Evening star., 1948-03-21
Miners Pension Dispute
May Be Just Smokescreen.
Lewis Believed Applying the Heat to Soften
Up the Industry and Pave the Way for
Bigger Objectives Later On
By james Y, Newton


John L. Lewis and the soft CO
public, as usual, In the middle. 81
more people than the income tax
look at what.it is all about from
the annual contestants have opene
First, it should be kept in min
not be the main Lewis show thi,
year. It is probably just q warmup
Late In 1916 he started an argument
with Secretary of Interior Krug over
Interpretation of the contract which
the Government, then in possession
of the mines, had negotiated with
him earlier in the, year. An injunc-
ton and subsequent Federal court
citation for contempt merely post
poned until mid-1947 Mr.. Lewis
winning a wage increase of unprece-
dented size and fat welfare and
retirement fund for his miners.
Operators, Wary of Slip
Again the argument involves in
depreciation of contract-the fat one
the United Mine Workers got from
the operators last July 8. Once more
the main show will be the negotia-
ton of new contract. The present
one expires June 80 and may be re-
opened on 80 days notice before that
time. It may be that Mr.. Lewis
never expected the miners to walk
out when he wrote them the op-
orators had "dishonored" the con-
tract with respect to their pension,
but few believe it. Most observers
believe Mr.. Lewis is applying the
heat" to the industry and the coun-
try, softening them up to gain the
present objective and bigger ones
later.
All of this explains why the op-
orators are proceeding with such
caution In working out details OF
the welfare and retirement fund
They know that a slip can cost them
so much more later on.
The present contract calls FOL
payment by the operators of 10 cents
a ton on all coal mined into what
is called the UNIV Welfare and Re-
tirement Fund OF 1947. To date over
$50, 900, 900 has accumulated in the
fund, and it grows at a rate OF about
81 900 900 a month when the mines
are running.
It has not been touched SO far
and lies idle and uninvested IN q
bank because agreement is lacking
as to just how it should be spent
That such a stalemate would occur
was anticipated, so third and neu-
trail fund trustee was named IN the
contract-Thomas E. Murray OF New
York. He was supposed to break the
tie between Mr.. Lewis and Ezra Var
Horn of Cleveland, the operators
trustee. The only trouble was thai
after months Of arguments Mr.
Murray became disguised and quit
blasting away at the unyieldins
position of both of the other trus
tees. A suitable successor has no
been found.
Experts Hired and Fired
The contract states that the funo
shall cover numerous needs of the
miners, of which old-age pensions
the cause of the current controversy
is only one, although the most costly
of them. Benefits also are to be
paid for desth, sickness, accidents
temporary and permanent disability
medical and hospital care, insurance
and the like. 1t is supposed to be
used to make up for the inadequate
workmen's compensation in some
States.
Mr.. Lewis being a dominating
person, the operators say that he sci
about Immediately fashioning 9
pension plan to be paid out of the
fund without regard for the Other
uses mentioned in the contract. He
proposed a resolution to the trustees
calling for the payment Of $10t
monthly pensions to all miners 81
years of age or older with 20 years
experience.
The operators baked at this ap.
proach to the use of the fund. Their
there arose such loud and Ions
argument over who should be eligi.
BILE for pensions that they say the
matter of size of monthly payments
was never seriously discussed. Th'
mine owners admit the fund will
support a pension, but if they hav'
any idea as to its size they are no
saying.
A firm of experts was employed b.
the trustees to make actuarial stud
les as 10 just what the fund woul'
support. Mr.. Lewis did not like tn
preliminary findings, according t.
the operators, so he caused then
to be fired and ignored their re
port" Then they say he asked tn
Social Security Board for study
but the same thing happened to tha
report.
Both reports, preliminary Il
character, varied all over the lot a
to total cost of the 500 MONTH
pension, according to different con
ditions each used in making severa
actuarial studies. But both indi
Gated the pension cost would ia
exceed present fund revenue, espe
cially since 1t is supposed to tax
care of other things.
Disagree on Eligibility
1t should be noted that Mr.. Lewis
in touching briefly on the Socia
Security Board report, told reporter
the board figured the pension prob
ably would not cost more thai
$40 900 900 to s15,00o,000 in its frs
year. In so doing, he used abou
the lowest figures the board gave
based on a pension of very limite'
4 49, ,t<<l