Evening star., 1950-11-03
Truman Gains Delay
In Steel Pay Boost 10
Avert Price Increase
Secret Conference With
Murray Reported in Move
To Stall OFF Controls
By David Laurence

By David Laurence
The administration, it became
known today, recently indicated
1t would prefer that the steel
companies and the steelworkers
union should not reach an agree
ment in current negotiations be-
fore election day.
The plan had been to announce
q simultaneous increase of wages
and prices the moment an agree
ment was reached between the
CIO and the management of some
of the steel companies.
But apparently the administra-
ton felt that this might stimulate
throughout the country an in
tense demand for immediate ap-
plication of wage and price con-
trols-and, of course. such a de-
velopment could raise campaign
issues that would be embarrassing
all around.
So far as is known, the steel
industry did not agree to the
poStponement. though it's spokes-
men were well aware of the ad-
ministration's wish. So the objec-
tive was accomplished another
way. President Truman and CIO
Chief Philip Murray conferred not
long ago. It became apparent
shortly after this conference that
Mr.. Murray was not in as much
OF a hurry to get the wage in
creases as he had been before.
The negotiations suddenly slowed
down, and now it is unlikely that
my agreement could be reached
Sefore election, no matter how
hard the bargaining representa-
tWes worked at it.
Matter Enveloped in Secrecy.
Tt is easy enough to stall nego-
tn t1ons OF such a complex char
acier as are involved in the steel
Industry. The CIO leaders were
abb to comply with the wishes of
the administration without diff
Gully. Just what arguments were
uset to persuade Mr.. Murray to
nolc of can ouly be conjectured,
tnough 1t is rather surprising
that the matter has been envel-
oped in such secrecy. Usually one
side or the other insists on an
early end to protracted negotia-
lions or there is a threat of more
drastic action by the union. Eyi-
oentl, the conversations are pro-
ceeding leisurely.
Whsn the steelworkers' con-
tract s announced, it will impress
the country with the seriousness
OF the latest move in the imitation
spiral. It will probably result in
criticism of both the union and
the steel companies, and the de-
mand Tor controls will be pressed
Sharply on Washington.
This, however. is only one of
the problems facing the steel in
oustry. The latest phase of gov
ernmental Intervention comes III q
speech by w. Stuart Symington
chairman of the National Secur-
1ty resources Board. In an OBJ
vlous reference to the steel ind,,s-
try. he said:
In discussing this problem re-
Gently with the leaders of a great
corporation which produces a
basic material, they were frankly
nesitant about expansion IN their.
industry. because of their fear of
carrying excessive capacity in the
depression they considered newt
able.
These industrialists also said
they had a, report which proved
the United States could only alb
sorb AZ million automobiles, that
81 million were already in use
and that therefore the production
OF cars should be curtailed.
rs it right in any system of free
enterprise, however, for the sup
plier to dictate to the customer
when and what he can buy? Also
1t would seem that the American
people. not any industry, or any
group of industries, should de-
eide how many automobiles the
Nation can afford on the high
ways"
The foregoing constitutes a
paradox. On the one hand. pri-
Vate business must gauge accur-
ateIy future demand or overbuild
and run the risk of constructing
plants which soon become idle
and costly to maintain when not
in operation. On the other hand
II the defense needs require more
plants now, then it becomes a
question of whether the Govern
ment will supply the extra plants
or finance them for industry-a
problem that arose during World
War II.
What seems to be overlooked
however. is that if wage scales go
to high levels and building costs
skyrocket, new companies will not
90 into the steel business to fur
nish more competition. Similarly.
the existent companies will not be
able to operate new plants for the
Government or for themselves ex-
cept at higher and higher costs.
It's easy to declaim about scarce
facilities in wartime but some one
has to pay for idle facilities in
peacetime. Maybe there will be a
Brannan plan for that, too, some
day.
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