Evening star., 1938-06-26
STEEL PAY CUTS
LOOM AS STOCKS
CONTINUE 0NR|SE
U. S. Corporation Asserts
No Assurance Given
Against Slash.
PRICE REDUCTION MADE
TO MEET CONDITIONS
Average of 60 Securities Moves
Upward to $3.50, Highest
Since March l.
BACKGROUND

BACKGROUND
Administration has repeatedly
cast critical eye upon steel price
structure, wondering why quota
tions up to Friday pere maintained
dboue 1929 levels, in period Of
slump. ,ohile prices of farm prod
ncts and other commodities came
doDn. Lo,oer prices, it said, should
increase Uolume and permit main
tendnce OF ,odss rates.
Steel men, pointing to figures
prepared By American Iron 4 Steel
Institute. haze argued steel Uages
mere boosted 81 per cent in 1886
and 1887. With Fridays price cut,
they said. steel is selling close to
1926 leuels. ,Dhile Daoes are 2s per
cent above 1925.
Fy the Associated Press.
NEW YORK, June 25.-Possibility
OF a wage readjustment in steel was
injected into the business recovery
picture today as the stock market
surged upward for the sixth successive
day, completing a week Of rising prices
unparalleled in recent Wall Street
history
Conflict Of opinion between the New
Deal and important sectors of busi-
ness management over the proper wage
policy to spur recovery. was high
lighted by the developments of the
last "a hours
/. United States Steel Corp. issued
a terse statement this morning tina t
none OF its ofhcials has given any
assurance" the sweeping price reduc-
tions in its products announced yes
terday would not be followed by wage
cuts.
2. In his "fireside chat" last night
President Roosevelt called for a united
stand by capital and labor to resist
wage slashins, approved United States
Steefs price reduction and added he
was ''gratified to know" 1t involved no
wage cut. 4 White House secretary
explained today the President was
guided by news reports In his assump-
ton wage Adjustments would not
follow. Stephen r. Early. the secre-
tAry. said he had no knowledge Mr..
RoSevelt had received definite assur-
ances that wage reductions were not
planned by steel executives.
No Wage Discussions.
Carnegie Illinois. U. S. Steel's
biggest subsidiary. said the price cut.
were made to meet competitive condi-
tior1s. Republic Steel and Inland Steel
met the reductions today. and other,
were expected to follow. Republic
Steel said there had been no discussion
with employers regarding any wage
cuts, but added the corporation will
as always continue to be competitive
with the industry, both as to wage.
and prices"
Steel observers regarded q slash in
wages as possible, pointing to the fact
that big steel alone stood to lose about
ST, ,000, 900 in revenue through the
price cuts, based on the estimated
volume Of business last year.
U. s. Steel has contracts with the
c. I. o. Omcials said informally yes.
terday the price cut had no connection
with wages and that anything affecting
wages would have to be discussed with
the Steel Workers Organizing Commit.
tee. When the agreement between the
c. I. o. and u. S. Steel was renewed
last March. a clause was inserted per.
mitting either side to call a conference
on 10 days notice to consider change.
IN wages. If proposed changes are MOI
agreed upon in 20 days from the givin,
OF the notice, the entire agreement
automatically terminates.
No formal notice for q wage con.
ference had been given late today
John L. Lewis. head of the c. I. O..
and Philip Murray. head of its Steel
Workers Organizing Committee, were
In New York this week and were
(SAe STETT poo> A1I