The sun., 1918-12-13
E. G. GRACE ANSWERS
WAR LABOR BOARD
Bethlehem Stecl's President
Criticises Decision on Wage
REIMBURSEMENT.
PLANS No ABRUPT CUT
~' ss.t t. Pes
Tells Taft and Manly Govern
mcnt Should Release Con-
troll of Plants!
NO ABRUPT CUT

T.. G. Grace. president of the Betnle-
hem Steel Corporations. yesterday made
rubllc his reply IL, the letter Of William
,, Tai. and Basil NJ. Manly. joint chair
mon OF the National War Labor Board.
rela, tive 10 the boards findings in the
Re,helehem labor controversy. In his
letter Mr.. Grace declared that the Beth
lshem company's attitude toward col
lec,ive bargaining has been mistaken by
tho Labor Board, but that the boards
decision as TO a readiustment OF wages
for Bethlehem employees cannot be 8
cetped in view of the largo number Of
cancellations of Government orders.
As a result OF these cancellations. the
letter points out, the Bethlehem Steel
Corporation has on hand less than two
weeks work on war materials. There
fore Mr.. Grace declares that with the
end of Government work should also
come the end of Governm ant super
vision. He makes 1t very plain that 1t
Is not the intention of the Bethlehem Steel
Corporation to make any abrupt reduc-
ton Of wage schedules, for. he says. the
~ realizes that "the readjustment
which the country faces should be made
gradually and slowly and that n
lowering of the present scale of wages
shovid be preceded as far as possible by
q reduction IN the prices of commodi-
ties"
Explains Collective bargaining.
The letter follows;
Replying to your letter OF December
6, you are mistaken as to our attitude
toward collective bargaining. We have
definitely adopted 1t, We now have shop
committees In all our plants. The repre-
~sentatives are chosen by secret ballot in
elections conducted by the employees.
We enclose you a printed copy OF Repre-
sentation OF Employees In Plants OF the
Bethlehem Steel Corporation which In
the arrangement 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 at
tempted on a large scale in his country.
A to the committee system al Beth
iehem, my agreement to which you refer
is represented by the following quotation
nom my letter of September lie. which |
left with the board at the time as a for
NAL statement OF our position:
1--WE are now ready to provide for a
collective bargaining and labor repre-
stntation by an arrangement in accord
ence with the declared principles of YOU
board, tho details OF which / have been
over with Examiner CLANCY. We are
ready for the first elections. and so that
there may be no doubt as to their fair
ness we prefer TO have them supervised
under your authority and direction
W have not ~repudiated this in any
respect. Your examiners delayed the
elections and changed the contemplated
plan until IL Is no longer recognizable.
nor Is il practical. For instance, under
the supervision of the examiners there
has been formed a committee on media
ton and Cancellation OF three members
mot employees) to be Joined by three
members nominated by the company and
10 be presided over by a chairman to be
selected by and representing the Score
tary OF War. II is plain that this ar
rangement is not suitable for peace con-
ditionS. In NAM other particulars the
examiners plan is unavoidable and I'M
acceptable. The plan originally pro-
posed and which we enclose has been
most favorably received by the I'M
ployees OF our other plants and Is in
successful operation there.