Evening star., 1952-05-22
US. Killed Bargaining
Yielding 10 Pressure,
Steel Official Says
BY the Assoeio'ed Press

BY the Assoeiased Press
NEW YORK. May 22.-A
spokesman for the steel industry
said today Surrender by the
Government to the pressure Of
labor union" has ended col
lective bargaining.
Walter S. Tower, who retires
tomorrow as president Of the
American Iron and Steel Insti-
tute, charged that Government
has proved that it will give more
than unions dared ask, even to
the extent Of confiscating COM
pany profits for that purpose"
In an address prepared for 1900
steel executives at the Goth gen.
eral meeting Of the institute, Mr.
Tower said that collective bar
gaining may now be defined as
capitulation by the employer"
He assailed Government con-
trolls which he said left to private
management "the complete re-
sponsibility only for losses"
He hit at what he called "out-
law seizure" of the steel plants,
and what he termed "the amazing
spectacle of high officials brazenly
backing labor leaders in their in
flexible attitude"
Charges Facts Twisted.
He said facts about steel had
been twisted and tortured in
high places for obvious political
purposes"
He charged the defense program
had been used to pave the way
for 'more open partnership of
labor and Government, for more
Federal controls. and for small
minds to toy with the big prob
lens Of the steel industry"
And finally. Mr.. Tower said
present Government policies on
wages, prices and profits may
carry the risk Of ruin for some
steel companies"
He said expansion programs
undertaken at Government re-
quest and insistence" run into
tens Of millions of dollars even
for smaller companies, with much
borrowed capital involved. And he
added:
IF expansions are not finished
the facilities cannot be operated
the company is stuck. II nm
shed and not operated at a fair
profit because of wage boosts and
price freeze-the company is also
stuck"
Steel Controls Unnecessary.
Contending controls over steel
are unnecessary. Mr.. Tower said
"the small part required for mill
tary needs could have been as
sured without official fingers being
thrust into every corner Of the
industry"
Mr.. Towers retirement was dis
closed yesterday at a meeting OF
institute directors. They took no
action on a successor, but created
q new post of executive director
and named to it Max B. Howell,
vice president and treasurer OF.
the United States Steel Corp. Mr..
Howell also was reelected treas
urer of the institute.
Mr.. Towers speech at the In
stitute's morning session was fol-
lowed by an address by Ben
Moreell. chairman of the board
of the Jones & Laughlin Steel
Corp, who said: d
IF We, as a nation, are to con-
tinue our progress. American busi-
ness must assume a leadership
which, at least up to now. nc
one else has been able to provide
and, like all true leadership. it,
must be based on principles
which are higher and more basic
to human welfare even than the
production and distribution OF
wealth.
THAT leadership must be based
upon the same traits which we
admire In individuals - strength.
vigor, courage, honesty, tolerance.
understanding, humility and high
character"
Reservoir of Intelligence.
Mr. Moreell said in his pre-
pared address that he thought
generally "the greatest reservoir
of intelligence in America lies in
business"
And, he added, American busi-
ness must participate vigorously
in the major phases of the social
structure.
"It is not enough" he said,
"that American business should
tell the public Of its achievements
in its own narrow sphere OF pro-
duction and distribution.
1T must participate Importantly
in the process of education and the
molding Of public opinion :. be-
cause it is only by education OF
the people that we. will survive"
Md. Moreell conceded that there
are doubts about where business
stands in the esteem Of the Amer
ican people. saying:
when politicians OF great
prominence and much influence
publicly castigate our industry
and, by inference. all private in
dustry, it is because they believe
they are rejecting the popular
viewpoint. For these politicians
rarely If ever, run counter to pre-
dominant public opinion.
"And if they say what they do
about us, it is because they think
1t Is the popular thing to say"