Evening star., 1952-04-02

the Justice Department to look
into ways the industry could be
seized as a strike-prevention meas
ure. There was also the chance,
seemingly remote one, that
President Truman may use the
anti-strike Injunction provision of
the Taft-Hartley Act.
Drama attending the steel price,
wage dispute was being unfolded
on stages here and in New York.
CIO Awaits Negotiations.
In New York, CIO President
Philip Murray and other officials
OF the United Steelworkers, have
been waiting since Monday to
begin new contract negotiations
with the six largest steel-produc-
ing companies.
There were reliable reports that
Mr.. Murray and his men were be-
coming reStive. and were prepared
to blast the producers verbally
today unless the contract talks
u4Id1Iy SeC uQQer way.
An industry spokesman said this
morning the talks will open to-
morrow.
The producers, or at least some
Of them headed by Benjamin F..
Fairless, president Of the giant
United States Steel Corp, were
here trying to persuade Govern
ment Stabilizers to grant them
price increases which they hold
to be sufficient to Offset higher
wage costs.
Arnall Hints Firm Stand.
Covering prices, Price Stabilizer
Ellis ArAall, who twice yesterday
conferred with Mr.. Fairless and
his group, gave every indication
that the Government would stand
firm on prices. His position was
that the steel men would get
everything coming to them by way
Of price relief, which he seemed
to hold should be about a $3.50 a
ton increase under the Capehart
amendment, which would cover
cost increases incurred by the in
dustry before last July.
But despite Mr.. Arnall's posi-
ton, some officials believed the
producers would be allowed a large
price boost as a means of settling
the dispute. This could lead to the
resignation of Mr.. Arnall.
Mr.. Arnall expressed gloom
twice yesterday over the possibil-
ity of averting a steel shutdown.
II am very, very fearful we are
going to have a steel STRIKE" he
said, THAT is, if every one con-
tinues as adamant as they appear
to be now. In other words I don't
see how it can be averted unless
some one gives. I have no reason
to feel optimistic"
$4,000 Workers.
Mr.. Murray has scheduled the
strike of $4,000 workers in the
basic steel industry. His union also
represents an equal number of,
workers in steel fabricating plants
plants where things are made
from steel. - isiss'
MIR. Arnall evidently had PreSi-
dent Truman's backing in hold
ing the price line. Charles E. Will
son quit as defense mobilization
chief last weekend because he
said Mr.. Truman wouldn't go
along on a Wilson, steel
price increase.
Many officials had doubts as to
the legal authority for seizure.
One possibility being studied was
basing seizure action on the Presi-
dents Constitutional powers to
preserve the public welfare. An
other was the selective servicing
law, which authorizes Government
operation of any industry failing
to meet defense orders.
An indication that Mr.. Truman
may hesitate to use the Taft
Hartley injunction against Mr..
Murray, a political friend. was
that the President already had
publicly characterized Government
proposals for settling the wage
dispute as reasonable. He said
steel industry profits are large
enough to pay for them.