Indianapolis Times, Indianapolis, Marion County, 7 December 1937 — Page 11

®

“than -ever before. .

- mand. Now more of the marvelous

. calculated. that the 26 new mills

. saved in labor costs. This may be

sea wi DE

STEEL WORKERS FEAR NEW MILL ~ UNEMPLOYMENT

Woden Plants May Answer Question of Machine _._Disoccupation.

‘Times Special : “PITTSBURGH, Dec. 7—One of

civilization’s great struggles, the' contest between man and machine for jobs, is nearing a crisis in the steel industry. The next two years will provide an answer for this industry to the question, “Does the * machine really throw men out of

It is Not nearly as simple as the Technocrats used to say it was. Steel producers say emphatically that the machine, by implementing man's efforts, creates new materials and new jobs all down the line. They cite employment figures for last spring and summer, when the industry gave work: to more men

® work by reducing jobs?” i : ole

The great autumn slump in steel production, however, renews the question in aggravated form. Last

summer at the peak the old-fash- |

ioned “hand mills” and some of the new hot and cold strip mills were all wheeled into use to meet the de-

GRANT COUNTY GROUP TO FETE DEMOCRATS

MARION, Dec. 7 (U. P.) —State

ernor Townsend, will be guests at a dinner here Thursday of the Grant County Democratic organization, it was announced today. Other party leaders will attend are Omer Stokes Jackson, Attorney General and state chairman; Dick Heller, the Governor’s secretary, and Sam To Ft. Sayre attorney.

$

new strip mills are being finished and_put into operation. The latest of these, Carnegie-Illinois’ huge plant at Irvin, Pa., will bring the’

- national total to 26, next June.

‘Tonnage Now Doubled

The Steel Workers. Organizing Committee, which fears its halfmillion workers are about to suffer from improved machinery as the railroad men did after the war, has

have a production capacity of ‘nore than 13 million tons a year. The old hand mills had a production of approximately the same tonnage, so the total is doubled. The handwriting on the wall ‘appeared the other: day with formal notification to the union by Car-negie-Illinois, U. S. Steel’s unit, that it ‘wads dismantling its Grier works at’ New Castle, Pa. This mill employed -1200 men. The terrifying efficiency" of the new. mills; which shoot forth: their product at a speed of about 20 miles an hour; compels the steel compan-

ies to abandon the hand-plants in|

which nine ‘men in an eight-hour day could turn out 10 tons of steel in sheets. In a new plant it is calculated that 80 men can average 800 tons an eight-hour day—10 tons per worker, compared with a little more than Ses on per worker in the old mill

"250 Men Replace 2000

Philip Murray, Steel ‘Workers Organizing Committee chairman, has figured it out on an annual basis: ‘ “Whereas 2000 men are required to produce 200,000 tons a year on

the old-type mills, only 250 men are]

necessary to operate a new | continuous strip mill that can produce equal tonnage annually. In other words, each employee can produce 800 tons annually, whereas each employee on an old-type mill can produce only 100 tons annually. | “The effect of the continuous rolling mill upon the steel industry means that certain towns ranging in population from 20,000 to 50,000 will Be reduced to ghost towns in the next five years, or sooner; through the necessity of management com-

pletely abandoning the old hand], mills.”

Although the full effects of dismantling will not be felt until next year, dismantling is already under way in several companies. |

Recession Speeds Layoffs

The effect, however, has been overshadowed by the greater shock from the wholesale layoffs and parttime work of the current recession. Ernest T. Weir's National Steel Corp., with 42 hand mills operating a year ago, now is reported to have only 18. Wheeling had 24 a year ago, it has 18 now, and it may have only six after a few more months. Some hand mills will continue to be used for odd-lot jobs and special orders, perhaps 10 per cent of the old total. The strip mills’ economy is "very: great, due to the saving in wages, according to meager reports. Steel companies are secretive about their production costs. Union men believe that as much as $20 a ton may be

excessive, and the increased capital cost of the great tailor-made trip mills will eat up part of the savings, of course, but all the big steel companies now have their strip mills ready for operation. The first was

erected in 1926, but many have heen o

built in the last three years. There is a definite tendency among steel companies. to lessen the shock by gradual rather than sudden abandonment of the hand mills. Their argument in defense of the new mills, denying any net loss of jobs cite the hundreds of new products and new markets made possible by improved technique, better steel, and cheaper production. They also paint to the new jobs created in distribution and marketing, and to the employment figures of the

past. -But the :future, say the appre-

hensive workers, will tell the real story. :

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