Evening star., 1923-04-10
PAY BOOST TO HALT
DROP IN OUTPUT
Steel Mills Now Expect t.
Hold Common Labor-Oth-
er Advances Expected.
BY j. C. ROYLE.
Special Dispatch TO The Star.

Special Dispatch 10 The Star
NEW YORK, April 1O.-The in.
crease in wages to workers in thu
steel mills of IL per cent. announced
Dy the United States Steel Corpora
ton and followed already by tht
larger independent manufacturers
Will not serve greatly to increase tn,
production of steel. The most favor.
able thing which may be hoped from
IL, according to many unprejudicet
observers today, is that It will pre-
vent fall in the volume Of steel out
put. The reason advanced for thi.
stand is that immigration restriction
nave left a shortage Of men wht
normally would respond to the wagi
raise and that the added 4 cents a
hour to unskilled workers is not SUI
ficient to tempt laborers from othe,
Industries.
Wage Advance Discounted.
The advance has been pretty thor
oughly discounted. AS has beer
pointed out in these columns repeat.
edlT. conditions in the steel industrI
have been such that the increas,
from SO cents to 40 cents an hour tt
unskilled workers could not be Ions
delayed. Independents in most case!
simply awaited lead from Cnitet
states Steel, and the leading pro,
ducer merely postponed the ar
abroad of Judge Z. H. Gary, Chairman
OF the board. The fact that Judg'
Gary chose to make the announce
ment by wireless from shipboard
rather than on his landing, was tbs
only surprise to steel men that tn
move occaSloned.
Independents VIII Follow Lead.
There is no question that the otheI
steel producers will follow the leac
of the Steel Corporation. Those whic!
have not already done so probably
will make their announcements be.
fore the end of this week. Some in
dependents, however, among theH
some of the Mahoning valley plants
have put in the increase from Sc to Al
cents an hour for common laborers
When all the changes involved ar'
made it is estimated that approx
mately 100000 men will have beer
affected.
Purchasing power in the steel cen
ters will be correspondingly raised
but most of the steel companies viii
do little more than hold the men they
already have on the pay rolls insteac
Of adding more. The United State.
Steel plants now are working a,
about SO per cent of capacity, but II
is doubtful if that output is raised te
any great extent. That has been the
experience of those mills where tn.
increases already are in effect.
Other Industries Bid Higher.
Each spring there is an exodus 0!
steel workers to outdoor jobs. Al
! this time other industries are nU
| confining their activities TO mllt
beckonings, but are raiding the MIA
| through labor agents and offerlni
wages far higher than the steel scale
| 1t is hardly possible that many work
ers will be attracted by 40 cents al
I hour in districts where building con
| tractors are Offering 20 cents for
| similar grade of labor. The increase
/ however, undoubtedly will tend TO-
i ward higher individual efficiency II
| the steel mills and it is on this factol
almost entirely that executives haNt
depended in raising production to it'll
present peak.
Steel Prices Continue Upward.
| There is no sign of let-up in th.
demand for steel and steel products
and the price trend continues upward
| although no extraordinary advances
are to be anticipated in the immedl
/ ate future. The reason for this il
! that the plants are most of then
! booked far ahead at present quota
| tions and are taking on little new
| business.
| The only immediate market j,
some products, such as sheets, is th
! premium market Many manufac
/ turers are so heavily engaged fol
| future delivery that they are making
! or planning important extensions tt
| their plants. Even plants enlarged
! during the war are proving made
quate to meet existing conditions. lr
! the Chicago district warehouses haTI
advanced bars, shapes and plates 81 I;
| ton. galvanized sheets s5, rivets $5
and pig iron so cents to 81 ton.