Montana labor news., 1933-07-20
The Washington
By LAWRENCE TODD
U. s. STEEL FLAUNTs
ISTRATION

tee of United States Steel, had a talk
July 10 with President Roosevelt.
Afterward he said that they had dis
cussed a code for the steel industry,
and that one would soon be presented.
Taylor spoke for the ]. P. Morgan
interests, which had shown a striking
unanimity in finding themselves un-
able to accept the Recovery program
with its guaranty of the right of
workers to belong to labor unions.
Three times his Steel Corporation
crowd had sent in a proposed code
which did not contain the labor-free-
dom clause required by the law. Now
he was suavely changing his attitude
-outwardly at least.
MA
What had Roosevelt said to the
steel king? What had Taylor replied
to the President? Symbolizing the
struggle between the political admin
istration which is determined that it
will not permit itself to be Inundated
and wrecked in the coming months by
another and more startling panic than
the one which heralded its birth in
March, and the stubborn Tory arrog-
ance of Morganized wealth-how was
the drama played? Wall Street had
a version of the encounter. This was
that Roosevelt demanded Of Morgan's
man that the steel companies file
their code without further delay; that
Taylor replied that the question was
one for the steel bosses to decide with
out interference; that Roosevelt sug-
gested that the law gave him power
to close the plants if the owner re-
fused to adopt decent industrial stan
dards; hat Taylor retorted that per-
haps Roosevelt had better attempt to
enforce such an order, and see what
the result would be.
Section A (b) of the law provides
that the President may, after public
notice and hearing on charges that un-
fair practices, including w~age-cutting,
are being followed by employers, de-
clare it necessary to put an industry
under license; and he may revoke the
license of any violator of the regula-
lions on which the license is issued.
Anyone carrying on a business after
its license is suspended or revoked is
subject to fine and Imprisonment, and
each days violation is a separate Of
tense, for which 6 months in Jail may
be the penalty. This is the club
Roosevelt holds against the Morgan
defiance. Taylor is reported as sug-
costing that the courts would not up
hold it.
But winter is coming. Roosevelt
must find work and wages for a large
part of the 2 $500, 900 unemployed. He
must avoid adding other millions to
the jobless army. Today factories and
mills r pouring out new goods for
which there are no buyers. These
goods will fill the warehouses and the
shelves of retail stores-awaiting the
magical creation of buying power
throughout the country. Unless that
buying power is created soon, the fac
tories now running full or part time
must slow down or stop. The present
speculative market will be overstock-
ed. States, cities and counties will
continue their march toward bank
ruptcy. Federal relief of the hungry
the manufacturers themselves. When
this committee makes recommends
tons for the industry they would have
the same force and effect as other
provisions of the code, after approval
by the Recovery Administrator. Pres
ident Roosevelt approved this provi-
sion "on condition that the admins
tration be permitted to name three
members" of the committee. The ad-
m%inistration members would have a
voice but no vote.
Because the cotton textile code is
experimental, the President declared
that it is limited to a four months
period with the right to ask for a
modification at any time and subject
to a request for renewal for another
four months at any time before its ex-
piration.
EDUC