Evening star., 1949-07-29
Nathan Again Testifies
Steel, Industry Can
Afford Wage Raise
By the Assoeioted Press

NEW YORK, July ga one
time New Deal economist today
pictured the steel industry as a
highly profitable one that can
easily afford to pay more money
to it's workers.
Robert R. Nathan, former War
Production Board official, ap-
peared as the third witness for
the CIO United Steelworkers be-
fore the three-man panel. named
by President Truman to try to
avert a steel strike.
Mr.. Nathans presentation was
loaded with statistics presented to
the fact-finders by means of large
charts.
The annual rate of earnings
of 19 leading companies in the
steel industry in the first quarter
of l949." he told the board, were
approximately 100000 after
taxes, which were far above 1948,
nearly double the 1946-48 average,
and two and one-half times the
average of the war years"
But, he declared, the steel
worker has not shared appreciably
in the probability of the steel
industry.
THE buying power Of hourly
rates of pay of production work.
ers in the steel industry increased
by one seventh between 1899 and
1949, whereas productivity per
man hour rose by so per cent over
the decade.
THE industry was disinclined
to pass on any significant portion
of the benefits of greater efficiency
to it's employees in the form OF in
creased purchasing power or to its
consumers in the form of lower
prices"
Philip Murray. president of the
Union, and of the CIO, disclosed
to the presidential board yester-
day that the steel workers are de-
manding 30-cents an hour pack
age. including l2l2 cents for
wages.
Mr.. Nathan said that under
June. 1949, cost and price condi-
tions." the industry could pay
20 cents more while operating at
30 per cent capacity and still
make the phenomenal prof"
which he said it earned in the
first quarter of this year.
Under the same cost and price
conditions and with operations at
80 per cent of capacity, he said
the industry could pay 10 cents
an hour more and earn the same
high level of profits as in 1948.
Steel industry officials have
said that the operating level of
the companies is declining rapidly
and in some cases has dropped
below 80 per cent of capacity.
Mr.. Nathan conceded that
profits of most industries have
turned down in 1949," but he
said the steel industry neverthe-
less will show an all-time record
in the first six months of this
year.
The economist said that sharp
Iy declining costs" have helped
steel to maintain high profits de-
spite fall in the operating level.
AS today's session opened, Sam
uel I. Rosenman. one of the board
members. announced that. the
panel proposed to strike from the
record the heated colloquy of yes
terday afternoon in which Mr..
Murray attacked steel industry
leaders and some of the company
spokesmen present replied.
Neither side objected and the
remarks were expunged.
The board admonished Mr..
Murray yesterday and then ad-
vised the participants to refrain
from further name calling.
Mr.. Murray called steel industry
leaders "the most sanctimonious
bunch of professional racketeers
in this country"
Company spokesmen 1eaped to
their feet, protesting. They de-
manded that the remark be
stricken from the record.
Comments Are Stricken.
"All right. all right" Mr.. Mur-
ray said. Then I'd like to sub
stitute for the language I used
and make lit prevaricators and
provocateurs.
Both of Mr.. Murray's comments
were ordered stricken out by the
chairman of the presidential board,
Prof. Carroll r. Daugherty, who
said:
"Name-calling is not to be ex-
pected again before this board.
This board is not meeting to hear
that kind of talk. We are here
to get the facts in an Unconditional
way"
Mr.. Murray later apologized to
the board.
John A. Stephens. vice presi-
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