Evening star., 1941-08-24
By JOHN c. HENRY,
Star Staff Correspondent.

HYDE PARh, N. Y, Aug. Zo.-
President Roosevelt tonight ordered
the Secretary of the Navy to take
possession of and to operate the
strike-idle plant of the Federal
Shipbuilding and Drydock Co. in
Kearny. N. j.
The depths of the Government
determination to have the plant
back at work as soon as possible on
s493 600, 900 in defense ship contracts
was reflected in the White House
announcement that:
The further methods and policies
relating to the ultimate title and
other matters between the Govern
ment and the company will be
worked out after further studies
and negotiations.
William D. HaSSett, press relations
secretary, explained here that these
negotiations will include the ques-
ton of whether the Government will
buy the plant outright, will lease it,
or will merely engage manager to
operate it.
There had been reports. not con-
firmed here, that the present owner
ship of the plant had indicated an
unwillingness to continue its man.
agement under Government control,
perhaps forcing the Government to
buy the physical equipment and in
stall a complete new management.
Company to Cooperate.
However, L. H. Korndorff, presi-
dent of the company, said in a state
ment tonight the firm regretted that
I'VE have been unable to arrive at
a settlement of the only remaining
issue involved in the controversy
with the = I" union which has made
1t necessary I" = for the Navy De-
partment to take over the yard.
Now that President Roosevelt has
acted" he said, I'VE will to the best
of our ability attempt to cooperate
with the Government in making
that order effective"
The union, he added, had been
adamant in refusing any compro-
mise on the sole issue involved.
Its representatives insist that the
company shall assume the obligation
of enforcing the so-called main
tenance of membership in the un-
ion," he declared. That is to say,
that we shall discharge from en-
ployment any employe now or in the
future, a member of the union, who
fails to pay his dues to the union or
otherwise fails to maintain his men,
bership in good standing.
Unsound Principle.
1--WE consider that to be an undem-
ocratic and msound principle, and
against the public interest
He said he wrote the President
the company wished to reopen the
yard Immediately IF assured that
our employees will be given adequate
protection" adding there was no
doubt most of them were eager to
60 back to work
From now on, Mr. Hassett said, the
Governments handling of the whole
problem is in the hands of Navy
Secretary Knox.
The executive order by which
the President ordered its seizure
concluded as follows:
Possession and operation here
under shall be terminated by the
President as soon as he determines
that the plant will be privately
operated in manner consistent
with the needs of national defense
Emergency Declaration Cited.
In the accompanying announce
ment it was stated that "in view
of the national emergency, the stop
page of work jeopardizes the con-
struction of vessels essential to the
defense of the United States"
Basis for the seizure order was
cited as the declaration of unlimited
national emergency promulgated by
the President on May 27. calling on
'1oyal citizens" to hold the Nations
needs first in mind, and on loyal
workmen and employers to merge
their lesser differences in the larger
effort to insure the survival of the
only kind of government which rec
ognizes the rights of labor or of
capital"
Reciting the background of the
Kearny case, the order specified
that the company had entered into
a contract with the Government for
the construction of vessels and fa-
cilities, that such work is underway,
and that actually the Government is
(See ROOSEVELT, Page A-5.)