Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-12-21
Labor
Continued Prom First Paee. }

however, the FEDERAL instructions to
the fact-fnding boards held them
rigidly to present price and wage
regulations. These regulations per-
NIT wage increases II they are not
used as basis for seeking a price
rise and allow exceptions to price
controls to correct certain ineouities
and substandard pay.
Meanwhile, In Detroit, the JAW
held little hope for early settlement
OF its wage dispute with the Ford
Motor Co. IS negotiations were in
recess until January 8. The COM
panys proposal Of q 1874 per cent
wage rate increase as against the
unions demand for a 80 per cent
pay hike for the automotive indus
try, was formally rejected at yester-
days conference. The union termed
the oner completely unacceptab le'
and totally inadequate"
Mr.. Humans surprise statement.
released at his news conference yes
terday, definitely put GIN and other
arrangements involved in wage dis
putes, on the spot. At the same time
1t moved the Auto Workers and
other labor from the spot backing
arguments the JAW made all dav
yesterday before the GIN fact-find-
ing board.
JAW Vice President Walter P
Reuther had argued at length be-
fore the board, headed by Mr..
Garrison, that Government wage
policy "necessitates" consideration
OF company profits and ability to pay
In deciding wage issues. He backed
ms arguments with quotations from
the President and other high Fed
eral officials.
Statement Surprises Board.
GIN, through Walter G. Merritt.
the New York attorney who won the
famous Danbury Hatters case in the
early part Of this century, argued
Just as strongly against the inter-
lection Of profits into the hearings.
IL Was Mr.. Merritt who announced
GINS intention to bolt the proceed.
ings II the board ruled against
them.
Mr.. Garrison was about to recss.
hearings until December 20 to allow
his board opportunity to decide the
issue when an assistant brought him
copy Of the Presidents statement.
The board obviously WAS Is fiabber.
gasted IS were GIN and the union
IS M Garrison slowly read the
statement. The chairman repeated
several times that he had not dis
cussed the matter with Mr.. Truman
or any other Federal Official.
AS Mr.. Garrison proceeded to read
the White House statement 4 broad
smile spread across Mr.. Reuther's
face. The faces of the whole row
OF JAW ondcials lit up like street
lights at dusk. The gloom on the
GIN side of the table was equally
as noticeable.
MI. Truman said that ability to
pay is always one of the facts rele-
want to the issue of an increase In
wages" His statement concluded
with the warning: In view of the
public interest involved, it would be
nightly unfortunate if any party to
a dispute should refuse to cooper
ate with a fact-finding board"
Mr.. Humans request for legisla-
ton setting up fact-f1nding proce-
dures in major disputes, backed with
authority to subpoena witnesses and
company books, has been stalled in
Congress.
In his statement, the President
declared the boards should have au-
thortty to examine an employers
books in determining his ability to
pay higher wages.
This does not mean" he went on
that the Government or its fact
finding board Is going to endeayor
to NIX . rate Of return for the en-
ployer. 1t does mean, however, that
since wages are paid out of earnings,
the question Of earnings is rel
evant."
Mr.. Truman made no reference
to>GM or any particular labor dis
pute. GIN Vice President H. w.
Anderson conceded later that ex-
animation of books by a board was
different from opening them to the
union.
Mr.. Merritt earlier had told the
Garrison board that GIN would not
open its books to the JAW and con.