New-York tribune., 1920-12-16
Bethlehem Steel Head
Admits 1t Is Policy
Not to Supply Firms
That Use Union Labor
Denies Agreement
With Any Concern
Untermyer Accuses Wit
ness of s'Fencing''; He
Wants Scllwab OH Stand

Eugene G. Grace, president Of the
Bethlehem Steel Corporation, testi~
fed on the stand before the Lock
wood committee on housing yester-
day that his company would not sell
fabricated steel to builders or con-
tractors in this city and Philadelphis
for erection under union conditions.
His admission came in reply to
charges made by previous witnesses
that the Bethlehem company was
one of the giant steel corporations
behind q movement to enforce open
shop conditions in all steel const1uc-
ton. 1t was said that this policy
placed an additional burden on
building operations by increasing
costs and obstructing operations gen
orally.
Mr., Grace insisted that it was a
good thing" to protect the OPEN
shop principle, both for the men and
the owners, and added that the policy
would be continued, even though it
brought about complete cessation
of building operations in this city.
Firm Acts Independently
He emphasized the point. too, that
pendently in the matter and not in
conjunction with other steel fabrica-
tors. Whether the policy will be ex-
tended to other parts of the country
by his firm, Mr.. Grace said, depended
entitely "on what effect should ex-
situation."
Mr.. Grace was on the stand for
more than an hour, special Interest
attaching to the examination because
of the fact that Samuel Untermyer,
counsel for the committee, Is known
to be the largest individual stock
holder Of the Bethlehem Steel Corpo-
ration. The circumstances, however,
did not appear to make matters any
easier for Mr. Grace, the grilling prov
ing one of the liveliest Of all the
sessions.
Mr.. Untermyer repeatedly accused
Mr.. Grace Of "fencing" and evsding
questions. What are you worried
about?" Untermyer would query when
Mr.. Grace hesitated. "Why don't you
answer"
Once the inquisitor burst out: "As
president of the Bethlehem Steel Cor
poration, Mr.. Grace, you have had your
own way pretty much. You are now
witness before a legislative committee.
Answer my question"
Again: I've don't want to know
what are your expectations or hopes
or delusions, Mr.. Grace; we want ths
facts"
No Widespread Movement
Mr.. Grace, in the face Of evidence
that a subsidiary of his company. the
Bethlehem Steel Bridge Corporation,
was member Of the Steel Fabricators
Association that had resolved to sell
steel only for open shop erection, de-
clared that his firm had acted inde-
pendently Of the associations open
shop policy and had entered into no
agreement with any other interests to
back up the movement.
When Mr.. Grace said that he knew
nothing of the widespread open-shop
movement for steel construction he was
asked if his company would be strong
enough to go ahead with it's policy
alone if other fabricators took another
course. THAT is a matter of judg-
ment," he replied.
"Do you think il a proper thing for
manufacturers throughout the country
to get together and dictate to the
builders in the different cities of the
country whether or not they shall erect
steel on union or open-shop prin-
ciples ?" asked Mr.. Cntermyer.
AS to the question of getting TO
gether,' said Mr. Grace, II do nc-
know. The question of whether !
would be good principle. should gay
it would be. firmly believe" he went
on, that any character or relations or
association to support and protect ne
open-shop principle Of giving service
by any character of laboring man in
this country is a good thing
'lndefensible' Attitude
Now, can't you see," came back Nj
Untermyer, what an arrogant and H.
defensible attitude it would be for the
manufacturers OF this county 10 Try t.,
force their point of view of what you
call the open shop III The erection o.
their steel, when other people might
believe it was TO their best inter--:s
to erect it by the union shop?"
"If they thought IT was to protect
their interest in line with what they
considered the right policy for their
interest | would not consider it AFRO
CANT, but self-protection.'
Mr Grace iara cam;tfoJ 5hok
union iron workers had not discrimi-
mated against non-union products, but
added that Il should expect it would
happen" 10 which Mr.. Untermyer re-
torted, Facts and expectations and
delusions are different things"
MIR. Grace explained that they had .
system of employees representation
at the Bethlehem plant He never
liked the term of collective bargain
ing he said, because he didn't know
what ii meant. He said that. under tho
company's system, the employees chose