Evening star., 1952-03-30
BY james Y. Newton


cious and mysterious workings
Of our capitalistic world, are
giving considerable attention
these days to the steel situa-
ton. They have focused their
crystal balls ON the economic
implications Of the probable.
settlement Of the industry's
wage-price problems. The pic
ture Is somewhat confused. but
these clairvoyants can zee
enough to tell you that for the
future. things do not look 50
good.
In their forecast Of the effect
Of the steel settlement on the
economy. economists assume
land it is o foregone conclu-
sion) the steelworkers win get
o large wage increase and the
steel producers an equally sub
stantial price increase. It Ii
even probable that Q strike Of
undetermined duration will pre-
cede these wage and price
adjustments. A strike, and as
Of now one Is set for April 8,
hardly would serve to reduce
the size Of the eventual wage
and price settlements. On the
contrary, 1t would only compli-
cate the situation and the
thought Of . steel shutdown
adds gloom to the economists
representations.
AL in all. the experts see.
grave danger Of new and ex-
tended imitation. although there
is a dissenting minority opin-
ion. The majority believes the
steel settlement. as it is shap-
ing up. will shatter the Gov
ernment's wage-price control
program. II any pieces Of the
program can be found after the
impact. the majority predicts
these will be fastened together
and bound tightly to our necks
throughout the foreseeable fu-
ture.
Choin Reaction
II the wage and price >ad-
vances could be contained
solely in the steel industry. the
effect, while still serious. would
pose no problem Of great mag
nitude. However, experience
demonstrates that whenever the
Steelworkers get a wage in
crease. because Of the numbers
involved, it becomes q pattern
for industrial workers gener-
ally. And the chain reaction
Of a steel price boost is obvi-
Gus because every segment of
the economy is dependent on
steel in one way or another
the farmer must have steel
machinery; the businessman
uses steel products in various
forms, the housewife needs her
steel gadgets.
On the wage side Of the pic
ture, the present dispute In
wolves $50. 900 workers employed
in the basic steel industry, plus
some iron ore miners. Most are
workers in plants where ingot
and finished steel Of various
shapes are made. They are
represented by the United Steel
workers Union Of CIO President
Philip Murray. The union also
represents another 650,000 peo-
pie who work for hundreds Of
steel fabricating companies,
ones which buy finished steel
from the producers and make
things Of it. MIR. Murray has
said firmly that workers at the
fabricating plants must receive
wage, and other benefits similar
to those which are won In basic
steel.
In addition to this direct ef-
feet Of the basic steel wage set
tlement, there will be an indirect
effect involving the pay Of hum.
dreds of thousands Of other
workers.
Lewis Looks On
Standing hungrily by await
ing resolution Of the steel con-
troversy is John L. Lewis who
represents some 100000 coal
miners. Then there are in vari-
GUS stages Of negotiation or adj
judication new claims Of work.
ers Of the aluminium industry,
whose pay traditionally is tied
to the steel formula; 100000
employees Of the oil and gas in
duStry; q sizable number en-
ployed in making electrical
equipment, and most of those
in telephone and rubber In
duStrieS.
It Is hardly to be expected
the leaders representing these
workers will accept o smaller
increase than is given the steel
workers. And this is particularly
true Of Mr.. Lewis, who. in past
years. has taken steel settle