Evening star., 1952-04-24
Suits
Continued From First Page)

\NOI4GALluCO CAOA4 IoI 1dSC1
of steel, as well as any wage
boost or union shop arrangement
"The price of steel is not a
condition of employment" Mr.
|Kiendl began.
"You dropped your voice when
you spoke of the price of STEEL
Judge Pine commented, amid
laughter in the courtroom.
II hope your honor does not
draw any judicial conclusion from
the dropping of my voice."
Presumed" No Price Rise.
MIR. Kiendl then told the judge
that he presumed such an in
junction would have to stop any
steel price increase.
Assistant Attorney General
Holmes Baldridge arose to inform
the court that the Justice Depart
'ment opposed granting of an in
junction of any kind and therefore
would not agree that the price
angle" should be stopped by any
such move.
Attorney Bruce Bromley. rep
resenting Bethlehem Steel Co.
told the court that I'VE want oul
property returned" He said he
was prepared to argue for an in
junction to halt seizure of the
mills and to contend that the
seizure order was unconstitutional
He maintained that the President
has no inherent" powers that
would authorize him to make such
a seizure.
The Presidents "implied pow
ers," Mr.. Bromley said. are only
those which can be used to i'm
plement the powers which the
Constitution specifically states for
the President.
This is the second time that
steel companies have taken the
seizure controversy to District
Court. Judge Alexander Holtzoff
last April denied their petition
for a temporary restraining order.
Say Conditions Change.
Mr.. Kiendl contended that
the situation has changed "dras-
tically" since Judge Holtzoff' s
ruling.
'Now we are asking for a pre-
liminary injunction primarily to
prevent imminent, threatened
changes in the conditions of en-
ployment in our companies" Mr.
Kiendl said.
"The Government Is attempting
to force on the industry the wage
rates and employment conditions
recommended by the Wage Sta
bilization Board before the seizure
order was issued"
Mr.. Kiendl said that U. S. Steel
in particular would suffer untold
and irreparable damage" by i'm
position of such changes. He ex-
planned that the proposed changes
included not only wage increases
and so-called fringe benefits but
also a recommendation for 9
compulsory" union shop.
Estimates Cost of Boost.
He submitted an affidavit in
which John H. Stephens, U. s.
Steel vice president, estimated
that the various wage revisions
recommended by WSB would cost
his company at least $100 million
this year and more than $14O
million in 1853. Other recon-
mended changes, according to the
Stephens affidavit, might run the
overall additional cost to almost
5000 million for this year.
Another affidavit presented by
Mr.. Kiendl quoted Louis M. Par
sons, another vice president of the
company, as warning that the
wage and employment changes
"likely to be forced" on the in
dustry by the Government, would
greatly impair the freedom of
management"
In support of his contention
that the Government is attempt
ing to force such changes on the
industry. Mr.. Kiendl quoted recent
statements by Secretary of Com
merce Sawler.
Wants Threats Considered.
He declared that the threat as
well as the probable effect of such
an action should be considered by
Judge Pine in deciding whether
the Government should be ordered
to return the steel mills to their
owners.
Mr.. Kiendl then launched into
arguments claiming that the seiz-
ure order by the President had no
sanction in the Constitution or in
any statute.