Evening star., 1938-07-26
BY JOHN c. HENRY.


BY JOHN c. HENRY.
Threat Of slash in steel wage
rates was made before the Public Con-
tracts Board of the Labor Department
today as big and little segments Of
the industry joined in opposing the
liking OF minimum wage.
The warning of wage cuts as an
alternative to higher prices was voiced
bluntly by E. S. Ballard. counsel for
the Inland Steel Co. Republic Steel
followed this lead.
1T is obvious" Mr.. Ballard told
the board. lin the face of recently re-
duced prices and certain other costs
OF distribution which have been as
sumed by members of the industry,
that present wage rates must be sub
ject to adjustment to meet existing
conditions. Otherwise prices must be
increased in the immediate future if
the industry is to avoid serious losses
which will impair its economic posi-
ton.
While it is desirable to maintain
wages as high as economically pos
sible. they cannot be maintained
static in the face of the present eco
nomic condition without injury to the
employers and employees alike"
The Inland spokesman also warned
that increased introduction OF labor
saving devices would accompany the
dxing Of . wage scale which might
be considered too high.
Reserves Contest Rishts.
In addition to his opposition to the
proposed scale, Mr.. Ballard informed
the board further that his company
wished it understood it was reserving
all rights to contest the validity Of
the Walsh -Healey Public Contracts
Act under which the proceedings are
taking place.
Republic Steel lined up with In
land both in its implied warning of
legal action directed at the Walsh
Healey Act and in its opposition to
the fixing Of wage structure at the
present time.
After citing statistics to show that
steel prices are only LILO per cent
above the 1929 level while wages are
81 lilo per cent higher, T. F. Pat
ton, counsel for Republic, concluded
rs follows:
I'VE urge that the determination
OF prevailing minimum wage rate
for the steel industry be delayed until
. more thorough understanding and
study OF the present wage structure
with relation to existing prices can be
made"
Pressure for delay in finding the
minimum wage also was brought by
William Beye, counsel for flee COM
panies, including Carnegie Illinois.
Pointing out that the figure of
62l2 cents per hour previously men,
toned for common steel labor is
higher than now prevails in many
districts under union contracts. Mr.
Beye emphasized that suitable
minimum must be worked out ap-
plicable to all sections and groups
OF the industry. In order to ap-
proach such comprehensive solu-
tion, he suggested the present hear
ing be continued for an indefinite
period.
Mr.. Beye echoed the suggestion of
Mr.. Ballard that the board issue pro-
posed findings in advance of final
decision in order to allow opportu-
nifty for exceptions.
Paid Lower Wages.
AS evidence increased that smaller
units Of the industry of necessity fire.
quently pay slightly lower wages, Board
Member o. R. Strackbein questioned
several witnesses as to the desirability
Of wage differential for large and small
companies. Although admittedly there
Is doubt legally as to whether the
board has power to specify such differ
entails, there was division of opinion
among those questioned as to its ad-
visibility.
Objection to failure of the corpora
ton witnesses to submit economic data
IN justification of their varying wage
rates was made to the board by Lee
Pressman, counsel for the Steel Work
ers' Organizing Committee of the
G. I. o.
Before spokesmen for the major
companies took the stand, the board
received and read into the record
numerous letters and kilograms from
small concerns virtually unanimous
In the opinion that a rigid wage
scale would work to their detriment
and to the unfair advantage Of the
big corporations.
Murray Makes Charges.
Charges that wage policies Of Beth
lehem and Republic Steel Corps.
threaten collective bargaining stand
ards were made as the hearing opened
yesterday.
The charges were made before the
board by Philip Murray, chairman
of the Steel Workers Orpanizing
Committee &C. l. o. and director of
the 1897 strike against little steel"
IN proposing certain wage minima.
His suggested minima were: sixty
two and one-half cents an hour for the
Eastern region, which produces al
most 95 per cent of all steel; sf cents
for the West, and IS cents for the
South.