Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-02-13
Pay RaiseLinlit
Being Studied
BY President
Possibility of Change
Makes Time of Plans
Disclosure Uncertain
BY jones Y. Newton

A reconversion- period ceiling
on wage increases was reported
under consideration by President
Truman today as part of the ad-
ministration's new wage-price
policy.
The plan, worked out by White
House advisers who have been meet
ing daily on the sterilization prob
lem. is designed as support for
price control and as encouragement
to industry to raise pay to levels Of
a national pattern by giving assur-
ances that labor will not return soon
for further increase after current
demands are satisfied.
Under the plan, even voluntary
wage increases, such as those agreed
to by management that do not ne
cessitate higher prices, would once
more be subject to approval of the
Wage Sterilization Board. This was
done during wartime by the War
Labor Board, WSB's predecessor,
but after vi day all controls on
voluntary raises were removed.
Would Fit Into Policy.
Officials said it would fit into the
new wage-price policy of allowing
price increases to industries that
need relief to enable them to meet
the wage demands of their workers.
Labor leaders already have ex-
pressed opposition to such reinstitu-
ton of wage controls and some off,
cials participating In the White
House conferences admitted that it
was questionable whether the plan
would arouse more unrest than it
would settle. In any event, they said
the plan was being put up to the
President.
Possibility that Mr.. Truman would
veto the wage control idea added to
the uncertainty as to just when the
administrations strike-settling new
policy would be announced. Settle
ment of the 24-day-eld general steel
strike and announcement of the re-
shutting of top sterilization person.
mel that would place Price Admin
istrator Chester Bowles over the en-
tire program were being delayed
pending announcement of the new
policy.
Bowles' Appearance Postponed.
Meanwhile, Chairman Spence of
the House Banking Committee an
nounced fourth postponement of
the appearance of Mr. Bowles before
his committee on the administra-
tons requested extension of the
Sterilization Act beyond the June
80 expiration date. Mr.. Spence said
hearings had been put off from to-
morrow until Monday because of
Mr.. Bowles' illness rather than the
delay in drafting new wage-price
policy.
Iron Age, national Woodworking
magazine, said today the steel wage
price issue has been settled and "the
strike is expected to be ended prob
ably this week, or early next week"
CLIO United Steel Workers will get
the 18k -cents-an-hour increase that
President Truman suggested, the
publication said, and the steel in
dustry will obtain an average in
crease of SIS ton on carbon and
alloy steels. Announcement of the
price agreement has been held in
allegiance pending completion of the
broad pricing policy, it stated.
S60,0O0,00e Loss in Wages.
Iron Age estimated that the strike
has cost 100000 tons in steel pro-
duction and $50 1000, 900 in wages to
workers in basic steel plants alone.
The price increase viii bring the in
dustry about $275, 000, 900 a year and
the wage increase will cost about
$183, 000, 900, the difference falling
''far short of what the industry has
claimed is necessary" to raise earn
ing to pre-war levels.
Mr.. Bowles is believed to be insist
ing in the conferences, which are
continuing, that controls be placed
on wages SO that he will be able to
hold the new price line which the
administration is relaxing in order
to end the current wave of wage
strikes and disputes and get produc-
ton into high gear. He was joined
by other officials and majority of
presidential advisers favored the
move.
It was understood the plan was
opposed by Secretary of Labor
Schwellenbach and others con-
cerned directly with labor.
Basis for Settlement.
The new wage ceiling, it was
understood, would approximate the
II to Is per cent increases recon-
mended by Federal fact finding
boards and which were used as a
basis for settlement recently of
number of major disputes. Should
Mr.. Truman approve the plan, off,
cials said percentage figure prob
ably would not be included in his
new Sterilization. But, the Wage
Sterilization Board would use the
fairly well established pattern in
acting on both voluntary requests
for higher pay as well as those in
volving higher prices.
/ A meeting of WSB, headed by w.
Willard Writ, was held late yester-
day and, it was understood, the
board was split over the plan.
Ofhcials opposing the move pointed
out that it would do away with coll
1lective bargaining between manage
ments and unions which was re-
sumed last fall upon the lifting of
wartime controls. Labor fears that
il would lead to the drafting of wage
agreements by Government edict for
| d long time to come.