Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-05

mid 1896. That again IN 1891 ana
again in 1853 and again in 1859
wages in the steel industry Will
90 up and prices in the steel in
dustry Will go up and this viii
be so even though the contracts
signed are not to be reopened in
those years. Thus this 18th an
nual wage price spiral since the
end of World War II is to be
followed by 18th next year
and a 18th the year after, ETC.,
etc.
st underlines in another
starkly dramatic way the big in
American industry are getting
bigger and the small are finding
it increasingly more difficult not
only to compete but also to sur
vlve.
At illustrates the emergence
of a powerful and unprecedented
"aristocracy of labor" in Ameri-
ca-an arlStocracy whose men,
bers are determined not just by
the type of industry for which
they work but by the size of
4 the corporation within that in
jdustry.
No one will mind much if the
strike is short, say only two
weeks long, agree experts in
Wall Street and Washington as
well as in the Nations industrial
centers
And they explain without be-
ing particularly cynical about
it that since most steelworkers
are entitled to two weeks vaca-
ton anyway they wouldn't re-
sent at all being out of the mills
during July'S heat. Since most
steel companies had planned to
slow down operations this
month, short strike would be
little inconvenience. Since most
users of steel have loaded their
warehouses to the hilt in anti
cipation of this crisis, they can
get along nicely just by using
what they have. And since a
strike will slash inventories of
steel, the companies will be able
to reopen after the strike with
substantial backlog of orders.
But how superficial this line
OF reasoning is. How utterly il
ignores the impact of this strike
and this llth waae-plice spiral
on the vast majority who are not
steel magnateS or steel workers.
To elaborate on the first point:
Our cost of living has been Creep
ing higher for months In MD
May it equaled the 1858 peak.
and the next Government report.
covering up to mid-June. Will
show II well above the peak pli-
marlly because of rises in the
prices OF food and services.
And now will come the cost
of-hvlne increases forced by a
rise IN the price of the steel going
into hundreds of items We must
and want to buy. Those COM
panles which can openly pass on
the steel price rise TO us Will.
Those who cannot do il openly
VIII try to hide the hike. and
they can hide it in many WAYS.
You'll feel this wage-price steel
increase IN your own pocketbook.
and don't kid yourself
To elaborate on the second
point Whatever the final settle
ment. the terms of the contract
VIII run at least a few years. and
significantly it will involve auto
matte wage rises each year it
runs. AS wages 90 up. the steel
companies will raise their prices.
" 5 not a coincidence that more
ana more users of steel are call
ing the metal better than money
IN the bank You'll feel these
waee-price hikes in your own
pocketbook as they 20 into effect.
On the third point only
giant companies IN giant IN
can afford to offer wage
packages such as are being
negotiated in the steel industry.
Can a smaller company absorb
this sort Of WAGE load and pros
per? Can sma4Ie company
using steel pay the higher prices
Of steel the higher wages asked
by It's own workers. and stu
compete with the "bigs iii its
field The answer is many
can't Many Viii find their
nanpoWer money
y lceze increasingly NJ leraDle.
pyrisht iaot. tie Aa!Lsy \ase Incl