Evening star., 1952-04-20

Test Vote Tomorrow. Poqe AS.
Phone Peace Neors os InstoIIers Settle;
Pieketins Still on Here. Pose AS
tense efforts the next couple of
days to settle the dispute and
"get the Government out of the
steel business"
This means the sponsoring of
new contract talks between top
level industry officials and the
United Steelworks of CIO Presi-
dent Philip Murray.
These talks will be accompanied
by considerable behind -the-scenes
activity on the part of Federal
officials who are anxious to find
a satisfactory way of compromis-
ing the dispute.
Bigger Price Boost Likely.
1t was learned that the Gov
ernment is about ready to offer
the private steel producers larger
price increase than they have been
promised so far if the industry
will accept the major contract
proposals made by the Federal
Wage Sterilization Board.
The offer was expected to call
for price boost of $3.50 or IS per
ton of steel. This compares to-
the So per ton increase, which is
all the Government has said the
industry has coming, and the $12
a ton which the producers claim
the wage proposals would cost.
But it is known that a much
smaller amount would be accept
able to the industry.
The granting of a price boost
over the So figure could lead to
the designations of Price Sta
bilizer Ellis Arnall and Economic
StabiliZer Roger L. Putnam. Both
have said fatty and repeatedly
that the increase would not ex-
Ceed SO. That is the estimate of
the adjustment to be allowed
under the Capehart amendment
to controls law in compensation
of cost increases incurred before
last July 26.
Hope to Avoid Imposed Pact.
If the last-ditch efforts toI
negotiate a final settlement of
the dispute fail, then Secretary of
Commerce Sawyer will impose on
the industry wage increases and
other concessions called for in
the Wage Board recommends
tionS.
Mr.. Sawyer conferred late yes
terday with Mr.. Putnam and the
talks were expected to continue
today. They are working on the
new order for wages and condi-
tions of employment in the
industry
Federal officials said the Gov
ernment was extremely reluctant
to take steps. although Mr.. Saw
yer has said he will act tomorrow
or Tuesday unless the union and
producers reach accord before
that time.
If the Government changes in
dustry wage rates and other work.
ing conditions, the officials said,
it would destroy any chance of
settling the dispute for a long
time. It would lead to long and
bitter court battle and would
mean indefinite Federal control
of the steel mills.
Renewed Efforts Tomorrow.
Renewed efforts to end the steel
controversy will be started tomor-
row when the issues will be put
before President Truman's Defense
Mobilization Advisory Committee
for discussion. The committee is
made up of 18 representatives of
the public, labor, industry and
agriculture.
Acting Defense Mobilizer John
r. Steelman, chairman of the
committee, was expected to ask
the group for recommendations
on the wage and price features of
the steel dispute. It was also ex-
pected that Mr.. Steelman would
lead the whole settlement drive.
The Federal officials said they
know that from a practical stand
point the dispute can never be
settled by allowing a price increase
of only SO. That is true despite
the fact that present control reg
ulations provide for that amount.
The problem is how to justify
q larger increase in view of the
repeated statements of Mr.. Arnall
and Mr.. Putnam that the price
line would be held.
Mr.. Arnall now has taken his
case 'to the public" This is
proving to be particularly en-
barrasSing to officials who say
they know that sooner or later
the administration must give
ground on steel prices if the mills
are to be returned to the owners.
One solution to the problem is
being explored. It is pointed out
that the steel producers have had
coming to them since last July
the So per ton 'Capehart" in
crease. The Government might be
able to Justify a price boost of
over So on the grounds that it
was being allowed to repay pro-
ducers for the money lost because
OF the delay in putting the Cape
hart" adjustment into effect.
Even if accord on wages and
prices is won, Federal officials still
will be confronted with settling
the part Of the dispute involving
the union shop which was pro-
posed by the Wage Board. The
steel producers have shown no in
dication of giving ground on that
issue Of compulsory unionism.