Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-12-28
|GM Withdraws,
BUT
WorkContinues
Board Stands Firm
On Ability to Pay
In Wage Contracts
BY JAMES Y. NEWTON.

General Motors Corp. today
withdrew from President Tru-
mans fact-finding investigation
OF it's five-Week strike, but the
investigating board promptly
announced it would continue it's
hearings regardless.
Walter G. Merritt. corporation
attorney, announced the decision to
bolt the hearings after the Fact
Finding Board had stated it would
not recede from or mildly" its po-
sition that GINS ability to pay
would be a factor in consideration
of the wage dispute.
JAW Vice President Walter P.
Reuther had completed his answer
to an earlier statement of Mr.. Mer-
rift when Board Chairman LLOYD
K. Garrison announced the hear
ings would be recessed until 2:30
this afternoon. At that time, Mr..
Garrison said, his panel would
make brief statement and would
be prepared to go ahead with the
taking of testimony on the GIN dis
pute.
Chairs to Be Vacant.
Mr.. Merritt then was asked by a
reporter if GIN would be repre-
scented when the hearings resumed.
Our chairs will be vacant" he
replied.
He then was asked if he meant
GIN had withdrawn
Yes, we have withdrawn" the at
torney answered
Mr.. Reuther challenged Mr.. Mer-
ment to investigate the charge the
GIN attorney made this morning
that the unions efforts to bring
profits and prices into consideration
Of the wage issue was violation of
the antitrust law
Our conspiracy is only one to
hold down prices" Mr.. Reuther said
GINS top officials did not appear
at the bearings today, although both
President C. E. Wilson and Vice
President H w. Anderson had at
tended earlier sessions. The cor
poration was represented by Mr..
Merritt and assistant counsel.
Difficulties Outlined.
Mr.. Merritt said in his statement
at this mornings hearing that "un-
der the special circumstances of
under the special circumstances of
this case, the corporation feels that
1t should not participate in these
fact-flnding proceedings, so long as
ability to pay is to be treated as a
subject of Investigation, fact-finding
and recommendations"
Mr.. Merritt outlined in detail the
difficulties the board would en-
counter in deciding whether GIN
could pay higher wages after ex-
aiming its production costs and
profits position. He said:
But beyond all of these and
other detailed considerations it is
well for the board to consider that
this issue, as expanded by the union,
reflects, not mere issue of wages,
as between the corporation and this
union, but a broad attack on Amer
lean industry and free enterprise.
The corporation must deal with this
fundamental issue as it is portrayed
by the union and not as an alb
straction"
The GIN attorney said they
would be willing to make available
to the board facts and figures which
they considered pertinent. These
included statistics as to wage rates
and earnings, figures on take-home
pay and data as to whether wage
increases have kept pace with the
increased cost of living.
"Pawns in Larger Game"
He charged that GIN employees
ARE being made pawns in a larger
game" an effort by the CLIO union
to set wages geared to prices and
profits on Nationwide scale.
The issue is not primarily one of
wages, as between General Motors
and its employees" Mr.. Merit said.
1T is an issue of theology and ma
tional policy which really belongs to
Congress"
Mr.. Merritt accused the union, by
its policy of gearing wages to ability
to pay, of attempting to enter into
conspiracy to fix profits and prices
as well as wages. He said it was
a national policy of the CLIO, not
just an issue with GIN alone
Would End Antitrust Laws.
If the JAWS policy is followed,
Mr.. Merritt said either our anti
trust laws, which require COMPETE
ton and forbid collusive combina-
(See LABOR, Page A-5.)