Evening star., 1937-02-14
PARLEYS MAY END
STEEL BLOCKADE
McGrady and Labor Lead.
ers to Confer as Navy
Work Waits.

A determined effort to clear away
she blockade on steel for naval con-
struction resulting from the unwilling
ness of the steel industry to abide by
the sh-Healey act will be made
this week in a series Of conferences
conducted by Edward F. McGrady,
Assistant Secretary of Labor.
Tomorrow McGrady will meet with
. small group Of interested labor
union leaders. including John P. Frey.
head Of the metal trades department
Of the American Federation of Labor,
and Philip S. Murray. representing
the Committee for Industrial Organi-
sation in its effort to unionize the
steel industry. Frey is reported to
have lined up with the steel industry
and the Navy Department in urging
that steel for naval construction be
exempted from the wage and hour
provisions of the Walsh-Healey act.
lest craft union workers in the navy
yards be thrown out of work.
Steel Bids Lacking.
The Navy has been unable to get
bids for 100000 pounds of steel
needed for nine ships-three sub
marines and six destroyers. Naval
construction officers have expressed
fear that the construction Of two new
battleships. authorized to be laid down
this year. may be held up unless the
impasse is broken
The Walsh-Healey act forbids a
hrm holding a Government contract
for more than $4,000 from employing
child labor, paying less than the
minimum wages fixed by the old N.
r. A., and working employees more
than 40 hours a week. The 40-hour
week is the stumbling block in the
steel industry, where a rush of private
business has resulted in a 48-hour
week. In addition, the limitation Of
profits on naval construction con-
tracts to 10 per cent is reported to
have put an additional damper on
the interest Of the steel companies
In providing steel for the Navy.
Unless sufficient supplies can be
assured in the near future, the Navy
Department will attempt to allot all
contracts for its 1887 ship construc-
ton program to private yards. it is
believed. Under the terms Of the
Vinson- -Trammell act. construction is
supposed to be divided equally be-
tween private builders and the Gov
ernment yards.
Thousands Of Jobs at Stake.
But if the President finds that
circumstances warrant, he may allot
any or all naval construction to
either private or Government yards.
The shift Of all the 1887 program to
private yards would provide employ
ment there, but would cause the lay
ing off of thousands of employees in
the navy yards.
Unless steel orders can be placed
Immediately, 1t will be necessary to
start laying off men in some yards
by March IS, according to naval con-
struction officials. The yards first to
be affected would be those at Boston,
Norfolk, Charleston, Philadelphia and
Portsmouth. The Portsmouth yard
was assigned two of the submarines,
Sculpin and Squalus; the Mare Island
yard was assigned one submarine,
the Swordfish. Boston has the de-
stroyers O'Brien and Walker, Norfolk
has the destroyers Morris and VAIN
wright, Charleston has the destroyer
Roe and Philadelphia the destroyer
Buck.
In December the Navy Department
asked for bids on 25,000,000 pounds
Of steel for these nine ships, but
received bids on only 10000 900 pounds.
Until steel of the proper specifica-
tions to complete the ships Is as
sured. construction will not be begun.
The Navy also has had difficulty
in obtaining oil. alcohol, machine
tools and copper.
Despite the fact that the metal
workers may be found supporting the
steel industry in urging that Navy
steel be exempted from the Walsh
Healey act, Mr.. McGrady is expected
to try to work out some way in which
the steel companies can work their
shifts to comply with the 40-hour
week.
tcopyright, 1887. by New York Herald
Tribune)