Evening star., 1952-04-11
By jones Y. Newton

The Government today wavec
"a club over the heads of stee,
producers in an effort to force q
settlement of the steel crisis.
The club was a threat to dea,
directly with the CIO United
iSteelworkers on wages and Other
contract matters unless the pro.
iducers come up with a settlement
offer. If this were done the Gov
ernment, operator of the stee
mills under seizure. probably
would order into effect the wage
increase and other proposal,
made by the Wage Sterilization
Board.
This is the ace in the hole helc
by the Governments top media.
tors in working on a settlement
of the pay-price dispute. Presi'
dent Truman's seizure order per-
mits such action.
There were these development
in the situation:
l. The two Federal mediators
Acting Defense Mobilizer John r
Steelman and Wage Chief Nathal
P. FeinSinger met again with stee
company executives in an effor
to break the deadlock over a ney
contract. All day conferences yes
terday between the two official
and representatives of the com
panies and union ended on dea'
center.
Murray Meets with Board.
2. Philip Murray, president O
both the CIO and Steelworkers
met with the union Executiv
Board this morning. He schedule,
a session with his 170-man Wag
Policy Committee for later thi
Afternoon.
i Mr.. Murray said in advance
however, that the meetings had n
special significance. He said h
merely wished to keep the uniol
officers informed of all develop
ments in the dispute.
Any move by the Government
to put into effect the wage an
other proposals of the Wag
Board was sure to meet with an
other swift court move from tn
steel industry.
The industry already has me
with two setbacks in court in it
efforts to free its properties {
seizure and Government opera
r ton.
First, Judge Alexander Holtzoi
2 in District Court refused to graz
4 an order which would have re
strained the Government from or
Grating the mills.
Y Advance in Hearing Refused.
Then Judge David A. Pine re
fused an industry request to ac
vance the date Of hearing on tn
S companies petition for a perms
}. nent injunction against Seizur
He said the Government woul
have so days in which to answt
the suit.
In refusing to interfere wit
seizure, Judge Holtzoff did not ru
on the legality of President Tr,
mans seizure order. The Pres
dent took over under his generi
constitutional powers to prote'
the public welfare.
The steel companies and a nun
ber of members of Congress So
the President has no such authol
lity. A hearing on the permanel
injunction petition would test tt
legality of the move.
Among other things, howeye
Judge Holtzof said the compani
lhad failed to make a showing
''irreparable"' damage to their il
Iterests as a result of seizure.
Company lawyers believe thu
could make such a showing if tt
Government raised industry wag
= and made other changes in worl
, ling conditions.
I Some Prefer Court Test.
There was some Sentimel
among the steel producers to ju
sit tight in the negotiations wit
Mr.. Steelman and await a cou
10 test on seizure.
But there was also fear amor
y them the Government would mo-
Is to make a contract with the CT
e. In talks so far, Mr.. Murray hi
= stuck steadfastly by the Was
Board settlement proposals. The
l. call for a wage increase of II
l. cents per hour in three install
ID ments, other monetary concession
sr and the union shop.
s. The companies say the propose
4. would add $12 per ton to cost
producing steel. But there a
le indications they would settle f
l. Iaround IS a ton.
le The Government contends t
r. producers are entitled to fro
is l$2.50 to SO a ton increase. TIL
f. is due them under the Capeha
h hlamendment to the price contl
a ilou IN rnuer NoSfS inrI,rrnd f1tsj