The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-07-29
SALARY SLASH
BY u. s. STEEL
IS MIN|MIzED
Adjustment Not TO Affect
Rank and File Wage
Farmers, Is View.
HOOVER OPPOSES CUTS
President Is UnconCerned
About Fate of Highly
Paid Executives.
BY CLAPPER
United Press Stan Correspondent
nnnrrinht 1921 b.. IInitnd d.

N~0RA ANAANs A00AH " a.
WASHINGTON, July 29.-Oficial
Washington was convinced today.
upon reflection, that there viii be
no wage slashing stampede" in the
United States.
Study of the United States Steel
Corporation directors recommended
ton for adjustments in the sala-
ries Of officials and other salaried
employees, led to the view that this
action perhaps has been given a too
pessimistic Interpretation in many
quarters.
Government sources realized that
there is considerable pressure for
adjustments" in some lines, but it
was emphasized anew that Presi-
dent Hoover still stands firmly op-
posed to wage cuts.
The United States Steel State
ment, it was asserted, meant exactly
what it said-that adjustments were
recommended for the high officials
and for salaried employees, not wags
earners, based on several factors.
MOI Hit
For many men the reductions will
work no genuine hardship, it was
said, particularly in the light of low
cred living costs. The adjustments
do not reach down into the mills.
United States Steel has a fairly
defined schedule in mind for these
cuts, it is understood here. Salaried
employees receiving under $35 a week
would not be reduced.
Others above that figure would re-
ceive a sliding scale cut-in the
higher brackets as much as Is per
cent, according to the understanding
here among well-informed sources.
Responsibilities and requirements
of the employees, however, would be
given consideration in making the
cuts. p
Reduction of from 10 to Is per
cent in the salaries of executives
making from $4,000 to $4,000 a
year would not be surprising, it was
said. But, it was pointed out, these
men were unable at the moment to
produce for the company the profits
of boom times" and this applies, it
was suggested, in other concerns.
On this basis, there was felt to be
a justification in some quarters for
such cuts in the upper brackets.
Not Worried Over Executives
The President, however, is not
particularly concerned at the fate
of high paid executives. He wants
wages kept up-and, with them.
American standards.
There is pressure to get wages
cut. Some lines insist that they
can not stand the force of decreas-
ing returns. Others, it is felt, do
not have such an excuse
The administration believes it
would be ill-advised to have wage
slaSheS, and it will continue its fight
against wage cutters.
The entire attitude of the United
States Steel Company, it is said, is
to be cautious and careful in taking
any steps toward general reductions.
The decision to do any adjusting,
1t is said here, was taken by the steel
company officials reluctantly.
President Farrell had opposed in
his address last spring any charac-
ter of a reduction in the
sation of the employees Of United
States Steel.
Hurt by Rivals
1t was the continued and pro-
greSsive competition of smaller steel
concerns who were obtaining pro-
duction cost reductions through
wage cuts and which was in turn
enabling these concerns to under
sell United States Steel, that forced
the issue it was said.
Big business in the United States.
it was declared, is looking towards
the White House today, with great
er earnestness than at any time
since October, 1929, for guidance
and help in the matter of preserving
the Hoover wage principle.
The great employers of the
country, including the railroads.
packers, automobile industry, cleo
trio industry, etc, are Thoroughly
in accord with the presidents de-
sire to protect the existing wage
scale, it is said.
The leaders of all these industries
are reported to feel that if e break
in the line occurred, concerns not as
financially strong as the great
fundamental industries in the coun-
try, would leap at the opportunity
to make sweeping and largely un-