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of FILED BY DR. STEELMAN JUL 2 9 1952 UNITED STATES STEEL CORPORATION 71 BROADWAY fier NEW YORK 6. NEW YORK 852 Statement by BENJAMIN F. FAIRLESS PRESIDENT, UNITED STATES STEEL CORPORATION New York, N. Y., December 21, 1951 The United Steelworkers of America (CIO) threatens, unless its onerous demands are met, to call a nationwide steel strike, effective at midnight on December 31, 1951. Such a strike would be disastrous to this country's defense effort. It would constitute a national calamity of major proportions. Of equal importance to the future welfare of this country is the necessity of doing every- thing within our power to stop further inflation. That is why I believe that there should be no wage or price increase at this time. Everyone should recognize that inflation is the major enemy of this country at this moment. Some brake has got to be put on a continuance of the constantly recurring series of spirals of higher wages and higher prices. The nation cannot now afford another general round of substantial wage increases and the higher prices which must inevitably result therefrom. Five times since V-J Day, labor has obtained a general round of wage increases; and five times the cost of living has shot upward in the wake of the pay boost. The same consequence is unavoidable if a sixth round of wage increases takes place. Prices must go up to reflect higher employment costs. How can it be otherwise, when the cost of labor along the entire line of pro-