The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-01-30
NeW Steel Wage Cut Is
Decision of Wall St, Meet

OF the company the sum OF S1l.61.
Every year every employee contributed
S6l735. For the life of the corpora
ton each employees contribution
to the company's wealth was $l9,-
1880. The contribution OF each
worker is actually greater because
these figures are based upon COM
putation of the total payroll, which
includes the high salaried employees.
On the average capital investment,
according to the company claims OF
1885 66l OCT, the profits of the COM
pany aggregating $4,o07 ,537, 269,
amounted to 45212 per cent or a 81
year average profit of IA 3-5 per cent.
And, according to the figures Of the
q. S. Commissioner of Corporations,
whose inventory showed an inflated
valuation of the original plant OF 1876
million dollars, the aggregate profits
mount to 534 per cent or an annual
3l-year average of over II per cent.
1t must be borne in mind that this
profit is after net expenditure of
$685. 2l ,712 for requirements" of
plant, depreciation, depletion, etc.
Brutal Treatment of Workers.
The steel trust always has been
brutal in its treatment of workers,
1t is necessary to stress this fact 10
show that the basis for its well-known
generosity to the security holders is
the ruthless robbery and oppression
of workers. The company has been
generous to the stockholders and to
j. P. Morgan. At the same time II
maintains the most efficient spy,
private police and thug system in the
u. s.
Fabulous Dividends.
The total paid out to the security
holders is sufficient to show its liber-
atty To stockholders, an annual 81
year average return of ela per cent
on the average investment as claimed
by the company. II, however, we are
to accept the U. S. Commissioners
INfgures, the percentage rises to eleven
and one fifth percent. This Is over
a 30-year stretch of good" times and
bad" times.
Eliminating the Bond interest paid,
the total average stockholdings for
which the company received any
tangible value at all, amounts TO 1911, =
798,559 and on this investment the
stockholders received 81, 1884, Sal 1913 or
a total of $40 per cent, or q 31-year
annual average of 1872 per cent in
cash and further gift Of Sill, $685.
500 in common stock, or almost double
the original stockhoidings In watered
stock alone.
Besides coming this golden outpour-
ing out of the workers blood and
sweat, there is left. at the company
disposal, enough in surplus to pay off
every penny of investment and debt
and still have remaining sum OF
S196 millions for working capital.
Except for two years, dividends on
common stock were paid each year.
On preferred there has never been
an omission. This steady flow Of in
come operates only for the benefit OF
the security-holders. The companys
treatment of the workers presents a
terrifying contrast. Workers are
taken on and laid Off without regard
Tor their nceoS.
Huge Labor Turnover,
The net differences, year after year,
of the total yearly number OF work.
ers employed, run into the tens Oh
thousands, There are years with
fluctuations of 80 to 40 thousand.
one year it was $4,000 and in one
year the net lay-off was $4,000. These
are the net differences; the total
figures must be much greater. And
in 1891, out Of total number em-
plcyed of 2OS,67a, the number work
Ing part-time was i50,055, Today the
number is much greater,
Helping the Morgan Banks
The company, besides being kind
to the security holders, can also be
kind TO indiyiduals--if the individuals
are J. P. Morgan or others belonging
10 his Millionaire gang. When the
u. S. Steel Corp. was organized, j. p.
Morgan ct al received $3.50 million in
stock of the company for services"
The stocks hadn't much OF a market
value at the time, SO Mr.. Morgan in
duced the Board of Directors TO con-
vent" for him $50 million of pre-
ferred stock he had into Bonds which,
of course had much higher market
value.
Spike This Lie.
This is the crew of capitalist rob-
bers which is now planning to omit
their usual dividend in cold-blooded
preparation for plea Of poverty
which they hope will fool steel work
ers and other workers into accepting
the lying tales put out by the Of
cials of the American Federation Of
Labor like the Amalgamated Associa-
ton of Iron, steel and Tin Workers,
and its Musteite wing, as in the War
rem strike, TO the effect that "tbc
company can't pay"