Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-07-06
Steel Impasse
.Continues;U 5.
Freezes Items

PITTSBURGH, July 6 (P). -
Moving to assure unimpairment
of the national defense program,
the Government today froze GER
tain critical steel items as the
steel strike rolled on with no sign
OF an early breach in dead
locked contract negotiations.
Top Federal mediators con-
ferred separately yesterday with
both sides in the economy
Gripping strike, now in its sixth
day. They few back to Wash
ington with the word they will
study the issues and "be in
touch" with the parties early
next week.
Otherwise. they gave no indi-
cation of the Federal Mediation
Services future plans for break
ing the lmpasSe between the
United Steelworkers Union and
the basic steel industry.
The Governments freeze" or
der came as no surprise, officials
having confirmed last Tuesday
that the action was planned.
Order May Be Lifted Later
Issued by the Commerce De-
|partment, the order remains in
force until further notice. 1t
had been indicated previously
that the freeze would be lifted
after a short time. possibly no
longer than two weeks.
1 Neither USW President David
y. Mcdonald nor industry rep
resentatives had anything to say
about resuming negotiations fol-
lowing their conferences with the
'mediators.
Bargaining talks collapsed last
Saturday evening - six hours
prior to the strike deadline-
with the union and industry re-
portedly far apart on two princi-
Ipal issues. length of contract and
immediate pay gains.
i In addition to the $4,000
strikers, some $4,000 employees in
allied industries-chiefy rail-
roads and trucking-have been
Ifurloughed or notified of i'm
pending layoffs.
The Governments freeze APP
piles only to selected steel prod
ucts needed primarily for air.
craft. guided missile and Atomic
Energy Commission projects.
Producers to Stock Up
Under the freeze, defense pro-
ducerS can stock UP on vital
items now stored in warehouses
to insure uninterrupted produc-
ton for as long as possible dur
ing the strike. Nondefense users
with a few exceptions, won't be
able to touch the selected stock
piles.
The formal freeze order came
shortly after Joseph F. Finnegan
director Of the Federal Mediation
Service, and two aides wound ur
their meeting with representa-
tives of the induStry's three
largest producers-United States
Steel, Bethlehem and Republic
Earlier. the mediators met with
Mr.. Mcdonald and his chief
lieutenants.
Mr.. Finnegan arranged the
sessions to pinpoint issues in the
strike which has shut down 90
per cent of the basic steel in
dustry.
He said the meetings produced
new and helpful" facts, and
added he is hopeful the dis
putantS can arrange their own
negotiations. On the latter point,
however. he emphasized: 1--WE
had no indications to that effect. "
Mr.. Mcdonald said the union
is following it's traditional pat
tern of responding to the Gov
eminent. J." Beyond that he
had no comment.
Sees "No Bitterness"
John r. Stephens, United
States Steel vice president and
chief industry negotiator, OBJ
served that there is mo bitter
ness" between the company and
union. He added:
I'VE respect David (McDon-
add and his viewpoint. The
fact that people do not agree on
economic terms does not mean
they become enemies"
The Mediation Service has no
power to impose a settlement
and seeks to achieve labor peace
primarily through persuasion,
Union officials called the strike
after rejecting a final" industry
offer of a 52-month contract