Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-07-15
PROFIT AND WAGES


Discussed at Length by Chairman Frick
and the Committee-HeIpiny Work.
men to Build Bomes-Effscs OF the
Reduction From the Firms Standpoint.
Chairman H. c. Frick was next recalled.
Oates-The men say that not the highest
priced workmen are reduced, but the men
having the hardest work to do. Please ex-
plain this point.
A. Take the ll9-inch plate mill; the men
who get the high wages suffer the greatest
redu ction. number of men would not
have any reduction. For example, 25 who
are not reduced, in May averaged $75 a
month
Oates--Is May an average month";
A. The earnings in May may have been IA
little larger than the average. How much
can't say. There are 800 men in the plate
mill department and only 81 men reduced on
tonnage. Tho minimum. however, would
apply to all. In the open hearth department
No. 2 there we're 296 men employed in May;
1876 unchanged, 100 reduced in wages. Open
duced. The minimum will apply to all of
the tonnage men only under the sliding
scale. desire to make that correction,
In the 32-inch slabbing orarmor mill, I57
men are employed, 81 are reduced, 1c6 not
reduced. Some of them are on the sliding
scale and would be affected by the mini
mum.
Taking Issue With Burgess McLuckie.
Yesterday Burgess McLuckie said we
turned the Duquesne mill into a billet plant
for the purpose of reducing the price by
flooding the market Our total pay roll for
May was 500 600. Or this amount $4,000 was
paid out in Homestead. Suppose we re-
duced the price of billets 81 per ton. We
make 90 600 tons per month at Duquesne. That
would be a loss of $40. 600 The reduction of
$4,000. That is, we would lose $4,000 to gain
S. 200. Any sane business man knows such
a policy wonld be suicidal, and it shows how
Mr.. McLucke reasons.
Oates-Why did the company propose to
reduce the basis of compensation at least 10
per cent?
A. Because of the reduction in the selling
price of our product. l have given that.
We put in new machinery that largely in
creased the output We put in a new open
hearth plant, made changes to cast larger
ingots. We increased the product OF the 49,
inch plate mill at least 30 per cent, and we
thought a readjustment of wages was neces-
sary. We have lost money on every ton of
bilets, blooms and slabs made during the
last year.
Oates-Are wages fixed arbitrarily, or do
they have any relation to your profits?
A. would say that with the execution of
the 40 per cent of our men under the sliding
scale, the wages are fixed arbitrarily.
E1ec. OF the sliding Scale.
My on the sliding scale as affected by the
market
A. Yes sir. Our capacity at Homestead to
make bilets is TO- 100 tons per day, at Du-
uuesne the capacity is 800 tons per day.
Jones & Laughlins make 1000 tons per day.
Oates-What proportion of the billets in
the country are made by your firm?
A. 1 should saysabout II per cent of the
whole output of the country.
Oates-Give approximate cost of produc-
ton nf
A. believe 1 declined to answer that
question the other evening. don't like to
go into the question of cost. Now here are
33-inch and 23-inch mills at Homestead,
making beams, structural iron and billets.
We found it necessary to build a new beam
mill. 1t cost us 5000
Oates-What is the cost OF the Homestead
plant?
pleting the new beam mill, we ordered u lot
find the footing to be sl5s.0Oo From
now on until September we will be
engaged these in mns mi1Is ,ns Msre impTSys moSsrn
at one time. Mr.. Roberts said Jones &
Laughlins paid more money on their 23-inch
mill than we do. Our roller " orked e days
in May and received $3.50 second rollor, &c
money, but in Jones Lau-hins' the rollers
have to pay helpers out of their salaries.
Take heaters; they average $3.50 per month.
On the 23-inch mill we askno reductions un-
til the improvements are finished, so that in
comparison with Jones & Laughlins, Mr..
Roberts took up department in which no
changes would be made.
Never Forec!osed Mortgage.
Now about mortgages that we hold on
homes of men. We do this for their conven-
ience, and to assist them. If any workman
comes to us and says he has paid something
on lot we advance him all the money he
needs at per cent to build q house. allowing
him TO pay us as be can afford it. We never
foreclosed O mortgage, and we allow our
men the same rate of interest on deposits
that they leave with us. The aggregate
amount deposited with us IS about $40 900.
The mortgages amount to about $l42, 900.
OateS-Now state the cost OF production
of a ton OF steel billets.
pig iron is s14 per ton. That cannot be- con-
ycrted into ton of billets for less than the
average cost of $40 per ton making total cost
counting everything over $2. A ton OF pig
iron onlv produces IS per cent Of a ton OF
biIlets, The $40 includes the cost of the ad-
ditional pig iron needed.
Oates-What does it cost at Homestead,
leaving out the cost of plant, to make a ton
A. 1 think have gone into the cost as far
as can go.
Oates-You have no intention then to give
us an idea OF the profit made?
A. No, sir.
Oates-There is profit?
A. Yes, sir.
Oates-Does the amount Of pront on your