The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1948-07-22
USA Wins Poy Boost As Trust
Raises Prices And Smokescreen

RAISES FrCGS AnQ
Pittsburgh (LPA)- Under sus-
tained pressure from the United
SteeIworkers of America, the steel
trust last week reversed its spring
decision and granted a wage boost
to its 10000 employees. Just as it
did when it refused to grant a pay
increase in April, US Steel is now
trying to blind the public with fall
lacious wage-price propaganda.
The badly needed pay increase
averages 13c an hour ranging
from 915c for unskilled laborers to
24c for the most skilled workers.
USA agreed to extend the exist
ing contract, which.runs until April
1919, to April 1850, but secured
the right to reopen wage and social
insurance discussions in July 1949.
If a satisfactory agreement is not
reached then the union will have
the right to strike, which it did
not have under the 1947 contract.
Announcement of the settlement
Of the long pending USA case
against US Steel was accompanied
by statement from the trusts
President Ben Fairless that Gus
Steel will soon announce increase
in prices for steel products at the
mills. These forthcoming price i'm
creases are solely due to the fact
that steel prices have not kept
pace with rising costs"
The timing of Fairfess' price
statement was clearly designed to
put large part of the blame for
the price raises on organized labor.
This propaganda barrage will fool
the American people only if they
forget the recent history of the
steel industry.
Last February US Steel announc-
ed price increases which would in
crease it's earnings by about $28,-
100000 year. In April when it
refused to honor its wage reopen
ing clause it announced price cuts
much smaller than the February
increases.
USA President Philip Murray de-
monstrated then that the steel trust
could grant its workers a wage
raise without the slightest increase
in prices. The union purchased radio
time to refute company trumpery
about how it was holding the wage
line so as to give the public the
benefit of what Murray rightly
called "picayune" price cuts.
In June the US Supreme Court
upheld the Federal Trade Commits
sion's attack on the basing point
price system in the steel and ce-
ment industries. After "A little cry
ing US Steel and the other big
steel companies announced that
they would switch over TO an fob.
pricing system.
The basing point system had de
MED steel users located near pro-
ducing centers the advantages of
mill prices. Ordinarily the FTC
rulings would have meant increased
price competition within the indus
try, and lower prices to consumers.
But in the present highdemand,
sellers market it doesn't have that
effect. Now that steel prices will be
set at the mills, and freight char
ges added on for distantly located
consumers, many of the smaller
users will simply drop out Of the
market.
The steel makers, who made a
rate of profit on the far-away pur-
chasers drop them from the ord
er books and sell only in the most
profitable marketS-the industries
close by the steel centers, and big
buyers like the auto industry which
have to get steel at any price
and who can make the consuming
public pay the price.
How much of "hidden" profit
increase the steel industry will
make from this switch in pricing
systems won't be know for a good
many months. Prices of many dur
able goods will reflect the price
rise soon. For example, the price
of steel per ton, because of the
change to fob. steel pricing, is ex-
pected to go up about $3.50 a ton
for the Detroit auto industry.
Now, on top of this "hidden'
price rise, Fairless has announced
price increase--an "open"
one. And, of course, the profit
swollen industry must make it APP
pear that the steelworkers and the
employees of its captive" coal
mines are to blame.
Despite economists estimates
that the demand for steel is going
to continue TO increase-and indeed