The Iron Age 1938-04-28: Vol 141 Iss 17

FRITZ FRANK President VAN DEVENTER Editor Managing Editor News Editor Editor Emeritus Machinery Editor Art Bditor Metallurgical Editor Associate Editers JURASCHEK Consulting Editor Washington Editor Resident District Editors Pitteburgh Chicago Cleveland Detroit Editorial Correspondents London, England Cincinnati FRAZAR Boston Hamburg, Germany MEYER CHARLES Post Milwaukee San Francisco SANDERSON ASA JR. Toronto, Ontario Birmingham Newark, N J. St. Louis TURNER Buffalo Owned and Pablished CHILTON COMPANY (Incorporated) Publication Office Editorial and Chestnut and 56th Philadelphia, Pa. APRIL 1938 OFFICERS AND DIRECTORS MUSSELMAN, President FRITZ FRANK, Executive Vice-President FREDERIC STEVENS, Seamless Tube Modernization GEORGE GRIFFITHS, Machining Diese! Cylinder Blocks WILLIAM BARBER, Treasurer Their Dutch JOHN BLAIR MOFFETT, Secretary JOHN VAN DEVENTER Ten Years Steel JULIAN CHASE THOMAS L. KANB Portrait of E. R. Stettinius, a 39 New Aids for the Welding Department Automotive Industry Washington News BAUR, General Advertising Manager DIX, Manager Reader Service NEWS CONTENTS Member, Audit Bureau Circulations Plant Expansion and Equipment Buying tion Price: United States and Pos- sessions, Mexico, Cuba, $6.00, Can- ada, $8.50; Foreign, $12.00 year. Single copy, cents. Cable Address, Member, Associated Business Papers | , Indexed in the Industrial Arts Index. ADVERTISING STAFF Products Advertised 112 Emerson Findley, 621 Union Bidg., Cleveland Herman, Chilton Chestnut 56th Just Between Two 114 Philadelphia, Otte Bi Cal . K. Hottenstein, 8 tis g.. iicago ° Leonard, 239 39th New York Indexed Advertisers 136 Peirce Lewis, 7310 Woodward Ave., Detroit C. H. Ober, 239 W. 39th St., New York W. B. Robinson, 428 Park Bldg., Pittsburgh Warren, Box 81, Hartford, Conn. Copyright 1938 Chilton Company (Inc.) | | 7 | , | | | | 4 9 UREAU = j 3 UNIFORM HIGH QUALITY Ryerson certifies the known uniform high quality all steels stock. Tighter, more ac- curate specifications rigid inspection and checking—and years preparation have built stocks these better steels. Ryerson Certified Alloy Steels are particularly outstanding. They are from selected heats that will give the best response treatment. Special data sheets showing the chemical and physical properties, grain size, cleanliness rating, results actual heat treatment tests, are prepared. Principal products stock for Imme- diate Shipment include—Bars, Struc- turals, Shafting, Plates, Alloy Steel, Tool Steel, Spring Steel, Iron and Steel Sheets, Stainless, Babbitt, Strip Steel, Welding Rod, Tubing, etc. COST With every shipment Ryerson sends this com- plete information. The heat treater has accu- rate guide for quickly securing the best possible results. These special services are offered with- out increased cost obligation. When you need good uniform steel—a single Ryerson plant. Immediate Shipment assured. Booklet Ryerson Certified Steels sent request. Joseph Ryerson Son, Inc. Plants at: Milwaukee, St. Louis, Cincinnati, Detroit, Cleveland, Buffalo, Boston, Philadelphia, Jersey | . | > ; | | | ... THE IRON AGE ... APRIL 28, 1938 ESTABLISHED 1855 Vol. 141, No. The Fable the Sloths and the Monkeys NCE upon time, many millions years ago, before mankind made its trouble- some appearance earth, the animal kingdom was ruled the system pri- vate enterprise. The lions and tigers and other meat eaters who took the trouble out and hunt their meals were able obtain the sort diet that they desired and needed because they were willing work for it. The grazing animals took the occupation providing for them- selves more placidly but spend many hours each day their feet the pasturage. The bees and the ants worked with unceasing energy build and maintain their colonies and keep them stocked with food. But addition these and many other classes industrious animals there were others who did not care particularly for work. The sloths, for example, were loafers who spent hours hanging up-side-down the limbs trees. The monkeys, too, did not care for work but they were great playboys who took delight minding the business others. The monkeys, like the sloths, many hours up-side-down, hanging their tails, and may have been this unnatural posture that induced them the habit seeing things just opposite the way that they really were. Having this peculiar ability and with plenty time their hands capitalize it, the monkeys evolved what was then new philosophy known the doctrine more reward for less effort. did not take long for the monkeys convert all the sloths their point view, for the sloths were fond good eating even though not anxious bestir themselves get it. They were willing accept the leadership anyone who would promise them more eat for less effort, especially since involved merely the trouble casting vote animal election day. The monkeys and the sloths turned out great numbers the ensuing election, whereas the lions, tigers, elephants, bees and ants were too busy working for their living bother about it. Thus the century old system private enterprise was defeated and was replaced the plan whereby the ambitious animals were forced support the lazy ones. This was put into effect system contribution called tax-a- tion. worked all right until the good providers came the conclusion that they them- selves would soon starve death because the mounting demands the sloths and the monkeys. was then that wise old elephant originated the true saying: The moral this fable that fatal man beast permit monkey business enter into taxation. 42 7 | | | | fies) | “J ) : iG eamless Tube Mill first large seamless tube mill built this country seven years was put into opera- tion recently the Youngstown, Ohio, plant Youngstown Sheet Tube Co. for producing pipe ranging This new mill part general development and improvement pro- gram just completed the company’s seamless pipe division, which included the installation new 35-in. rounds mill for rolling round pipe billets, two large which means alloy cutters automatically “skin” steel billets remove surface defects, two new and very large (50-ton-per- hr.) billet heating furnaces, and two new pipe piercing mills. All the new equipment incorporates modern developments ments design, and automatic control operations extensive. The mill has rated capacity 300,000 tons per year and replaces comparative- new plant built twelve years ago. For the new seamless mill, ingots specially selected open hearth steel are reheated battery soak- ing pits and rolled into blooms recently reconditioned 40-in. blooming mill. addition the new rounds mill, new equipment installed. this 26—THE IRON AGE, April 28, 1938 department included one 48-in. and two hot saws, 50-ton-per-hr. billet reheating furnace and the two peelers. making billets 534 in. in. diameter, steel from the 40-in. blooming mill rolled into rounds the rounds mill. making in. 534 in. billets, the larger rounds are brought back for further reduc- tion. They are first allowed cool, then are peeled, reheated the new furnace and passed again through the rounds mill, this time rolled down size suitable for finishing merchant mill. The new rounds mill high reversing unit electric manipulators and 4000 hp. main drive. The mill has been designed for quick roll change with universal coup- lings that can quickly retracted and pulled away from the rolls, and wide windows that allow the rolls easily removed. The two 72-in. hot saws are iden- tical units, driven 750-hp., 2300- volts, 514 r.p.m. motors. The billets are clamped the entering side while the saw fed through them elec- can handled these saws. The two peelers which ENERAL view Sheet Tube ess piercer the right, No. the left. Heating furnaces are rear. Shows coming out piercer, large rounds after cooling the cool- ing beds remove the light surface cracks which heretofore were chipped out scarfed hand and expose the deep defects which show black marks against the bright sur- face the newly cut metal. this way all exploratory chipping find deep defects eliminated. The two peelers are identical units with capacity approximately 1000 tons per day each. The rounds are fed the peeler entry carriage that clamps the back end the round. electrical drive the carriage moves the round forward into the re- volving cutters. After the billet has proceeded through the cutters about half its length another gripper car- riage the discharge side the machine moves and pulls the round through. The clamping cylinders both carriages are air operated. About in. the metal removed the cutter head. Each unit consists six hard alloy steel cutters fixed revolving jib. The main cutter heads are driven 250-hp., 40-r.p.m. motors. the steel yard the piercing mill the rounds are loaded two 36-ft. loading docks, one each bay the building, and sent roller | | 4 | q ~ view Tube Com. is at the Heating piercing mill, showing drive, stand, and mo- extreme right. q are Youngstown ° JAMES Cleveland Editor, The Age ° ° conveyor the billet reheating the primary, walking-beam zone, The two piercing mills are identical ace naces, which are continuous furnaces billets are fired both above and below units. They are powered the enter- the “walking type. The fur- the pass line. Firing billets from ing side 5000-hp., syn- ose naces are ft. wide and ft. long, both above and below provides uni- chronous motors and have double re- the largest their kind ever built. form temperature which vital duction drives pinion and single ur- Each furnace has capacity importance making helical gears. Spindles are in. his tons per hr. pipe. ind The major portion the 20-ft. soaking zone, billets Between the drive spindles and the charged the furnaces double are rolled inclined special re- drives are shear spindles and univer- rows. Since most steel lengths fall fractory bottom where the heating sal joints supported dummy between and ft., the 25-ft. rolling temperature completed and stand for each unit. The shear spin- are width the double row furnaces absolutely uniform heat within the are each ft. in. long. All makes for maximum coverage the steel assured. this zone billets drive machinery nd. hearth. very small percentage are fired above the hearth level only. roller bearings. So, too, are the mill the billets which are less than ft. The temperature the furnaces rolls proper. re- long are made and fired double length precisely controlled automatic pres- Construction and rolling principles and later cut two, Steel 19% sure controls and controls which regu- used modern continuous strip mills ft. lengths can charged into the late the air and gas ratio. Reheated have been applied the design the furnace single rows. billets discharged from the furnaces piercing mills. The roll face dif- and soaking zone ft. long. the The two piercing mills which pierce tion the actual working the steel primary zone, billets rest skids the solid billets and roll them into give better seamless water pipe fed one rough tubes are given extreme soli- other type mills. sts three possible water supply systems darity, stability and freedom from Feed angle the rolls, which gov- prevent any failure. The billets vibration. Heavy main castings and erns the speed with which the billet are moved through this zone four the extensive use roller bearings drawn through the mill, adjustable huge “walking” beams ft. long. are notable features these mills. from deg. deg. either Two these beams lift the entire With other improvements that make The roll adjustment motor ing charge billets each row, move for increased speed and greater accu- driven through typical worm gear them forward and set them down racy, operators can work closer drive. ich again. This repeated action moves the tolerances. The main housings are Both inlets and outlets are longer ler billets through the furnace. very heavy, weighing 119 tons each. than those other mills, permit THE IRON AGE, April 28, | . : LEFT ELIVERY end one the two new 50-ton-per-hour billet heating furnaces the Youngstown plant Youngs- town Sheet Tube Co. BELOW pipe the cooling table Youngstown. ° ABOVE LOSEUP view outlet table No. piercer Youngs- town. This where the solid blank pierced. Note outlet trough for piercing bar fore- ground. 4 This also reduces minimum the amount work done the high mill where the tubes are further rolled out and given uniform wall desired thickness. Inlet troughs are water cooled and slotted take care the scale. They are adjust- able with hydraulic jacks. Kick-off mechanisms, which lift the billets and tubes out the various troughs conveyor tables, are all double-throw. The arms, which come and make half revolution with each operation, con- tinue around, always the same di- rection. This cuts the displacement time half and speeds operations, since longer necessary wait for the kick-off arms return their original position before feeding bars into the trough. The kick-off arms are designed easily removed accommodate different length shells. Piercing mill bars electric and equipped with automatic slow-downs and stops both ward and reverse directions. The slow-downs and stops are adjustable three positions accommodate the different length shells made. Piercing mill bars are special alloy composition and have been fitted with special spherical type heads Sheet Tube development, which will prevent excessive whip the bar and excessive wear block. Bars are water cooled and the water pipe equipped with type coupling preveat breakage from twisting. tube, which has left No. piercing mill, this conveying table taken No. piercing mill. ° making small size tubes, the long piercing bar has tendency sag the middle. eliminate this sag, spe- cial carriers are provided support the bars. They are synchronized with the bar drive and work automatically. All main bearings, ways and mov- able parts are cated, the furnaces and mills being equipped with central greasing and in- dividual oil circulating systems. the event failure the lubri- cation water systems, sirens the operating platforms would signal the mill. Selsyn controls permit the cool- ing table operators signal the men any other unit, should any other difficulty develop any defect appear the pipe. The length every section pipe automatically recorded the cool- ing table. means Selsyn con- trols this measured length also transmitted indicator front the roller the high mill, per- mitting him check the foot-weight the pipe. Pipe made specifications requir- ing normalizing normalized new two-zone walking-beam normal- izing furnace. This furnace wide enough handle ft. lengths. ft. long and has capacity tons per hr. THE IRON AGE, April 28, | | | © i “yo Machining Diesel QUIPMENT has been installed the plant the Caterpillar Tractor Co., Peoria, which capable completely machining 160-334 in. in. cylinder diesel en- gine blocks every hours. February, this project one number improvements, and em- bodies many special designs and new ideas. feature “Caterpillar’s” tractor- building procedure the emphasis placed upon flexibility all units, such the cylinder block machinery, assembly lines, etc. Because the company’s diverse production trac- tor models, has been necessary design most the. machining and as- sembly equipment with convertible features that moment’s notice changeovers from work one type engine chassis another may made. The first machining operation con- 30—THE IRON AGE, April 28, 1938 sists milling the top, bottom and straight side the block, this being accomplished one end special two-station milling machine. The other station this machine mills both ends the block. Designed especially for this purpose the company working with the builders, this mill features quick-acting hydraulic quill adjust- ment operated valve control. The two ends the machine are either extremity table upon which located convertible holding fixtures. The casting, which requires two milling operations this point, milled first one end the machine and then transferred the other fixture and completed. time lost since one fixture unloaded and loaded while the casting the other fixture being milled. the conclusion these two mill- ing operations, jib crane and air hoist lift the block radial where the locating dowel hole the pan face ENERAL view block machining line. Final ream being given cylinder liner bore Cylinder drilled and reamed. The hoist chain equipped with double end hook that the block may turned over while transit. From the radial drill monorail conveyor pressed into service transport the block the second milling machine, main bearing locks and sides the main bearings are milled. This mill also double end ma- chine. the first station, the bear- ing locks are milled and angular disappearing spindle mills the hand hole plate bosses the angular block side. the second position, the ends the main bearings milled. case the size the block should any time changed, two complete rise and fall horizontal arbor setups with gang cutters are provided. trip control causes the casting stop beneath either set cutters. Both mills are equipped with “Uni- box” heads, and may modified rebuilt suit almost any purpose that | | | drill into the the the ma- ular and lock nds lock two -bor Jni- that face milling done these New- ton machines. Cin- cinnati radial foreground drills and reams locating holes. will fit within the general limits the machine and holding fixtures. The advantage this type head lies its ability placed any position, either flat, its side, mounted column, thus affording great flexibil- ity design. boring machine equipped with five spindles bores the cylinder liner bores this machine that the base and holding fixture are one and the same, roller conveyor moving through the case and transporting the castings from front back the machine, which equipped with two rows spindles. The two blocks are moved under the spindles and two cylinders are bored, after which the castings are moved through the machine until the unbored cylinders the two blocks are under the proper spindles, and the procedure repeated. elevating device takes charge the blocks this point and they are raised the level three- way drilling and tapping machine, which includes vertical, side angular and rear horizontal heads. This machine drills holes, core drills four holes and combination drills and counter-drills holes the top the block; drills holes the rear end the block, and holes the angular side. roller conveyor table connects this machine second drilling machine which contains horizontal and ver- tical head, and drills holes the top the block, and the straight side. Another three-way drilling machine takes the work here. Arranged with vertical, side and rear horizontal heads this machine drills holes and combination drills and counter bores four holes the bottom the block, drills holes the straight side, and holes the front end the block. The last the drilling completed fourth drilling machine equipped with standard adjustable joint drive head, which counter-bores six holes, reams five, and drills eight holes. All the drilling machines are con- nected roller conveyor tables. The pump shaft hole finished standard heavy duty head with sin- gle spindle drill mounted special base which combination with the holding fixture. line radials are the next ma- chines through which blocks are moved. They consist standard equipment with the exception the elimination the regular bases and the mounting the radial column directly the holding fixture. The operations performed these radials are follows: Tap all pan face holes, ream dowel holes and tap stud holes straight side; ream top dowel holes and tap cylinder head stud holes; ream dowel holes the fly- wheel end the block and tap stud THE IRON AGE, April 28, | holes; ream and tap dowel and stud holes the timing gear housing end the ream bottom dowel holes and tap balance pan face holes. Two the radial machines incorpo- rate the holding fixture hydraulic roll-over device that both top and bottom the block may worked 32—THE IRON AGE, April 28, 1938 — the one machine, and that may delivered the next operation the proper position. After leaving the last the radials, the blocks pass conveyor table through washer where bath given every inch the cast- ings pressure spraying. HREE the four Natco drilling machines are shown here. Leaving the bath, the main bearing studs and caps are assembled, and special boring machine rough bores the crankshaft and camshaft bearings, and another finish bores immediately afterward. second washer en- countered here, this time alkaline (CONTINUED PAGE 64) EHIND the over device the foreground, fixture for testing water jackets being tightened. Radial drills shown left. ring ores ings, en- HEN the Moravians who founded the little town Bethlehem, Pa., came the question city planning they decided that, first, they must have house for the “married brethern and sisters” the colony. Next obtain dwelling place their own, quickly roof could raised the fertile fields east- ern Pennsylvania, were the “single sisters” and last, although perhaps most important all, was house for the bachelors, then known “single Nowhere early pictures early history the town along the Lekka river, now the Lehigh river, there any mention headquarters for labor union such John Lewis’ Steel Workers Organizing Committee and the Amalgamated Association Iron, Steel Tin Workers. Depend Hex Signs The union headquarters, like many other things, came Bethlehem later, the summer 1936, and when came the descendants the Mora- one the groups work the Bethlehem plant the Bethlehem Steel Co. looked with annovance. Some the older Moravian folk from the surrounding hills depended the hex signs their red barns chase away these worldly union or- ganizers who were seeking collect month dues for representing Bethlehem workmen bargaining col- Their Dutch JAMES ROWAN News Editor, The Iron Age lectively with that management. company’s trying chisel dollar bills from the descendants the Moravians, who are said have stemmed from the immortal martyr John luck and some their reports SWOC headquarters back burgh might have been ‘Boys, their Dutch up.” But the Moravians, who are few number, found themselves lined with thousands other workmen who, the strictest ethnological sense are not Dutch but who, nevertheless, find their “Dutch” rising occasion. Labor Board Baby inquiry into the labor situation Moravians, discloses cant things which possibly will made known the National Labor Board Steel Co. labor case progress. hearings One these significant discoveries concerns the origin the Bethlehem Representation Plan col- lective bargaining, the model used the building most the so-called which the Labor forces are trying “company unions” Board-SWOC displace with their own brand col- lective bargaining agency. United States Government agency “imposed” the Employee Representa- tion Plan upon the steel industry. wasn't “imposed” upon the nation’s steel workers the steel companies, frequently charged organized labor and its friends. For all who care dig into the question, there definite proof that the National War Labor Board, set prevent labor disputes from inter- fering with the tremendous movement munitions and other war supplies from the United States its allies the World War, actually sired the Plan Employee Representation. War Labor Board ordered Bethlehem Steel Co. “to set collective bargaining system else.” The War Labor Board itself set plan shop representation which ordered the steel company, then working large government muni- tions orders, adopt. Finally, the National War Labor approved its own plan employee representation then established Bethlehem plant and later set nearly all steel plants the country except few which already had their own collective machinery. How the Plan Began Other official government agencies approved the Employee Representa- tion Plan but nowhere there more sensational information regarding de- velopment the much reviled “com- pany union” than the record the National War Labor Board itself. July 31, 1918, William Taft and Frank Walsh, joint War Labor Board chairmen, and Jett Lauck, THE IRON AGE, April 28, 1938—33 j ° four shown roll- ting own q board secretary signed significant statement which said, part: “The case the machinists and electrical workers versus Bethlehem Steel Co. unquestionable impor- tance from the standpoint the war. appears beyond doubt that the dis- satisfaction among the employees the company has had and having seriously detrimental effect upon the production war materials absolute- necessary the success the American Expeditionary Forces. “The main cause the tion bonus system complicated and difficult understand most one half the time the hear- ings was consumed efforts secure clear idea the system. Must Have Bargaining Right absence any method col- lective bargaining between the man- agement and the employees another serious cause unrest also the lack basic guaranteed minimum wage rate. right committees bargain collectively recognized the Na- tional War Labor Board. Therefore, the employees the Bethlehem plant should guaranteed this right. The workers the Bethlehem plant should use the same method electing com- mittees provided the award the National War Labor Board for the workers General Electric Co. plant Pittsfield, Mass.” How Bethlehem Steel Co. officials reacted this.demand Federal Government agency that plan col- lective bargaining established their plants shown the following letter from Eugene Grace, Bethle- hem president, the Labor Board, dated Sept. 13, 1918: “We are now ready provide for collective bargaining and labor rep- resentation agreement ac- cordance with the declared principles your Board, the details which have been over with Examiner Chaney. are ready for the first election and that there may doubt their fairness prefer have them supervised under your authority and direction.” tance the Government proposal that plan collective bargaining set up, action the Bethlehem labor situation came quickly and Oct. 1918, the National War Labor Board, represented John Henderson, examiner charge, issued the follow- ing 34—THE IRON AGE, April 28, 1938 “To the men and women the Bethlehem Steel Co. “On Aug. 1918, the National War Labor Board handed down its decision the case the employees the local plant the Bethlehem Steel Co. The decision expressed the provision that all conditions the award shall effect the above date. Rep- resentatives the War Labor Board are now Bethlehem under instruc- tions put the award effect. This will done the earliest possible date. task large one and neces- sarily will take Wholehearted cooperation company and workers will make the task easier and secure the results de- sired. are assured that such co- operation will given both sides. What Agreement Provided “The sections the award which its acceptance the company be- comes agreement between the com- pany and the employees are lows: give the employees direct voice determining their working conditions. provide method mutual bargaining between the company and the chosen representatives shop and craft groups. “3—To provide ready conference between employees and management all matters affecting common interest. “4—To provide agency for the prompt adjustment differences that may arise between the employees and the management, either groups in- dividuals, “5—To furnish agency for work- ing out the classification employees, hourly wage and piece work rates and entire revision elimination the personal bonus The War Labor Board empowered its examiners all charges discrimination and hear any differences arising between the company and its employees the in- terpretation the agreement. Outlined Method Voting Then the Board outlined the method which the Bethlehem employees elections were held, establishing precedents which agency, the present National Relations Labor Board, has long been trying abolish. Said the War Labor Board: “The important task hand the election the persons who shall rep- resent the various shops the work carrying out the award. “The elections and counting the ballots will under the sole super- vision the War Labor Board’s rep- resentatives, assisted shop repre- sentatives selected them. “It the judgment the War Labor Board that the plan hold the elections shops. For this purpose voting booths will located convenient locations and boxes supplied which deposit the ballots. The electricians and ma- chine shop groups will taken care first. “If readjustments provide repre- sentation for some the craft groups not taken care the election are necessary this can arranged “This election means much the future welfare the workers the Bethlehem plant. The general par- ticipation them the election necessary secure proper results. this end ask for the cooperation every qualified voter. The detailed method conducting the elections will explained later bulletins notices posted the shops.” INALLY May 1919, two Bethlehem officials signed the plan resentatives employees the Beth- lehem plant. One hundred and twenty- three employees signed the agreement which said part: “Committeemen elected supervision the National War Labor Board the recent elections shall serve members the General Committee and shall serve for term one year from time elections and until elections are held and successors elected. “There shall one committeeman from each department for hundred employees major fraction thereof and one additional committee- man for each additional one hundred fraction thereof. “In departments with vacancies present where the number com- mitteemen are less than the basis representation noted above, ar- rangements shall made immediately the General Committee confer- ence with representatives the com- pany for the holding elections fill this vacancy, said elections supervised representatives elected the General Committee with the cooperation the company Qualifications Specified “Committeemen who have been conference with the officials the 7 4 4 7 7 - 4 | 7 7 4 { | 7 7 the iper- rep- War tical the oths ions ma- care pre- are the the ons company the award handed down the War Labor Board who have appeared before the War Labor Board behalf employees this case shall recognized members the General Committee.” The plan suggested and approved the War Labor Board then goes outline qualifications for committee- men, giving the right vote and set election machinery all em- ployees the payroll for least prior the nominating date. Not Field for Legislation Here the searcher after facts the origin and growth the Plan Em- ployee Representation the steel in- dustry finds various interesting ave- nues information which would, followed up, give the present National Labor Relations Board thought its study the Bethlehem and other Plans Employee Rep- resentation. less weighty document than the VLAN EMPLOYEES’ REPRESENTATION AT THE CAMBRIA PLANT OF The also found “joint organizations management and employees where undertaken with sincerity and good will has record success with the general principles covering such organizations stated the Department Labor report under the heading ‘Employee Representa- Concluding what 1938 would perhaps statement radical doc- trine and unmindful future which would see the adoption the contro- VOTE FOR More Are Voted For, the Ballot Shall Void NOMINATED CANDIDATES CLARE WILLIAMS, BETHLEHEM STEEL COMPANY ELECTION BALLOT FOR ALEX AMANN, JULIUS KISH, PLACE X BELOW PAUL HAYDUK, JR. REPRESENTATIVES DISTRICT No. FRANK KUNKLE, LOUIS BELZ, MARCH 15, 16, 17, 18, 1938 NOTICE VOTERS: using this ballot the voter approves the holding the Nominations and Election stated the posted notice this Election issued the Employees’ Committee Rules under the Plan Employees’ Representation Plant and expresses the desire represented for collec- tive bargaining and the other purposes stated the notice Employees’ Representatives elected under the Plan. DIRECTIONS VOTERS: Place cross (X) opposite the names the Nominated Candidates whom you wish serve you Representatives from this Voting Division. NOT SIGN YOUR NAME LMOST out 53,325 workers eligible vote the recent election held under the Bethle- hem Steel Co. Plan Employee Representation filled and cast ballots like that reproduced above. voting for fellow worker represent him collective bargaining each employee also indorsed the Employees’ Representation Plan. provides detail the through which unsettled grievance must carried, starting with the foreman and, the case nation, ending with the Secretary the United States Department Labor, and stipulates that the com- pany “may designate representative check the qualifications voters, the counting the ballots certify the validity the elec- Department Labor report for 1920 tells industrial conference 1919, which recommended plan machinery adjust disputes gen- eral industry “conference, con- sultation, inquiry and arbitration.” MONG the causes industrial listed the conference was “social, revolutionary theories imported from Europe.” versial Wagner Labor Relations President Industrial Confer- ence said that collective bargaining “not field for legislation because the form which employee representation should take may vary every plant.” conference commented that: representation has been under different names and forms such shop committees, shop councils, workers’ councils, representa- (CONTINUED PAGE 98) THE IRON AGE, April 28, BJ-170 BJ-311 th- yn it f “Fj Ten Years Steel EDITOR'S two earlier in- stallments "Ten Years written Myron Taylor prior his retirement April chairman United States Steel Corp., the re- organization the corporation's phy- sical properties, finances and person- nel since 1928 has been graphically portrayed. this week's installment, “Ten Years Steel," the retired ex- ecutive tells how the company earns its living and distributes its income. the goals set have yet been reached," writes Mr. Taylor. the weight the evidence—the record date—is that they will reached the expected time." neither age nor youth desirable undesirable such, but that well-balanced organization should have ample number mature men judgment and experience and ample number younger men gain- ing judgment and experience. Such which are accord with the times. The corporation was not balanced, and 1931 revised the Pension Plan order that men might retire reasonable comfort and security time when there should need for them work. During the years 1928-1937 inclusive, employees high and low positions the number 13,533 retired were retired pensions. Thé average age all the em- ployees the corporation now about years. The bulk the em- ployees are between and 50. The 36—THE IRON AGE, April 28, 1938 number employees between and years slightly greater than the number and years, but the number between and years slightly exceeds those between and years, and there are more em- ployees between and years than there are below years. Apprentices Trained Recognizing shortage skilled workers and also recognizing that many graduates have opportunity ac- quire skill which would enable them earn higher wages, have brought into being the Corp. what call plan for appren- tice training but which really the nature industrial university. The boys, who must least years age and good character, are given thorough mechanical training the shops and mills and the same time are taught mathematics, mechanics and the strength materials, with specialized technical cording the subject which the student chooses concentrate. The boys are paid nearly the same rate common labor and hence boy need, for the lack funds, give the opportunity qualify himself for the higher pay ranges and the eventual chance becoming ex- ecutive. Most the corporation’s executives began the ranks and without the advantage such train- ing. fervently desire keep open the way from the bottom the top. the prior sections, the corpora- tion has been considered its pro- ducing and employing phases. But, although the corporation arid its sub- sidiaries—the group that has come ° ° MYRON TAYLOR ° known United States Steel—are legally things themselves, actually they are only methods ownership which men and women can put their savings work. The officers and directors the corporation are the nature trustees the savings entrusted them. Dec. 31, 1937, the owners numbered 213,169 among them being 87,618 women, 9,610 trus- tees guardians and 40,000 employ- ees. They were located every state and territory the United States and nearly every country the world. Ninety per cent all the registered owners held less than one hundred shares stock each, and per cent the holders common and per cent the holders preferred stock held less than twenty-five shares Not Mystery There nothing mysterious about what United States Steel companies earn living. They are bound exactly the same rules those who work for them. They live the money they get from the public ex- change for goods and services. they pay out more than they take in, they are the same position anyone who spends more than earns. The deficiency has met drawing savings borrowing. Every- one knows that spending beyond earn- ings can just long and longer. For current expénses and payments the owners, United States Steel must rely upon the amount which receives from the public exchange for goods and services. Since has been the prudent habit the corpo- ration never pay all the earnings the stockholders, there has Bic T : ae | | | 7 | - 7 4 3 7 4 through the years been built rainy day surplus fund which has, from time time, been used fi- nance additional construction and pay the difference between outgo and income during bad years. The por- tion this fund cash easily marketed securities has never been large enough pay the wage bill single Events have demonstrated that the corporation has never with- held from the owners larger sum than was needed for the safe continu- ance the corporation going concern, capital expenditures—that is, for the cost facilities keep step with the development the nation and the art—the corporation has only three sources money. These are: (a) the amounts that have been withheld from the owners; (b) borrowing; and (c) the sale addi- tional capital stock. The possibilities borrowing selling stock are limited the supply funds and the willingness investors, large small, share the fortunes the corporation. That willingness depends large degree upon the perform- ance the corporation earning instrument, United States Steel through these ten years contained the ten annual reports covering the period. They are wholly comprehensive, but they not —and the nature things cannot— resolve affairs into their broad eco- nomic elements. Therefore two ac- counts different nature are here attached. The first shows “How Earned Our Living.” shows “How Secured Our Funds.” Let take them that order. The money received United States Steel during the years covered the account here stated totaled nearly seven billion dollars. order this business, United States Steel had lay out certain had buy goods and services from considerable portion this outlay was for railroad freight, the price which fixed law, and, the remain- ing items, United States Steel had pay market prices. Taxes Beyond Control addition paying for goods and services, also had pay out the sum $467,000,000 taxes. United States Steel could not control these payments, for tax rates are fixed law. And, finally, had pay out set aside the sum $518,000,000 for the depreciation and depletion tools, buildings, mines and other prop- erties. Every pound iron and steel produced causes wear and tear ma- chinery and buildings and draws the reserves ore and coal. United States Steel cannot keep from wearing out, and unless sets aside money for wear and tear, can- not stay business. Thus United States Steel actually HOW EARNED OUR LIVING January 1928, December 31, 1937 (000,000 omitted) Steel received from the public exchange for goods and $6,959 This was disposed follows: Items over which Steel had control: Goods and services purchased from others $2,496 (Of which $103,000,000 was wages paid directly Steel and not included below) Balance remaining (being 50% the gross receipts) $3,469 Disposed follows: Wages and salaries (being 84% “balance 2,928 Disposed follows: Interest paid for the use assets representing savings, the ownership which evidenced bonds and mortgages Dividends paid for the use assets representing savings, the ownership which evidenced preferred and common stock, being 13.6% (The sum $554,000,000 paid for the use assets Steel reduced average annual return the average amount assets used during the period amounis 2.95% per year. Since $13,000,000 was withdrawn from prior earnings, the earned return was 2.88% per year.) has control over per cent the money receives from the public. must pay out half every dollar gets, order business. The amount paid out, however, with the exception taxes, nearly all made wages, for those from whom United States Steel buys must turn pay wages. United States Steel does some its own building, and, during the account period, paid out $103,000,- 000 wages which smaller con- cern would have been paid outside contractors. These wage payments are addition the wage payments the stream production. The balance remaining, being per Steel, has divided between those who own the various plants and other properties and those who manage them and work with them. United States Steel over the period, which comprised some very good years, some very bad years and some moderately bad years, paid out for wages and sal- aries per cent the balance re- maining. That left only per cent for the owners and this paid out $82,000,000 interest money loaned the company bonds and mortgages. United States Steel has choice paying this interest, just individual has choice about paying the mortgage interest his home. NITED STATES STEEL paid out the sum $472,000,000 return those who owned the property used the managers and the workers. This was 13.6 per cent the sum left over. However, not all this was earned during United States Steel had draw the extent $13,000,000 money which had previously been earned but had been left the business work- ing capital instead being distributed earnings. Taking the value United States Steel property shown its books— which the investment cost the property—the actual earned return the owners the property over period that included great prosperity and deep depression was the rate 2.88 per cent year. Balance Remaining The figures exhibited are very great moment considering the sys- tem under which live and how may improved, for, while the ac- count United States Steel, all business will break down into the same component parts. the item “Goods and Services Purchased from Others” are thousands corporations, firms THE IRON AGE, April 28, 1938—37 5 1p re re d l. y q ) - > J } } 4 — | ga 7 and individuals whose affairs, turn, contain exactly the same elements the affairs United States Steel. The vitally important item the “Balance Remaining,” tor out that item must come the returns the owners and the workers. matter what form industrial social organization may adopted, the three items “Goods and Services Purchased from Others,” and “Depreciation and Depletion” will exist some form, for enterprise can wholly self-contained, every government must, some fashion supported, and one can prevent tools and ma- chinery from wearing out. Changing the form ownership will not change the elements. The whole social question, there- fore, revolves about the “Balance Re- maining.” Out that sum must come the returns the owners and the workers. This fact inexorable and cannot changed. sometimes claimed that wages must arbitrar- ily adjusted certain standards living. seems forgotten that the standards living are founded upon the record wage paying abil- ity and that, industry the past had not progressively advanced wages, there would basis for the high standards have already expressed. Take the wage record United States Steel. Favored High Wages United States Steel has always be- lieved high wages. has every- thing lose. and nothing gain through low wages. ours were low-wage country, there would not enough business support concern employing many men does United States Steel. This not say that high wages always mean high purchasing power. The purchasing power the goods produced and, the wages paid not result goods produced, the dollars the pay envelope will only ghosts dollars, for they will have buying substance. Were produc- tion and wages not linked, things would very simple. The Govern- ment could simply print dollars and pay all us. would produced and there would nothing buy with the money. should like men adrift sea with plenty money but nothing eat. United States Steel can distribute wages only the money that comes from production—from selling goods. has managed through the years heavily increase the hourly 38—THE IRON AGE, April 28, 1938 rates pay. The reductions have all been forced severe depressions and only four out the thirty-six years which cover the life United States Steel have seen reductions. These re- ductions have been only pauses the march forward. Here are the facts. base rate for common labor the Pittsburgh district gives the best general indicator the wages paid United States Steel. The hundreds classifications rates not all rise fall exactly with the lowest rate, but the trend the base rate shows the trend wages. From 1895 1900, which was the period directly before the organization United States Steel, the Pittsburgh district rates for common labor rose from hour. The rate was increased 1902 (which was the first full year United States operations) and with dips 1904 and 1905, attained 20c. 1913. That was the year before the Great War. During the war period, rates went steadily upward and were dur- ing the post-war boom There- after the rates declined—although not rapidly the prices received for steel products—but rose again 1922 and 1923, after which they remained unchanged until the depression 1930, reaching low point 1932. From that point they climbed upward and 1936 passed the 1920 record. The rate established March, 1937, all-time high. Since the establishment Steel, its average hourly wage rates have increased well over 300 per cent. Purchasing Power Counts Hourly rates not tell the story, for families have live the year and not the hour. And also dollars not tell the whole story, for 1920 the prices things were high that the high wages paid for hour’s work bought more goods than the lower rate 1932. The point that purchasing power not always raised raising wages and not always lowered lowering wages. terms living—which the real test—the average employee United States Steel today far bet- ter off than was the average employee thirty-six years ago. Anyone who doubts that need only compare what has with what his father had. For inexpensive automobile duced. cost around $1,000 and the average wage and salary paid United States Steel was $780 year. 1937 incomparably better car could bought for $500 and United States Steel’s average annual wage was about $1,700. What before cost about sixteen months’ work now costs less than four months’ work. Take articles that are bought every household. Take the year 1914 typical price year. that year United States Steel paid average wage and salary $905. course some men received more and others less than the average. Call the aver- age wage and salary $900 for 1914 and $1,700 for 1937. The increase approximately per cent. During the same period the cost living— food, rent, and on—rose about per cent. That again, average. Some articles general use have increased price and others have decreased—clothing one that has sharply increased. clothing which cost $175 1914 cost $218 1937, about 21/3 months’ work against about 2/3 months’ work. concluding installment Myron Taylor, retired chairman the board United States Steel Corp., will appear next week’s issue THE IRON AGE. Due space conditions, the last chapter Mr. Taylor’s arti- cle, which THE IRON AGE publishing full, could not printed its entirety this Boeing Plant Enlarged Build Large Metal Planes development production plans for several new lines large metal airplanes has been accom- panied plant expansion the Boe- ing Seattle factories. While the fleet new four-engine Pan-American Clippers being as- sembled plant No. ex- tensive modernization has been taking The first unit this building, 200 300 ft. assembly section, was built 1936 the Austin Co, Re- cently the same builders have com- pleted two additional 125 300 bays, increasing this plant’s clear working space nearly 5,000,000 cu. ft. There are 135,000 sq. ft. main floor area, and balconies with area 21,000 sq. ft. this new 300 450 ft. modern factory building, the four-engine Boeing Model 307 trans- port for TWA and Pan-American Airways will assembled. addi- tion, sub-assembly and final assembly four-engine Flying Fortresses will handled here. >, | | i : 4 | | 7 Car wage cost costs 1914 year thers 1914 ng— -rose thers that cost nths’ ries. ex- 4 ¥ 7 Ss a Re- 4 lear cu. irea q the can will STETTINIUS, Chairman the Boerd, United States Stee! Corp. John Frew for The Age. ; ice J "4 ; d 2 4% 7 e | Capital Goods Output Unchanged From Preceding Week Per Cent Per Cent 150 1935 1936 1937 THE IRON AGE Weekly Index Capital Goods Activity (1925-27 100) Week Week Comparable Week Ended Ended Apr. Apr. 1937 1929 Steel ingot production 39.4 118.2 131.0 Automobile production ............ 49.1 49.8 112.8 127.3 Construction contracts .......... 70.2 73.2 60.2 130.9 Forest products carloadings 44.9 64.7 125.0 Production and shipments, Pittsburgh District 51.5 105.6 125.1 Combined index ... 50.9 50.9 92.3 127.9 Automobile assemblies, reflecting the labor disturbances the past week, declined 60,563 units from 62,021 the previous week. This drop production lowered the automobile index 0.7 point 49.1. year ago assemblies totaled