New-York tribune., 1918-12-13
Retl,lehe11l Co.
Denies Evading
Wage Decision
War Boards System Def.
nitely Adopted, Presi-
dent E. G. Grace Declares
Part of Plan Won't Work
Governments Right to Reg
ulate Pay of Employees in
Time of Peace Is Denied

Charges by the War Labor Board
.hst officials of the Bethlehem Steel
Company are attempting to repudiate
the system Of collective bargaining in
stalled by the board, and to evade its
otner findings. were denied yesterday
With quslihcstions.
In reply to the accusations, E. G.
Grace president of the Bethlehem
company, sent q letter to the board
stating that the system had been def
niteiy adopted, but that the boards
examiners had sc changed the contem-
plated plan that it was 40 longer prac-
tisal or suitable for peace conditions.
IL many other particulars, he added,
the examiners plan was unworkable
ard unacceptable.
With respect to the wage findings,
Mr. Grace disavowed any attempt TO
make changes. He pointed out. how
evc-. that the government could not be
exr .cted TO make up any deficit re-
suit ng from peace time operations, and
that future wage schedules should not
be subject to governmental regulation.
The Company's Letter
Tie letter, addressed to the Joint
chair-en of the War Labor Board. as
gvel out from the New York Office of
the Bethlehem company, reads:
New York, December IL, 1918.
"SlrS: Replying to your letter of De-
cenbe- 6, you are mistaken as to our
attitude toward collective bargaining.
We haze definitely adopted it. We
now haze shop committees in all our
plants. The representatives are chosen
by secres ballot in elections conducted
by the employees. We inclose you a
printed copy of representation of en-
ployes il plants of the Bethlehem
Steel Corporation,' which is the ar
rangement in effect in all our steel
plants except Bethlehem-as large in
the aggregate as the Bethlehem plant.
We hope to extend the principles of
collective bargaining and of committee
functions beyond any scope which has
been attempted on a large scale in
this country.
"As to the committee system at
Bethlehem, my agreement to which
lowing quotation from my letter of
September IS, which I left with the
board at the time as formal state
ment Of our positions:
We are now ready to provide for
collective bargaining and labor rep
resentation by an arrangement in ac-
cordance with the declared principles
Of your board, the details of which I
have been over with Examiner CLANCY.
We are ready for the first elections
and, so that there may be no doubt as
to their fairness, we prefer to have
them supervised under your authority
and direction
1t Is Not Repudiated
ave have not repudiated this in any
respect Your examiners delayed the
elections and changed the contem-
plated plan until it is no longer recog-
nizable, nor is it practical For in
stance, under the supervision of the
examiners there has been formed
committee on mediation and conclia-
ton of three members (not employees, l.,
to be joined by three members nomi-
mated by the company and to be pre-
sided over by.a chairman to be select
cd by and representing the Secretary
of War 1t is plain that this arrange
ment is not suitable for peace condi-
tions. In many other particulars the
examiners plan is unworkable and un-
acceptable. The plan originally pro-
posed, and which we inclose, kas been
most favorably received by the en-
ployes of our other plants and is IN
successful operation there.
"As to the other findings of your
board, there seems to us to be clear
understanding expressed by our letter
to you of September 13, your letters
to the War and Navy departments and
our CORES spondence and interviews
with them. We are not attempting to
change this understanding in the least.
II good faith with any of our employees
requires readjustment of their wages
up to the abandonment of the govern
ment munitions programme, we are
quite ready to take up the matter un-
der the terms of this understanding,
which calls for compensation to US by
the departments.
We cannot expect compensation
1rom government departments to take
care Of any deficit resulting from
peace-time or competitive operations
upon which we are now entering, and
consequently we feel that future
wages. or schedules necessarily affect
ing the same, should no longer be the
sunIect Of governmental regulation.
The cancellations of government or
oers have been SO rapid and so ex-
tenslve that practically all our work
ior the war programme is finished. We
nave not on hand what would have
amounted to two weeks work at the
fate OF production before the cessation
y hostllltles. We were then making
more war material in q day than we
mace IN any year before the way. We
co not wish to De understood as mean
ing TO take advantage Of this situation
70 reduce wages. We realize that the
reaolustment which the country faces
should De made gradually and slowly
and that any lowering of the present
scsie scsie Of wages should be preceded as
aat as possible by reduction in the
prices Of commodities We intend to
40 our full share toward meeting the
responsibilities which this places on
employers
Much has been said in the course
VI tne proceedings before your board
aho N fact for the purpose Of bringing
soo1t these proceedings, relative to
PRODUCTION at Bethlehem, which care
iui examination of the facts will not
pear out These statements we have
sot publicly denied, believing that the
iaSts would eventually be known and
would be the best answer. We should
nu' no, refer to this now except that our
siience in respect to the reference to
enese matters in your published letter
mlEht otherwise be taken for acqules.
cence
Every respectfully,
..,l lSigDed) "E. G. GRACE, President"
Messrs. WILLIAM H. TAFT and B
NJ MANLY. Joint Chairman, National
war Labor Board, Washington