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& January 30, 1952 Memorandum for Messrs Stowe and Murphy From: Harold Lo Enarsont HIR Subject: Steel--again Mr. Feinsinger's theory of how we might meet the steel crisis sounded very fine but several items in today's paper make it quite unconvincing. From newspaper accounts (see attached) it appears that OPS will have a Capehart adjustment ready in several weeks, which will be considerably before the report of the WSB is available. Moreover the news story on U. S. Steel shows the corporation is talking about an $8 to $9 a ton price increase (to match a 15c an hour wage increase) over and above any increase allowable under the Capehart amendment. Feinsinger's notion that he can settle the wage case because the OPS can juggle the Capehart amendment to give the steel companies a substantial increase is wishful thinking. Mr. Olds comments on the industry earnings standard are clear and explicit. I just don't believe this problem can be blinked away. It will not disappear if it is simply left in the hands of Putnam, DiSalle and einsinger--operating under the lurking shadow of Mr. Wilson. Attachment

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