Evening star., 1945-01-02
Ward Workers Face
Draft Redistribution
Il They Defy Army
Gen. Byron Tells Stimson
Employees Refusing to
Help Are Being Replaced
By the Associated Press.

BY the Associated Press.
CHICAGO, Jan. 2.-Maj. Gen.
Joseph w. Byron reported today
that Montgomery Ward g. Co.
personnel who refused to CO.
operate in Army operation of
seized properties in seven cities
were being replaced and some
made subject to selective service
IreclaSsification.
Specifically, the general named
Sewel Avery, chairman of the board,
and other representatives" as hav-
ing refused to operate the properties
under his direction since the seizure
under presidential order Thursday
Mr.. Avery refused to recognize the
seizure as constitutionally valid and
said the company could not accept
or obey it.
Gen. Byron also announced the
Army this morning seized two ware
houses in Detroit, necessary for
effective governmental operations OF
the four Wards stores in the Detroit
area" This made a total of I6
properties-l0 retail stores, 8 mail
order houses and warehouses-now
under Army control.
Mr.. Avery was in his office. near
that being used by Gen. Byron when
the military managers preliminary
report to Secretary of War Stimson
was released.
Subpoenas Served.
H. L. Pearson, vice president and
treasurer of Wards, was served with
a Federal grand jury subpoena by a
United States deputy marshal. who
also carried subpoenas for the COM
pany chief of guards and head of the
protection department. The Gov
ernment purpose of this action was
not Immediately clarified.
The general said that at each
property in Chicago, Detroit, st.
Paul, Denver, Portland Greg: San
Rafael, Calf, and Jamaica. N. Y,
an opportunity was given to repre-
sentatives of Wards to conduct the
business under my direction . i.
with the least disturbance to the
normal operations of the properties
and without prejudicing the legal
rights of the company.
Mr.. Sewell Avery. chairman. and
other representatives of the company
refused. I, accordingly, issued orders
to them to do certain acts which
were necessary for me to carry out
my mission. Again they refused.
This will make it necessary for me
to place operating personnel at each
OF the properties. This personnel
will include officers of long expert
ence in the merchandising field
Federal Court determination of
the issues awaits hearing January
q OF a Government petition for a
declaratory judgment to establish
legality of President Roosevelt's s
seizure order. caused by Wards re-
fusal to comply with War Labor
Board directives, and for an injunc-
tion to prevent company mterfer-
ence with Army operations.
Wage Increases Ordered Paid,
Gen. Byron reported to the Sec
retary of War that each Army man
placed In an operating position at
the seized properties had been in
structed to take these steps .'at the
earliest practicable" date:
Replace all company personnel
who do not carry out my instruc-
| tions.
Make appropriate arrangements
for handling of receipts and ex-
penditures.
Examine all pertinent books and
records.
Examine current payrolls and
other records for the purpose of
putting into effect as rapidly as pos
sible such wage increases as have
been directed by the WLB
Examine old payrolls and deter
mine the amount of wage increases
to be paid retroactively..
Meet with representatives of all
labor unions involved for the pur-
pose of making preliminary ar
Irangements to put into effect the
directives of the WLB. tThese in
lclude maintenance of union mem
bership, checkoff of union dues,
wage increases and union seniority
Gen. Byron said he would con-
tinue to carry out my mission until
otherwise ordered by you fSecretary
Iof War or q court of competent
| jurisdiction"
He reported that in seizing Mont
gomery Ward main Offices in Chica-
go, where the business of some $50
other company properties also is
directed, he had not interfered with
access OF company officials and per-
mitted them to utilize the Chicago
facilities for carrying on the opera
tions OF the company other than the
seized properties.