Evening star. [volume] (Washington, D.C.) 1854-1972, 1952-04-06
Government Officials
Hope for Last-kinute
Break in Steel Crisis
BY lomes Y. Newton

Federal ofnclalS last night were
hoping for a last-minute break
in deadlocked contract negotia-
tons that would avert Nation
wide steel strike set for Tuesday
midnight
And there apparently was some
reason for hope that a settlement
could be reached in the steel in
dustrys wage-price dispute.
In New York. Federal Wage
Chief Nathan P. Feinsinger. after
day of separate conferences
with the disputants, announced
he had arranged for today a joint
meeting of CLIO United SteelWork-
ers and company officials. 1t will
be the first such meeting since
joint wage talks collapsed Thurs
day.
Although Mr.. Feinsinger said
the holding of the meeting should
not be interpreted "as indicating
that either side has changed it's
position" officials here were more
optimistic. They said there was
q definite possibility of :favor-
able developments" before the day
is over.
Strike Preparations Go On.
Meanwhile, both the Govern
ment and the steel industry were
making preparations in event the
peace talks failed.
Acting Defense Mobilizer John
r. Steelman was understood to
have spent most of yesterday dis
cussing with officials of various
agencies actions that may be
taken to avert or erase the impact
OF a steel strike on the defense
program.
Mr.. Steelman was still consider
ing the possibility of Government
seizure Of the industry in event
OF shutdown. It had not been
decided definitely to use seizure,
however. If the decision to seize
is made, the Government may wait
until a strike actually starts.
The Defense Production Admin
istration was considering freezing
all steel supplies so that defense
needs may be taken care of first.
In Pittsburgh and other steel
producing areas both the industry
and the CLIO union went ahead
with preparations for a work
stoppage.
Union locals made arrangements
for soup kitchens and ordered
picket signs.
Start Banking Furnaces.
The giant United States Steel
Corp. announced plans to start
banking So blast furnaces today,
Other steel companies were plan
ming similar precautionary steps.
All but a small part of the
basic steel industry would be af-
fected by a strike. Only two
major companies likely would be
able to continue operations. They
are Kaiser Steel, which has settled
contract differences with the I'M
ion. and the Weirton Steel Co.,
which has a contract with an
independent union.
The steel union of CLIO Presi-
dent Phillip Murray has scheduled
the walkout of 100000 workers for
1901 am. Wednesday unless the
steel companies accept new con-
tract proposals made by the Wage
Sterilization Board, Of which MIR.
Feinsinger is chairman.
The board recommended a
package" settlement valued at 26
cents an hour per worker in wage
increases and fringe" money
benefits. Part of the 171a cents
per hour wage boost and part of
the fringes would not be received
by the workers until July l and
next January.
Steel company officials finally
on Thursday offered the union a
settlement they estimated to cost
about Is cents an hour. Mr.. Muir
ray rejected it and is standing
firmly on the Wage Boards pro-
posals.
Prices Key to Settlement.
The companies estimate cost of
the Governments proposals at $12
per ton of steel, and they say they
must be allowed to raise steel
prices substantially if they are to
meet the terms.
But Price Stabilizer Ellis Arnall
held the companies should get a
price boost of only slightly over
So per ton, to which they are en-
titled under the controls law.
There were indications that Mr..
Arnall would resign if he is over
ruled and the companies are al
lowed larger price increase.
But some officials were betting
that Mr.. Arnall would be over
ruled.
Mr.. Feinsinger, who was sent
to New York Friday by Mr.. Steel
man. in an effort to revive ne
gotiations, said he was not au-
thorized to discuss prices with
producers.
President Truman overruled
former Defense Mobilizer Charles
E. Wilson and sided with Mr..
Arnall in the price dispute. Mr..
Wilson resigned as a consequence.
But in accepting the resignation,
the President did not rule out the
possibility that a price increase
may be given If the action is
necessary to prevent the strike.
Mr.. Feinsinger said his meeting
today would be limited to one
representative of each steel COM
pany and three union officials
Ito facilitate informal discussion.