New-York tribune., 1921-06-15
Officials and Hands Hit
Alike by Is p. C. Slash
Fixed for Tomorrow
in Pittsburgh District
July Reduction
Equally Drastic
High Rates Blamed for
Stagnation; Dealers i'm
Europe Unaersell u. S.
SPECIAL Dispatch to The Tribune

fI1l lSB RGH, June l4.-Announce-
nent Of deep salary cuts, effective
June 16, was made to-day by large
independent steel companies in the
Pittsburgh and Youngstown districts
and, according to trustworthy infor-
nation, more severe slashes will be
made early in July. These two reduc-
tlons, only few weeks apart, present
the most drastic action yet taken in
the steel industry in the policy of re-
trenchment and offer fresh evidence III
the depression prevalent in the trade
The Brier Hill Steel Company, of
Youngstown, announces that on Thurs
day Is per cent reduction In the pav
OF all officials and employees will go
into effect. On the same date the Jones
& Laughlin Steel Company, of Pitts
burgh, will abolish all overtime, being
the last of the independents to make
this change in working conditions.
One Company Cuts Off Bonuses
Several weeks ago the payment of
time and half for overtime was elini-
mated by the Cambria Steel COMPANY
the Youngstown Sheet and Tube Com.
pany, the Midvale Steel and Ordnance
Company and virtually all the other
Independent manufacturers. Most OF
them have cut salaries 10 to 10 per cent
James A. Campbell, president or the
Youngstown Sheet and Tube Company
says that no further bonuses will he
paid to officials of his company. and
adds: Salaries also must be reduced
In view of the fact that they never were
raised in the same proportion as wages
the cut necessarily will be felt more
severely"
In announcing the salary reductions
for the Brier Hill Steel Company an
official of the company said: "Our Off
Gals did not receive salary advances in
the same proportion that mill workers
wages were boosted during the war, and
the 10 per cent reduction means rela-
lively greater decrease to our sal.
AIRED people than the recent 20 per cent
reduction to mill operatives did tc
them "
New business of the YOUNGSTOWN
Sheet and Tube Company is averaging
between Is and 20 per cent. toucHine
the lowest level in years, if not in the
company's history. The situation is
about Che same with other independcnt
producers.
I'VE are losing money on operations
and SO are continuing our efforts to pare
operating and overhead costs in every
way possible" said Mr.. Campbell.
The decreases announced for June 16
affect virtually everybody working in &
salaried position, from the president
down to the stenographers and minor
clerks.
Steel manufacturers declare the Gu
mulative effect of excessively high
freight rates is the chief cause of the
trade strangulation and the stagnatior
in buying. 1t is asserted that high
costs are putting the American steel in
dustry out Of the running for foreign
business.
Foreign Makers Undersell U. S.
]. B. Kennedy, chairman of the
board of directors of the Brier Hill
Steel Company, points out that. the
export trade is of tremendous >impor.
tance to the steel industry and that
German and Belgian steelmaker
are selling far under American pro
ducers at this time, in spite of the
fact that virtually all steel plants ir
this country are running at loss.
Severn P. Ker, president of the
Sharon Steel Hoop Company, said to
night that he looked for further de-
cline in the price of steel and that
cuts in wages would be made before
the end Of the year.
A big slump has struck the Home
stead Steel Works and the Duquesne
Steel Works, and a large number Of
mills in these plants are not operat.
ing because of lack of orders.