Evening star., 1951-01-21
Controls Won't Upset
Coal Pay Increase,
Operators Confident

Soft coal industry leaders were
confident today that the Govern
ment wage-price stabilization pro-
gram won't upset their new pay
increase to John L. Lewis miners.
Coal operators said they will
raise prices to meet the $1.60 a
Gay wage increase when it begins
February /. The price advance
averaging or 6 per cent is ex-
pected ITO range between rs and
SO cents ton.
Indiana coal producers, led by,
Harvey Cartwright and Hugh Lee,-
stepped into Mr.. Lewis Office here
yesterday and signed the new pact
which is hoped to bring peace to
the industry at least until March
81, 1852.
Other soft coal operators in
Kentucky and the Far West will
sign in their districts. Mr.. Lewis
said. That will bring all the AGO.
900 soft coal miners under the
agreement.
Negotiations Scheduled.
Negotiations probably will begin
here next week to extend the in
crease to the 10000 Eastern Penn
sylvania anthracite miners.
The action of Mr. Lewis and
the operators, in contrast to their
historic annual quarrels and bit
ter strikes, brought a demand
from Senator Ellender, Democrat,
of Louisiana. that the agreement
be wiped out by the Government,
and the price increase blocked.
Senator Ellender urged imme-
diate general wage-price freezes
and a rollback..
But Senator Capehart, Repub-
1ican. of Indiana said Federal Of
ficials lost any right to interfere
in the coal case by not having
imposed general wage-price con-
trolls long ago. In the absence
of a freeze I'VE can't scream about
the increases" he said.
The operators base their price
case on the contention prices have
been below 1948 and 1949 levels.
Therefore. they say, Price Ad-
ministrator Michael v. Disable and
Economic Stabilizer Eric John
xton won't worry about their in
crease. AS to wages. they think
Cyrus S. Ching and his Wage
Sterilization Board would not be
concerned with the miners pay
noise unless the Government tries
to roll back coal prices and wages,
which they consider improbable.
. Features in Agreement.
There are two major features
OF the coal agreement, however,
which may give the Government
something to worry about:
Cd The possibility that Mr..
Lewis success in negotiating
wave of similar moves in other
industries by rival union leaders.
But there isn't much time for
others to put across a voluntary
increase before the Government
freeze, due very shortly.
CD A coal-price rise might
quickly be used to justify further
increases all along the line in
basic industries which use coal.
The steel industry, after giving
Philip Murray's CIO- -Steelworkers
. wage raise of about 10 per cent
last year-which coal operators
say is about what they gave Mr..
Lewis-increased prices approx
1mately 5 per cent in November.
The railroads are now pressing
for q per cent rate increase. The
coal price increase may bolster
their arguments, or might even
prompt them to ask for more.
Perfect Timing Cited.
MIR. Lewis and the operators
timed perfectly their move OBJ
vtously intended to beat Federal
freeze. The mine workers boss
called his 200-man Policy Com
mittee week before the settle
ment. Every member was eau
toned to keep it secret. Word of
an offer did not come out until
the day before they were to as
semble. Apparently Mr.. Lewis
feared if word leaked out the Gov
ernment might speed up control
plans.
Both sides are happy about their
arrangement. They couldn't see
how it could be overturned. They
were gleeful that Cd they pulled
1t off without, as Mr.. Lewis said,
"any tumult or shouting" and
ca that it seemed to quiet labor
relations for IA months, and
maybe longer.