The Waterbury Democrat., 1946-01-19

0, 8, steel reconsldered. Because of the preparations to be made for a shutdown, tonight was considered the deadline for averting the walk out.
 The Administration had pinned its hopes for labor peace almost completely on e settlement of the steel dispute.
 It gave relatively little attention to strikes this week of 100000 elec- trlcal workers and nearly 300,000 Packinghouse workers. It also large ly ignored General Motors refusal to grant a government-proposed iok cent wage increase to I75,0O0 striking auto workers.
 Dlsmayed At Corporation
 Administration leaders plainly were startled and dismayed by the corporations action. They feared that a steel strike would push the nation into a period of bitter in- dustrlal strife that would slow down reconversion dangerously.
 Although only U. s. Steel has been directly involved in the negotiations, the scheduled strike would affect 8o basic steel com- panies and hundreds of steel fabri- 1 eating and aluminium plants and small companies.
 President Truman emphasized the seriousness of the situation when he said o steel strike would "be belt in practically every major industry in the United States"
 RatlOning of Steel Begun
 "It will hamper our reconversion effort" he said. "Tt will stall our attempts to establish sound ec- onomy to which our veterans can return. Its repercussions will be felt all over the country for a long time to come"
 Meanwhile, the Civilian Produc- tlon Administration moved to con- serve available steel -stockpiles for essential needs by setting up a voluntary rationing program.
 Administrator John D. Small said that if the voluntary plan does not work, he will issue emergency rat- ings for vital industries and serv- ices, including hospitals, public utilities, transportation and fooo processing.
 Short Time
 He emphasized that warehouse steel stocks would meet the coun- tTy'S demands for "a very short time"
 Congressional reaction to the breakdown in steel negotiations was mixed Congressmen favoring the presidents finding proposal believed 1t would help their cause. Those opposed thought 1t would have the opposite effect.
 There was no evidence, however, that the stalemate had changed anyone's mind. One Congressman did say 1t pointed up the need for government to bow out of the strike picture and return wage negotiat- ions to collective bargaining.
 Seizure Not Likely
 Murray and President Benjamin F. Hairless of U. s. Steel were called to the White House for three days of conferences before Mir. Truman sought to end their disagreement by offering his own formula.
 After the White House announced the company and union decisions, MT. Truman issued a statement again urging the company to accept. Corporation representatives here did not know whether there would be formal reply.
 Government officials indicated that no further move was planned before the strike. One Government source said there was mo probability soon" of Government seizure of the steel industry. That same official, however, saw no possibility of pre- venting a prolonged shutdown ex- cept through seizure or pressure of public opinion" which would per- suade the industry to accept MT. Truman's proposal.
 Financial Harm Stressed
 It was certain that the union would not accept less than l8 l-2 cents in the immediate future.
 Tn revealing the company's de- cision, Fairless wrote MT. Truman that the Presidents wage proposal would cause great financial harm" Some government and union off cials believed that Hairless himself was not strongly opposed to the union demand for i9 l-2 cents but that he was held in check by other steel industrialists. The corporations highest offer was IS cents.
 Murray told a press conference yesterday that Fairless once had re- garded the union demand as "mer- itR1ous" and had promised to rec ommend industry acceptance. Fair less Issued a statement last night terming Murray's remark a base falsehood."
 Murray Lashes at U. S. Steel Tn q statement denouncing the steel company, Murray said an "evil conspiracy among American big bus- mess has been unmasked."
 Murray charged that industry had deliberately set out to destroy labor unions, to provoke strikes and eco- homie chaos and hijack the Amer ican people through uncontrolled profits and imitation"
 The Jones & Laughlin walkout in Pennsylvania and the Columbia strike in California began just 52 hours before the strike deadline. It was orderly and pickets permitted necessary maintenance and plant protection workers to remain to tap the heats remaining in furnaces.
 To Protect Furnaces
 The strike was voted by two USW- CIO locals with authority at the mills after 60 men walked out at the Ha1elwood l8-inch bar mill. The strike reportedly was the result of a dispute over the plant maintenance set-up.
 CaTneeie-Illinois Steel Corpora ton expected to complete banking it's furnaces to protect them against permanent damage by Sunday mid