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Steel : production, processing, distribution, use, Vol. 101, No.24

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EDITORIAL STAFF

E.

L .

Siianer Editor-in-Chicf E. C. K

reutzberg

Editor

A .

J.IlAIN Managing Editor

E. F. Ross Engineering Editor

D.

S. Cadot Art Editor A S S O C I A T E E D I T O R S

G . H .

M anlove

J . D .

Knox

W . L .

Hammerquist

J . A .

Cronin

F . E . Go o d i n g

Neiv York

I. H. Such B. K. Prick

L. E. Browne

Pittsburgh Chicago

R. L. I I a r t k o r d W. G. Gudk

Detroit Washington

A. H. A

llen

L. M. L

amm London

V in cent D e lp o rt

BUSINESS STAFF

G . 0 . ITa y s

Business Manager

C. H . Ba il e y

Advertising Servicc

New York .

E.

W .

K reutzberg

B.

C. S n e ll

Pittsburgh . . S. H .

Jasper

D. C. K ie fe r

Chicago . . . L . C. P e l o t t

W . F . O ’ D e l l Cleveland . . .

R.

C. JAENKE

R. T.

Ma s o n J .

W.

Zu b e r

Circulation Manager Readers' Service

M A IN O FFIC E

Penton Building, Cleveland

B R A N C H O F F I C E S

A’eiv Y o r k... 220 B roadw ay Chicago . . . P e o p le s G as B u ild in g Pittsburgh . . 1650 K o p p e rs B u ild in g Detroit . . 1010 Steph enson B u ild in g

Washington . N ational P ress B u ild in g Cincinnati . . . 418-420 Sinton H otel San Francisco . . . 2413 M ilvia St.

Berkeley, Calif., T e l. B erk. 7354-W L o n d o n...C axton H ouse

W estm inster, S. W . 1 Berlin . B erlin , N . W . 40, R oonstrasse 10

Published by THE PENTON PUBLISHING Co..

Penton Building, Cleveland, O hio. JOHN A.

PENTON, Chairman o f Board; E. L. SlIANER, President and Treasurer; J. It. DAWI.EY and C. 0 . Hay s, V ice Presidents; F. G. STEINEBACIl, Secretary.

Member, Audit Bureau o f Circulations; Asso*

eiated Business Papers Inc., and National Pub­

lishers* Association.

Published every Monday. Subscription in the United States, Cuba, M exico and Canada, one year $4, two years $6; European and foreign countries, one year $10. Single copies (current issues) 25c.

Entered as second class matter at the postoffice at Cleveland, under the A ct o f March 3, 1879.

Copyright 1937 by the Penton Publishing Co.

L

F O R F O R T Y - E I G H T Y E A R S — I R O N T R A D E R E V I E W

Vol. 101-No. 24 December 13, 1937

R E A D E R C O M M E N T S ... ... ^a ^ \ y 17 A S T H E E D IT O R V IE W S T H E N E W S ...U o V ^ !

N E W S

Younger Generation Takes Lead in U . S. Steel Set-Up .. ... 23

Mechanical Engineers Hear o f “ Apes, Men and Machines” ... 26

Industrial Congress Maps Broad Social Program ... 27

Fast Heating Demonstrated in Shell Production ... 29

Metalworking Companies Participate in Chemical Exposition ... 29

T ool Builders Ask Repeal of Profit Tax ... 30

Financial News of the Steel Industry ... 30

November Ingot Output Lowest Since 1934 ... 3 1 Steelworks Operations for the W eek ... 31

Men o f Industry ... 32

D rop in Machinery Prices Held “ Unlikely” ... 33

Obituaries ... 33

M IRRO RS O F M O T O R D O M ... 35

W IN D O W S O F W A S H IN G T O N ... 39

E D IT O R IA L — Deny Sunshine to the Grow ing Tree and It W ill Shrivel Up and D ie ... 41

T H E BUSINESS T R E N D Activity Index Recovers Part o f Recent Losses ... 42

Charts and Statistics ... 42-43 T E C H N IC A L Controlled Ingot Heating ... 44

Carburizing Symposium Part III ... 70

M A T E R IA L S H A N D L IN G Lubrication o f Overhead Cranes ... 53

W E L D IN G , E TC .— Robert E. Kin\cad ... 62

PROGRESS IN S T E E L M A K IN G Changing Fuels in the Steel Mill ... 58

PO W E R D R IV E S Getting Maintenance Co-operation ... 66

N E W E Q U IP M E N T ... 77

R E C E N T P U B L IC A T IO N S O F M A N U F A C T U R E R S ... 84

M A R K E T R EPO R TS A N D PRICES ... 87

The Market W eek ... 88

B E H IN D T H E SCENES ... 98

C O N S T R U C T IO N A N D E N TER PR ISE ... 107

IN D E X T O A D V E R T ISE R S ... „ 6

P R O D U C T I O N • P R O C E & S J N G • D I S T R I B U T I O N • U S E

December 13, 1937 19

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, F IT H A N D L E S P A R T S F O R

M A K E IT o f

Stee/ M ills use this tough,

corrosion-resistant metal for many different types of Pickling Equipment

S C R U B B E R S

This scrubber scrubs and dries 45-inch steel sheets. Scrub tank and tongues which take hold o f sheets are made o f Monel.

Light weight welded Monel crate used for pickling steel sheets, prior to tinning. Welded Monel sheet mill crate in lower photo also has eyebars and separator pins o f Monel.

C H A I N S , H O O K S

Welded M onel pickling chain, I "

diet, y 7 fa " long, IV

2

" end link w ith f o r g e d M o n e l h o o k . A l l

standard sizes are available.

Y > | ; p p Monel yokes o f many designs are T U K E ) used for pickling coils o f steel wire.

♦Monel Is a registered trade-mark applied to an alloy con­

taining approximately two-thirds Nickel and one-third copper. Thi s alloy Is mined, smelted, refined, rolled and marketed solely hy Inlernntlona! Nickel.

T H E I N T E R N A T I O N A L N I C K E L C O M P A N Y , I N C .

67 W a ll S treet N e w Y ork , N . Y.

T I E - R O D S

Wood pickling tanks are kept tight with tie-rods o f Monel.

B U IL D light weight and long life into your pickling crates, by all means. But why stop there? Glance at the photographs on this page and see the many other places where M onel* cuts costs and greatly reduces repairs and replacements in steel mill pickling equipment.

Briefly, you’ll save by using Monel for any kind o f equipment that handles a load and operates in and around pickling acids. T he reasons? First:

Monel equipment needs no extra weight — for Monel resists corrosion, retains its original strength.

Second: M onel’s unique combination of strength, toughness and resistance to corrosion assures long years o f dependable service.

There’s a wealth o f data you'll appreciate in the two bulletins, “ Equipment Designs for the Pickle House” and “ A G ood Start to a Better Finish” . W rite for them today.

20 / T E E L

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/ T E E L

PROD UCTIO N • P R O C E S S I N G • D IST RIB UTIO N • U S E

A s t h e E d i t o r V i e w s t h e N e w s

C H A N G E S in the o rg a n iz a tio n an d ex e cu tiv e p erson n e l o f th e U n ited S ta tes S teel C orp., a n ­ n ou n ced la st W e d n e sd a y a n d T h u rsd a y (p . 2 3 ), co n stitu te th e final m a jo r step in one o f th e m o s t ex ten siv e p r o g r a m s o f reh a b ilita tion e v e r a ttem p ted in a la r g e A m e r ica n in d u stria l o rg a n iz a tio n . T he im m ed ia te e ffe c t w ill be to tr a n s fe r th e c o n tr o l o f o p e ra tio n s fr o m th e fin a n cia l e n v iro n m e n t o f 71 B ro a d w a y , N ew Y o rk , to P itts b u rg h — “ a ce n tra l lo ­ ca tio n . . . m o re c lo s e ly in to u c h w ith the a tm o s ­ phere o f steel o p e ra tio n s.” T h e ch a n g e u n d ou b te d ly has p o te n tia litie s f o r a g re a te r d eg ree o f in dep en den ce and in crea se d a u th o r ity f o r o ffic e rs d ir e c tly re sp o n ­ sible f o r p ro d u ctio n , sa les and re se a rch .

T h e r o s te r o f d ire cto r s o f U n ited S ta tes S teel o f D ela w a re in d ica tes th a t th e C o rp o ra tio n has gone a lo n g w a y in 10 years in ov e rco m in g a de­

ficie n cy w h ich on ce w a s d escrib ed b y a fr ie n d ly c r itic as “ the lo st g en era tion o f C o rp o ra tio n e m ­ p lo y e s .” T h is r e fe r r e d to the hun dreds o f ju n io r e x e cu tiv e s d e­

nied th e o p p o rtu n ity o f a d v a n cem en t in th e p e rio d fr o m 1920 to 1930 b eca u se th e se n io r e x e cu tiv e p o s i­

tions h a d b e co m e “ fr o z e n .” Y o u n g e r m en an d m en co m p a ra tiv e ly new to th e C o r p o r a tio n n ow sit in position s o f a u th o rity . T h e ir p ro m in en ce in the new set-u p sh o w s h ow e ffe ctiv e ly B ig S teel has closed its ra n k s.

Closes Its Ranks

The co n g re s s o f A m e r ic a n in d u stry, h eld la st w eek under th e sp o n so rsh ip o f th e N a tio n a l A s s o c ia tio n o f M a n u fa ctu re rs (p . 2 7 ) w a s m ore co n stru ctiv e in to n e and p u rp ose th a n m a n y o f its p re d e ce sso rs. In d u s tr y ’s p la tfo r m f o r 1938, as p resen ted b y C harles R . H oo k , ch a irm a n o f th e re so lu ­ tion s co m m itte e , w a s a sou n d, sincere a n sw e r to the q u estion , “ W h a t ca n in d u stry do to solv e its ow n p rob lem s, w h ile a w a itin g rem ed ia l legislation. . . ? ” E q u a lly p e rtin en t w a s th e s u g ­

gestion b y L a m m o t du P o n t th a t ca p ita l be m ob ilized (p. 41 ) to cre a te 3,000,000 jo b s in p riv a te in d u stry.

Constructive Platform

T h e m e e tin g g a v e a s tr o n g im p etu s to th e ris in g sen tim en t in co n g re s s an d th r o u g h o u t th e n a tion f o r ev id e n ce on the p a rt o f the fe d e r a l g o v e rn m e n t th a t it w ill c o -o p e r a te w ith p riv a te en terp rise in stea d o f co n tin u in g to stra n g le it. T h e lin es o f th is issue are c le a r ly defined. A sh ow d o w n p ro b a b ly w ill co m e w h en c o n g re s s co n v en e s in re g u la r sessio n in J a n u ­ ary.

B u re a u cra cy as rep resen ted b y the N a tio n a l L a b o r R e la tio n s b o a rd h as re ceiv ed a b la ck e y e th ro u g h its ov er-ze a lo u s a tte m p ts to co n ce rn it s e lf w ith a d ­

v erse criticis m . T h e N L R B a t­

te m p t to su b p oen a th e e d ito r o f Mill and Factory (p . 3 9 ) an d its re p o r te d e x a m in a tio n o f th e e d i­

to r o f a St. M arys, P a., n ew sp a p e r h ave a ro u se d w id esp rea d in d ig n a tio n . A t th e sam e tim e A tto r n e y G en eral C u m m in g ’ s re q u e st f o r a m illio n d olla rs to p ro se cu te a n titru s t ca ses d oes n ot set w ell w ith th o se w h o fe e l th a t so m e o f th e g o v e r n m e n t’s r e ce n t su its— n o ta b ly the o il ca se at M a d ison — h ave been la u n ch ed on s u sp icio u sly flim sy evid en ce. I f the g o v e rn m e n t is sin ce re in its s ta te ­ m en ts th a t it w a n ts to co -o p e r a te w ith bu sin ess, it sh ou ld p u t an end to p ra c tice s w h ich g iv e th e a p ­ p ea ra n ce o f p ersecu tion .

Too Much Persecution

Lubricating Cranes

L u b rica tin g o v e rh e a d tr a v e lin g cra n es p r o p e r ly is im p orta n t, e sp e cia lly in p la n ts w h e re th e d rip p in g o f lu b rica n ts is in ju r io u s to p ro d u c ts an d w h e re c o n ­

tin u ou s, u n in te rru p ted cra n e s e r v ­ ice is essen tial. O n ly a fe w p la n ts are e q u ip p e d w ith th e m o s t r e ce n t­

ly d e sig n ed cra n es. In th ese e s ­ ta b lish m en ts t h e m a in ten a n ce crew s h a v e little d ifficu lty b eca u se e fficie n t lu b r ic a t­

in g s y stem s w e re in sta lled in th e cra n es w h en th e y w e r e built. In m o s t plan ts, th e cra n e e q u ip m en t in clu d es u n its fr o m sev e ra l to 20 o r 30 y e a rs o f age. O b v io u sly th e o ld e r cra n es re q u ire m o r e a t­

ten tion in re s p e ct to lu b rica tio n . L u b r ic a tio n e n g i­

n eers h ave d ev elop ed so lu tio n s f o r m o s t o f th e d if­

ficu lt lu b rica tio n p ro b le m s th a t can a rise (p . 5 0 ), even in p la n ts w h ere th e e q u ip m e n t e m b ra ce s u n its o f w id e ly d iversified a g e an d design .

December 13, 1937 21

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A GOOD EXAMPLE OF UNIT WELDED CONSTRUCTION OF INLAND HI-STEEL, DESIGNED BY A

LEADING EQUIPMENT BUILDER

i>s,'VVV-

(Iffiro c in- n a łrn it.K a n ca c P . i t u . M i l w a i l l í P P . S Í t I nilÍ5¡ - St. PSllI General R ffin p c 3ft Smith flparhrirn S troot Phinann lliinnic

I T ’ S STRONGER AND LIGHTER

B e c a u s e o f I n l a n d H i - S t e e l

• H e r e ’ s a g o o d e x a m p le o f w e ld e d , lig h t w e ig h t c o n ­ stru ctio n o f In la n d H i-S te e l— a h ig h ly su cce ssfu l p r o d u c t d e sig n an d sa les feature d e v e lo p e d b y a le a d in g m a n u ­ factu rer o f e x ca v a to rs. A ll fo r m in g o p e r a tio n s are d o n e in h is o w n p la n t fr o m flat r o lle d In la n d H i-S te el.

T h e r e has l o n g b e e n a d e m a n d f o r an e c o n o m ic a l steel o f h ig h e r stre n g th a n d g re a te r c o r r o s i o n re s is t­

a n ce . . . a lso o f a d eq u a te d u ctility f o r ea se o f fa b r ic a ­

tio n a n d u n ifo r m , sta b le c h a ra c te ris tic s w h e n w e ld e d o r s u b je c te d to w i d e r a n g e s o f tem p e ra tu re .

In la n d H i-S te e l m eets th e se r e q u ir e m e n ts in ev e ry w a y . In la n d e n g in e e r s g la d ly c o -o p e r a t e w ith e q u ip m e n t m an u fa ctu rers in te re s te d in te stin g th e ad v a n ta g es o f In la n d H i-S te e l f o r th e ir p r o d u c ts . A d e q u a te sa m p les are fre e ly s u p p lie d f o r this p u r p o s e .

W r it e f o r In la n d H i-S te e l B u lletin N o . 10.

S H E E T S S T R I P T R A C K A C C E S S O R I E S

R E I N F O R C I N G B A R S

P L A T E S F L O O R P L A T E S T I N P L A T E B A R S

S T R U C T V R A L S

R A I L S P I L I N G

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Y o u n g e r G e n e r a t i o n T a k e s L e a d i n

N e w U . S . S t e e l S e t - U p

■ U N IT E D S T A T E S S T E E L CORP.

■of D elaw are— orig in a lly chartered in 1933 as an op erating concern, and since then alm ost fo rg o tte n — last w eek becam e a v ery live organ iza­

tion.

P lans to centralize practically all m a jo r activities, excep t p o licy -fo rm ­ in g and financial control, in P itts­

burgh under the D elaw are co rp o ra ­ tion w ere u nfolded by B ig Steel as the latest m a jo r ch ange in its ten- year rehabilitation p rogram .

This reorgan ization, effective Jan.

1, relieves the United States Steel Corp. o f N ew Jersey o f direct su per­

vision o f 15 subsidiary com panies, and sh ifts the resp on sibility to P itts­

burgh w h ere it w ill be assum ed by the m an agem en t o f the D elaw are corporation.

T he m o v e is not a m erg er o f the 15 com panies. E ach w ill m aintain its separate identity and w ill hold a co n ­ tractual relationship w ith the Dela- wai'e corp ora tion under w h ich each will a rra n ge fo r the latter’s services in a su p erv isory capacity.

The D elaw are corp ora tion is w h o l­

ly ow ned b y the parent com pan y. It has no h old in gs and ow n s no secu ri­

ties but w ill fu n ction as a m an age­

ment agen cy.

W ill C o-ordinate A ctivities The arran gem en t, a ccord in g to M yron C. T a ylor, w h o w ill resign as chairm an o f the parent corp ora tion next A pril, is designed to a cco m ­ plish a clo se r op erating relationship between the variou s su bsidiary co m ­ panies.

“ The United States Steel Corp. o f New Jersey w ill con tin u e to m ain­

tain its o ffices as h ereto fo re (at 71 Broadw ay, N ew Y o r k ),” he said.

“ Under the p rop osed arrangem ent the respective subsidiaries w ill con ­ tinue business in th eir ow n nam es as previously. T h e arran gem en t de­

scribed will, it is believed, secu re b et­

ter co-ordination o f the activities o f the subsidiaries, grea ter fa cility and effectiveness in the con d uct o f cu r­

rent transactions, im p rove efficiency, and be prod u ctive o f a m ore c o m ­ plete identity o f interest.

Prin cipal headquarters in P itts­

burgh, said Mr. T a ylor, will afford a central location m ore con venien t to the m an agem en t o f.t h e subsidiaries and m ore closely in tou ch w ith the atm osph ere o f steel operations. This arran gem en t w ill also brin g the staff o f the D elaw are corp ora tion into clo se r and m ore intim ate relation ­ ship w ith cu rren t activities o f the subsidiaries.

15 Subsidiaries Involved F in an cial and oth er m atters o f broad gen eral p olicy w ill continue to be form u la ted in N ew Y ork.

F ifteen principal subsidiaries are

involved in the plan, on ly railroads and p u blic service subsidiaries b ein g excluded. T h ose w h ich w ill be a f­

fected are:

A m erica n B rid ge Co., A m erican Steel and W ire Co., C arnegie-Illinois Steel Corp., C olum bia Steel Co., H.

C. F rick C oke Co., M ich igan L im e ­ ston e & C hem ical Co., N ational T ube

Co., Oil W ell S u pp ly Co., O liver Iron M ining Co., P ittsbu rgh L im eston e Co., P ittsbu rgh Steam ship Co., S cu l­

ly Steel P rod u cts Co., T enn essee Coal, Iron & R ailroad Co., United States Steel P rod u cts Co. and Union S u pp ly Co.

“ T his plan w h en m ade effectiv e w ill con clu de the several m a jo r basic fa cto rs in the plans fo r the re a d ju st­

m ent o f the corp ora tion ’s principal

U.S. Steel of Delaware, New Star for Pittsburgh

■ C o n c e n t r a tio n o f o p e r a tin g a n d sales m a n a g e m e n t o f IS U n ite d S ta te s S te e l C orp . su b s id ia rie s in P itts b u rg h re -e s ta b lis h e s th a t c it y as p r e -e m in e n t ly th e w o r ld 's ste el c a p ita l. O n th e fo r m a t io n o f th e C o r p o r a tio n in 1901, m a n y o f its a ctiv itie s w ere m o v e d fr o m P it ts b u r g h — c e n te r o f th e C a rn eg ie o r g a n iz a tio n

— to N ew Y o r k ; n o w m o s t o f th e m r e tu rn . P o lic y a n d fin a n c ia l d ir e c t io n c o n ­ tin u e in N ew Y o rk . P itts b u rg h la st w eek ex p e cte d a sm a ll a r m y o f ex ecu tiv es

a n d o ffice w o rk e r s; reah e sta te o p e r a to rs w ere p r e d ic tin g a b o o m

December 13, 1937 23

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affairs fo r the present,” M r. T a y lor announced. It is, he indicated, the final step in the ten-year program .

“ W e began the stu dy o f this plan in on e fo r m o r an oth er in 1929, re­

su ltin g in m an y p rog ressiv e drafts in 1931 and 1932, and in its broad as­

pects it w as agreed upon b y the board o f directors in 1932. T he Unit­

ed States Steel C orp. o f Delaw are was organ ized in 1933, as the first step in ca rry in g ou t the plan. P re­

occu p a tion w ith the passin g events o f the great depression and the con ­ sequ en t en gagem en t o f the organiza­

tion w ith resp ect to national r e co v ­ e ry activities, and w ith other plans h ere tofo re announced, rendered it de­

sirable to postp on e fu rth er action.

“ T hese plans w ere resum ed, h o w ­ ever, w ith the consolidation o f Car- negie-Illinois in 1935, and o f A m eri­

can Sheet & Tin P late Co. w ith the C arnegie-Illinois in 1936. W h ile w e have at tim es contem plated co m ­ plete consolidation o f all m a n u fa c­

turing propei'ties into one corp ora ­ tion, w e have considered that up to the present tim e this w ou ld not be desirable.

Subsidiaries P reserve A u ton om y

“ T he settin g up o f a m anagem ent corp ora tion w ith the new appoint­

m ents to high execu tive positions, t o ­ geth er w ith the brin gin g o f officials o f the D elaw are corp ora tion and the presidents o f the subsidiary co m ­ panies n o w affected into close rela­

tionship throu gh con tractual m an­

agem en t arrangem ents and placing the latter upon the boa rd o f direc­

tors, w ill, w e believe, result in closer co-operation and better co-ordination o f activities w h ile preservin g the au­

ton om y o f the op erating com panies.”

W hile an nou n cin g the plan, Mr.

T a y lo r w as asked w h at the average hours o f w o rk o f the corp oration had been du rin g the year, and he an sw ered:

“ R eports fo r the first nine m onths which are available indicate that the corp ora tion ’s em p loyes w ork ed an average o f 39.98 hours per w eek dur­

in g that period. This is the h ighest average fo r a sim ilar period that has been m aintained since 1930. In all the years since that tim e, including 1937, the average w eek ly hours in the corp ora tion have been less than 40, while the num ber o f em p loyes has steadily risen to a peak in the m onth o f A u g u st 1937, w hen 278,17S w ere engaged. T he present p olicy continues to be that w h ich w as adopt­

ed in 1930 o f spreadin g the w o rk .”

P residen t o f the D elaw are c o r­

poration w ill be B. F. Fairless, w ho, as p rev iou sly announced, w ill b e­

com e president o f the parent co m ­ pany Jan. 1. H e w ill m aintain o f ­ fices in both P ittsbu rgh and N ew Y ork and w ill divide his tim e be­

tw een the tw o.

V ice presidents and their assigned duties a re: T hom as M oses, raw

m aterials; W a lth er M athesius, opera­

tions; C. V. M cK aig, sales; W illiam Beye, cou nsel and industrial rela­

tions; M ax D. H ow ell, also secreta ry and treasu rer; R . E. Zim m erm an , re ­ search ; C. H. R hodes, p u rch ases;

H arold L. H ughes, sp ecia l duties, N ew Y ork.

A n execu tive com m ittee o f 12 was appointed and in cludes: M essrs.

F airless as chairm an, Beye, H ow ell, M athesius, M cK aig, M oses, Z im m e r­

man, J. L. P erry , E. R . Stettinius Jr., E. M. V oorhees, C. F . H ood and B.

F. H arris.

Seventeen d irectors have been elected, including all m em b ers o f the execu tive com m ittee and A . N.

Diehl, R ob ert G regg, G. C. K im ­ ball, L. A. P a d dock and C. H. R hodes.

F o u r m ore d irectors are to be elect­

ed, brin g in g the total to 2 1 . Mr. H ughes, vice president in charge o f special duties, is n o t a m em ber o f the directorate or o f the execu tive com m ittee.

It w ill be noted that p ractically all o f the officers and d irectors are o f the y o u n g e r gen eration in Steel corp ora tion affairs.

In view o f these latest changes it is assum ed that the p osition o f vice president in ch a rg e o f sales o f the United States Steel Corp.

(N ew J e rs e y ), to b e vacated b y Mr.

G regg, w ill be au tom atically elim ­ inated.

W ith all m atters p ertain in g to p ro ­ duction, fabrication , sales, p u r­

chases and industrial relations to

Steel Corp. Shipments Off Sharply in November

B Shipm ents o f finished steel in N o ­ v em b er b y the United States Steel Corp. totaled 587,241 tons, a decline o f 205,069 tons fr o m O ctober. In N ovem ber, 1936, shipm ents w ere 882,643.

C um ulative shipm ents fo r eleven m onths o f 1937 are 12,336,397 tons, com pared w ith 9,757,767 tons in eleven m onths o f 1936.

C . S . S T E E L C O R P . S H I P M E N T S ( I n t e r - c o m p a n y s h i p m e n t s n o t i n c l u d e d )

( T o n s )

1 9 3 7 1 9 3 6 1 9 3 5 1 9 3 4

J a n . 1 .1 4 9 .9 1 S 7 2 1 ,4 1 4 5 3 4 ,0 5 5 3 3 1 ,7 7 7 F e b . 1 , 1 3 3 , 7 2 4 6 7 6 ,3 1 5 5 8 3 ,1 3 7 3 8 5 ,5 0 0 M a r . 1 , 4 1 4 . 3 9 9 7 8 3 . S 2 6 6 8 ,0 5 6 5 8 8 .2 0 9 A p r i l 1 , 3 4 3 , 6 4 4 9 7 9 ,9 0 7 5 9 1 ,7 2 8 6 4 3 ,0 0 9 M a y 1 , 3 0 4 . 0 3 9 9 8 4 ,0 9 7 5 9 8 ,9 1 5 7 4 5 ,0 6 3 J u n e 1 ,2 6 S ,5 5 0 8 8 6 ,0 6 5 5 7 8 , 1 0 S 9 8 5 ,3 3 7 J u l y 1 ,1 S 6 ,7 5 2 9 5 0 , S 5 1 5 4 7 ,7 9 4 3 6 9 .9 3 8 A u g . 1 , 1 0 7 , 8 5 8 9 2 3 ,7 0 3 6 2 4 ,4 9 7 3 7 8 ,0 2 3 S e p t , 1 , 0 4 7 , 9 6 2 9 6 1 ,8 0 3 6 1 4 ,9 3 3 3 7 0 ,3 0 6 O c t , 7 9 2 , 3 1 0 1 , 0 0 7 , 4 1 7 6 8 6 ,7 4 1 3 4 3 ,9 6 2 N o v . 5 8 7 ,2 4 1 8 8 2 ,6 4 3 6 8 1 ,8 3 0 3 6 6 ,1 1 9 D e c ... 1 , 0 6 7 ,3 6 5 6 6 1 ,5 1 5 4 1 S .6 3 0 Y ’ r l y a d j ... t 4 0 , S 5 9 t 2 3 , 7 5 0 t l 9 . 9 0 7

T o t a l ...1 0 , 7 8 4 , 2 7 3 7 , 3 4 7 , 5 4 9 5 , 9 0 5 , 9 6 6

t D e d u c t i o n .

be centered in P ittsbu rgh it appears that tw o vice presidents w ill be sh ifted fr o m N ew Y ork to P itts­

burgh, n am ely M r. Z im m erm an , in ch a rg e o f research, and M r. R hodes, in ch a rg e o f purchases. M r. M ath- esius, in ch a rge o f operations, and M r. Beye, counsel, and in ch a rg e o f industrial relations, it is understood, w ill m ov e fr o m C hicago to P itts­

bu rgh.

B esides this far-reach in g org a n i­

zation, im portan t person nel changes are im pending in the parent co r­

p ora tion in N e w Y ork . A s announced late in O ctober, Mr. T a y lo r w ill re ­ tire A p ril 5, 1938, as chairm an, but continues as a m em ber o f the board o f d irectors and o f the finance co m ­ m ittee.

Stettinius T o Succeed T a y lo r M r. Stettinius, chairm an o f the finance com m ittee, w ill su cceed M r.

T a y lo r as chairm an o f the board, and M r. V oorhees, n ow vice chair­

man o f the finance com m ittee, w ill su cceed M r. Stettinius as chairm an o f the finance com m ittee. W illiam A. Irvin, president o f the co rp o ra ­ tion, w ill be succeeded b y M r. F a ir­

less, and b ecom e vice chairm an o f the board.

A t P ittsbu rgh last w eek the m ost u rgen t qu estion w as h ow to p r o ­ vide sp ace fo r the in flu x o f h un­

dreds . o f em ployes, due to m ove th ere b y Jan. 1, and ca rry on a sm ooth ly -op era tin g organization.

T he corp ora tion has three build­

ings there, the C arnegie-Illinois, F rick , and F rick A nnex, all at F ifth avenue and D iam on d street. The A n n e x and the C arnegie-Illinois b u ildin g are fa irly w ell-filled now w ith C arnegie-Illinois officials and those o f subsidiaries. It is possible additional sp ace m a y be required.

Shipping Board To Spend $20,000,000

■ A bu ild in g p ro g ra m o f a p p ro x i­

m ately $20,000,000 w ill be begun b y the m a ritim e com m ission w ithin the n ext tw o o r three w eeks, it has been announced.

T his p rog ra m is to include ten or tw elve 9000-ton ca rg o vessels to cost abou t $1,750,000 each. It is estim ated that these ships w ill use betw een 5000 and 6000 tons o f ship steel.

U. S. Foreign Trade Up 31 Per Cent

■ A c co rd in g to the bureau o f fo r ­ eign and d om estic com m erce, de­

partm en t o f com m erce, the total valu e o f ou r fo r e ig n m erchandise trade, w ill a m ou n t to approxim ately

$6,400,000,000 fo r 1937, com pared w ith $4,879,000 last y e a r and only

24 / T E E L

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Officers and Directors of the United States Steel Corp. of Delaware

B . F . F a l r l e s s T h o m a s M o s e s P r e s i d e n t V i c e P r e s i d e n t

K . E . Z i m m e r m a n C . H . R h o d e s V i c e P r e s i d e n t V i c e P r e s i d e n t

C . F . H o o d B . F . H a r r i s

$2,934,000,000 at the low point reached in 1932, sh ow in g a gain o i 31 per cent ov e r last year and 118 per cen t o v e r 1932.

T h e bu reau also rep orts that this yea r m erch an dise ex p orts w ill e x ­ ceed im p orts b y an estim ated

$100,000,000 and p ossib ly m ore. In 1936 m erch an dise ex p orts exceeded im ports b y o n ly $33,000,000.

Irvin Speaks to Nation on Steel

■ “ Steel has been one o f the g rea t­

est fa c to rs in im p rovin g m an ’s liv­

ing standards,” declared W illiam A.

Irvin, president, United States Steel Corp., sp ea k in g D ec. 11 on the C ar­

borundum C o.’s broadcast.

Mr. Irv in pointed ou t that al­

though the p u blic thinks o f steel g en erally in term s o f m assiveness, there are cou ntless p rodu cts in everyd ay use w h ich are so com m on that th eir a ssociation w ith steel is freq u en tly forg o tten . T h e speaker illustrated som e o f the prom inen t contributions o f steel to liv in g co m ­ fort, and added in con clu sion that

“ the fu tu re holds p rom ise o f still greater g ifts to com e.”

December 13, 1937

W a l t h e r M a t h e s i u s C . V . M c K a l g W i l l i a m B e . v e M . I ) . H o w e l l V i c e P r e s i d e n t V i c e P r e s i d e n t V i c e P r e s i d e n t

v.

P . , S e c . - T r e a s .

R o b e r t G r e g g A . N . D i e h l G . C . K i m b a l l I , . A . P a d d o c k

“ Who’s Who” in the Delaware Corporation

B . F . F a l r l e s s , p r e s i d e n t . N o w p r e s i ­ d e n t , C a r n e g l e - I l l i n o i s S t e e l C o r p . R e ­ l i n q u i s h i n g t h i s p o s t J a n . 1 , h e a l s o w i l l b e c o m e p r e s i d e n t , U n i t e d S t a t e s S t e e l C o r p . o f N e w J e r s e y .

T h o m a s M o s e s , v i c e p r e s i d e n t i n c h a r g e o f r a w m a t e r i a l s . N o w p r e s i d e n t , F r i c k C o k e C o .

W a l t h e r M a t h e s i u s , v i c e p r e s i d e n t i n c h a r g e o f o p e r a t i o n s . N o w m a n a g e r o f o p e r a t i o n s , C h i c a g o d i s t r i c t , C a r n e g i e - I l l i n o i s S t e e l C o r p .

C . V . M c K a l g , v i c e p r e s i d e n t i n c h a r g e o f s a l e s . N o w v i c e p r e s i d e n t a n d s a l e s m a n a g e r , C a r n e g i e - I l l i n o i s S t e e l C o r p .

W i l l i a m B e y e , v i c e p r e s i d e n t a n d c o u n s e l , i n c h a r g e o f i n d u s t r i a l r e l a ­ t i o n s . N o w v i c e p r e s i d e n t i n c h a r g e o f i n d u s t r i a l r e l a t i o n s , C h i c a g o , U n i t e d S t a t e s S t e e l C o r p .

M a x D . H o w e l l , v i c e p r e s i d e n t , s e c r e ­ t a r y a n d t r e a s u r e r . N o w v i c e p r e s i d e n t , C a r n e g i e - I I l i n o i s S t e e l C o r p .

R . E . Z i m m e r m a n , v i c e p r e s i d e n t i n c h a r g e o f r e s e a r c h . N o w h o l d i n g s a m e p o s i t i o n w i t h U n i t e d S t a t e s S t e e l C o r p .

C . H . R h o d e s , v i c e p r e s i d e n t i n c h a r g e o f p u r c h a s e s . N o w i n s a m e p o s i t i o n w i t h U n i t e d S t a t e s S t e e l C o r p .

H a r o l d L . H u g h e s , v i c e p r e s i d e n t i n c h a r g e o f s p e c i a l d u t i e s . H e w a s n o t , h o w e v e r , n a m e d l a s t w e e k a s a d i r e c t o r i n t h e D e l a w a r e c o r p o r a t i o n . N o w v i c e p r e s i d e n t , U n i t e d S t a t e s S t e e l C o r p .

A . N . D i e h l , p r e s i d e n t , C o l u m b i a S t e e l C o . , W e s t c o a s t s u b s i d i a r y .

R o b e r t G r e g g , n o w v i c e p r e s i d e n t i n c h a r g e o f s a l e s , U n i t e d S t a t e s S t e e l C o r p . , a n d p r e s i d e n t - e l e c t , T e n n e s s e e C o a l , I r o n & R a i l r o a d C o .

B . F . H a r r i s , p r e s i d e n t , N a t i o n a l T u b e C o .

C . F . H o o d , v i c e p r e s i d e n t i n c h a r g e o f o p e r a t i o n s , A m e r i c a n S t e e l & W i r e C o .

G . C . K i m b a l l , v i c e p r e s i d e n t , C h i c a g o d i s t r i c t , C a r n e g i e - I I l i n o i s S t e e l C o r p .

I>. A . P a d d o c k , p r e s i d e n t , A m e r i c a n B r i d g e C o .

J . \j. P e r r y , p r e s i d e n t , T e n n e s s e e C o a l , I r o n & R a i l r o a d C o . , a n d p r e s i d e n t - e l e c t , C a r n e g i e - I I l i n o i s S t e e l C o r p .

E . R . S t e t t i n i u s J r . , n o w c h a i r m a n , f i n a n c e c o m m i t t e e , U n i t e d S t a t e s S t e e l C o r p . , e l e c t e d t o s u c c e e d M . C . T a y l o r A p r i l 5 , a s c h a i r m a n o f t h e b o a r d .

E : M . V o o r h e e s , v i c e c h a i r m a n , f i n a n c e c o m m i t t e e , U n i t e d S t a t e s S t e e l C o r p . , r e ­ c e n t l y e l e c t e d t o s u c c e e d M r . S t e t t i n i u s a s c h a i r m a n o f t h e f i n a n c e c o m m i t t e e .

E x e c u t i v e c o m m i t t e e , U n i t e d S t a t e s S t e e l C o r p . o f D e l a w a r e : M e s s r s . F a i r - l e s s , c h a i r m a n ; B e y e , H a r r i s , H o o d , H o w e l l , M a t h e s i u s , M c K a i g , M o s e s , P e r r y , S t e t t i n i u s , V o o r h e e s , Z i m m e r ­ m a n .

F o u r m o r e d i r e c t o r s a r e t o b e n a m e d . H . E . H u g h e s

V i c e P r e s i d e n t

E . I t . S t e t t i n i u s J r . E . M . V o o r h e e s J . L . P e r r y

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M e c h a n i c a l E n g i n e e r s H e a r O f A p e s a n d M a c h i n e s

■ N E E D fo r unity and g rea ter c o ­ ord in ation in the en g in eerin g p ro ­ fessio n w as em phasized b y Jam es H.

H erron , retirin g president o f the A m erica n S ociety o f M ech anical E n­

gin eers at the society ’s fifty-eighth

•annual con ven tion in N ew Yoi'k, D ec. 6-10.

M r. H erron , w h o is president, Jam es H. H erron Co., Cleveland, th ou ght this developm en t should be a lon g m aterial, ra th er than te ch ­ n ical lines, startin g p ossibly with lo ca l g rou p s and then advan cin g the experien ce and acom plishm ents o f these grou p s to the la rg er ones. H e a lso ‘ p roposed an alternate plan fou n ded on the societies as they now exist fo r tech n ical purposes, w ith an

D r . H a r v e y N . D a v i s

E l e c t e d P r e s i d e n t , A m e r i c a n S o c i e t y o f M e c h a n i c a l E n g i n e e r s . S e e St e e l f o r O c t . 1 1 , p a g e 3 3 , f o r t h e c o m p l e t e l i s t

o f n e w o f f i c e r s

additional society form ed by the existin g organ ization s to h andle the econ om ic phases, fo r the m aterial w e lfa re o f engineers.

In p resen tin g th e T ow n e lecture on "T h e Sim ian Basis o f H um an M echanics, or A p e to E ngineer,” Dr.

E. A . H ooten, p r o fe ss o r o f a n th ro­

p olog y , H a rv a rd university, C am ­ bridge, M ass., declared som ew h at w h im sica lly that he w as perturbed, as an a n th rop ologist, b y the fa ct that hum an invention had out­

stripped m a n ’s o rg a n ic developm ent.

In his conclusions, Dr. H ooten as­

serted it w as his firm b elief that the fu tu re o f hum anity m ust be built not upon m ech an ical science, w hich, up to the present, he believed, is the g rea test hum an achievem ent, but upon hum an biolog y .

“ I f a m an can m a k e m achines w h ich are b etter than him self, ca n ­ not h e m ak e h im self b e tte r? W e do

not need m ore au tom obiles, w e need fe w e r fo o ls in th e d riv in g seats: w e do n ot need m ore m ech a n ica l robots, w e w a n t hum an an im als w h o still have b ra in s; n ot m o re ja ils, but fe w e r crim in als— there is but one w a y o f m a k in g a m an, and that is the b iolo g ica l w a y .”

H on ors n igh t w as fea tu red b y in­

troduction o f the so cie ty ’s president­

elect, Dr. H a rv e y N. D avis, p resi­

dent, S tevens In stitu te o f T e ch n o l­

ogy, H obok en , N. J .; c o n fe rrin g o f a w a rd s; and presen tation o f the T hurston lecture, “ S eein g the Un­

seen,” b y R. M erw in H orn , p h o to ­ gra p h ic departm ent, M assachusetts Institute o f T ech n o lo g y , C am bridge, M ass. M r. H orn described the d evel­

opm en t o f high-speed p h otog ra p h y , by w h ich it is p ossib le to p h otogra p h a bu llet in flight, a t exp osu res as rapid as 1/500,000-second.

H o n o ra ry m em b ersh ip w a s co n ­ ferred upon L o ra n zo A llievi, R om e, fo r his th eories re g a rd in g “ w ater h am m er,” o r pressure sh ock , caused by ch a n g e o f v e lo city o f w a te r flo w ­ in g th rou gh pipes. S ig n o r A llie v i was n ot present, th e aw ard bein g accepted in his b e h a lf b y F u lv io Suvich, Italian a m b a ssa d or to the United States.

M edals A re A w arded The A. S. M. E. m edal fo r 1937 was presented to E dw ard P. B ullard, president, B ullard Co., B rid g ep ort, Conn., fo r his pre-em inent lea d er­

ship in develop m en t o f station-type m achine tools.

Dr. F red erick G. C ottrell, R e ­ search Corp., W a sh in g ton , f o r his outstanding pu blic service, f o r the invention o f electric precipitation , fo r ad van cem en t o f the science o f gas liqu efa ction , and f o r his g ifts to en gin eerin g research .

R ecip ien t o f the W o rce s te r R eed W a rn er m edal w as C la ren ce F.

H irshfeld , ch ie f o f research , D etroil E dison Co., D etroit, fo r his resea rch and con tribu tion s to the th e o ry and p ractice o f heat p ow e r en g in eerin g as exem plified b y book s and papers.

A lfre d J. Buchi, W in terthu r, S w itzerland, w a s aw ard ed the M el­

ville m edal fo r his p a p er “ S uper­

ch a rg in g In tern a l C om bu stion E n ­ gines w ith B low ers D riven b y Ex- haust-Gas T urbin es.” A lla n P. Stern, C olon ial Iron W ork s, C leveland, w as presented w ith the C harles P. M ain aw ard f o r his p a p er on “ Influen ce o f the In trod u ction o f L a bor-S a vin g M ach in ery U pon E m p loy m en t in the United States.”

T he society passed a resolution co n d olin g the death on June 15 o f A m b rose S w asey, a fo r m e r p resi­

dent, and recip ient o f the H erb ert H o o v e r m ed a l la st year.

A t a m a n a g em en t m eetin g, M rs.

E lin ore M. H errick , re g io n a l direc­

to r o f the N a tion a l L a b o r R elations board, explained the w o r k o f the boa rd and replied to ch a rg es that its decisions h ave been in con sistent

■and partial.

S p ea k in g at the annual banquet, P residen t H erron , in his rem a rk s on unity, said: “ In th e m inds o f m a n y th ou g h tfu l en gin eers th ere has d eveloped a vision o f an all- com p reh en sive and co-ord in atin g head fo r the en gin eerin g p rofession . T h ey h a v e con ceiv ed th at som e plan w ill b e p rom u lg a ted f o r u n ify in g the v a riou s organ ized bodies in this v e r y diversified field.

“ N a tu ra lly, the question arises as to h ow this m a y be d on e— to w hat in terest sh all the appeal be m a d e?

S om e th in gs can be done a lon g te ch ­ nical lin es; others a lo n g m aterial lines. T his is a m a tter fo r ca re fu l study. In this study w e m u st see

E d w a r d P . B u l l a r d

R e c i p i e n t o f A . S . M . E . m e d a l f o r 1 9 3 7 f o r l e a d e r s h i p i n d e v e l o p m e n t o f s t a t i o n -

t y p e m a c h i n e t o o l s

beyon d ou r lim ited tech n ical h orizon and into the field o f ou r broth er en­

gin eers.”

D e cla rin g th at the advan tages and disa d va n ta ges m u st be w eighed ca refu lly , th e sp ea k er listed the ad­

van ta g es in tw o sep arate classes—

tech n ica l and m a teria l. T he tech ­ nical advan tages, he said, include a m ore sim plified p ra ctice ; standards o f fo r m ; m a teria l specifications;

p ro p e r cla ssifica tion ; tech n ical co ­ op era tion w h ere p ra ctices overla p or co n flict; pu blication s, etc.

M aterial a d va n ta ges he classified as fo llo w s : C ivic affairs, national and lo c a l; le g a l status; engineering fe e s ; en gin eerin g com p en sation;

eth ics; m ethods o f p ra ctice ; pu bli­

c ity ; w e lfa r e ; publications, etc.

H e review ed the field briefly to see w h a t fo r ce s , a gen cies and groups are w o r k in g to attain the ends out­

lined and to ap p raise som e o f the (Please turn to Page 49)

26 / ■ T E E L

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I n d u s t r i a l C o n g r e s s M a p s B r o a d S o c i a l P r o g r a m

■ W H A T can industry do to solve its ow n p roblem s, w hile aw aitin g re­

m edial legislation and evidence o f a sincere desire to co-operate on the part o f the g o v ern m en t?

This them e w as em phasized re­

peatedly a t the forty-secon d con ­ gress o f A m erica n industry, sp on ­ sored b y the N ational A ssociation o f M an u factu rers in N ew Y ork , Dec.

7 to 9. D eep ly con cern ed o v er p res­

ent obstacles to business progress, various com m ittees presented results

•of th orou g h studies o f m any fa c ­ tors influencing industrial con di­

tions. P a rticu la rly evident in these reports w as a disposition to push adoption o f industrial practices w h ich w ill elevate business in p o p ­ ular esteem .

Charles R. H ook , president, A m e r­

ican R ollin g M ill Co., M iddletown, O., presented the resolutions co m ­ m ittee’s report, “ In d u stry’s P lat­

form fo r 1938,” w hich w as approved by the con vention . “ W hat this cou n ­ try needs is business confidence,”

the p la tfo rm said. “ Business will provide m ore good s, and th erefore m ore jo b s, if it is perm itted to fa ce the fu tu re w ith on ly the natural hazards o f legitim ate private co m p e ­ tition.

In d u stry S eeks C o-operation

“ The 1937 business recession show s that the w elfa re o f the a ver­

age citizen depends on the w elfa re o f industry. . . . W h en fa ctories prosper, A m erica p rospers. . . .In­

dustry is striv in g to create better understanding and co-operation am ong the grou p s in ou r society.

- . . It is con tin u ally rem ov in g ob ­ stacles in the road to better liv­

ing.”

Mr. H o o k ’s rep ort continued by saying the w e lfa re o f the A m erican people and the p rog ress o f indus­

try can be assured b y : E n co u ra g e ­ ment o f private initiative, the basis of com p etitive A m erican industry;

m aintenance and extension o f sound industrial practices by industry;

•equitable em p loym en t relations th rou ghou t in d u stry; creation o f new and b roa d er m a rk ets; con stru c­

tive efforts to alleviate depression effects; sound g ov ern m en t policies;

co-operation w ith agricu ltu re; and the m aintenance o f peace.

C om petition and individual initia­

tive, said the rep ort, can be p r o ­ moted b y : O p p ortu n ity fo r the in­

dividual to be rew arded accord in g to his ach ievem en t and the risk in­

volved; an in cen tive to capital to invest in ex istin g and new en ter­

p rises; lim itin g g ov ern m en t re g u ­ lation to the preven tion o f abuses in im ical to the p u blic in terest; fr e e ­ dom fr o m fed era l con trol o f prices, w a g es and h ours in m an u factu rin g;

taxes that are fa ir both in am ount and in ch a ra cter; con stan tly in crea s­

in g research to prod u ce new and w anted p rodu cts and new job s.

“ P olitical f r e e d o m does not and can not exist w here . . . . there are p e r s o n a l dictators . . . . A m erican industry opposes F ascism , C o m m u n i s m , o r g o v ­ ernm ent collectivism in any o f its fo rm s . . . T he m an u factu rers o f the United States w ant international

E . T . W e i r

C h a i r m a n , N a t i o n a l S t e e l C o r p . “ M a n ­ a g e m e n t a n d l a b o r c a n g e t a l o n g t o ­

g e t h e r , ” h e t o l d t h e c o n v e n t i o n

peace . . . P eop le som etim es say that in du stry p rosp ers through wars. T his is n ot true.”

T he p la tfo rm contained a section based upon an exten sive stu dy o f the relation betw een industry and a g ri­

culture, and sh ow ed that the tw o rise and fa ll togeth er. “ R e cog n iz ­ ing that its w e lfa re is linked with that o f agricu lture,” said Mr. H ook ,

“ A m erican industry fa v o rs con tin ­ uing co-operation betw een the tw o grou p s to b rin g about an equitable price relationship and the m axim um exch ange o f their g ood s and se rv ­ ices.”

Mr. H ook u rged continued study o f recu rrin g b oom s and depressions in an effort to redu ce their h arm fu l effects. T he association fo r a con ­ siderable period has been engaged

in such a long-term study. It rec­

om m ended observan ce by in du stry o f the fo llo w in g p olicies:

“ 1. T he lev elin g so fa r as p o ssi­

ble, o f seasonal valleys o f p rod u c­

tion and em ploym ent.

“ 2. In periods o f business exp a n ­ sion, resistance to p rice advances w hich tend to restrict b u y in g and cause price m aladjustm ents.

"3. In periods o f business re ce s­

sion, the p ossible m aintenance o f volu m e b y p rom p t a d ju stm en t in prices and costs to co n fo rm to b u y ­ ers’ low ered p u rchasin g pow er.

“ 4. A void a n ce both o f rigid prices and rigid costs to the extent c o n ­ sistent with the ch aracter o f the in ­ dustry and the interests o f em p loyes, cu stom ers and stockh olders.

“ 5. A n alysis b y each com p a n y o f its financial stru ctu re to deter­

mine if fixed ch arges m a y b e r e ­ duced; avoidan ce o f over-capitaliza­

tion o r finan cing w ith b o rro w e d ca p ­ ital beyon d ability to pay.

“ 6. A voidance o f plant expan ­ sion m erely on the basis o f te m ­ p ora ry b o o m orders.

“ 7. A dequ ate depreciation chai’ges and the w ritin g o ff o f the valu e o f obsolete p h ysica l p rop erty.

“ 8. Building o f adequate re ­ serves in fo r m s w h ich can be turned into cash readily w h en n ecessary.

“ 9. U sing credit to fa cilita te the n orm al flo w o f g o o d s ra th er than fo r specu lative p u rp oses o r to attract unsound credit risk s.”

Industrial P ea ce D esired Under the head o f “ E quitable E m ­ p loym en t R elations,” M r. H oo k said steady em p loym en t w as on e o f the o b jectiv es o f industrial m a n a g e­

m ent. H e deplored la b or co n tr o ­ versies on the grou nds they reta rd ­ ed business, advocated the fo llo w in g p rinciples fo r p rom o tin g industrial peace, and u rged su ch legislative ch anges as m a y be n ecessary to e f ­ fectuate these p rin ciples:

1. T he rig h t to w o r k w ith ou t re ­ ga rd to m em bership o r non-m em - bei’ship in a n y organ ization, and to bargain individually.

2. T h e rig h t o f em p loyes to b a r­

gain collectively, and to determ ine their ow n organ ization fo r so doing.

3. N o penalty fo r e m p loy ers’

failu re to deal w ith an y la b o r o r­

ganization m aintain in g a strik e fo r illegal pu rposes, o r b y illegal m eans.

4. E m p loym en t, p rom otion and retention o f em p loyes on the basis o f m erit w ith due reg a rd fo r length o f service.

5. L eg a l and socia l resp on sibility o f b oth em p loyers and em p loyes fo r their com m itm en ts and th eir acts.

T h e con ven tion w en t on re co rd as op posed to child la b o r and to sw ea t­

shops, and advocated legislation to elim inate both.

A m o n g sou n d industrial practices, it listed: F a ir and equ itable treat­

December 13, 1937 27

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m ent to every cu stom er and every su p p lier; a sound, well-defined la­

b o r p o licy ; preservation o f credit and g o o d w ill; co-operation w ith com p etitors, w ithin le g a l lim its, to the end o f serv in g the public effec­

tiv ely and econ om ica lly ; respect o f righ ts and dem ands o f stock h old ers;

dem on stration o f business’ “ citizen­

ship” in its com m u n ity ; and co-opera­

tion w ith and su p p ort o f g ov ern ­ m ent in exercise o f its legitim ate fu n ction s.

In his op en in g address as presi­

dent o f the association, W . B.

W arner, president, M cC all Corp., N e w Y ork , discussed the causes o f the p resen t depression, ou t o f which, he said, w e can not clim b overnight.

T h e need is fo r tea m w ork betw een capital, labor, m an agem en t and g o v ­ ernm ent. W a rn in g that a fre e co m ­ petitive system o f business cannot be m ixed su cce ssfu lly w ith a g o v ­ ernm ent conti'olled system , he de­

clared that A m erica m u st choose.

P o w e r to rem ove the m a jo r ele­

m ents o f hesitation, said M r. W a rn ­ er, is in the hands o f the g o v e rn ­ m ent. C ongress should repeal the undistributed in com e ta x and the capital gains tax, the in com e tax base should be broadened, and co n ­ gress should refu se to pass such law s as that con tem p latin g con trol o f w ages and hours.

“ T h e m o re I learn abou t the A m erican public the m ore respect I have fo r it and the m ore con fi­

dence I h ave in its fa irn ess and g ood sense and p erspicacity, i f y ou give it tim e to digest n ew questions and new events,” said R a ym on d Rubi- cam , chairm an, Y ou n g & R ubicam Inc., N ew Y ork . "T h e average man and w om an o f 1937 is u nqu estion ­ ably in a stron g er position to co m ­ pare representations m ade to him o r her than w as the case in other tim es.”

R ecession o r Grave D eclin e?

W h eth er the present recession is m erely a passin g phase o r is the b e ­ gin n in g o f a g ra v e decline, said Jam es A. E m ery, gen eral counsel o f the association, depends la rg ely on federal p olicy. P oin tin g ou t that in the past five years the United States has passed th rou gh fo u r g e n ­ eral revisions o f the ta x structure, he hoped that the con tem plated fifth revision w ill provid e rem edies w h ose necessity is gen erally adm it­

ted. R em edial revision o f the n a­

tional la b or relations act, he said, also w ou ld help to stabilize plan­

ning and execu tion o f business e x ­ pansion.

A ll sides are loo k in g to industry and to industrial scien ce to create m illions o f n ew jo b s and end un ­ em p loym ent f o r all w h o can and w ill w ork , said L a m m ot du Pont, president, E. I. du P ont de N em ours

& Co., W ilm in gton , Del. T his at­

titude is entirely fa ir, becau se this

resp on sibility rig h tly b elon gs on in­

d u stry’s sh ou lders and industry a c­

cepts it. B ut today, in du stry is blanketed b y a f o g o f u ncertain ty in rega rd to taxes, labor, the m o n e­

ta ry situation, and p ra ctica lly every con dition under w hich industry m u st operate. In d u stry can do m uch to help build p rosp erity, said M r. du P ont, if it is g iven a rea son ­ able assurance as to w hat answ ers to these qu estion s it can expect.

F ran k P urnell, president, Y o u n g s­

tow n Sheet & T u b e Co., Y o u n g s­

tow n, O., ch airm an o f the a ssocia ­ tion ’s recen tly organ ized com m ittee on industrial w o rk in g conditions, told o f a com p reh en sive jo b , n ow in process, o f settin g up standards co v ­ erin g all phases o f desirable indus­

trial w o rk in g conditions. M r. P u r­

nell believed that a g oo d jo b alon g these lines w ill assist trem en d ou sly in b u ildin g esteem fo r industry.

R ecom m en d s H elp to C arriers F. N. Bard, president, B arco M fg.

Co., chairm an o f the tran sportation com m ittee, rep orted on the railroad situation and offered a resolu tion recom m en d in g that all m a n u fa ctu r­

ers take a sym p a th etic v ie w o f the present p lig h t o f the railroads and take action w h en ever p ossible to help them . It fa v o re d a con tinuance o f the present ow n ersh ip o f the roads and said an y p rop osa l fo r g o v ­ ernm ent ow n ersh ip sh ou ld b e o p ­ posed.

In a m eetin g o f the national in­

dustrial council, held under the au s­

pices o f the a ssociation im m ediately p rior to the con gress, C. M. W hite, v ice president, R epu b lic Steel Corp., Cleveland, rep orted on that c o m ­ p a n y ’s experien ces earlier this year with CIO. H e explained in con sid ­ erable detail w h y the co m p a n y re ­ fu sed to enter into an agreem en t w ith that body.

F undam entally, said M r. W h ite, the first jo b o f a union organ izer is to secu re m em bers b y cla im in g the union w ill b rin g advantages to the w o rk e r th rou g h m ass b a rg a in ­ in g pow er. On the su rfa ce, and as lon g as it costs him n oth in g tem ­ p orarily, the picture m a y appeal to the p rosp ect. But at present the m on ey (fr o m du es) isn’ t c o m in g in, and the n ext step u ndou btedly w ill be a dem and fo r a closed sh op and then the ch eck off, a cco rd in g to M r.

W hite.

“ In d u stry’s p ast exp erien ce with these tw o fo r m s o f dom ination has not been a h ap py one. . . . T o any thinking man, th erefore, the dangers o f the closed sh op and the ch eck ­ o ff are readily apparent, and ou r attitude in figh tin g the sig n in g o f a con tract last sp rin g is en tirely u n ­ derstandable.”

A n oth er sp ea k er w as H a rtley W . B arclay, editor, Mill and Factory, N ew Yoi'k, w h o ig n ored a subpoena to ap p ear at the national la b or rela­

tions b oa rd h earin g at Steubenville, O., w ith all d ocu m en ts and in fo rm a ­ tion used in p rep a rin g his recen t article, “ T h e T ru e S tory o f W eir- ton.” His observation s at W eirton, said M r. B arclay, revealed clea rly that la b or rack eteerin g has been ram pan t and that g ov ern m en t su p ­ p ort has been g iv en to m a n y in­

vasions o f w h at he regard ed as co n ­ stitutional righ ts. H e revealed co m ­ m unists h ave gain ed con sid era b le w eigh t as la b or leaders, and that in som e instances W P A fu n d s h ave been used in a d van cin g CIO educa­

tional organ ization w ork .

E. T. W eir, chaii'm an, N ational Steel Corp., said capital and la b o r can and m u st g et a lon g togeth er.

H e decried the con cep tion o f a bu si­

ness en terprise as som eth in g that existed fo r the ex clu sive ben efit o r p riv ileg e o f one certain grou p.

“ T he activ ity o f the fe d e ra l g o v ­ ernm ent in la b or m atters is an ele­

m en t n ot p rev iou sly p resen t in ou r industrial picture,” said M r. W eir.

“ It has crea ted an en tirely d if­

fere n t asp ect to the rela tion o f capital and la b or and is one o f the b ig g e st stu m b lin g b lock s to a ra ­ tional get-together.

“ A sound relation betw een m a n ­ a g em en t and la b or is n ot a m atter o f m orals and sentim ent. It is a n ecessity dictated b y the econ om ic stru ctu re o f business. It is ju s t g oo d business sense fo r all parties to the industrial partn ersh ip to try to m ak e the w heels tu rn sm ooth ly, to p rod u ce b etter g ood s, to m ak e in du stry p rosp er.

U nions Should B e R espon sib le

“ I f corp ora tion s are to b e ex p ect­

ed to deal w ith la b or unions, then the unions sh ou ld be req u ired to m ake th em selves as resp on sib le as the corp ora tion s. T h ey sh ou ld be p roh ibited fr o m con trib u tin g to p olitical ca m p a ign s as are co rp o ra ­ tions. It sh ou ld be illeg a l fo r them to call a strik e w ith ou t first tak­

in g the v o te o f em p loyes in the plan involved. It sh ou ld be illegal to tra n sp ort p ick ets fr o m other plants and industries. S trike v io ­ lence sh ou ld b e outlaw ed. T h e in­

terpretation o f th e la w sh ou ld not be le ft to adm inistrative agencies.

It sh ou ld be included in the reg u ­ lar business o f ou r cou rts. G ov­

ernm ent sh ou ld realize that its p ri­

m a ry ob lig a tion is to p i'otect the righ t o f the w o rk e r to w o rk .”

M r. W e ir said the co st o f strikes in this co u n try in 1936 am ounted to abou t $370,000,000. “ T his year,”

he continued, “ that loss ju m p ed m ore than ten fold , to som ew h ere near five billion dollars. W h en the final re co rd f o r the y e a r 1937 is w ritten it w ill b e fo u n d that the a v era g e A m erica n fa m ily has paid

$160 to $175 as its unw arranted (Please turn to Page 106)

28 / T E E L

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