Evening star., 1948-08-29
.WAA Chief Welcomes
Republic Deal
On Disputed U.S.. Plant
BY ths Associoted Press

BY ths Associoted Press
/ War assets administrator Jess
] Larson last night gave his blessing
( 10 the pact between the Kaiser
Frazer Corp. and the Republic Steel
! Corp providing for operation of the
Government $28,000,000 surplus
blast furnace in Cleveland.
The agreement, temporarily calm
ing battle over the plant which
caused a congressional hearing last
Wednesday. provides that Republic
will run the plant for Kaiser Frazer
Kalser-Frazer takes possession from
WAA on Wednesday.
! Mr. Larson said the agreement
reached yesterday in Cleveland
will prevent any displacement in
our domestic economy" which might
result if some 400 small foundries
were cut off from pig iron supplies
by the threatened shutdown of the
furnace
Letter Made Public.
Mr. Larson made public a letter
from c. M. White, president of Re-
public, stating that Republic will
continue to serve our customers
with merchant pig iron" as in the
past.
At an earlier stage of the dispute,
Republic had announced it would
shut down the war-built plant
because of WAS refusal to accept
Republics offer for the property
Mr.. Larson. after suggesting unsuc-
cessfully that the price be arbi-
trated, offered the plant to Kaiser
Fraser. The automobile company
promptly accepted.
Mr.. Larson's statement last night
indicated a difference of opinion,
however, on what will become of
the furnace when the new agree
ment expires next May l.
He said both companies will have
an opportunity to construct facili-
ties for independent opera ton, "
This implied a belief that Kaiser
would build facilities permitting the
plant to be run independently Of
the adjoining Republic Steel prop
critics.
Dispute Continues.
with the time which this agree
ment will permit" he added. I be-
lieve Republic Steel Corp. will erect
facilities which will permit it to
continue to serve its customers"
However. Mr.. White issued a
statement in Cleveland Friday night
indicating he still hopes to get pos
session of the disputed property.
Republic, he said, retains all rights
it has or may have in the future to
continue its fight for permanent
possession of the blast furnace and
coke oven plant
Mr.. Larson's statement did not
reveal the terms on which Republic
will lease from Kaiser-FraZer eX-
cept to say that WAA will receive
from Kaiser Frazer rentals higher
than Kaiser-Frazer will receive from
Republic. In exchange, the auto
concern will be guaranteed 5000
tons of pig iron monthly from the
furnace at the going market price.
Mr.. Larson took part in the meet
ings in Cleveland Friday at which
the agreement was signed
Earlier yesterday Representative
! Bender, Republican, of Ohio issued
a statement saying he was pro-
foundly gratified" by the temporary
settlement. He heads a House Ex-
penditures subcommittee which held
a joint hearing Wednesday with
the Senate Small Business Commit
tee on the surplus transaction.
Shutdown Seen Catastrophe.
Mr.. Bender said a shutdown of
the plant would have brought "a
catastrophe injury to the foundry
industry" The closing OF many
of these foundries will be averted
by the agreement, he said.
BY the time the agreement ex-
pires in May, he added, Congress
will again be in session and be able
to act by legislation or otherwise
If required"
Senator Wherry, Republican of
Nebraska chairman of the Senate
Small Business Committee, said the
agreement between Republic Steel
and Kaiser-Frazer whereby the
smaller independent foundries will
get pig iron is what the committee
was fighting for"
II feel" the Senator said in a
statement, that this committee S
efforts to bring to public attention
the plight of small business in
serious supply situations has sue
ceeded in making government and
industry more conscious of their
responsibilities to keep open normal
channels of supply and distribution. "