Evening star., 1951-04-03
Board
On WagesM
Be Named Soon
Truman Action Held
Vital if Tri-Portite
Panel Is Not Formed
By jones Y. Newton


President Truman within the
next week may appoint board Of
all public members to pass, On the
large number Of labor9manage-
ment contracts which have been
signed since breakdown of the
Wage Sterilization Board six
weeks ago.
The President, informed officials
said. will be forced to act unless
Economic Stabilizer Eric A. Johns
ton is able to win quick agreement
on reconstructed board of labor,
industry and public members.
And, the officials added, the OUT
look for Mr.. Johnston's success
was dark.
The all-public board, it was un-
derstood, would be an interim
panel that would serve only until
June 80. the expiration date of the
Defense Production Act, whicn IN
cludes the authority to control
wages and prices.
Big Contracts Hanging Fire.
A number of big labor manage.
ment contracts providing for wage
increases that apparently pierce
the 10 per cent ceiling on pay
raises are now hanging fire and
the workers in the industry III.
volved are becoming restless. These
include contracts in the meat
packing, textile, ship building and
railroad industries.
Mr., Johnston, saying that he
thought such matters should be
passed on by a tripartite wage
board, has refused to approve the
contracts.
An example of the Govern
lment's confused wage-control poll
icy exists in the case of the rail-
roads.
Johnston Opposes Increase.
A million incorporating en-
Iployes of the railroads under a
contract signed March l are en-
titled to a cost-of Living wage in
crease of 6 cents an hour. The
Army has been operating the rail-
roads since they were seized last
August to avert a strike. Last
week, Assistant Secretary of the
Army Karl Bendetson notified the
carriers to put the Scent increase
into effect. ....
But, it was understood that Mr..
Johnston in a more recent letter
to Army Secretary Frank Pace.
jr.. said that 1t was his opinion
the rail increase would have to
be cleared with s. :lization off,
cials since it seemed to exceed the
wage ceiling.
Presumably Mr.. Johnston would
refuse to take action in the case
himself, in the absence of wage
board. just as he did in the meat
packers wage agreement.
Slight Chance of Success.
Mr.. Johnston was expected to
renew his Efforts today to per-
suade organized labor and indus
try officials to agree on authority
to be given a new wage board
which also would have power to
handle disputes.
But other officials said they did
not believe there was much
chance he would be successful.
Labor insist that a new board
should be allowed to handle nearly
all labor-management disputes.
Industry holds board authority
should be restricted only to eco
nomic disputes-ones involving
wages.
The old wage board has been
unable to operate since the three
labor members walked out in a
dispute over the 10 per cent in
crease formula. If Mr.. Truman
sets up an all-public panel, it
would not be given dispute-han-
ding powers.
Meanwhile, there were these
other developments on the con-
trolls front:
l.. The Senate-House Economic
Committee staff suggested, as a
means of combating imitation, that
a luxury" tax on meat might be
imposed. The committee noted
that consumers with $4,000 or
more income year accounted for
"a per cent of the total sales of
food.
2. Watch manufacturers asked
the National Production Authority
for recognition as an essential III
dustry, to avoid the possible scat
tering of skilled engineers and
workmen who will be needed to
make time-fuses and warplane in
3. The Office of Price Stabiliza-
tion removed from price control
the fees and other charges made
for services by hospitals and edu-
cational institutions. In another
action, OPS exempted from con-
troll all extra long staple cotton
outside the United States.