Evening star., 1922-08-23
by j. G. ROYLE.
Special Disps tch to The Star.

NEW YORK, August 23.-The action
of the United States Steel Corporation
and some of the independents In
voluntarily increasing wages. the rea-
sons for the move. the probable action
of the remaining independents and
the effect on business and prices both
in steel and other basic lines were the
dominating subjects of interest In
business and financial circles through
out the country today.
Widely varied motives were assigned
for the move as dispatches from
widely separated localities showed.
But the main reason for the advance
probably is that the steel mills need
labor and went into the market Tor
it just as they would for any otner
commodity.
Mill gates for weeks have borne the
signs men wanted" The steel pro-
ducers are swamped with orders to
such an extent that under present
production it is doubtful If they could
handle the additional volume OF busi-
ness expected before the end or the
year. The restriction of immigration
foreign sources. The passing OF un-
employment throughout the country
has absorbed other possible sources OF
supply.
Coal Adjustment Factor.
The adjustment of the coal strike is
expected to call back many men who
took Jobs in the steel mills while out OF
work at the mines. As result the steel
companies are forced into competition
with other industries in which the rate
of pay is on a more generous scale.
Nor Is competition for labor lacking
within the industry itself. In many
localities independents have raised
wages and in general their scales have
been higher than that of the leading
tr,to II. ~ i F@,, ,ny,
as well as orders.
The steel industry was one Of the first
to liquidate labor costs during the period
or depression. and it seems to have been
found that whether that adjustment,
made in 1921. was adequate to condi-
conditions since depression has passed.
In addition to present needs. many of
the mills of the country have been closed
down ard their resumption undoubtedly
will follow renewal of fuel supplies and
settlement of the rail strike, in view of
to be in prospect from the railroads and
other consumers Such resumption. of
course, will broaden the demand for an
immediate supply Of labor.
Psychological Eject.
Considerable stress was placed to-
day by industrial leaders on the
psychological effect of the voluntary
increase. Executives of industries.
which face wage disputes of their
own. were frankly worried, and labor
leaders were equally uncertain. 1t
was pointed out that the move might
be taken as exemplifying the ade-
quacy of solution of workers de-
mands without the Intervention of
organized labor bodies. The belief
that such a purpose might have been
taken into consideration was borne
out by the increase granted to 10000
non-union miners and coke workers
in Pennsylvania by group largely
composed of companies AFFILIATED
with steel concerns. On the other
hand, it was also pointed out that the
Increase might easily tend to strengthen
the demands of organized workers in
other industries now asking increases
in pay.
Little doubt was expressed by steel
men here that the other independents
would follow the lead of the steel
corporation. Steel prices have stead
lily advanced and there is every indi-
cation that further advances are in
prospect. Prices have risen about 16
per cent since the low point of last
February and in bars. plates. shapes
and on some other products the ad-
vance has been much greater. Pro-
duction costs. other than labor have
also increased, and it is expected that
additional price advances will follow
the addition of $50.000.0 900 to the an
nual payroll of the steel corporation
alone.