The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-09-23
Other Industries Follow Pay
Slash Lead of u. S.
Steel.
HELD BUSINESS BLOW
Labor Sees Buying Power
of Nation Reduced by
Corporation Action.

BIZ United Press
NEW YORK, Sept. 23.-Income
OF a million wage earners will be
reduced and earnings of their in
dustrial corporation employers will
be buoyed if the entire steel indus
try follows its leaders and cuts
wages.
The wage cuts announced late
Tuesday by United States Steel
Corporation, Bethlehem Steel and
Youngstown Sheet and Tube will
affect about 100000 employees. OF
them, 100000 are United States
Steel employees.
Other independent steel pro-
ducers expected to follow the in
dustrys leaders will bring the
number affected within the indus
try itself to 100000 employees.
Industries closely related to the
production Of steel employ about
100000 men, it was estimated today
Others Make Cuts
Meantime, General Motors has
also announced sliding scale salary
reductions, affecting about forty
thousand persons, and the United
States Rubber Company announced
it would go on a five-day week Oct
/, thereby, in effect, cutting salaries
and wages about 10 per cent.
Announcement of the steel indus
try's wage cuts revived speculation
concerning a reduction in railroad
wages.
In that connection, the Iron Age
Thursday will say:
I'm finally recognizing the neces-
sity of cutting the coat to fit the
cloth, they (steel producers have
set precedent which it now is be-
lieved the railroads must follow
whether they obtain partial relief
through rate advances or not"
Financial interests, it was be-
lieved, would view the reductions as
boon to business; labor leaders
at the same time reiterated their
claims that wage reductions would
cut the buying power of the nation,
and thus affect business adversely.
Brokers Anticipate Move
Wall Street, and other world
financial markets, it was pointed
out, had anticipated the wage re-
duction announcements, and had
bought steel and affiliated industrial
stocks in the face of worldwide
financial unrest resulting from
Great Britain's suspension of gold
payments.
This speculative interest aroused
by the 10 per cent wage cuts, is ex-
pected to result in better demand
for steel corporation securities
based on the assumption that
earnings will improve with reduced
labor charges.
The .Rockfeller-c controlled Colo
RADIO Fuel & Iron Company will fol-
low the lead of eastern steel con-
Germs in reducing wages 10 per cent.
1--WE either will have to reduce
wages, or go out of business" Ar
thur Roeder, president of the COM
paiy, said, according to a Denver
dispatch.
All major copper companies
operating in Arizona have informed
employees that wages will be re-
duced by 81 per cent, effective Oct.
l. About 1000 men are affected.
Under the new scale, miners will
receive $3.50 and muckers 81 per
day.
Goodrich Makes Slash
REIMBURSEMENT of salaries in &C
cordance with reduced schedules of
working hours was announced by j.
d. Tew, president of the B. F.
Goodrich Company, Akron, today.
The reduced schedules of 10 per
cent were necessary to forestall lay
offs among salaried employees, it was
said.
Officials of independent steel COM
panies in the Chicago area indicated
today their concerns probably would
reduce wages in line with United
States Steel and other large COM
panies.