Evening journal., 1900-08-11
President Of Diamond State
Steel Works Explains
WHY WAGE CUT IS NECESSARY
PuddIerS Will Hold Meeting This Al
terROOn and Then Talk
With Him

Above his signature II. 4. Wallace.
president Of the Diamond State Steel
Company, makes the following statement
in reference to the labor agitation among
the pudders and other employees of the
mills:
Wilmington, Del. Aug. n. 1900.
Gentlemen: In answer To your in
quiry of this morning. would say that we
have not been notified by our men that
they are unwilling 70 accept the pro-
posed reduction in the wage scale but
they tell us that they will hold meet
ing this afternoon and consider the SUBJ
ject, ana we have every confidence that
they will do so in a wise and conservative
manner. We do not propose to have any
controversy over the matter with our em-
ployes, as we appreciate fully the neses-
sity of having their hearty cooperation
to insure the success of our business. We
have told them that we have not author
lied this decline in the wage rate neither
will we make any decline In the future,
without fully considering the necessities
of the case, and the mutual interest OF
the company and its employees.
The first official act of the manage
ment Of the Diamond State Steel Com
pany toward It's employees was to order an
advance in their pay; later on during last
year there were other advances, until the
wage rate was fixed upon the basis OF
S4.O0 per ton for pudding, at which time
we were selling bar iron at 1920 per
pound at mill; bar steel was then selling
at from 1925 to $3.50 per pound Since
that time the price OF mar iron has de-
clined until we have recently been COM
PEELED to sell at more than cent per
pound below the figures above referred
To, and recently bar steel was sold at S7i
cents per pound Il. O. b. Pittsburg.
Other manufacturers who are COMPETE
tive with ms reduced their wage scale 10
the basis of $500 per ton for pudding
and it became a necessity either for Us To-
lose the business OF our customers. take
their orders at a loss. or reduce our wage
scale 90 meet competition so that we
could afford 20 take business at current
prices. When conditions change, and we
can afford TO increase the wage rate we
shall do it great deal more cheerfully
than we have made tins decline
I'VE believe it would be greatly to the
interest of our men TO accept the present
/ basis and enable us to continue taking or
ders az market prices. and keeping our
works running as full as possible. as To
close down means the loss of current
business. and it is not always easy 10 get
orders when conditions are unfayOrable.
and when our customers have been di-
verted into other channels. We might
say further that based upon the present
selling price of bar iron, the rate of $500
I per ton for puddliAg is higher relatively
than the manufacturers in the East were
paying prior TO the late advances. and
should we close lown at this time and so
continue for any length of time. it is pos
sible that we might he compelled. upon
resumng. to do so al even a lower rate
than the $500 per ton basis.
AT this time. when the eyes of a num-
Der Of the larger and more important iron
and steel manufacturers, not only in this
country. hut Of Europe as well. are turn
ed toward Wilmington as a favorable 10
cation for new plants, and as one of the
advantages of our city is the skill and re-
liability of its mechanics, il would bo
most unfortunate to have anything that
even approximated a strike Of our en-
pl0yes. as it might prevent several conf
panies that are now almost. If not alto
gether, decided to locate here. to change
their plans. Ii is one of the pleasant
items of history of the Diamond State
Steel Company and it's predecessors, tn,
Diamond State Iron Company, that they
have not had IN years anything that could
be digniied 10y the name of a strike, and
we have too much faith in the intelli-
gence and good judgment of the large
majority of our employees TO believe thai
they would even seriously contemplate
any such action which might be perma-
nently detrimental to their own interests
as well as the company that employs
them, as il often happens that large anC
desirable orders are withheld from thos,
companies who are so frequently engaged
in strikes and other unpleasant contro
versies between the men and the com
pany. which affects the buyer 10y uncer
7 tainties in delivery of their material.
1T is perhaps rather strange coin
} cidence that at this time the Diamoni
State Steel Company has something NOR
q than 1900 stockholders, and the numbe
OF employees is pretty nearly the same
The management Of the company believ
that they discharge their duty to the for
mer best by being perfectly fair and a
b liberal as circumstances will permit wit
the latter. and they have no higher ambi
# ton than to have the employees of tn
company appreciate this fact.
O 1T is necessary for us 70 make som
repairs in our Old Ferry Mil. henc
neither Of our rolling mills will be in on
GRAFTON ON Monday next, but we do u,
expect this TO affect us many days
g Very truly yours,
H. II. Wallace,
nrasidauf 80