Evening star., 1941-08-26
Kearny Firm Wants
U. 5. 10 Buy Shipyard;
Production Resumed
Whole Plant Being Turned
Over to Navy. Knox Told;
Poyment Later Asked
!; the Assoc.at ted Press.

Poyment Later Asked
B. the Associated Press.
Under management of the Navy.
the Federal Shipbuilding e. Dry
dock Co. resumed work today, after
la-day strike, on $493 900 900
worth of ships, but owners Of the
concern want to sell the whole busi-
ness to the Government.
In the Capital, Chairman William
H. Davis of the Defense Mediation
Board stated as cardinal principle
of board policy that neither labor
nor management should take ad-
vantage of the national emergency
for building up or tearing down
unions"
A work stoppage In New York
virtually paralyzed the city's largest
ndustry-dressmaking-when two
large contractor associations shut
down 1870 dress plants in a dispute
with jobbers over industry-wide
wage increases. The move affected
some $1,000 workers and tied up
work In an estimated rs per cent
of the industry. The contractor
groups voted the stoppage last night
after failing to agree with jobbers
groups over the method of distrib-
uting the cost of a 10 per cent wage
increase. The contractors said the
jobbers' offer to pay them 10 per
cent additional over present floor
costs was insufficient.
At the Federal shipyards, tie first
complete shift of the 1900 workers
who went on strike August z re-
sumed work on two cruisers and six
destroyers for the Navy and several
vessels for the merchant marine
service.
The offer to sell the entire plant,
with all its buildings, machinery,
land and ships under construction,
was made by President l.. H. Korn-
dorff in a letter to Navy Secretary
Knox in which he turned over to
Mr.. Knox the whole shipyard, lock,
stock and barrel.
Offers to Transfer Stock to Navy.
In the letter Mr.. Korndorff ex-
pressed desire to comply with the
order issued Saturday by President
Roosevelt for the Navy to operate
the plant because of the strike of
the c. I. o. Industrial Union of
Marine and Shipbuilding Workers
Of America and added that 10 SIM
plify matters the company would
be willing to transfer it's capital
stock to the Navy.
After informing Secretary Knox
that the company is ready to comply
with the presidential order, Mr.
Korndorff added that ''the company
will make formal conveyance, as
Signment and transfer of the above
mentioned assets, including its un-
performed contracts, to the Navy
Department or to such other agency
of the Government as may be de-
signed by you, or to simplify mat
ters and to obviate complicated and
difficult accounting procedures, the
company will. if you prefer, cause
its capital stock to be transferred
to the Navy Department or some
other agency of the Government, on
the understanding that in either
case compensation to the company
will be determined later either by
agreement, or, in case of failure to
agree, by arbitration"
The company, its president said,
can assume no authority q. respon-
sibility for the further management
and operation of the yard or for any
results or consequences thereof"
Meanwhile, Admiral Harold G.
Bowen, naval authority now in
charge of the important shipyard,
said the membership maintenance
question was under consideration by
the Navy Department, but that
pending decision whole hearted
cooperation was expected.
Mediation Board Statement.
Mr.. Davis told a press conference
that unions ought not to capitalize
on the production crisis to make un-
justified demands, and that union
men should not be made to feel
that they must not strike because
public opinion might be against
them"
His statements came in connec-
ton with announcement of ratifca-
ton of board-recommended settle
ments in three defense-labor dis
putes.
These were the cases of two plants
of John A. Roebling Sons Co. at
Trenton and Roebling, N. j., en-
gagged in dispute with the C. I. o.
Steel Workers Organizing Com
mittee;; the Rockford Drop Forge
Co. at Rockford, ILL.,, which was
threatened with a strike by the
A. F. of L. International Association
of Machinists and the A. F. of L.
Blacksmiths' Brotherhood, and the
Todd-Galveston Drydocks, Inc, at
Galveston, Tex, which had been
embroiled In controversy with the
Galveston A. F. of L. Metal Trades
Council.
Detroit Balloting Begins.
In Detroit a staff of go city elec-
ton inspectors took charge of the
balloting as employees of the city's
department of street railways cast
their votes on whether the A. F.. of l..
or c. I. o. should represent them
as an exclusive bargaining agent.
The election, protested by c. 20.
spokesmen, was the main point in
settlement ratified Sunday by the
A. F. of L. Amalgamated Association
OF Street, Electric Railway and
Motor Coach Operators, which
ended f1ve-day transport strike.
The A. F. of L. union now has
a contract with the D. S. r.
The balloting will not close until
tomorrow morning.
In Pittsburgh the c. I. O. Steel
Workers Organizing Committee an
nounced a wage contract granting
SIT a month pay increases to ap-
proximately 1,700 white collar" em-
ployes of the National Tube Co.,
subsidiary of u. s. Steel