The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-02-02
Steel's Case Shattered BY
Union Before Congressman

l " f3t''i''i - ND'' Nfsf - iiN fA'a'
industry's alibis for increasing III
prices last month, were shattered
and demolished before the join
Congressional Economic Committed
Jan. 26 by 70-page detailed an.
alysis Of steel costs and profits
from the United Steel Workers. Sc
compelling were the steel unions
facts that members Of the commit.
tee said they might call back the
steel industry spokesmen for fur
ther questioning.
The steel industry on the same
day took a beating from anothel
quarter-one of it's biggest con-
sumers-when the Oliver Corpora
ton, manufacturers Of farm equip
ment, testified the increases in
steel prices were far higher than
those announced by the industry,
and would force increased prices
on machinery for farmers, one of
the biggest items Of cost in food.
This double barrelled attack from
its consumers and its workers ef-
fectively answered the propaganda
and phony statistics the industry
had presented during the two pre-
viOus days of the inquiry. Mem
bers of the investigating commit
tee-both Senators and members
of the House-were impressed by
the presentation, one of the most
effective research jobs ever done
by organized labor.
Testimony by Otis Brubaker,
director of research for the United
Steelworkers, blasted all of the
alibis the industry had built up for
the price increase during the pre-
vious testimony. Brubaker showed
with figures from the company's
own reports and from industry's
trade papers, that:
l. The steel price increase, rep
resented as averaging $4 a ton, or
four per cent, was considerably
higher than that - as the big
Oliver Corporation had testified
just before.
2. That the price increases were
justification in terms of
costs because costs have
declined since the last price in
crease.
8. The union cannot be held res
Donsible because the pension costs
issued by the companies are far
ess than the companies told the
Presidents Fact-finding Board,
and that board held that even with
higher costs prices could be lower
ID rather than raised.
A. The additional payroll costs
,ould have been absorbed by the
without even narrowing
ts swollen profit margins.
5. The increased productivity in
he industry already has wiped out |
my added labor costs resulting
rom the pension and insurance
agreements and would justify cut
n steel prices.
6. Result of the price increase
will be additional profits above the
.lready high ones enjoyed by the
teel industry as result of it's
apid series of price increases since
he war, and "may revive initiation
ry tendencies in our economy"
Summarizing the case, Brubaker
aid:
l. Products comprising over 65
er cent of total steel tonnage, in
luding all major items, were rails
d in price more than four per
ent and there were few declines.
2. Total steelmaking costs have
eclined sharply since the last !
rice increase in 1948-scrap alone
y more than $32O,OOO,OOO annual
Z. Other significant savings in
osts totals over $8O,OOO,OOO, more
nan sufficient to offset any in
reaSes.
3. The industry has made "whol-
, specious attempts to deposit this
nwanted child, or at least respon-
bllity for it, on the unions door
,ep by crying pension costs -, but
le actual costs of these programs,
ccording to company figures, will l
OF approach additional revenues {
rom the price increases and the /
savings in costs on t
aw products. Brubaker' said "the |
ldustry apparently wants the in /
ease but does not want to pay the |
rice of public condemnation"
a.. The steel industry is unwill- c
g to absorb, or even try to alb c
'rb, costs as long as the market t
n steel will permit price in j
ease. i
5. Increased productivity and S
her savings in the industry would i
ermit cost absorption and lower C
rices. s
6. The industry has displayed b
,termination to take outrageously t
CHER profits from the American G
eople in the form of higher prices
1864, 100000 worth-and higher