Evening star., 1946-01-18
Compromise Agreeable to C|O;
Strike Sunday Appears Certain
President Voices
Hope Company
Will Reverse Stand
Terts OF Truman, Fairless
and Murray statements on Page
Az
By JAMES Y. NEWTON

The United States Steel Corp.
today rejected the proposal of
President Truman that it's wage
dltferences with the CIO United
Steel Workers be settled for a
general increase of 1872 cents an
hour. The corporations action
was announced at the White
House an hour after the union
had accepted the recommended
ton.
After the decisions were an
nounced, Mr.. Truman issued a brief
statement declaring that a strike
In the steel industry will be felt
all over the country and for a long
time to come. He expressed hope
United States Steel would reverse
its stand
Hopes OF averting strike set for
Ylldnight Sunday of 100000 workers
In steel and related industries all
but faded with the White House
announcements.
Industrial Warfare Feared
( Federal labor officials feared that
Big Steel's" fiat rundown of the
Presidents peace proposal would be
tantamount to declaration of in
dustrial warfare with the CIO that
might be the longest and bitterest in
the Nations history. Strikes and
disputes in many other industries
are affected by the steel decision.
There was no indication that Mr..
Truman or any other Government
officer planned any further move
to head off what would be the Ma
tlon's greatest strike. The White
House said seizure of the steel in
dIStry had not been considered.
White House Press Secretary
Charles G. Ross said the President
had no plans for further conferences
with CIO President Philip Murray,
who accepted the peace proposal for
the union, or Benjamin F. Fairless,
president of United States Steel,
who rejected it for his company.
Letters Taken to White House.
Mr.. Murray's acceptance was in
the form Of a two-paragraph letter
to the President delivered at the
White House at II As am. by Davis
j. Mcdonald, secretary treasurer of
the steel workers.
A lengthy letter of rejection from
Mr.. Fairless was brought in at l
pm, an hour after the deadline the
President set for action on his prop
osition. 1t was delivered by John
Munhall, III, public relations Off
Ger OF the corporation.
Mr.. Ross announced reaction of
the union and industry to the peace
plan. He said simply:
"The United Steel Workers of
America have accepted the Presi-
dents proposal in their dispute
with the United States Steel Corp
The steel corporation has rejected
the proposal. Mr.. Murray's accept
ance arrived about noon, Mr.. Fair
less rejection about l. Both were
delivered by hand"
Murray's Acceptance.
Mr.. Murray's letter read:
Consistent with the Steadfast
policy of the United Steelworkers of
America to do all within its power
to promote the national welfare and
thereby protect the interests of our
membership, beg to advise you that
the international officers of the
union do accept your decision and
shall recommend its approval by the
International Wage Policy Com
m1ttee of the union which shall be
assembled forthwith"
Referring to the Presidents pro-
poSal for an 181a cent increase ret
roactive to January /, Mr.. Fairless
wrote:
I'm our opinion, there is no Just
basis from any point of view for a
wage increase to our steel workers
of the large size you have proposed,
which, If put into effect, is certain
to result in great financial harm
not only to this corporation but also
to users of steel in general"
Is Cents Declared Limit.
He said the Presidents figure was
almost equivalent to granting in
full" the unions revised demands
of 1872 cents an hour.
Mr.. Fairless asserted that I'VE
reached our limit" with the offer of
a 15-cent-an-hour increase, first
made in New York negotiations a
week ago and repeated many times
in the dramatic White House con-
ferences of this week.
For the first time, the steel execu-
tive revealed that it was a Govern
ment promise of price increase on
steel that prompted the corpora
tion's 15-cent offer. The size of the
price increase was net mentioned.
Federal officials have admitted
privately that they were considering
price increase of about 81 ton.