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OCR Page 1 of 2FILED BY
407.13
strike
MR. HOPKINS
APR 2 1952
Steel
March 27, 1952
MEMORANDUM FOR THE PRESIDENT
Following our conversation in Key West, I have done the
following:
1. Talked with representatives of the steel companies and
urged them to begin bargaining - with a realistic offere- on the
basis of the WSB recommendations. I indicated that under certain
conditions I would redommend some price increase - much lower than
industry desires - to accompany wage increases.
2. Talked with Governor Arnall and Mr. Putnam concerning
steel prices.
3. Reviewed the current situation with Mr. Feinsinger.
On the basis of these conversations I must inform you:
1. The steel companies will probably bargain on the basis
of the WSB recommendations but will probably not accept the entire WSB
package at any price. The companies are insistent upon receiving some
payment for the wage increases they are asked to give.
2. Mr. Arnall takes strong personal and official exception
to the government granting steel companies any price increase which
could not be justified under present formulas. Further, it is his
view that no increase - except the Capehart - can be justified. He
takes this position even at the risk of taking a'strike and in the face
of my report to him of your attitude on a strike.
x 342
x 107-B
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