Steelman & Steelmen

Through a side door of the White House last week slipped three of Big Steel's big men for a conference with John Steelman, the President's right-hand man on labor and mobilization. For three hours the steelmen, headed by U.S. Steel's Vice Chairman Roger Blough, discussed steel prices. There was no announcement of what went on, but the gossip was that the trip was well worthwhile. Over the objections of other administration aides, Steelman was reportedly ready to grant a $5.20-a-ton price increase. This was $1.50 more than the steel companies were entitled to under the Capehart amendment, plus a 70-c- allowance for higher freight rates. It was also just about what ex-Mobilizer Charlie Wilson had proposed four months ago, before Harry Truman pulled the rug out from under him.

In Pittsburgh, it looked like the break that might end the strike. Big Steel's Vice President John A. Stephens, unofficial leader of the industry representatives, sat down again with the Steelworkers' Phil Murray. The industry negotiators reportedly presented a new proposal which would permit a "modified" union shop, i.e., employees need not join if they specifically state within 30 days of hiring that they don't want to. The union sniffed at the plan, but new meetings were scheduled. Both sides were being forced toward agreement by mounting pressure to get steel flowing again.

Even if the strike is settled this week, it will stand as the most damaging steel strike in U.S. history. It has cost the nation 13 million tons of steel, a third more than the previous record 42-day strike of 1949; it has thrown 1,500,000 out of work. The auto industry was hard hit. Output, which had been running at 130,000 units a week before the strike, was down to 73,000, and dropping fast. Chrysler announced that it was closing all car and truck plants this week. Ford was so short of tubular steel that it even had to stop production of 3.5-in. bazookas.

Westinghouse stopped production of refrigerators, ranges, washing machines and other appliances; the Budd Co., maker of railway cars, lopped 10,500 off its 20,000-man payroll. In many another company, personnel men feverishly juggled vacation schedules to coincide with diminishing steel stocks. U.S. production has been so disrupted that even after the strike is settled it will be weeks before production gets back to normal.

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