The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-04-15
Steel SIashes Factor in Nation
Wide Cuts.
First Effect Will Be to Help
Farmers-Gary.
DOLLAR IS WORTH MORE
Workers Can Stand Thirty Per
Cent Cut.
Copper and Zinc Companies
Due for General Slash.

Washington, April 15.-Drastic re-
auctions in steel prices announced by.
Judge Gary, chairman of the United
States Steel corporation. may cause
countrywide steel price cutting, it
was believed today.
AT least cheaper steel will tend to
bring down prices to the consumer of
scores of commodities of everyday
use," said Ethelbert Stewart, govern
ment price expert. today. 1T may be
some weeks before the buying public
will experience benefit but the result
is certain if the lower steel prices are
maintained"
Increase Profits of Farmers.
One result which the steel price cut
already has brought was a general 10
per cent reduction in the price of farm
machinery. Cheaper farm machinery
means a larger margin for $500, 900
farm owners who will thus be encour-
aged in the direction of increased pro-
duction. Larger food production
means lower prices to the consumer.
There are scores of points at which
steel prices affect the cost of living
altho the average individual seldom
buys it directly. Building and rent
costs. now the subject of complaint,
are directly affected by steel prices
because rails and bars are largely
used now in construction work even
IN private dwellings,.
Railroads and street car lines are
pro obably the largest single buyers of
steel. High rail prices increase oper-
ating overhead and necessitate high
freight and passenger rates.
Copper Employees Cut.
New York, April 15.-Reduction of
20 per cent in salaries of officials and
employees paid on other than a daily
basis was announced today by the
Utah. Ray. Chino and Nevada copper
companies.
"The value of the dollar has in
creased to such an extent since last
June that gradual wage reductions UP
to 80 per cent, at this time, merely
eliminate this automatic raise which
the worker has received"
This statement was made in an in
terview today by William Loeb, Jr.,
vice president of the American Smeit-
ling e. Refining company. who was
presidential secretary under Theodore
| Roosevelt.
| The smelling company is now un-
dergoing the process of wage and sal
ry sdeflation.
Dollar Worth 6S.2 Cents.
Department uf labor figures show
! that the purchasing power of the dol
| lar il. now 63.2 cent? compared With
thai of 1913" Loeb sad This is an
| increase of 81 per cent over last June,
.
cents. Thus. any person whose sal
airy or wages have remained station
ary since June has really received 81
| per cent raise"
The company, which has gradually
! been reducing wages for several
months because of the stagnation of
/ the mining industry, now has decreed
a 20 per cent salary reduction for its
! white collar" or office employees, eff
/ fective May 1. This includes 1900
| persons from Simon Guggenheim, the
president, down to the newest stenog-
/ rapher.
$4,000 Received Cuts.
! Gradual wage reductions for the
( 1900 workers since January /, have
! aggregated 25 per cent.
| Wages of the companys workers
! in the war period were increased an
average of As per cent" Loeb said.
I'VE haven't any definite figure in
mind in reducing wages. We are
merely trying to find the point of
| deflation. This, naturally, cannot be
| figured out with mathematical GER
: way carefully with reductions of 5
and 10 per cent at a time
Mobile r.. r.. Cuts 20 Per Cent.
ST. Louis, April 15.-A wage reduc-
ton of 20 per cent affecting 1000
employees of the Mobile & Ohio rail-
road will become effective at midnight
tonight, E. E. Norris, vice president
of the road announced today. Rep
resentatives of the employees agreed
to the reduction, Mr.. Norris asserted
GOV. ALLEN NAMES EDITORS.