evidence that some- thing wrong. They find im- possible grasp the elementary fact that the interests the em- ployees and the management are mutual rather than conflicting. With our background experi- ence over many years under em- ployees’ representation, know that this method cooperative col- lective dealing better for all par- ties concerned than the old out- worn idea strife and conflict with all its attendant losses the employee, the employer, and the general public. Wagner Bill Vicious Now are faced with vicious legislative proposal that seeks STEEL INDUSTRY lling Mill Co. receiving from memorial medal. these plans, gives legisla- tive backing national irresponsi- ble labor unions and invites the closed shop. refer the National Labor Relations Act, commonly called the Wagner bill. drive wedge between the em- ployer and his employees. Here attempt for national labor unions law what they have been unable for themselves ap- peals workers who have resisted them every turn. Eloquent | ~ ASA ~ J proof this can found the published record less than 6000 dues-paying members the Amal- gamated Association Iron, Steel and Tin Workers out more than 420,000 employees the steel in- dustry. would, indeed, lacking courage managers and citizens stood idly and did not vig- orously oppose proposition that biased and manifestly unfair both employer and employee. has, indeed, been properly charac- terized “bill create trouble.” repeat one the most vicious pieces legislation that has been proposed long time. Whether not this undesirable bill actually becomes law, the constitutional rights employees will continue. Their right freedom choice both employment and selecting representatives will protected the steel industry the fullest ex- tent our ability. Thirty-Hour Week Impractical Another disturbing proposal the bill limiting worker hr. week service. The steel industry believes high THE IRON AGE, May 30, q | ay 2 3 3 a > 4 AIT R HONORED FOR CONTRIBUTIO John Tytus, vice-president the Americ Eugene Grace the Gar > | \ ie | | \ | | ~ dollars that could, should and would meet accumulated needs for replacement and construction were not for the economic uncertainties that are cropping every talent necessary direct the private business activity this nation not found wages evidenced its record, but the effect high wage rates nullified arbitrary restrictions are placed upon the earnings employees. Our employees have had nearly four years restricted working time. Personally op- posed anything which prevents man from improving his earn- ing power when opportunity of- fers. firm belief that will not attain full measure recovery until employees can once again enjoy the earnings nor- mal working week hr. The unsoundness the 30-hr. week obvious that diffi- cult see how anyone who has heart the welfare employees and industry this country can sup- port it. Yet measure that has received endorsement quar- ters that not will not recog- nize its impracticability. The steel industry under normal demand could not operate 30- hr. week; its operations. would crippled; the standards living its employees would lowered. Some may think that possible pay employees much for 30-hr. week for longer work week. They forget that selling prices have direct relation wages and that unreasonable prices would unduly increase living costs, stifle domestic business further handicap this country world markets, where wages are much lower and working hours much longer than this country. Freezing the earnings employees hr. week not going pro- mote recovery this country; the contrary, would bring about industrial stagnation. AGE, May 30, 1935 the working time were limited hr. per week, the earning power the workmen the steel industry, under normal conditions, would not more than they earned 1933 and 1934, which was most unsatisfactory condition. The dif- ference between hr. and hr. per week represents one case the ability obtain bare necessi- ties and the other case the enjoy- ment comfort, pleasures and even luxuries with something laid away for the rainy day. Security Programs Best Adminis- tered Industry The steel industry has taken vital interest providing for the economic security its employees. This has done through coopera- tive plans. These plans have been both formal and informal. some cases they have been financed others jointly employee and com- pany. any event the steel in- dustry has outstandingly good record over many years viding against the hazards sick- ness and death, accident, unem- ployment and old age. The partnership which has been built jointly administering these plans has been powerful factor promoting good relation- ships. The economic life the EDGAR BAIN Recipient American lron and Steel Institute Medal. country has thus benefited. This contribution national well-be- ing that cannot overlooked, be- cause ours basic industry em- ploying nearly one-half million workers. Now proposed that the Gov- ernment shall invade this field. The economic security bill now pending Congress involves far-reaching social and economic questions. Even though this were proper function for the Federal Govern- ment, which seriously question, the Government cannot, the na- ture things, administer these plans effectively economi- cally private industry. Security against the hazards unemployment and old age depen- practical means. have quar- rel with the principles, but the method which this shall ac- complished, the extent that can achieved, prime impor- tance. Political Largess False Paradise This country was built our forefathers upon the cornerstone economy and self-denial. Perhaps ~ \ | | \ \ \ \ \ \ \% \ \ . ~ \\ / \ \ \ \ \— \ \ \ { \ \ ARE should taken that the emphasis placed does not place jeopardy the millions people who are still employed heaping upon them and their em- ployers unbearable burdens through extravagant and hasty Wagner bill, the 30-hr. bill and the social se- curity bill are only three the pending measures, but they are typical the ten- dency many—more Gov- ernment business, more Governmental interference, more not too much hope that the time will soon come when will return these first principles both our and private lives. would, indeed, unfortunate our people are lulled into false paradise and led believe that political largess can become sub- stitute for private thrift and enter- prise. Yet fear that this unrea- sonable condition developing. Taxes Would Retard Recovery Proponents the social security bill argue that the legislation necessary bring into line em- ployers who have not provided these benefits for their employees. thought seems given the dire effects that will result from upsetting the programs that have satisfactory operation throughout this country over many years. Are these relationships that have taken years build not important the economic life our country? Are scrap And Justice Roberts well says “transmute loyalty them? the employer into gratitude legislature.” Then, too, grave question whether the adoption program this time, such contemplated under the economic security bill with its heavy taxes upon business, would not effect actually retard recovery. Care should taken that the emphasis placed upon unemploy- ment does not obscure and place jeopardy the millions people who are still employed heaping upon them and their employers un- bearable burdens through extrava- gant and hasty legislation. Certainly since the proposed leg- islation cannot beneficial the present emergency, for this legisla- tion would confer benefits upon those now unemployed, would seem the part wisdom for our legislators give this far- reaching measure more considera- tion and study. These are but some the pro- posals creating economic uncertain- ties. The Wagner bill, the 30-hr. bill, and the social security bill are only three the pending measures, but they are typical the tendency many—more business, more Governmental inter- ference, more bureaucracy. Certain features the pending banking bill, leading political control our credit facilities, give rise serious concern. The Ray- burn bill, restricting the activities public utility holding companies, while designed prevent abuses, the same time has materially de- moralized industry which has been large purchaser materials the capital goods markets. the same token, railroad purchas- HATEVER the future the recovery should have the common sense realize the necessity exerting every possible the evils, abuses and un- fair business methods the ing has been nil. And what stretch the imagination can cap- tive coal mines, which are held for the purpose supplying our steel mills with special quality coals, included regulatory measure, known the Guffey bill, applicable the marketing coal for general commercial purposes? NRA NRA, Common Sense Must Rule Steel Business The question the extension the National Industrial Recovery Act, which expires June 16, now before the Congress. Whatever the future this act may be, any all, the problems with respect the successful management the steel industry are still before and must met. Certainly whatever the future holds store for us, should have the common sense realize the necessity exerting every possible effort prevent recurrence the evils, abuses and unfair business methods the past and managing our industry afford the necessary protec- tion all parties concerned. The mismanagement some businesses former days, when discrimination and ruinous unfair trade practices were allowed run riot, brought them under Govern- mental regulation. not have think back many years for im- pressive examples this. The fate these businesses affords real challenge management. must recognize good business dictates that the only way industry the long run can assured its inherent freedom run its own affairs will the fair and hon- est treatment its labor, its con- suming and its stockholders. That the steel industry will whole-heartedly meet this challenge firm belief. Thus will make our contribution new and better era. THE IRON AGE, May 30, Pe an a { Fe € _ f / | — : Av BR opinion that many re- spects the outlook for steel and for business con- siderably better today than has been for number years. Huge Government Expenditures the first place, the Govern- ment preparing spend nearly five billion dollars. Now, regardless whether not you consider this wise thing for the Government do, the fact remains that the money going spent, and this spend- ing will have very definite effect upon business. This money go- ing all over the country, and will find its way into the pockets all sorts people. This money will largely into which call for durable goods and heavy materials and equipment. That may result orders for steel the type which has been altogether too scarce recent years. large share the money will into payrolls. This will mean increased sales con- sumer goods—and large share our steel production now goes into consumer goods, will increased sales steel. projects Now, entirely aside from Govern- mental expenditures, there con- siderable evidence this year substantial business improvement. Employment been rising the steel industry and many others. Automobile produc- tion this spring has been exceeded only few times before the history the country. Public utili- ties have shown consistent im- provement business—and they are good barometer general conditions, they serve all types people and businesses. This year farmers stopped crying for relief long enough start buying auto- mobiles and agricultural machinery. There has been some resumption activity various durable goods fields. particularly machine tools. Even building showing signs This particularly Real contractors are picking up. true residential building. estate men and IRON AGE, May 30, 1935 teel Best Many outlook for steel and for business general considerably better today than has been for number years. From the standpoint markets, number influences point definitely toward increased sales and larger ° the near future, the home may prove the out- standing example replace- ment other materials ° ° ° Wagner bill, just passed the Senate, the outstanding legislative monkey wrench which today threatens jam the wheels ° ° all the fusion the recent past, the Constitution still stands. has not been, nor will getting more inquiries with respect home building than they have had for years. All this shows evidence busi- ness recovery along normal lines, due return confidence, resump- tion buying deferred through the depression years, and the desire people possess new and im- proved products. any event, can look for- ward growing demand for steel —and today the industry much better position than ever be- fore fill the needs present markets and develop new ones. have developed new steels and new uses steel point which was t L, \ unheard only few years ago. difficult realize the ex- tent which research and inven- tion the steel industry may lead the nation’s industrial equipment. Consider, for instance, what the new alloys increased strength and decreased weight will mean with respect transportation, and factory equipment and machinery. Where new steels can better job than old steels are doing, new steels must come in. steel new purposes will enable infinite variety fields. The auto- mobile has demonstrated what may happen along this line other fields well. Each year more the automobile made steel. Steel for Homes the near future believe that the home may prove the outstand- | = \ - \ \ — a =< \ \ Say <— TOM GIRDLER President and Chairman, Republic Steel Corpn., Youngstown ing example replacement other materials steel products. Just the steel-built refrigerator has been replacing wood, steel will used for cabinets, tableware, furniture—and even the house it- self. The fact that steel goes into practically every device which has been invented make life more convenient and more comfortable. Without the use steel steel machinery, doubtful whether single product manufactured to- day could even brought within the reach the masses the peo- ple. Steel literally the master tool civilization. Flays Economic Experimenters Now, what have said thus far has been quite optimistic. But not all going clear sailing. The signs show good times ahead— and think are going have better times, unless economic ex- perimenters keep throwing more monkey wrenches into the ma- chinery. The Wagner bill, just passed the Senate, the outstanding legis- lative monkey wrench which today threatens jam the wheels re- covery. The enactment this measure into law will plunge the country = 4 almost once into prolonged period bitter industrial strife and litigation, such the nation has never seen before. The bill would place the Govern- ment the impossible position attempting control the most in- timate relationships between em- ployees and employers every community. someone recently stated, difficult “to imagine more complicated piece legisla- tion written govern the preju- dices, the passions, the disputes and the organization upward thirty million American workers.” Does any intelligent person be- lieve that such thing possible? There secret about the pur- poses this measure. was not designed peace. was not designed pro- upon the insistence of, and for the exclusive benefit of, the American Federation Labor, and the one and only purpose behind clamp the yoke the closed shop upon millions free American citizens. \ \ “pa! not know how many millions dollars monthly membership dues would exacted the unions from the pay envelopes the na- tion, they were able make this law accomplish all that they hope for. But not sure that all their hopes are going realized. many great industries are carrying collective bargaining success- fully and believe their entire satisfaction through employee rep- resentation plans. the steel in- dustry and most other important industries, employer and employee relationships are peaceful and har- monious, and both men and man- agement want continue them so. Employees well employers realize that any interference with these relationships outside in- fluences would have seriously dis- turbing and retarding effect upon recovery. The modern method collective bargaining through employee rep- resentation plans right which, opinion, will not lightly given the employees the steel industry. Yet, this exactly what the champions the Wagner bill seek bring about. you well know, the Wagner bill sets National Labor Relations Board. and confers upon great powers. This board under authority given the bill, could attempt outlaw practically any employee represen- tation plan now existence. The board given absolute power determine whether employee representation plan “company- dominated” by, among other things, the lending financial support employee organizations. What “other” support? could interpreted partisan board moral support, any THE IRON AGE, May 30, “< ve : a5) 4 A — —" . wy \ poe other kind real imaginary support which would enable board declare that plan “company-dominated” fore outside the pale the law. Charles Hook, his excellent radio address the Wagner bill, summed the case when said, “this places the hands the labor board absolute power life and death over employee represen- tation plans.” Perhaps there has never been such glaring example one-sided iegislation this. Coercion should be, and every form pos- sible restriction placed upon the employer, but labor unions are ex- pressly exempt from such restric- tions. They can intimidate, threaten, exploit employees any fashion they desire under the protecting wing the Wagner bill Less than two per cent the over 400,000 employees the industry belong outside unions. Are the vast majority em- ployees the steel industry and many other large industries, who don’t want join unions and who don’t want the closed shop, have nothing say about their own rights free citizens said the outset, business set ahead and are hope- ful increasing markets for steel, but industrial strife, such may stirred the Wagner bill passed and upheld courts, bound powerful retarding force upon and might ac- tually offset the stimulus given the forces now making for re- covery. closing, should like leave with you just two thoughts. One that notwithstanding all the politi- ‘eal turmoil and confusion the recent past, the Constitution still stands. has not been, nor be, The second that the steel industry for generations come will continue lead- ing factor the economic life this country. let pull to- gether have for the last two years, demanding special favors, but only our right operate business free from constant threats paralyzing restrictions and tolerable burdens. can have this, firmly believe that ten years from now will look back upon decade activity and prosperity the steel industry unequalled any that has gone before. 22—THE IRON AGE, May 30, 1935 welling Imports Price and SHALL interpret the topic as- signed me, namely, view the Year,” referring only the steel industry and that portion which compre- hended the 239 producers rolled steel products who are mem- bers the steel code. The average rate ingot pro- duction for the months ending Dec. 31, 1934, was 36.2 per cent, compared with 32.5 per cent for the preceding months. pres- ent, around 42.8 per cent, having averaged 46.8 since the first the year. From these figures may well derive moderate degree encourage- ment and justifiable optimism, al- though the progress upward toward fair rate operations seems distressingly slow and marked disturbing retrogres- sions such the one experienced the industry the last six months 1934. may that similar disturbing periods may present themselves prior reach- constituting small percent- age the total tonnage con- sumed domestic mar- ket, bearing the steel industry. However, relatively small tonnage makes the market price any given point, and with ton nage low-priced product competing with domestic increasingly alarming both labor and which conservatively may garded reasonable one. this nation again prosper and progress, must attain bilized continuity volume. Lack Tonnage Durable Goods Persists had been the case the first depression years, lack steel ton- heavy tonnage products, rail- generally speaking, the durable goods in- dustries. This situation still pre- vails and particular signs im- provement that direction are yet evident. This has been sig- n 1! 1} 1 — is | = reaten Domestic age Structure ° ° ° IRVIN President, United States Steel Corpn. ° ° ° nificant feature and startling de- velopment the trend our in- dustry during the depression years. the other hand, contrast with the continued dearth business heavy tonnage lines, have had the pleasure experiencing improved demand rolled products, particularly quired the motor industry. Also there has been improved demand from farm implement manufac- turers, from fabricators wire products and heavier tin plate consumption. Tin plate production promises exceptionally good during the present year. Steel Industry Has Been Conscientious have now operated under the steel code for little over months. The steel industry during this period has been unit making real and sincere at- tempt carry out the mandate National Industrial Recovery and supporting the Administra- tion making this experiment the interest recovery. Whether not has helped recovery not the point discussing. What trying say that irrespec- tive the wisdom otherwise the act, and irrespective the success failure the experi- ment, the steel industry have done our part well knew how, and have done con- carry out the intent the re- covery act. Under the code, our filed prices are less than those ruling 1926; our rates wages were again raised April 1934, per cent, and are per cent higher than those 1929. The financial return the industry under these conditions has been disappointing, but this might attributed more the lack orders sufficient volume permit economical oper- ations than either price level the scale wages. During the year 1933, 190 mem- bers the steel code reported total losses, before dividends, $59,694,000. For 1934, 177 members the steel code reported losses $11,797,000. The loss for 1933 represents about per cent and the loss for 1934 represents about $4,750,000,000. Alarming Rise Steel imports striking development the has been the increase im- portations foreign steel and the present tendency these importa- tions assume larger proportions. For example, will quote from statistics published the Govern- ment, from which have selected five typical items. These figures cover the months January, February and March, 1934, and January, February and March, 1935: Importations: Tons 1935 bars....... 1934 3,717 1935 5,885 8,140 1935 1935 3,924 All these figures are three months only. Summarizing these five items, the imports for three months 1934 were 14,810 tons, and for the THE IRON AGE, May 30, 1935—23 re a F 7 f 1 tm ) ? L / | 1 \ | \ | | | same three months 1935 were 29,676 tons, increase little more than 100 per cent. The rate ingot production the United States January, February and March 1934 was only per cent capacity, and the rate January, February and March 1935 was only per cent ca- pacity, that this growing foreign nage available our home market was and serious matter the steel industry, our employees and our stockholders. Threat the Price Structure Steel producers through equalization American labor costs with the low labor costs foreign mills. are prevented not only the provisions the National Indu ‘rial Recovery itself, but also the higher living standards which are generally ac- cepted being the desirable and proper standards for this country. is, therefore, not within the power the steel industry cor- rect situation reducing costs. From the financial returns the years 1933 and 1934, which have quoted, would seem equally apparent that impos- sible for the industry correct the situation reducing prices without the same time inviting bankruptcy. The disparity between foreign steel prices landed points the Atlantic, Gulf and Pacific Coast ports and current prices our own mills are many dollars per ton. would say disparity $10 $15 per ton not uncommon. This situation can materially helped making use one the several methods provided our _present laws, either the anti-dump- amount duty under the flexible tariff law, embargo under the National Industrial Recovery Act. The American steel industry has not, the present time, been assisted under any the pro- visions these laws. However, the effecting reciprocal trade agreements with certain foreign countries, whereby very low rates duty are established for cer- tain steel products imported into the United States, have tended and will tend reduce prices still lower levels. The reaction this the interests the steel indus- try the aggregate once apparent. 24—THE IRON AGE, May 30, 1935 recognized that contention made that these importations, constituting small percentage the total tonnage consumed the quential bearing the steel in- dustry. true that 10,000 tons per month these five items shapes, wire, nails and steel pipe—is not relatively large compared the total consumption the coun- try. However, all know, relatively small tonnage makes the market price any given point, and with increasing tonnage low-priced product competing with domestic products, increasing- alarming both labor and man- agement. This more important today, when steel plants are oper- ating per cent and labor reduced hr. per week. Growing Diversity Imports Causes Deep Concern The tendency the volume and diversity these im- portations are causes deep con- cern our domestic steel indus- try. These importations are pene- trating into our markets yond the Atlantic, Gulf and Pacific seaboards, and likewise into the Lake port areas during the season Lake navigation, with resulting tendency induce demoralization the marketing the products distributed these areas. conclusion, let venture make this statement the im- mediate future. opinion, the degree industrial activity which may develop dependent largely the outcome pending legislation directly affecting indus- try. After more than four years necessary and enforced retrench- ment, natural recuperative forces are bound stimulate and effect recovery unless checked further burdens and restrictions dustry. CHARLES SCHWAB Chairman Emeritus, American and Steel Institute WOULD like turn back for just few minutes the old days, because think may proportion realize how far think ought not too blue about some our troubles they come along, when stop re- alize that our industry still very young. this business has grown prac- tically own lifetime. Every- one calls steel the basic industry, and is. Yet has become the basic industry within the past years. course, steel small quanti- ties has been available for cen- turies, and early years ago was being supplied for railroads and steamships. But the enor- mous use steel buildings and every department industrial development modern thing. like think along the years and realize that our industry has always been forward-looking. \ Proposals any great moment those who are further challenge the youth this nation, upon whom its future depends, decide whether the proposals that are wrought out hard times are going to, the long run, stifle the individual initiative which has developed this have pioneered. Sometimes have developed new uses for steel and found markets for them. times the needs have come along first and required steels new specifications. Whichever way has been, the industry’s meeting the situation has called for in- genuity, daring and enterprise. When consider the many mil- dollars which are being put into the building new mills today, admire the job which you managerial fellows are doing and the courage you have accepting the colossal responsibility involved deciding affairs such mag- nitude. know that these decisions are often guided laboratory tests, and think back the first thousand dollars that borrowed life. got from Henry |“ Phipps set laboratory experi- ments, but soon learned thgt this was only the beginning. The proposition that proves out the laboratory the experimental mill may fall down the day-to- day demands plant production. That why say leadership the steel industry requires only with theoretical knowledge but also with “know-how,” practi- cal experience and courage. Will Individual Initiative Stifled? You may wonder why have addressed myself particularly the younger men this industry today. have done that because some the philosophies which often are heard today. While may not any great moment those who are further along life, certainly chal- lenge the youth this nation, upon whom its future depends, decide whether the proposals that are wrought out hard times are going to, the long run, stifle the individual initiative which has de- veloped this country. While all admit that great advances are ever made without the development some features which need correction, the chal- lenge the young men today avoid the heaping upon them- selves burdens and suppression individual initiative that will prevent the same opportunities acquire property, security and some the luxuries life that have been the rewards the past. Our industry progressed, and has had fine history along humanitarian lines. think- ing goes back the earliest days the industry when working con- ditions employees were primitive state, but that was long ago, and would like emphasize the fact that for years this has been industry good wages and good opportunities. Nearly all the men who are the high places the various companies today started out poor boys. There was never any question having inside track, being related somebody. The industry was always reaching out among its em- ployees trying find men ability. You know, ours has always been steel mill not like the type factory where the worker the slave the machine. have had these collective bargaining ar- rangements, your president has said, but there has always been free interchange views between workers and superintendents, and those higher up. work effectively otherwise. THE IRON AGE, May 30, : | ({ Mr. Grace has said word about this institute. can remember when started out just series dinners given the late Judge Gary. was nothing like the great, useful, public-serving insti- tution the present day, but were groping with realization the fact that were founding something which some day might grow into greater usefulness. through the institute that the abo- lition long hours work was started, with gradual change over the 8-hr. day, which now standard. And pioneered the collecting economic data our industry. not dwelling the good old days with any thought that think they were better. have already said that you young men are going way ahead what has been done the past, but think worth while for you stop moment and realize what came before you. Co