Evening star., 1937-03-02
STEEL PEACE ENDS
WALSH ACT FIGHT
Way Believed Smoothed for
Operation. of Labor
Standard Law.
BY J. A. FOX.

Js As Tohs
The peace pact in the steel industry,
In addition to paving the way for the
Navy to get material badly needed
for the ship-building program. appar-'
entity heralds the end of the Gov
ernments troubles over the Walsh
Healey act.
The 40-hour provision of the law,
which sets up certain employment
standards for concerns having con-
tracts in excess of $4,000 with the
Government, no longer is an issue
under the agreement between six pro-
ducers This was the stumbling block
In the way of the bids which the Navy
was seeking unsuccessfully to get on
Six destroyers and three submarines.
the steel industry holding if not
feasible either to come off the 48-hour
week or, in event it did, to pay the
overtime rate fixed for the excess
hours.
AS a result of the agreement the
Navy will send out new advertisements
tonight for 100000 pounds of steel.
Until the trouble arose over steel,
Labor Department authorities con-
eerned with enforcement of the act
had felt the way was just about paved
for smooth operation, more and more
concerns showing a willingness to COM
ply with 1t and only single other
contract-one for machine tools for
the Navy-being tied up.
The law was passed, Senator Walsh,
Democrat. of Massachusetts,, CO.
author, told the Senate a few days
ago, to keep Government business in
the hands Of the lowest bidder who
maintained reasonably satisfactory
working conditions" It applies only
to about Is per cent of Government
business, and since it became opera
tive on September % last 1887 con-
tracts. aggregating about $4,000, 900,
have been let under it.
The backfire of propaganda that
Immediately was set up against the
law, Labor officials contend, is the
cause of all the difficulties that were
encountered early in its administra-
ton. Since that time extensive
spade work" around the conference
table has succeeded in smoothing out
the successive controversies that arose.
In every instance, it is added, one or
two of the larger concerns have fallen
In line, and others quickly followed.
Motor equipment is point in ques-
ton. Of and on, the Government has
had trouble with its aWomotive pur-
chases-a highly competitive field
ever since the early days of the Ma
tional Recovery Administration, when
Henry Ford was the outstanding re-
calcitrant
Trouble stirred again under the
Walsh-Healey act, and for a while,
because the need for vehicles was a
pressing one, split bids were permitted.
That Is, manufacturer could bid in
less than $4,000 on any offering, no
matter how large. This practice has
been abandoned, International Har-
vester and REQ being first to agree to
the terms of the act, it is explained.
Now, General Motors also is going
all the way, just recently having bid
on a large contract. Officials say
Ford's status is not clearly defined.
On one occasion, a Ford agency bid
that would have exempted the pro-
ducer from the terms of the act was
banned by Acting Controller General
Elliott. Since then, Ford bids have
run under $4,000, but there is one
pending, it is said, that may or may
not exceed this figure.
The. Navy machine tool contract
tied up at present runs around $25, 900
or 100000, but is not expected to cause
trouble. According to the Labor De-
partment, there is not a whole lot of
competition in this field, often just
one manufacturer turning out some
thing that is needed. Previously, when
this question has arisen, conferences
have taken place with the company
involved. and settlement has resulted,
and that is what is anticipated now.
There was some trouble over Navy
copper a little while back. but this
also is cleared up. On the West Coast,
American Smelling & Refining Co.
is keeping its Tacoma plant on 40