Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-08-13

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the U. S. Steel Corp.
Mr.. Blough is said to hav
ground that in settling the
present month-long strike the
steel companies are going to
have to give the strikers some
sort of wage increase anyway.
So far the industry's position
Is that 1t cannot, in the public
interest, increase steel labor
costs and thus spur initiation.
The striking Steelworkers
Union contends that this is an
attempt to reverse the tradi-
ton that workers are entitled
to a share in profits.
Mr.. Bowles told a reporter
today he felt that II the in
dystary agreed to a price cut
the Steelworkers Union would
have TO abandon its wage in
crease demands in the public
interest. Mr.. BowleS was the
Governments World War II
price administrator.
= See sCuts Spreading
f"The effect Of a steel price
cut would help the entire econ
ony," Mr.. Bowles said. 1T
would probably mean that
prices of new 1860 automobiles
would have to be lower, too.
we've Just gotten out Of the
habit of cutting prices. But
once started the idea would
catch on"
Mr.. Bowles said Government
statistics show that 7 per cent
of the 9 per cent increase in
wholesale prices during the last
SIX years has been due to
higher prices charged by steel
and steel-consuming industries.
That's an mediation. he said,
Of how deeply a steel price cut
would penetrate the economy.
Emergency" Weeks Away
With steel negotiations con-
tinuing in q complete stale
mate in New York, these other
facets of the situation became
known:
i. The administration has no
intention Of invoking the
Taft Hartley laws national
emergency provisions at least
until September Is or about
October /. officials are con-
WINGED there will be no stable
steel shortage until then.
It means the strike is likely
to- be on when Soviet Premier
Khrushchev tours the country
in mid-September. Mr.. Eisen-
hover said yesterday labor
management peace probably
would give a better impression
Of democracy but, on the other
hand, a strike would demon
strate the degree Of freedom
prevailing in America.
2. Secretary Of Labor Mitch
ell, who is studying the strike
situation as a fact-flnder for
Mr.. Eisenhower. has conferred
several times with top figures
in the steel companies and the
striking union. Mr.. Mitchell's
department has been gathering
facts on steel profits. prices,
wages and employment. These
were shown union and indus
try statiSticians yesterday. 1t
has not been determined
whether they will be made
public.
Union Asks U. S. Intervene
3. The union is convinced
that with no settlement likely
the Government will have to
intervene, either by invoking
Taft-Hartley or by some other
method. 1t says use of the law
would settle nothing, only delay
a showdown for an 80-day
period. Instead, it wants Mr.
Eisenhower to appoint a public
board to recommend settlement
terms. Mr.. Eisenhower has
been loath to do this.
4. United States Steel re-
vealed it has sent out a state
ment to striking employees say
ing the union has exaggerated
the effect of steel management
proposals to change work rules
United States Steels statement
said that from 1910 through
1858 its worker employment
costs have risen 288 per cent
while shipments of steel prod
uctS increased only 80 per cent
s. In reply the union said the
work rules couldn't be too much
of a problem at United States
Steel because there have beer
only 1876 cases involving work