Evening star., 1950-01-01
14q Steel Output
Tops Prewar Peak,
Despite Strike
By William G. Smock
Axseriotsd prsxS R,<in~ss wr;tsr

$SsoCtofeo FfeSS business WFffet
PITTSBURGH, Dec. 31.-Amer-
lean steel mills produced more
steel in 1949 than in any prewar
year despite the longest, most
costly steel strike in history.
Production for the year is esti-
mated at around 76,500,000 tons
Of raw (unf1nisheO steel. Although
that is 20 per cent more than was
turned out in 1929, it is far below
the peacetime record of SO, $40 900
tons poured in 1948.
The prospect for 1850 is for a
good year-but not stupendous
one. The postwar steel shortage,
which kept mills going at record
rate in 1948, is over.
Small Drop Expected.
Bennett S. Chapple, jr., assist
ant vice president of the United
States Steel Corp, said the in
dustry expects "a somewhat
lower rate of operations" in early
1850 as result of recent gradual
declines in industrial activity.
But he added:
Il do not believe the decline
will be drastic or severe. 1t will
merely be the continuation of
the trend that started last spring."
Many big mills ended 1949 with
their books filled solidly through
next June with orders for hot
and cold rolled sheets.
In the final weeks of the year,
steel companies started what
looked like another general round
of price increases. They raised
prices on most steel products an
average of 81 ton. Stainless steel
products were not affected. Tin
mill products were reduced about
$3.50 ton. Higher operating costs
were blamed.
The end of the steel strike No
vomber II brought a resumption
of voluntary ALLEGATIONS. Mills
decided how much of what prod
ucts they sold to what customers.
The 42-day strike by approx
mately 100000 members of the
CIO United Steelworkers dealt the
industry its hardest blow of 1949.
Union President Philip Murray
(called his men out October / after
President Truman had taken a
hand three times in efforts to
prevent a work stoppage.
About $4,000 workers in basic
steel stopped work. The steel
operating rate sank from about
80 per cent to approximately 81
per cent. The country lost an
estimated 100000 tons of steel
production.
Lasted for Month.
The first break came October 81.
Bethlehem Steel Co., second larg-
est producer. made peace with
the union. The firm agreed to
pay for pensions which, when
added to Federal social security
payments, would give retired
workers minimum monthly bene-
fits of $100 after Is years serv-
ice. Workers and company
agreed to share equally in the
cost of 5-cent-an-hour social
insurance program. The plan was
estimated to cost from IL to IA
cents an hour.
When United States Steel, larg-
est producer, agreed to a similar
pact on Armistice Day, the strike
was virtually over.
Steel quickly bounced back to
prestrike operating levels and bet
ter. By the second week in De-
cember, mills were booming along
at 90 per cent of capacity.
October was the worst steel
producing month in II years. Out
put of ingots and castings was
$4,000 tons, smallest figure since
July of 1923. In October of 1948,
the industry produced nearly
1897 900 tons.
See Strike--Tree 1850.
Steel companies look for
strike-free 1850. That's because
the agreements which ended the
.1949 strike do not permit a strike
before December 81, 1850.
The union may ask next No.
.vember l to reopen rates of pay
provisions of the various, almost
identical contracts. Sixty days
are allowed for negotiations.