Evening star., 1950-12-22

Emergency Mobilization Bills Delayed by
House Holiday. Poee Az
ilization Director Alan Valentine,
will have the effect of freezing
auto industry pay until March /.
The decision was reached unani-
mously by the nine-member board
headed by Chairman Cyrus S.
Ching.
Mr.. Valentine was holding up
release of the board action while
he studied the order with Francis
Whitehair, general counsel of the
Economic Sterilization Agency.
1t was understood that Mr.. Valen.
tine also would discuss the matter
later in the day with Mobilization
Chief Charles E. Wilson. Agency
officials said this made it uncer-
tain when the wage control state
ment would be issued.
WSB was also expected to say
that it is working on a formula
for voluntary Stabilization of all
pay in the country outside of that
in the auto industry. This, it was
understood, will be followed up by
issuance before March / of man.
datory wage stabilization order.
Wage Raise for 100000.
Settlement of the 2-month-old
railroad wage dispute, meanwhile,
was expected to bring about early
return to private operation of all
of the Nations Glass / railroads
which the Government seized last
August to avert strike.
A ttree-year contract that pre-
cludes the possibility of a strike
was announced yesterday by John
r. Steelman, assistant to Presi-
dent Truman. The pact, ham,
mered out by Mr.. Steelman after
"a hours of almost continuous
negotiation. raises the wages Of
100000 engineers, firemen, con-
| ductors and trainmen from 10
to 25 cents an hour.
The agreement was subject to
ratification by union bargaining
committees but union officials
were confident it would be ac-
cepted. Locals had already be-
gun signing last night.
"Escalator" Policy.
In formulating a stop-gap wage
control policy for the automobile
industry the wage board was
said to feel that it need not at
this time either approve or dis
approve the so-called "escalator"
clauses which are general in the
industry's labor contracts.
I The provisions, almost identi-
cal with that to be written into
the new railroad contract. pro-
vide for quarterly adjustment Of
wages in line with the rise or fall
of the Governments cost of liv-
ing thermometer. Next such
adjustment of auto worker pay
will not take place until March /.
The wage ruling is. a companion
move to the Governments recent
freeze and rollback of car prices
to the December l level.
GIN Yields on Freeze.
In that connection, the Gen.
eral Motors Corp, only holdout
against the Government, finally
capitulated late yesterday to the
price freeze order. GIN, which
had held up delivery and sale Of
all 1851 Chevrolets. Pontiacs and
Cadillacs, instructed dealers to
put the cars on the market at 1850
prices. 1t also told dealers to give
rebates to people who had bought
cars at the higher prices. The
company today notified ESA for
mally that it will comply with the
rollback.
Requests by GIN for modifica-
tion of the price freeze to allow
for higher prices on the new
models were fatty rejected by
ESA.
GIN was caught in the price
rollback along with Ford, Chrysler
and Nash Motors. Other auto
producers raised their prices be-
fore December /. The price freeze
will last until March l. by which
time price control officials will
have worked out specific ceilings
for all model cars.