Evening star., 1946-02-05

GuAoPC, buG t11dt liC Q1o llOt
know what else was taken up,
If anything.
By JAMES Y. NEWTON.
The Government today was
formulating a new price-wage
policy designed to enable steel
producers specifically and indus
try generally to settle reconver-
sion disputes with their workers.
officials expected that the new
policy, described as slight retrea.
to a new stabilizaation line" would
be announced in the next two OF
three days. Some predicted that,
as result, the 16-day general steel
strike and possibly the walkout o:
zoe, 900 CIO United Electrical Work
ers would be settled by the week
end.
It was understood that officials,
in moving back the stabilizatior
line and allowing general industry
higher prices for their products Sc
that wages may be boosted, will
specify that the new line must be
held for one year.
Bowles Insists on Year
Price Administrator Bowles, who
gave in reluctantly before the pres
sure generated by the necessity Of
getting production into high gear,
is said to have insisted that there
be no further changes in policy for
q year-ythe estimated duration OF
the reconversion period.
Ofdcials believe that within a
year an avalanche Of new civilian
goods will have removed the danger
Of imitation and that OPA will not
be needed any longer It was said
that the administration is con-
sidering asking Congress only for
a six-month extension of the Stab
ilization Act, move that would be
pleasing to the Capitol.
The new policy, it was said, wiz
give the steel industry price in
crease somewhat in excess OF 81 a
ton. Officials were hopeful that this
win enable the companies to meet
President Truman's suggestion that
the CIO United Steel Workers be
given wage increase of 181z centS
an hour.
Truman Calls Cabinet.
One official said several steel In
dustry executives have been in the
city since Saturday. He said they
may be called to the White House
to receive the news of the exact fig
ures they may expect in the way OF
price relief or the word may be COM
municated to them in other ways.
Mr.. Truman called his cabinet
into session today and it was indi-
Gated that the chief topic for dis
cussion viii be the new wage-price
policy.
A new stabilization executive or
der, it was understood, is beins
drafted outlining specifically how
far Federal stabilization agencies
may go in granting price and wage
increases beyond the present line.
It was hoped that at least a gem
eral statement outlining policy
changes can be issued prior to the
scheduled appearance of Mr.. Bowle.s
on extension of price controls before
the House Banking Committee
Thursday morning. The Stabiliza-
Act expires June 80 unless extended
by Congress.
May Settle Meat Dispute.
Settlement of the wage dispute in
the meat packing industry which led
to the strike and Federal seizure Of
the plants will be possible under the
new policy, officials believed, as well
as the ending of other disputes
where manufacturers are already
pressed against price ceilings.
Despite the fact that he Is the
Governments strongest advocate o.
q strict "hold-the-line" policy, the
new developments were described as
a victory for Mr.. Bowles.
Reconversion Director John w.
Snyder was said to have advocated
spot" industrial price increases
in steel. He believed, for
example, that a rise in steel prices
could be contained to that industry.
alone.
Mr.. Bowles insisted that any
change In the price line should apply
to industry generally, since such
price increases as Mr.. Snyder con-
templated for steel would place
manufacturers dependent on steel
IN "a two-way squeeze. They would
be under the pressure of both higher
wages and higher materials cost.
This, Mr.. Bowles was described as
feeling, would give OPA the impos-
sible task Of holding the line here
and letting it 60 in other pieces.
Bowles Sees Baruch.
While predicting that contem-
plated price policy changes would
have effect on other major wage
0AoP4oSo, 0AaSAdAo UCuSVGQ tllG (Ie0s
eral Motors automotive strike would
drag on while longer, because
other issues besides wages have been
raised In current negotiations.
Mr.. Bowles discussed his problems
with Bernard NJ. Baruch yesterday
and later went to the White House
for q 50-minute session with the
President. It was not believed. how.
ever, that the meeting with Mr..
Baruch influenced the price admin
istrator. Sterilization Director John
G. Collet was said to have sided with
Mr.. Bowles that any price conces-
sions should be general to industry.
On leaving the Presidents once.
q reporter asked the price chief il
he was still working for the Govern-
rnent.
7 still am he replied, smilingly.
0he pay Is good and the working
conditions are lousy"