Evening star., 1942-07-23
Three Little Steel
Accept
WLB Pay Order
All, However, Criticize 1t
Severely; InIond PIons
Federal Court Test
P, the Associated Press.

WIFI Ine DOdTQ oTQeT LOT 44-Cent
a Gay wage increase.
Republics president, r. J. WysN,
informed the corporations board
that the WLB decision was ''un-
sound and constitutes a threat to
the whole national economy" Pres
ident Frank Purnell of Sheet e. Tube
said the wage increase will create
additional purchasing power to COM
pete with the Governments buying
for war purposes and this will i'm
pede the war effort ="
Republic agreed to submit to the
WLB's order for union security for
steelworkers. Sheet and Tube also
will comply even if the board fails
to sanction a court test-suggested
by Mr. Purnell-of its authority to
force the company to deduct union
dues and grant union security.
Inland Plans Court Test.
Three of the four little steel
concerns-Bethlehe Republic and
Sheet and Tube-have announced
they would follow provisions of the
WLB order in contracts under ne
gotiation with the CIO United Steel
Workers of America. The fourth. In
land Steel. announced it planned to
test in court the boards power to
impose union security
Mr.. Purnell said that despite a
belief the WLB's actions were con
trary to the Nations best interests
his firm would comply because of
our supreme desire to do anything
and everything which the Federal
Government believes will contribute
to its efforts toward winning a COM
plete victory over the enemies OF
this country"
Crisis Prompts Acceptance.
In letter to the board, President
r. J, Wysor of Republic declared the
company's compliance was prompted
only by these critical times"
I'm normal times the company
would exercise its right to appeal
to the courts to test the legality
Of your directive ORDERS the letter
eAoASo' AAo"CfCI, LI1CSS dIc l1Ot
normal times. Such legal step, re-
gardless of its merit. might seri-
ously interfere with Republics all
out war production.
Republic is prepared to make
any sacrifice to support to the war
effort and keep its production levels
flowing at its present record break
ing levels
Bethlehem Steel Co. yesterday
notified the board it would abide
by the directive ordering wage in
creases for $4,000 workers, while
the Inland Steel Co. said it in
tended to test in Federal Court the
boards order to impose union Sc
curity in labor contracts.
Disastrous Initiation" Seen.
Declaring itself wholly out of
sympathy" with the directive, the
Republic presidents letter asserted
the steelworkers' wage increase may
we'll prove to be the. starting gun
in a race of disastrous imitation, y
and added:
TN these war times when sacri-
fees are being urged upon every
American, the theory that wage
earnerS or any other group are
entitled to maintain their peace
time living standards as of Janu-
airy l, 1941, is fantastic"
The company's management ex-
pressed belief its workers should
be free to join or not to join any
and that the boards
directive granting maintenance of
union membership is destructive
OF such fundamental right"
With respect to your directive
awarding the checkoff, we still in
sist the collection of union dues is
strictly union function and should
not be forced upon the company
against its will" the Republic
presidents letter said.
Eugene G.. Grace, Bethlehem Co.
president. in a letter informing the
board his firm would put the wage
raise order into effect, said:
In informing you, however. Of
our intention to comply with your
orders. I desire to make it clear to
you that it is still our opinion that,
for the reasons that were set forth
at length in the statements and
brief which we filed with you and
which were briefly set forth in the
statement which I submitted to you
on July l. l942. your orders ignore
the basic principles upon which our
Government was founded and the
results of them will be harmful to
our national economy and to the
war effort
Grace Explained Views.
In his July l statement to the
board Mr., Grace opposed the gen.
eral wage increase and the COM
pulsory maintenance of union men,
bership on the ground that the
former had direct bearing on liv-
ing costs and the threat of infla-
ton while the latter involved the
principle of the freedom of en-
ployment."
In announcing it would take the
issue into Federal Court, Inland
Steel announced through its attor-
ney, Ernest S. Ballard, at Chicago:
I'VE are prepared to institute suit
within three days and will be ready
for hearing as soon as court can
hear U.s."
He asked the board to extend the
July 26 deadline before which the
company is required to take stand
on the boards decision.