Evening star., 1952-07-14
PeaceBa|ked
In Steel Strike
|ByUnion Shop
Government Offer
For $5.65 Increase
In Price Reported
By jones Y. Newton

lapsed today after offering bright
hope for settlement of the 43.
day-old shutdown of the mills.
The breakdown of the latest
negotiations in Pittsburgh came
suddenly. Substantial agreement
had been reached on all money
angles, including a wage increase.
But the striking CIO United Steel
Workers baked when the industry
insisted on a further compromise
of the controversial union shop
issue.
(There were indications that
the Government had assured the
industry of price increase Of
slightly more than SIS a ton.
However. it was reported today
that the administration will offer
the steel companies an average
price increase of $5.65 a ton.
This would be above the $3.50
said to have been offered by
Charles E. Wilson before he re-
signed as director of the Office
of Defense Mobilization in April.)
A high union officer said the
"bjg six" steel companies taking
part in the negotiations were try
ing to "chisel" on the modified
union shop.
Tossed Into Unions Lap.
The companies had tossed the
strike into the unions lap by say
ing they are awaiting the steel
workers answer to their new set
tlement suggestions"
II think it's obvious what our
reaction is-unsatisfied," another
union spokesman said.
The union refused to confirm
reports that CIO President Philip
Murray was considering calling his
Wage Policy Committee together
Thursday or Friday to make a
formal decision on the companies
latest offer.
Mr.. Murray's union already had
agreed to modification Of the
union shop which, in original
form. would compel all employees
to join the union. The compromise
would exempt from union mem
bership all current employees who
are not members. New employees
would have to sign membership
cards, but they would be allowed
to get out between the 30th and
40th days of employment.
1t was learned the union baked
at a demand of the companies
that public notices be posted tell
ing the employees they would not
be compelled to remain in the
union unless they wished.
Both union and industry spokes-
men said there were no arrange
ments for further peace talks. Mr..
Murray had said earlier that re-
sumption of negotiations was
"contingent on developments"
He did not elaborate.
Next Move in Doubt.
High officials expressed increas-
ing alarm over impact of the steel
famine on both the military and
civilian production program.
Defense Department and other
officials were about ready to take
their case for an end of the strike
to the pubic. The officials so far
have said little formally about the
effect of the strike for fear of up
setting strike peace efforts.
But they said the steel supply
situation had reached a crisis, and
the strike cannot be permitted to
continue much longer. President
Truman could try to end the
walkout with Taft Hartley Act
court injunction. So far, he has
fatty refused to use this approach
on the ground that it would un-
fairly penalize the striking steel
workers.
Prospects appeared bright late
Saturday and yesterday for q
settlement of the steel dispute.
officials Here for Talks.
Three officials of the United
States Steel Corp. came here for
steel price talks with John r.
Steelman, acting defense mobil-
izer. and Economic Stabilizer
Roger L. Putnam.
The industry apparently was
satisfied with what they were told
at the White House. 1t appeared
that the reported price increase
plan would help Offset cost of the
higher wages which must be paid
the steelworkers. The average
price of steel is now about $110
a ton.
In the $5.65 increase figure re-
ported today, a 70-cent-a-ton
boost was said to be included to
Offset freight rate increases. -
Price Director Ellis Arnall has
steadfastly maintained that the
industry is entitled only to an
average So a ton increase under
the Capehart amendment.
There was still some hope In
Government circles for a break
in the hitherto solid ranks Of the
big companies on the union shop
issue. The Bethlehem Steel Corp.
has been holding separate meet
lings with Mr.. Murray. The com.