Evening star., 1952-02-04
Fair|ess Warns
OF Big TaxLos
In Steel Pay Rise
Tells Wage Panel
ItWouId Cost u. S.
At Least SIT Billion
By the Associated Press

NEW YORK, Feb. 4.-Benjamin
F. FairlesS said today his United
States Steel Corp. could meet
wage demands and hold its present
, prices-but this would result in a
so per cent reduction in its Fed
eral income tax payments.
Mr.. Fairless added that such a
wage increase, if allowed to spread
throughout American industry,
could result In a net loss to the
Government "conservatively esti-
mated at $11 billion"
He said the ultimate "cost of a
wage increase would come out of
taxable income.
United States Steel's estimated
Federal taxes for 1851 are 1898
million and its State and other
taxes $75,730,666. In 1850 the
Federal tax bill was 1924 million
and State and local $62, PIT, a
company spokesman said.
Statement to Wage Panel.
The president of United States
Steel said the Government then
will be obliged to lift the lid on
prices If for no other reason than
to protect its tax revenues and to
maintain its own income"
Mr.. Fairless presented his argu-
ments against another pay boost
for steel workers in a statement
before a Wage Sterilization Board
panel seeking. to prevent a strike
in the steel industry threatened
for February %.
Arguments for an 18a-cent-an-
hour wage increase and other
benefits were made before the
board last week by the CIO
United Steelworkers of America.
The union on Friday added a de-
mand for a guaranteed minimum
annual wage amounting to about
$1,000.
Exchange With Murray.
Midway in Mr.. Fairless' testi-
mony he engaged in an exchange
with Philip Murray. CIo and
Steelworkers president.
Mr.. FairleSS had indicated that
to grant the increase demanded
by the union would mean deduct
ing money from stockholders in
come, which he described as rela-
lively small already.
Paraphrasing the Biblical quo
tation about robbing Peter to pay
Paul, Mr.. Fairless asked:
TN other words, should we rob
Peter to pay PHILIP"
MIR. Murray, sitting in a front
row seat in the hearing room, in
terjected q remark that could not
generally be heard amid laughter
by approximately 400 company
and union representatives attend
ing the session. Mr.. Murray told
reporters later that he had said:
How about Peter and Ben?
You have a committee in Wash
ington right now trying to obtain
price increases"
Transcript Version.
A transcript taken by a stenog-
rapher for steel companies re-
ported the exchange this way:
Mr.. Murray see you have
been doing some missionary work
down in Washington.
Mr.. Fairless-I notice you've
been in Washington yourself,
Phil.
Mr.. Murray-Yes, but not to ask
for higher prices.
Mr.. Fairless-Let's not talk
about that now.
Mr.. Fairless said that "Out Of
every dollar that United States
Steel received from its customers
last year, our stockholders got less
than 8 cents" He added that
''our workers got 13 times as much
out of our business as our stock
holders did and the Federal
Government took four times as
much in taxes as our stockholders
collected in dividends"
In his statement today, Mr..
Fairless described the guaranteed
annual wage as inflationary and
O guise for the industry paying
(See STEEL. Page A-12,)