Evening star., 1942-01-21

the opinion that David Lawrence.
they have constituted the greatest
single cause of delay in the defense
program. For example, the Allis-
Chalmers strike in Milwaukee was
extremely costly in that 1t delayed
the completion and outfitting of
destroyers, submarines, minesweep-
ers, transports, net tenders, repair
ships, and fleet tugs for periods
ranging up to six months. The ef-
fects of the delays caused by this
strike in the delivery of vital ma
chinery and equipment are still be-
ing felt-and will be for some time
to come
Huge Work Loss.
The union in question was the c.
I. o. and the records will show that
Secretary Of the Navy Knox and
o. P. M. Co-chairman William
Knudsen appealed to the workers in
the name of patriotism to end the
strike. Subsequently it was dis
covered that the ballot ordering the
strike was in part fraudulent. But
neither Congress nor the President
did anything to punish those who
we're guilty of the fraud or those
who abused the collective bargain
Ing power to prevent American
soldiers and sailors from getting the
weapons they now need to defend
themselves against the enemy.
The Allis-C Chalmers stoppage last
ed rs days, and the House Naval
Affairs Committee speaks Of the
"willful deception by a group of
labor leaders" whereby the workers
lost wages amounting to $297O,0OO
The committee gives statistics
and details about other major strikes
and says that 20,688 900 man-hours
were lost on naval defense contracts.
Hearings are to be held shortly
which will further survey the causes
Of strikes and their effect on the
defense program.
Likewise the House Naval Affairs
Committee, whose chairman is
Representative Carl Vinson of
Georgia, long a believer in profit
limitation on defense contracts, fur
nishes some interesting data on the
profits made by companies holding |
naval contracts. While recommend
ing that some profit limitation be |
imposed by law, the committee says
"as a result of its survey of defense
contracts, that neither industry as
whole nor the major part of in
dustry should be criticized" 1t
adds. however, that where profits
range above per cent, as has hap
pened in many instances" there
should be limitation.
Union Finances Cited.
incidentally, the Naval Affairs
Committee finds the national labor
unions like the c. I. O., the A. F.. L.
and the railway brotherhoods to be
richer than ever before. The net
gain in the A. F. l.. was about ST.
100000 last year and the c. I. o.
nearly 100000. The committee
says:
'"The tremendous financial gains
made by labor organizations during
the period Of the defense effort and
the vast amount of funds and assets
in their treasures present an as
founding picture Of concentration
of wealth, situation heretofore
usually associated with industry and
finance. These vast tax-exempt
funds reposing in the treasures of
labor organizations, many of which
by strikes and labor stoppages have
delayed and, in instances, even OBJ
structed the defense program, pre-
sent a problem which the commit
tee feels should well be considered
by the Congress. The committee
recommends that suitable legisla-
ton be enacted requiring all labor
unions (along with other special in
terest groups) to register with
suitable governmental body anG to
furnish pertinent information con-
cerning their officers, members and
financial condition at periodic in
tervals."
The Naval Affairs Committee
goes further and advocates "the
enactment Of fair and suitable legis-
lation designed to prevent inter-
ference with the progress and speed
Of the defense program by strikes
and work stoppages.
A minority report, filed by Repre-
sentative Shannon, concurs in the
main objectives Of the report and
its conclusions" but objects to the