Deals & Developments

Wages of Steel. The 200,000 employes of United States Steel Corp., from president down to puddler, last week heard what they had expected for some time. Another reduction of wages and salaries was ordered. In October wages were cut 10% after a 10-15% salary reduction in August, when Big Steel finally decided overhead must come down. The new cut was 15%, making a total reduction of 23.5% in the pay of 44-c- an hour which was considered basic in 1929. In addition most men are now working on short shifts.

Last year U. S. Steel paid out $260,000,000 in wages and salaries. Taking reduced operations into account, statisticians last week estimated that the new 15% reduction will save the corporation about $30,000,000 in operating expenses for the remainder of 1932. Theoretically, $30,000,000 would about equal depreciation and depletion charges for the rest of the year should U. S. Steel cover its running expenses. Or it would be sufficient to pay bond interest and preferred dividends should earnings cover depreciation. On news of the wage cut. Steel preferred shares rose 10 points and the common 4.

Quick to follow-the-leader was Bethlehem Steel with 50,000 employes. Republic and other independent companies were sure to join the procession. Steelmen last week were inclined to point out that wages have not come down as much as in 1921, that unless business picks up there may be more cuts.

Tin Shutdown. The International Tin Cartel (Malay States, Nigeria, Bolivia, Dutch East Indies) last week decided on drastic measures to cut the huge surplus supply. Production will be stopped entirely during June and July, resumed in August at 40% of capacity. Or, as an alternative, members may reduce their output 133% for June, July and August.

Two Against Coca-Cola. Last week Lawyers Edward Sidney Rogers and James Fulton Hoge prepared to defend their big client, Coca-Cola Co., in two damage suits. More important of the two was an action of $5,000,000 brought by Loft, Inc., candymaker and seller. Loft charged that Coca-Cola attempted to interfere with a Loft contract to sell Pepsi-Cola in its stores, threatened to attack the value of Loft stock ($2.50 last week) if the company would not sell Coca-Cola, sent agents to Loft soda fountains to hurt Loft's business by slander and intimidations. Filing a $2,000,000 suit at the same time, making the same charges, was Pepsi-Cola Co.

Nevada Absorbed. Kennecott Copper owns 98 1/2% of Utah Copper, which in turn owns 45 1/2% of Nevada Consolidated Copper (mines in Nevada, Arizona, New Mexico). Last week Kennecott offered one share of its stock for two of Nevada's, is expected to acquire practically full control. Coppermen expect that Nevada's mines will then be closed down, pointed out last week that if they were closed now Nevada's stockholders might cause trouble for Kennecott.

Kurzman to Constable. Since 1905 the 73-year-old specialty shop of Kurzman has been on Fifth Avenue, Manhattan. From it have gone many notable trousseaus. The White House bridal gear of Mrs. Alice Roosevelt Longworth, Mrs. Eleanor Wilson McAdoo, Mrs. Jessie Wilson Sayre and the second Mrs. Woodrow Wilson were from Kurzman.

Last week Kurzman was bought (terms not made public) by 105-year-old Arnold Constable & Co. Also on Fifth Avenue, Arnold Constable & Co. has not lacked famed shoppers. Mrs. Abraham Lincoln, Mrs. Ulysses Grant, Mrs. Grover Cleveland and Theodore Roosevelt's mother were among its clientele.

Divco to Continental. Continental Motors Corp., maker of engines for many automobiles, last week bought Divco Detroit Corp., manufacturer of milk delivery trucks. Continental lately entered the passenger car field by purchasing De Vaux-Hall Motors Corp. (TIME, Feb. 29).

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