Montana labor news., 1936-12-24
Metals, Steel Boom,
As Wall 81. DepIofes
Poll Effect on Unions
Copper and Nickel to Continue
Rising.
By ELIOT JANEWAY

The election landslide is a matter
of history, but not for several
months will it be possible to in
terpret its long-term effects on bust
ness. An immediate-and signifi-
cant-reaction, however, is the adj
mission of the Wall Street Journal
that the ballot box decision has i'm
measurably strengthened the hand
Of the outside union" By outside
unions, the learned Journal means
bonafide unions.
Undisturbed by election returns is
the enthusiasm shown by spectators
the world over for such metals as
copper, nickel, tin and lead. Re-
| CARELESS of the fate of the present
boom, market sharks are convinced
that the prices of these metals will
continue upwards. If the boom col
lapses, they will still be bolstered by
armament activity.
In any case, the instability of the
boom is emphasized by this specula-
tive preference for semi-armament
commodities over such standard Sc
curities as rail and utility stocks.
An important byproduct of the
movement of capital into the metal
markets is bound to be an increase
in U. S. investments in Canadian
copper, nickel, silver, gold and
aluminium shares as a hedge against
a possible market collapse in New
York.
A second factor, also explaining
the metal boom, is the continued
prosperity of the steel companies.
With only two trifling exceptions,
all the leading companies have in
creased their third-quarter earnings
over the high second-quarter figures.
U. S. Steel, Bethlehem, Inland, Ma
tional and Republic gained from
100000 to $1,000 900 each.
Among smaller companies, Wheel
ing, Gulf States and Superior
doubled their second-quarter profits.
And Youngstown Sheet & Tube,
whose profit fell $299, 091 from the
ST. 8,089 second-quarter figure, has
hit its stride again; in October the
company's Campbell hot strip mill
set a new record, producing over
$4,000 net tons.
In the face of this bonanza it is
becoming increasingly difficult for
the companies to maintain their I'M
compromising attitude towards the
unionization drive. The Wall Street
Journal now admits that "the men"
are determined to bargain collective
ly. 1t warns the companies to con-
cede collective bargaining contracts
and wage increases through the
company unions. If they do not, it
says, "the alternative is obvious"
This is an eloquent enough adj
mission of the industry's real con-
Germ for the steel workers-tempor-
airy concessions will be granted
through the company unions only SO
long as Wall Street can hope to use
them as weapons against the Steel
Workers Organizing Committee.
Further light on Wall Streets
shaky confidence in the boom is
thrown by recent developments in
the aircraft industry and the for
eign bond market. To date the auto
industry has provided the chief flip
to steel activity and thus to recov-
cry. But Orrin G. Woods, partner
in Estabrook and president of the
Investment Bankers Assn, states
that most Of the business expan-
sion to date has been accomplished
with existing facilities and that the
boom cannot grow without markedly
extended investments in new plant.
In the absence of these, Wall
Street is turning to foreign markets
as it did when the last boom was
about to collapse. Boeing Aircraft's
Canadian subsidiary has received
armament orders from the British
government on a scale reminiscent
of 1916. And another Boeing sub
sidiary-Stearman Aircraft-is at
work on a 100000 military order for
the Brazilian government.
Paving the way for the inevitable
flood of armament orders from
South America, the Morgans are ar
ranging a small matter of $29,000,-
900 for Argentina, and Mexico-the
bankers traditional doormat-is also
preparing to re-establish its credit.
Prosperity must march onl