By Alfred C. Campbell

N JUNE 9, 1910, ten

‘Charles S. Wilcox,
iron Company Ltd,

bung up their plug hats and seated

themselves at a conference table.

@he conference, presided over
by Wiaileox, was a gathering of
hard-faced steel-and-iron bosses
who also had divers connections
with baniks and railway director-
ates, one of whom was the late
motorious Sir Herbert Holt.

They had gathered to ‘com-
bine the business and wunder-
takings” of The Hamilton Steel
and Iron Company Limited: the
Montreal Rolling Mills Com-
pany; The Canada Screw Com-
pany Limited and the Canada
Belt and Nut Company. But it
Was more than that. Their ac-
tion was intended to tighten
their control on the economy and
governmental policies of Canada.
They were merging together 48
Subsidiary plants associated with
practically every line connected
with the use of steel and iron.

The merger sought to bring:
about benefits such as were sum-—
marized in the original prospec-
tus: “Reduction in the cost of
administration; Economies in
the purchase of supplies and
materials and increased efficien-
cy by specializing the manufac-
tures of the individual plants
and the avoidance of unneces-
Sary duplication.”

Capital Merger

ANK and industrial

merged very early in Canada
and each of the 10 Steleo direct-
ors had connections with banks
and the Canadian Pacific Rail-
way. Their control of the basic
industries in Canada was com-
pleted at the merger. They could
now dictate prices, wages, and
policy. FEleven days later on
June 21, President Wilcox in a
memorandum said- “ . . I think
there should be a substantial in-
crease in the volume of business
and in the profits of this
company from year to year.”
There was.

The present extensive holdings
of the Steel Company of Canada
and the huge profits garnered
by its successive boards of
directors other sundry

capital

and

Delegates to the United Steelworkers :
-brate’ the union’s 10th birthday and thei
Canadian steel workers are moving tow.

Sharks bear out the correctness

of Wilcox’s observation. From
1940 to 1944 inclusive Stelco’s
steel production measured in
tons cf ingots was almost

identical with the total for the.
14 previous years, 1926 to 1939
inclusive. And its profits—hish
at any time—were greater than
ever. In 1944 net profits were
$4,658,655. They can afford to
pay $33.60 a week and grant the
40-hour week.

And with the huge backlog of
industrial goods ineluding farm
implements and machinery and
the export needs Overseas Stelco
has a huge market calling for
Sreater production figures than
the war years. But Steleo,
accustomed to huge profits, re-
fuses to grant adequate pay in
creases to its employees.

Won Protection

TELCO srew. up, as did
Massey-Harris Company, with
the Canadian Manufacturers

Association. Its predecessor, The
Association for the Promotion
of Canadian Industries, under
the- leadership of Isaac Buchan-
an, member of the legislature
and editor of the Hamilton
Spectator, fought long and loud
for protection to the steel
industry.

They won. As early as 1859
tariffs were imposed against
British and American steel
entering Canada. Added to that
were huge subsidies, loans, sub-
ventions, drawbacks and other
sundry benefits in the govern-
ment budget by successive gov-
ernments Tory and Liberal alike.
They were already Prepared for
41867 when Confederation brought
them the huge mariket of the
prairies.

From 1896 to 1911 alone fed-
eral bounties of more than $20,-
000,000 were pumped into the
steel and iron industry by a
Liberal government which rode
into power as an enemy of the
monopolies and trusts. Nor was
Algoma Steel Corporation at

PACIFIC TRIBUNE — PAGE abs

(CIO) convention at Atlantic City,
r outstanding wage victory in the
ards getting ‘that raise.’

Empty smokestacks: unemployed steel worker
during the hungry ’30’s. During the war year
Profits; their objective is to maintain these
$5.00 per ton boost,
cent per hour wage increase

ernment recently granted in
are demanding a 194

Sault Ste. Marie or Doseo in
Sydney, Nova Scotia, forgotten
from the government coffers. Be-
fore the Algoma plant was even
built the Iron and Steel Bounty

Act provided millions of dollars.

for both plants. The government
pork barrel had no bottom and
the well-trod path to the finance

minister’s office around budget.

time was never barred by police
as it is today when workers’
delegations seek reasonable pay
increases and reduced taxation.

It was because Steélco paid
small wages, charged monopoly
prices. and received government
Subsidies and assured markets
that the steel industry of Canada
can always compete with the
United States and always pay
dividends. Even in 1911 a year
of depression in the steel indus,
try in USA, Steleo did all right.

Took Over The Wes¢

I 1910 as thousands of immi-

grants flooded the west for
free land and world industrial
markets opened up for Canada’s
vast wheat lands, the merging

-of small concerns and the uni-

fication of bank and industrial
Capital reached its highest peak
in Canada. Mergers came so
fast and furious that the sec-
retary of the Manufacturers

N_J., cele-
U.S.A. The

Associatoan was fearful of the
asseciation’s existence so many
memberships were eancelled.
Finance Capital took Over the
west. Lhe introduction of steel
equipment and new inventions
in farm implements all gave
assured markets and profits for
the locusts that draped the ex
ecutive table of Stelco.
made 2 dcilling during the rail-
road days. Dosco continued to

receive its subventions. But the
condition of the workers and
their wages saw mo such ad-

vanced development.

Steelworkers have- always re-
ceived low wages. When Stelco
was organized in 1910 it was.
hailed as great evidence of
Capitalist strength. But in those
Gays all a highly skilled machin-
ist made was not much over §3
a day. And he had to be “an
all-round man.” There was no
Powerful Steelworkers Union m:
that period as there is today,
backed up by the full might of
a labor movement that was
hardly born then. What little
organization existed among the
workers was of a craft character
and ill fitted to meet the huge
ccmbination of the bosses.

Organization Drive
a was only when the Commun—
ist Party of Canada began am
independent drive among - the
Steelworkers during the depres—
sion years that the base was
Teally laid to build a union that
would take all] Steelworkers into
the same organization. At that
Period steelworkers’ wages were
abysmally low, and no other
Party was interesting itself in
helping to organize the basic in-
dustries to meet the new chal-—

lenge of the bosses and the drive

to get higher
lower wages.

profits through

From small sreups of workers

s every one of whom would
have been discharged had: Stelco
Known of their organizing activi-_
ties—the present Powerful organ-
ization was born. These same
organizers before the CIO was
born in 1935 carried on activity
educatins the workers in the
steel industry for the need of
one mass union for one industry.
Their labors were rewarded. The
steelworkers are today jsolidly
organized around their demands
for 1972 cents an hour Wage in-
crease and the 40-hour week.

and low wages.
and a 40-hour week.

Algoma”

S sit outside the gates of giant steel mills
s the steel trusts rolled up tremendous

Prices, which the gov-.
Canadian steelworkers

Canadian capitalists are accus-
tomed to high profits, monopoly
prices, low wages and govern-_
ment favors. It was therefore no
Surprise to hear Mr. Gillies,
works manager of Stelco, dis-
agree and to state that the union
Wage demand would cost the
firm an additional $3,360,000 a.
year. But Steleo can afford to
Day it. Stelco shows very high
net profits.

There is a familiar ring to the
arsuments of Gillies on why
Steleo cannot Sive pay increases.

They sound like the Hansard
speeches of Labor Minister
Mitchell and Finance Minister

disley. If wages are raised steel
prices must be raised, says
Gillies. And Steleo, like Massey-
Harris Company, does not lack
ether friends in the cabinet. On
Heb. 16, 1946, Reconstruction
Minister C. D. Howe at a press
conference blurted out: “You
Can't raise wages 15 or 20 per-
cent and not increase steel
prices. Gillies Says that too.

“No Decent Wages’ “

WN April 1, Stelco got another

subsidy. The price of steel
was increased. This was re-
fiected in the inereases of in-
dustrial prices to farmers fol-
lowed with the 12% percent
imerease to Massey-Harris. In
negotiations Stelco joffered the’
steelworkers 4 miserly 512 cents
an hour increase. Heavily subsi-
dized and receiving the same
prices for steel as the US,
Steleo, ravenous for more profits,
tefuses to give its workers 4
decent wage. They ‘are workings
for 32 cents an hour less than
the U-S. steelworkers.

But the steelworkers are Set-
ting ready for action. They have
threatened to Strike if after
June 29 the companies do not
grant them the union demands
of 191% cents increase and the
40-hour week. Thirty-six years is
a long time to wait for a real
showdown but it’s here now. The
steelworkers should fight it out
to a finish. They have the power.
They should use it. Any wealen-
ing or compromise on Wages now
means more for the hard-faced
Steel bosses and Jess for the
Wife and kids. The steel bosses
have it. Make them fork over.

ERIDAY, JULY 5, 1946