Memorandum from John R. Steelman to President Harry S. Truman

DR. file October 19, 1951 Memorandum for The President RE: "The Steel Case" Very prematurely there are signs of hysteria in some quarters, fortunately not including the people directly concerned, over the "steel case". The burning question seems to be what the Government is going to do on wages and prices in that case. All of the smart set are writing and talking about wages and prices and are now making their predictions. There is no "case" in the steel situation as yet. There is no "case" before the Mediation Service, the Wage Stabilization Board, or the Office of Price Stabilization. There is not even a "case" before the steel companies and the Steel Workers' Union. The labor contract between steel companies and the United Steel Workers of America does not expire until December 31 of this year. The union has not even formulated its demands. When they do, we assume those demands will be transmitted to the companies; that the companies will reply; and that the parties will then go into collective bargaining. If they expect difficulty in getting together we assume the Federal Mediation and Conciliation Service will try to help them arrange a settlement. If they do not settle -- and this is certainly a bridge that should not be crossed until it is reached -- there are ways and means of settle- ment of the differences without interuption of production. They may still have negotiations; they may agree to submit to arbitration; they may agree to use the machinery now available by way of voluntary joint submission of the dis- pute to the Wage Stabilization Board. If none of these procedures in agreed upon, at the proper time the President might be forced to submit the case to the Wage Stabilization Board. If the dispute reaches the Board through any channel,