Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-22
FARRELL ATTACKS
STEEL HEADS FOR
REDUCING WAGES
Standard Companies Are
Not Maintaining Pay
Scales, He Says.
SCHWAB DECLARES
SALARIES STABLE
Leaders Agree That Industry Is
Going Through a Period
of Difficulty.
BY the Associated Press.

BY the Associated Press.
NEW YORK, May 22.-James A. Far
rell, president Of the United States Steel
Corporation, faced fellow executives of
the steel industry today and charged
that "the big standard companies" are
not maintaining wage scales.
II think" he said, its a pretty
cheap sort of business
Mr.. Farrell's indictment of the COM
panies was made at a general meeting
of the American Iron s. Steel Institute.
"You say wageG have been stabilized
in the steel industry" MIR. Farrell be-
gan They have not. We are living in
a fools paradise. Honcycombing and
pinching of all sorts Of things have
gene on. The so-called big standard
companies, the companies in the head
lines. are not maintaining the standard
of wages. It's shame that when some
of the large companies are trying TO
maintain wages others are cutting them
even when they are ahordlng only
week employment.
pretty Cheap" He Says.
81 am not going to give the names OF
all the companies represented IN TINS
room that have cut wages, because l
don't want to embarrasS you, but l
think it's a pretty cheap sort OF Dusi-
ness" :,
Mr.. Farrell's remarks were in marked
contrast to those of Charles NJ. Schwab,
chairman of the Bethlehem Steel Cor
poration and president of the institute,
who presided and who said, I'VE nave
had a stabilized wage rate since 1873:
He expressed the opinion that the period
of liquidation is about over" In nor
NAL year, he said. the tonnage neces-
sary to supply maintenance. replace
mant and general needs is about d ,OOO,-
900 tons, and for the frst nalI OF OIL i 90
the rate is approximately SO,OOu,OOO
tons.
The comment of Mr.. Schwab upon
the remarks Of Mr.. Farrell was:
"I really discover no difference be-
tween my views and Mr.. Farrell's, and
] heartily indorse all he said.
Low Price Levels
Both Mr.. Schwab and Mr. Farrell
discussed the unfavorable price level
prevailing in the industry. Mr.. Farrell
said most steel companies would not
earn their preferred dividends II the
present situation continued.
we are W6SLlIlB VA bOAAo Va
raw material and getting no return ne
asserted. He thought the industry
should take the risk Of closing down"
rather than continue to waste materials
I'VE are no longer selling steel, but
are accepting the prices the consumers
are willing to pay" he said. We nave
to set up resistance against this move
on the part of the buyer to ruin our
business. You can't blame this price
cutting on the statesmen It is the pig
chiefs in the organization who are DONG
the cutting. You have to blame the
comrades and they are sitting here In
the front rev. 1t is not honest for us
10 sell our steel below cost and Knock
something from our dividend and re-
duce wages.
Leaders Blamed.
ct don't see any hope of better prices
until the presidents of the companies
ston the present diabolical situation.
Taxing into account cur capacity
(67 ,oOO, 900 tons) we ought to be thrlV-
ing on so per cent operation. / think
We are not doing good job and unless
We do better job something Is gong
Mr.. Farrell referred to discussions on
the interference of the tariff walls
and added that the stones for that
wall have not even been quarrleo as
yet"
The average duty on iron and steel
would not pay the freight on steel from
New York to Lancaster"
Upturn Predicted.
Eugene c.. Grace. president Of Beth
lehen. said his company was operating
at 40 per cent CT capacity.
There has been no pick up IN ousl-
ness. he asserted. New business COM
ing in is not quite supporting current
rate OF operations"
Tom M Girdler. president OF Repub-
lie Steel Corporation, expected an up
turn in the Autumn and said 1t was
merely question of whether the rise
would come soon or in two or three
month";.
L. Z. Block. chairman Of Inland
Steel, anticipated increased business
later in 1881.
Mr.. Schwab said:
II am unable TO predict that any
particular circumstance Is going TO
bring about the return TO good business;
in fact. I believe that specific causes
ere often oveFemphssize After
period OF undue deflation We are ready
for normal business again, and that re-
turn Is manifested In number Of ways,
some Of which catch the public at
tentton and come 10 De considered ah
the major cause.
Possibly air transportation, perhaps
electrihcation, possibly some unfore-
seen industry will be the thing TO
which people will point as the cause OF
better times. II Is not especially i'm
portant what will be the specific symp-
toms of the renewed healthy condition"
Stock market securities, in Mr..
Schwab's opinion. have by and large
IL
II am aware that statements OF this
sort are often greeted the following day
by movement in the downward direc-
ton. The activities of professional
traders cannot be predicted from day
10 day as many people in the United
States now realize, but economic law
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