Interviews

Item

Media

Title
Interviews
Description
box: 563
folder: 12
Date
1949 to 1955
extracted text
BEF



FAB

a

f

/ re

ST.LOUIS POST-DISPATCH

|

- Reuther in Exclusive Interview Tells —

Of Workers’ Disillusionment and Terror
In Russian Plant in Which He Worked

Rl

Head of UAW
Says
People Are Not Allowed to Think BeProduction
yond
Job.

All Fear Secret Police}
Only.-al

—-U nion

Mobilize

to

Tool

for Polit-|.

Masses
buro.

H
C
O
L
L
U
C
c
M
RB.
R
E
C
N
E
P
S
By
Of the Post-Dispatch Staff.
1949.)

ont
fe

strategy which}

to

opposed

actively

entered Russia,
He
open mind.

He
an

Communism.

he said, with
came out an

anti-Com-

and unswerving

avowed

munist.

:
Precision.

Ruthless

es
pr
im
l
ta
to
l
a
t
n
e
m
a
d
fun

“The

in
te
ia
ec
pr
ap
to
n
ga
be
I
sion that
at
th
as
“w
,
id
sa
r
he
ut
Re
Russia,”
e
n
i
h
c
a
m
l
ca
ti
li
po
a
ve
ha
there you
ly
gh
hi
st
mo
e
th
ts
en
es
pr
that re
s
nd
ha
e
th
in
y
it
or
th
au
centralized
d.
rl
wo
e
th
in
t
n
e
m
n
r
e
v
of any go
,
on
si
ci
de
a
e
k
a
m
ey
th
“When
th
wi
t
ou
d
ie
rr
ca
is
that decision
n
io
is
ec
pr
ke
li
ein
ch
ma
ruthless,
hu
in
st
co
e
th
r
fo
rd
ga
re
without
:
s.
ve
li
n
a
m
u
h
d
an
es
lu
man va

“When

early

Russia,

reached

and

brother

my

in 1934,

er
ng
hu
of
al
de
t
ea
gr
a
found

I

we

and

rn
ve
go
n
ia
ss
Ru
e
Th
starvation.
r
ea
-y
ve
fi
a
t
ou
ng
yi
rr
ca
s
wa
ment
ex
by
m
a
r
g
o
r
p
n
io
at
industrializ
in
ta
ob
to
r
de
or
in
od
fo
g
in
port
gh
ou
th
en
ev
y,
er
in
ch
ma
funds for
ar
st
d
an
er
ng
hu
n
ai
rt
ce
t
it mean
vation.
e
th
in
d
oo
st
le
op
pe
“Whenever
de
of
n
o
i
t
a
t
n
e
m
e
l
p
m
i
e
th
of
way
re
we
ey
th
o,
ur
tb
li
Po
e
th
f
‘o
s
on
cisi
simply destroyed, like the outcome
e
er
th
If
.
on
si
ci
de
ry
ta
li
mi
of a
ed
fe
to
th
bo
od
fo
gh
ou
en
’t
wasn
the people and export, the export
quota was met
beings,
human

at the expense ‘of
especially in the

Oro
RAO

WALTER P. REUTHER
mechanics of his production
i
job.
“At that stage, the average fellow conformed to the pattern of
the state. So at one level you got
the sense of participation only to
limited to
discover that it was
the excitement of increasing production.”

Reuther

learned
actually

There

that
run

were,

structures,

said

that,*he

soon

he

diselosed,

three

the factories were
by party directors.

management;

of

one

going down through foremen; one
of trade unionists, embracing a
trade union secretary in every department and a director over the
entire plant; and the third the
Communist party structure, technically parallel to the two others
but really controlling the works.
“Anytime either a management
representative

a

of

official “advanced

trade

any

idea

union

not

approved by the party,” Reuther
disclosed, “the party secretary at
the plant turned out to be the
boss.

real

“I got the feeling of tremendous
through

power

young

the

people

doing things, but the minute they
attempted to participate in anything of a policy matter, even involving wage questions, the party

secretary

made

decision.

the

It

stuck.”
to
came
he
that
said
her
Reut
.

a.
lg
Vo
rn
he
sout
trade
ian
Russ
the
that
eive
perc
Reuther. said that because they
ical
polit
“‘a
lity
actua
in
was
n
unio
had workers’ visas they were able
e
polic
a
of
tool
a
,”
union
any
comp
y
he
.T
.,
ed
st
le
mo
un
t
ou
ab
el
av
tr
to
Hitin
ns
itio
cond
to
akin
,
state
went by boat down the Volga to
mobil
to
zed
utili
any,
Germ
ler’s
the Caspian Sea, he related, often
polit
out
y
carr
to
es
mass
the
ize
in
to
ck
ba
g
in
go
d
an
f
of
g
in
tt
ge
.
tives
objec
ic
arist
milit
and
ical
land villages, where they found
e.
Polic
t
Secre
of
Fear
r
te
Af
destitution.
and.
hunger
Se
e
th
of
ar
fe
of
ld
to
r
he
ut
Re
leaving Russia, where they worked
en
ev
at
th
t
ea
gr
so
ce
li
po
et
cr
rs
he
ot
br
e
th
,
ar
ye
a
t
ou
ab
r
fo
ly
ee
fr
lk
ta
d
ul
co
s
er
rk
wo
ow
ll
fe
time in China and
some
spent
.
of
ms
le
ob
pr
on
ti
uc
od
pr
on
ly
Japan and then worked their way on
if
.
ts
ec
bj
su
l
ca
ti
li
po
nno
ly
ct
ri
st
home as seamen.
,
on
si
us
sc
di
ly
nd
ie
fr
a
in
,
ne
yo
s.
an
er
Trained Russian Work
g
on
am
on
mm
co
is
as
ch
b
su
jo
,
s
id
sa
hi
he
at
th
d
se
lo
Reuther disc
is
th
in
ps
ou
gr
r
he
ot
cru
or
st
s
n
st
r
e
ni
d
io
o
m
un
a
t,
an
pl
at the Gorki
h
ic
wh
ng
hi
yt
an
gi
n
id
en
a
sa
c
i
r
y
e
tr
m
A
un
co
by
ed
gn
si
ture de
to
d
se
po
op
as
00
d
,0
ue
18
t
tr
ns
ou
ng
co
ab
ni
be
ai
nt
t
migh
neers and co
e
th
in
rs
he
n
ot
ia
e
th
ss
cy
Ru
n
li
ai
po
tr
al
on
to
ti
s
na
wa
s,
worker
But if
workers, Many of them peasants group would keep mum.
favorable to
unfamiliar with machinery, in the the expression was
technique of tool and die work.
the party line, they were commuHe recalled that. he was a tool nicative.
and die maker at the Ford plant
“I experienced a tangible examin Detroit when Ford contracted ple of the sort of thing which is

the

with

Soviet

government

to

build tools and dies for Russia. It
necessary for the
then became
Russians to duplicate the American-made sets, and the Reuther
by the
employed
were
brothers
in the}
instructors
as
Russians
technique of tool and die making
They had the
in a mass industry.

status of technicians.

“My first impression was fine,”
Reuther said, “because the workers in the plant had tremendous
enthusiasm for the industrial program, especially the younger workers. They were kids with mechanical toys and enjoying a sense of
Many
great creative satisfaction.
of them were the sons of peasants,
mecabins where
coming from
chanical devices were unknown, to
making autos and airplanes.

in
disillusionment set
“But
above that level of the workers. I

found

against

to

that:

think

the

a stone
about

worker

wall

was

if he

anything

up

began

beyond

responsible for the potent intangi-

ble fear of the secret police,” Reuther said, “right in our communal
dining hall. About 30 families ate
ration
individual
there, pooling
cards to obtain better supplies.
“One of the diners was an Ital-

Communist who had fought
During a philosophical.
Mussolini,
discussion he disagreed with some

ian
of

the

others

some

about

aspects

of the party line, in just such a
discussion as occurs daily all over
the United States, in shops, in ofcracker
the
around
and
fices
barrel in rural stores.
“Only two nights later he disof the
appeared in the middle
The secret police got him.
night.
“But even more shocking in a
everyone
that while
was
way
knew that the police had taken

him

away

no one

dared

to breakone
no
She did
it.

it. When his wife came
fast the next morning

would

ask

her

about

mention

Associated

Press Photo.

W

g.

not, say a word, although her heart
must have been breaking to talk.

“IT came away from Russia, as
I had previously come away from
same _ basic
with the
Germany,
I felt that Communism,
feeling.
like Fascism, not only means
a
civil
of
deprivation
complete
rights, but it offers a promise to
the masses of economic security
at the price of spiritual and political enslavement.”
. Heads Delegation to London.

Reuither, who heads the CIO
delegation
which
will
meet
in
London Nov. 28, together with representatives of the American Federation of Labor and other bodies
to organize a new anti-Communist
world trade union federation, said,

t]
t:
Oo

q

v
J
k
I
C
c

§
J
(



the new group would accept any
“bona fide union, not a political
trade union.”

“The

real challenge in the world

today,’ Reuther
continued,
“and
what
we
must
establish
that
American democracy can do is to
prove
that men
can
have
both
bread and freedom, and to show
that to put bread in your stomach
one
need
not
put
his soul in
chains.”

When

Reuther

returned to this

country, in 1935, he disclosed he
found the CIO in process of formation under the aegis of John L.
Lewis, head of the United Mine
Workers of America, now an independent union.
At that period,

Reuther

said, Lewis was enrolling

Communists

purposes.

for

t

»«
«
»



organizational

“Like
everybody
else
in
the
“I
conceded,*
Reuther
CIO,”
worked with
everybody
in the
CIO.
That was
policy, at that
time.”
But Reuther, who won a spectacular victory in routing the leftwing administration of his union
in 1947, declared that he had his J
first “open clash with the Commies” in 1938. He accused them of
attempting to wreck the UAW as
a basis for promotion of Commuu
nist political policies.
Shifting Red Policies.
;
“The first instance was on the
r
the
if
that
I found
war question,
could not get a local
Commies
union to support their war posi- R‘6
tion they would try to wreck that
changed Ss:
policies
Their
union.
with the shifting policies of the a
They blew hot and cold. tk
Kremlin.
“Our union fought to abolish Se
Yet ye
piece work and the speed-up.
when the party line dictated, the
were willing to sacri- ac
comrades
fice the union. They tried to initi- ta
and _ the at
viecework
speed
ate
even bu
plant,
every
in
speed-up
though we had kicked it out after ge
many struggles.”
uy
Reuther said that he had learned U;
of cases within his union where
party-line dominated leaders would of
TA

,
en
wh
d,
se
lo
sc
di
he
They began,
in
ng
ri
st
oe
sh
a
on
touring Europe
r,
he
ot
br
s
hi
th
wi
es
ti
his early twen
e
th
in
rk
wo
to
nt
we
Victor, he
ar
ne
t
an
pl
le
bi
mo
to
huge Gorki au
s
wa
he
me
ti
at
th
At
Stalingrad.
t
no
s
wa
t
bu
t
s
i
not pro-Commun

~~

in and out
movement.

labor

American

of the

&

O
I
C
e
h
t
at
s
t
s
i
n
u
m
m
o
routed the C
.
|
s
i
D
t
s
o
P
e
th
ld
to
,
re
he
convention
g
n
i
z
i
n
o
i
s
u
l
l
i
s
i
d
s
hi
of
patch today
|
h
t
o
b
m
s
i
n
u
m
m
o
C
experiences. with

ot

of the right-wing

TH

bile

spearhead

and

Workers

4

O., Nov. 5.
CLEVELAND,
es
pr
,
R
E
H
T
U
E
R
P.
R
ALTE
mo
to
Au
ed
it
Un
e
th
of
ident

mn

- (Copyright

|

sign

disadvantageous

contracts

which went against the trade union policies of the organization,
placing party policy above their
duties as trade unionists.
“Tt is not a matter of disagree-

ment with someone else’s ideas,”
Reuther summed up, “but of plain”

will
Communists
The
honesty.
only subscribe to the majority
rule if it coincidentally parallels
the party line.”

al.
Ce

|==

F

.
B

U.S.News
& World Report
The United States News

(®)

World

Report ()

WALTER

REUTHER

TELLS

.. What Labor Wants

Reuther,
Head of
UAW (CIO)

|

AN

WHAT

INTERVIEW

President,

United

LABOR
WITH

Automobile,

Head of the CIO Auto Workers, he is a member

of the United Labor Policy Committee, representing most of organized labor, whose decision

you

the

WSB

walkout.

feel confident, Mr.

Reuther,

that we

Q

Do

A

I think that is very true, and that’s why I

are

our
1n
ups
gro
the
all
of
ion
rat
ope
cothe
e
hav
to
ng
goi
economic system for the defense effort?
A I believe that, despite the current and temporary
difficulties we are having, we must of necessity find a
common basis on which the various economic groups
in our society can make their contribution to the successful prosecution of the defense program.
Q Do you feel that in our economic system we are
all dependent on one another?
believe

we will have to find a democratic method of working
out these problems.
Q Has the public understood organized labor’s
viewpoint in the recent discussions?
A I think that consumers generally understand our
position. Of course, the attempt has been made to
make it appear that the present controversy was essentially one over wages, when in truth 90 per-cent of
the wage problem is the lack of effective price control. It is dangerously unrealistic to talk about trying
to stabilize wages at a time when the over-all economy
is not being stabilized and prices continue to rise and
profits are soaring.
Q But couldn’t you start your control that way—
since you have to start someplace, why not start with
labor?
A You've got to take first steps first. But the question is: What ought to be the first step? Wages have
lagged behind prices.
Q Since when?
A Since Korea, wages have lagged behind prices
and profits have moved ahead at a much faster rate

24

WALTER

P. REUTHER

Aircraft & Agricultural Workers of America, CIO

EDITOR’S NOTE: What does labor ask—for the
mobilization period and the longer future? How
deep are the conflicts, of which one evidence was
the recent walkout of the labor members of the
Wage Stabilization Board?
To analyze the situation and discuss the prospects, Walter P. Reuther was invited to the conference rooms of U. S. News & World Report.

caused

WANTS

WALTER PHILIP REUTHER, grandson and son of
labor leaders, was 15 when he became an apprentice tool and die maker. Night school and a working tour of the world featured his twenties.
In 1935 he began organizing the Auto Workers,
and has since 1946 been president of the union—
world’s

largest,

with

1,300,000

members.

A leader of the “right wing” in the labor movement, Mr. Reuther in 1941 suggested mass production of airplanes by the auto industry, and
often engages in discussions of operating plans in
industry. He is 43 years old.

than wages. Increased profits are certainly more responsible than wages for the rise in prices. No one
can argue with very much logic that wages in the auto
industry have precipitated the price movement. We
received a 5-cents-per-hour cost-of-living wage increase in the first week of September, 1950. The costof-living adjustment merely reflected the fact that
90 days before that date prices had increased sufficiently to justify a 5-cent wage increase. In December, 1950, we received another 3 cents in wages. Again,
this merely indicated that prices had moved up and
wages were adjusted 90 days behind the price increase. The same thing happened again in March

when we received another 5-cent cost-of-living adjustment. Now, you can’t say that wage increases which
follow 90 days after the movement in the cost-ofliving index are responsible for pushing the index up|
ward.
Q But not all workers are in the auto industry—
and not all are covered by escalator clauses. Some
have gotten direct raises?
A The fact is that the over-all wage movement has

been slower than the price movement.
Q You mean since Korea?
A It is true not only since Korea—it is true in the
period before Korea. There is no question about that.
Now let’s compare the increase in profits with the increase in wages. From 1944, which was a good profit
year and a good wage year, until the last quarter of
1950, the total wage bill increased 26 per cent while
profits went up 97 per cent. The increase in profits
was more than 314 times as great as the increase in
wages.

U. S. NEWS

& WORLD

REPORT

..

Not Wages

Laid to Profits,
Q
and
the
A

Seen

Control

Living-Cost

r,
wa
e
th
ng
ri
du
wn
do
ld
he
re
we
s
it
of
pr
But
wages kept rising. Prices were controlled during
war— _
You talk about profits being held down—GenCorp. last year made $1,811,000,000 before

eral Motors

nt
me
st
ve
in
r
ei
th
on
nt
ce
r
pe
86
de
ma
ey
taxes. Th
before taxes; they made 40 per cent on their investr
fo
s
it
of
pr
in
7
.3
$1
de
ma
ey
th
d
an
s;
xe
ta
r
te
af
nt
me
every dollar they paid in wages.
s?
ge
wa
of
$1
y
er
ev
r
fo
7
.3
$1
of
s
it
Q Prof
A That’s right.
:
s?
xe
ta
r
te
Af
Q
r
te
Af
s.
xe
ta
re
fo
be
id
pa
e
ar
s
ge
wa
s—
xe
ta
re
fo
Be
A
al
ri
te
ma
its
l,
bil
ge
wa
its
id
pa
d
ha
rs
to
Mo
l
ra
Gene
ex
g
in
at
er
op
r
he
ot
all
r
fo
id
pa
d
ha
it
r
te
bill and af
de
ma
ey
th
,
es
iv
ut
ec
ex
of
es
ri
la
sa
g
in
ud
cl
in
penses,
$1.37 in profit for every $1 they paid in wages.

,
ll
we
ty
et
pr
d
di
it
.—
Co
ic
tr
ec
El
l
ra
ne
Ge
e
Take th

r
pe
12
s
wa
50
19
r
fo
l
bil
ry
la
sa
d
an
ge
too. Its total wa
l
ra
ne
Ge
of
s
it
of
pr
e
th
e
il
wh
,
49
19
cent higher than
.
50
19
to
49
19
om
fr
nt
ce
r
pe
38
up
nt
we
Electric
?
ey
th
t
n'
ve
ha
,
up
ne
go
ve
ha
gs
in
rn
ea
ly
Q But week
er
ng
lo
a
d
an
s
ur
ho
me
ti
er
ov
at
A It is obvious th
work week

increase weekly

The

earnings.

important

er
rk
wo
a
s
ar
ll
do
of
er
mb
nu
e
th
t
no
thing, however, is
he
at
wh
th
wi
y
bu
to
le
ab
is
he
takes home but what
to
ed
re
ag
ve
ha
we
,
ry
st
du
in
to
au
e
th
takes home. In
ng
vi
li
f-o
st
co
e
th
in
nt
me
ve
mo
e
gear our wages to th
at
th
,
od
ri
pe
rea
-y
10
a
er
ov
d,
ne
ar
le
- index because we
ur
ho
r
pe
s
nt
ce
66
y
el
at
im
ox
pr
ap
auto workers gained
ur
ho
rpe
snt
ce
6a
ly
on
de
ma
t
bu
s
ge
wa
in money
er
mb
me
r
ou
y
wh
is
at
Th
r.
we
po
ng
si
ha
gain in purc
ng
vi
li
f-o
st
co
e
th
of
e
pl
ci
in
pr
e
th
ed
ship has accept
me
ti
d
an
me
ti
at
th
d
un
fo
we
e
us
ca
be
,
se
au
cl
escalator

at
th
s
el
ck
ni
en
od
wo
n
wi
to
ng
ti
gh
fi
again we were
e.
or
st
y
er
oc
gr
e
th
at
ng
hi
yt
an
y
bu
wouldn’t
to
is
y
et
ci
so
ee
fr
r
ou
of
m
le
ob
l
pr
ta
en
am
nd
The fu
be
e
nc
la
ba
a
g
in
ev
hi
ac
of
s
an
me
ic
at
cr
mo
de
a
nd
fi
r
ou
d
an
th
al
we
d
se
ea
cr
in
te
ea
cr
to
y
it
il
ab
r
ou
n
twee
r
he
ot
In
.
th
al
we
d
se
ea
cr
in
at
th
e
um
ns
co
ability to
words, we must achieve a balance between prodyctive
un
t
es
gg
bi
e
th
is
at
Th
r.
we
po
ng
si
ha
rc
pu
d
an
r
we
po
solved problem that free men have.

Why Labor Quit the Board
Q@ Hasn’t

the

defense

formula?

organization

What

is

the

accepted

your

objection

of

cost-of-living
labor?
h
ic
wh
r
de
or
d
ar
Bo
n
io
at
iz
il
ab
St
A The Wage
es
lv
se
em
th
te
ia
oc
ss
sa
di
to
s
er
mb
me
r
bo
la
caused the
e
th
of
n
io
at
er
op
r
fo
e
id
ov
pr
t
no
d
di
d
ar
Bo
e
th
from
ge
wa
al
nu
an
e
th
r
no
se
au
cl
r
to
la
ca
es
ng
vi
cost-of-li
c
mi
no
co
[E
on
st
hn
Jo
ic
Er
.
Mr
.
se
au
cl
t
improvemen
ad

Subsidies

. Food

Rise

. . . Price

Need

First

as

Favored

Stabilization Administrator] found it necessary to is-.
sue a special order approving the escalator clause.
The annual wage-improvement clause has as yet not
been resolved, although I am certain that it will be
approved in advance of the effective date, which is
June 1, 1951. Mr. Johnston’s approval of the escaclause

lator

is

only

effective

June

until

30,

is the date the Defense Production Act exThe status of the escalator clause and the im-

which
pires.

provement clause beyond that date is unsettled.
feel

there

is no

disturbing that.
Q

this

1951,

You

the

sound,

moral

or

don’t think, Mr. Reuther,

escalator

clauses

are

economic

:

basis

We

for

that at a time like

built-in

inflation?

A No—for the simple reason as I have stated:
Wage adjustments that result from the operation of
the cost-of-living clauses lag 90 days behind the
movement in the price index.
,
Q Do you object to farm parity?
A No. Weare in favor of farmers’ receiving parity.
We believe that the basic problem must be met by
food subsidies. Experience in the last war demonstrated clearly that subsidies are the most effective
way of breaking the chain reaction in the movement
between farm prices and industrial prices. Unless the
inflationary chain reaction is broken, farm prices will
never reach parity and wages will never catch up with
the cost of living.

Biggest Consumer:

Government

Q We were told, though, that a subsidy on meat
alone would cost 6 billion dollars—
A I don’t think that is a correct figure. Experience
in the last war showed that for every dollar you put
into a subsidy program you saved five dollars at the
consumer end. When you talk about the consumer,
you are not only talking about the housewife—you
are also talking about the Government, because the
Government in a period of mobilization is the biggest
consumer of all.
Q They had that subsidy in the last war, didn’t



they?

A Yes—and it worked very successfully. Farmers
have a lot of factors in their production processes
over which they have no control—such as weather,
etc. Subsidies are the best means of protecting the
consumer against higher prices while at the same
time giving farmers fair prices that will assure maximum production of foodstuffs and fibers needed to
é
|
make our economy strong.

Q Where you have taken a cut on the basis of this

cost-of-living index, hasn’t it been a short-lived cut
and more than been made up for by the next in-

$<... n . aa———o

APRIL 6, 1951

25

. . » ‘America

needs

a board

of directors

crease? Haven't you had only two cases where you’ve
taken a cut?
A We took a cut during the period when unemployment was on the increase and economic activity
was tapering off. It is true that this didn’t last too
long because before we knew it we were in the Korean
emergency and all the pressures which were pushing
the index down were reversed and resulted in an upward movement of the cost-of-living index.

For an Over-All

Board

Q In an un-co-ordinated society like ours how can
you get a stabilized dollar for everybody?
A I think we all appreciate the fact that trying to
control economic forces in a free economy is a very
difficult and very complex job. That’s why I believe
that in setting up this mobilization program, we
should not rely on any one superman, because no
one man—no matter how well-intentioned he may be,
no matter what his background—no one man knows
the answers to all these complex problems. We agree,
of course, that one man must be in charge of the administrative aspects of the program. We do not advocate the kind of two-headed animal we had under
OPM [Office of Production Management, in World
War II]. We do not think that is efficient. We favor
concentrating the administrative responsibility in

one person. We believe the fundamental weakness of
the present situation is the fact that the person doing
the administrative job is also doing the policy job.
What is needed in Washington in this emergency is
an over-all mobilization policy board on which business,

both

large

and

small,

farmers,

labor

and

the

public are all equally represented.
Q Hasn’t President Truman done that—hasn’t he
applied that kind of principle?
A He’s issued an order setting up an advisory board
of some kind—nobody really knows what it is.

Q Could Charles E. Wilson, Director of the Office
of Defense Mobilization, be on this policy committee?

‘We don’t want to get rich’

26

‘The WSB

for mobilization’

A Yes—he could even be chairman.
Q In our interview two weeks ago with Mr. Wilson, he said almost your words—he said he has in
mind the appointing of an over-all policy committee.
Is that about your idea?
A Mr. Wilson is suggesting an advisory committee
of some kind. I suppose what he has in mind is that
he will have an advisory committee for agriculture,
one for labor, one for industry,

and he will call them

in when he has a problem on which

sult them.

he wants to con-.

Deciding Basic Policy

Q No, he speaks of an over-all advisory group—
A What I am proposing is not an advisory committee. I’m proposing a policy board—it functions in
exactly the same way as a board of directors in a
corporation. Mr. Wilson was the head of the General
Electric Co. But when they had a basic policy question, whether to expand plant capacity, to move into
a new field of activity or some other basic policy decision, Mr. Wilson, as president of the General Electric Co., did not make such decisions by himself. Such
decisions undoubtedly were made by the board of
directors.
|
The complex problems of war mobilization and applying controls in a free economy are infinitely more
dificult and complex than any problem that the
board of directors of the General Electric Co. ever
took on. Just as General Electric has a board of directors to handle its basic policy problems, I think
America needs a board of directors to handle the far
more difficult and complicated problems of the defense mobilization.
Q Would that require a change in the statute?
A No. The President under the Defense Production Act has authority to create the machinery needed
to implement the purposes of the Act.
Q Then this group that you speak of would have to
go back, anyway, to the President for approval?

needs a disputes section’

‘Quality controls are necessary’

U. S. NEWS

& WORLD

REPORT

. . » ‘Twelve

minds

could

give

better

A The President can delegate the same authority to
such a mobilization policy board as he has delegated
to Mr. Wilson. Mr. Wilson could retain the administrative authority but not the sole power to make
policy. In other words, I propose separating the two
functions. Certainly whoever is the head of the administrative end of the mobilization program ought to sit
on the policy board, either as a member or as the
chairman. But, once the policy board has made a decision, he would be responsible for carrying it out.
Q How does that differ from what we had in World
War II?
A We went through many stages in World War II.
But we never had the kind of over-all policy board
that I am proposing. We need this kind of board today more than ever because the problems that we face
now are more difficult than the kind of problems we
faced when we were in total conversion and total
mobilization. We are dealing now with the complex
problem of superimposing large-scale defense production on a civilian economy in which man power
and plant capacity is almost fully employed.

Applying

Democracy

When we’re talking about defending democracy in
the world, we’ve got to apply it. No one can challenge
the validity or the soundness of the fact that, if we
could draw into a top mobilization policy board the
best minds from every important economic group in
America, they could collectively give better leadership to policy questions than any one man can give,
whoever he may be.
Q Would everybody have to abide by a majority
decision in that kind of plan?
A Certainly.
Q What if you couldn’t get agreement, as you
didn’t get it on the Wage Stabilization Board?
A If you get top men who have real appreciation
of what our basic problems are, you will find that on
important policy questions they can sweat out, by the

‘I’m in favor of farm parity’
een

mne

aera

APRIL 6, 1951

leadership

than

one

man’

process of give and take, a common program—they
will find a common denominator around which they
can work.

If an occasion arises where

that isn’t true,

then, of course, the majority has to decide.

‘Expedient’ vs. ‘Right’

In the case of the Wage Stabilization Board, they
were doing the thing that was expedient and not the
thing that was right. Instead of evaluating all the
economic factors of the present situation and then
trying to project a wage policy to meet those factors,
the public and industry members came up with a 9 per
cent figure which was completely arbitrary. They
thought 9 per cent would cover the escalator clauses.
In the morning they had a 9 per cent figure. In
the evening they had a 10 per cent figure. The
only reason they went from 9 to 10 per cent was
they found the 9 per cent wouldn’t cover the General Motors escalator clause and some of the other
escalator

clauses.

Then

when

the

BLS

[Bureau

of

Labor Statistics] index was issued they found that
10 per cent wouldn’t do it and Mr. Eric Johnston
had to issue a new order.
No such maneuvering based upon expediency provides a sound basis for wage stabilization. It is impractical, unworkable and unjust to attempt to stabilize wages without first controlling the cost of
living.
Any such stabilization program must permit the
adjustment of wage inequities. The present 10 per
cent wage freeze permits a $100,000 executive to receive a $10,000 increase but does not permit a worker
receiving 50 cents per hour to receive a 6-cents-perhour increase. Under the Wage Stabilization Board’s

policy, the $10,000 increase is noninflationary while
the 6 cents per hour is inflationary.
Q How many would be on that policy board?
A I’d say 2 or 3 from each group, 8 or 12 people
altogether.
Q Would those people be on the pay roll of the in-

‘Repeal split-income provision’
SS

hotos:

O Halloran

arris

wing

‘I’m not in favor of nationalization’

SSeS

sss

af

. . » ‘Housewife

recognizes

price

dividual groups or be Government officials
ciated from their respective groups?
A

If they were required

freeze

disasso-

to serve full time, then

I

think they should go on the Government pay roll.
Q Wouldn’t you be better off to have a public
group without the fellows that have connections?
A The purpose of having industry, labor, farmers _
and the public is to be able to draw upon the specialized experience of each group. Each group, having a
different background and different point of view, has
a unique contribution to make. What we need is the
pooling,-the blending of these various points of view
to give us unity of purpose and action. An all-public
group would lack a lot of experience that industry,
agriculture and labor would bring to the policy board.
Q Did you plan on trading between the groups to
get the best agreement?
A I do not consider this a matter where you are
going to bargain.
Q Can labor members of that board act independently, or are they going to have to follow the policy
laid down by those making the policy?
A

I served

Commission,

in the last war

which

within

power was similar to what

on the

the

War

limited

Manpower

field

I am proposing.

of

man

Success of Manpower Group
Q Nowadays,

however,

the

United

Labor

Policy

Committee has forced all the labor representatives in

the Government to get off the various defense agencies. How are you going to stop that in your kind of
setup?
A Experience in the War Manpower Commission
proved that labor, management and agriculture were

able to think through the basic issues and come up

with agreement

zation problems.

on sound policies relating to mobili-

The Wage Stabilization Board was

operating on the basis of expediency and attempted to
control wages rigidly at a time when prices and profits
were not effectively controlled. Every housewife recognizes the so-called price freeze as a fraud.
The price of Cadillacs was rolled back and the price
of scrap iron was cut $10 per ton, but the cost of food,
clothing and other necessities continued to rise.
These are the facts that precipitated the crisis in the
Wage Stabilization Board.
Q Do you think that the problem of wages has a
relationship to the problem of profits?
A You cannot talk about wages without talking
about profits. And you cannot talk about prices without talking about wages and profits.
Q What about the fellow who is making no profits
—should he pay lower wages then? Aren't there lots
of companies where they don’t have any profits and
where they can’t cut wages—
A The facts are that the profits of American cor-

porations are at an all-time high, running at a rate of
48 billion dollars a year before taxes, or double the

28

as fraud’

record profits of the war years.
Q

But, as a principle, do you

Q

In other words, you

think organized labor

would favor lower wage scales In companies where
they are not making profits?
A Organized labor is not prepared to subsidize inefficient companies through low wages.
take the position

an industry loses money, that’s
don’t take the position that it may
up above with the big monopoly
to the wall? Under the antitrust

some

monopolies,

but we

that when

inefficiency?
You
be the competitor
that’s forcing him
laws we prosecute

don’t get

them

all.

Now

what would organized labor do on that? Would it
favor strict enforcement?
A Monopolies do not often drive prices down and
put competitors out of business. Most of the time they
hold prices up by creating economic scarcity. They
operate on the basis of restricted output that yields
high prices and high profits.

How
Q

But

you've

got

Profits Have
a big,

r\

Risen

concerted

movement

to

raise the costs through high wage levels in some in-

dustries, and the result is the higher-cost fellow has °

got to meet that price or go out of business, doesn’t
he?
A The fact remains that the total wage bill of all
business, both large and small, has gone up 26 per
cent since 1944 while corporation profits in that same
period have gone up 97 per cent. The National City
Bank reports that 1,000 leading corporations averaged
an increase in profits, after taxes, of more than 35 per
cent from 1949 to .1950.
Q But people are said to have too much money to
spend—wages are very high now, aren’t they?
A This idea that the little people have too much
wages and too much spending power and are creating inflation is the theory that the Federal Reserve
Board used when it issued Regulations K and W.
They were designed to price low-income families out
of the market for homes and other consumer durable
goods.
This is a form of rationing based upon ability to
pay rather than upon need. The real source of infla_tionary pressure is not the wages in the average family pay check. The upper 10 per cent of American
families with highest incomes spend almost as much
as the lower 50 per cent of American families all together. While the Federal Reserve Board was pricing
these low-income families out of the market with its
consumer-credit regulations, it was not doing a thing
to check the bank loans to business which were increasing four times as fast as the loans to consumers.
Q Isn't your point really that a lot of controls are
imposed unevenly under our setup and you would
have simultaneously imposed controls?
A That’s precisely the point. If you’re going to control inflation you've got to use all of the tools that we

U. S. NEWS

& WORLD

REPORT

.

. . » ‘Stop

speculation

and

profiteering’

possess. That means, No. 1, you’ve got to have price
control, rigid price control. That means you’ve got to
have quality control, too, because when you control
the price of goods and don’t control the quality you’re
only dealing with half the problem.
Q How would you control the quality?
A We must protect the consumer by having specifications and quality standards in the price regulations.
Under such regulations where a ceiling price of $15
had been established on a child’s coat, with a quality
standard of 80 per cent wool and 20 per cent cotton,
the manufacturer would be prohibited from cutting
the wool content to 60 per cent unless he made a cor-

responding reduction in the price. The actual cost of
a pair of boy’s shoes with a ceiling price of $6 is in
fact raised to $12 if the quality is reduced so that
the shoes wear only half as long.
When you get into canned goods, quality standards
are even more important because the average housewife does not have X-ray eyes with which to see
through the can and examine its contents before she
makes a purchase. Unless the price regulation is tied
to quality, she will find herself paying grade A prices
for grade C canned goods.
Q Wouldn't you have to control meticulously every
segment of your economic system to put this into
effect?
A You’ve got to have price control and quality control. You would also require the posting of dollarsand-cents ceiling prices in place of the present system
under which each retailer has his own markups and
prices.
We also need credit controls and rent control. We
need to control trading in the commodity exchanges
in order to stop speculation and profiteering, which
are economically and morally indefensible.

Wisdom of 12 Men
Q Do you think 12 men sitting as a policy group

can handle all those problems?
A I think 12 men can do a better job than one man
because I'll trust the wisdom of 12 men—that’s why
we have a democracy. I don’t think any one man is
equal to this task. I don’t care whether he comes from
industry, labor, agriculture or from some university.
Q Do you think these 12 men would agree?
A I think that they can work out policy. I was trying to say earlier—the War Manpower Commission
had an equal number of industry representatives, labor representatives, agricultural representatives, and
a public chairman—and we worked out a practical
man-power program, and we didn’t get in there and
bargain with each other. We all recognized that there
was a national interest that transcended the interest
of the groups participating.
Q

You knew

man power, but you couldn’t delegate

to that group from Jabor and agriculture the knowledge of how to operate the credit controls of America

APRIL 6, 1951

and let them be the court of last resort, could you?
A But you could certainly bring in experts—that’s
how we did on man power. This top policy board
would bring in the best of the authorities in the
country on credit.
Q Why can’t this committee report to Mr. Wilson,
and Mr. Wilson report to the President?
A Then you have Mr. Wilson above the policy
board, and supposing he says, “Well, gentlemen,
you’re unanimous, but I disagree.” Then where do
you go?

Identifying Policy
Q

You

your point that the chief, the one un-

made

der your policy board, is to have complete administrative authority. Now who decides what’s policy and
what’s administrative power?
A Everybody who knows anything about running a
big organization knows there are distinct differences
between policy decisions and administrative decisions. And I’m saying that that line of demarcation
can be drawn

without

any

confusion

because,

when

you’re pounding out basic policy decisions, everybody knows what you’re talking about.
Q What if the President doesn’t approve of a policy board and leaves Mr. Wilson in his position?
A Then you haven’t got what I am proposing. I’m

stating what in my judgment represents the most in-

telligent, the most constructive and the most effective
approach. I’m not trying to speculate on what someone might do.
Q Is this your organization’s proposal?
A I’m not speaking here for the United Labor Policy Committee. I’m saying that if I were asked the
question how America or a free people can best get on
with the job of mobilizing their material resources
and their human resources and tapping the spiritual
power that they have, I would say that this kind of
machinery lends itself better to the achievement of
that task than the one-man setup that we now have.
Q That is your personal view, then?
A That’s right.
Q But don’t labor and business and agriculture
think that this 1s a near-war rather than an actual
war? That it’s a get-rich-quick period?
A That isn’t true so far as labor is concerned because the policy statement of the United Labor Policy Committee said very clearly and unequivocally
that we are in favor of and are prepared to accept a
program of wage stabilization. But we said that wage
stabilization had to be a part of a total over-all program. Now, you can’t say that we’re trying to get
rich—we

don’t

want

to

get

rich—but

we

are

not

willing to have our wages frozen and everything else
going sky high.
Q If you did get this committee, would you then
have a no-strike pledge given by labor?
A The question of strikes is one that will take

29

.. » ‘Avoid

strikes

by removing

care of itself if you work out a sound and equitable
policy. Talk about a no-strike pledge in the light
of the facts, with prices and profits skyrocketing,
is dangerously unrealistic.
Q I meant after this commission had been put
into operation, would you then have a no-strike
pledge to keep equality of sacrifice?
A I’m for a disputes section in the Wage Stabilization Board. If you have an economic program
that reflects equity for everybody—nobody getting
rich at the other fellow’s expense—if you have control of the economy so that wages-prices-profits
have a reasonable and defensible economic and
moral relationship, then strikes are not going to be
a problem.

Justice: Key to Stability
Q

But

if they

were,

and

somebody

did

strike,

what would you do?
A A disputes section will not provide a positive
guarantee against strikes, but such an agency will
reduce strikes to a minimum because both parties
are afforded opportunity to present their sides of
the dispute and to get a decision by a board composed of people who understand both points of
view. As a practical matter we need to deal not
with how you settle strikes but rather with how
you avoid strikes by removing their causes. If
workers feel that they are getting justice, you will
have no strikes. On the other hand, if they feel they
are being denied justice, you will have strikes regardless of a no-strike pledge. In a police state,
it is possible to achieve industrial stability without
justice. In a free society, however, industrial stability is possible only if it rests upon a foundation
of economic and social justice.
Q But economic justice is a very abstract term
and labor’s definition of that differs from others.
If you can only have peace by accepting one fellow’s definition of justice, how can you have justice?
A That’s what Mr. Wilson is proposing—he’s
proposing peace on his terms. No one person
should be permitted to decide issues which affect
the lives of all the people.
Q Would you be satished with another “one
man” if he came from a labor union?
A No. Absolutely not. I said before, whether he
came from labor, industry, agriculture or from a
college, that no one superman in America is capable of meeting the complex problems involved in
this mobilization program.
Q

Now,

as to collecting more

taxes, as you

pro-

pose, from the higher income groups, if you don’t
intend

to confiscate

all income

above

$10,000, how

could you collect enough taxes?
A Well, let’s take corporations. The present excess-profits tax yields less than 3 billion dollars.

(Reprinted

from

“U.

S.

News

&

World

Report,’

an

independent

their

causes’

We believe that, out of current corporation profits,
a realistic and equitable excess-profits tax ought to
yield somewhere between 8 and 10 billion. We
think that represents the fair share of the total tax
load which corporations ought to carry. We also
believe that the loopholes in the tax law ought to
be plugged.
Q Would you repeal income splitting whereby
a husband and wife can make a joint return?
A Yes, they ought to repeal the split-income
provision because it allows well-to-do families to
escape paying billions of dollars in taxes.
Q Would you say whether you are satisfied with
the present political parties?
A I have said for a long time what we really need
in America is a fundamental realignment of political forces so that political parties stand for definite concepts of government and economics. At
present each major political party is a hodgepodge
of incompatible economic, social and _ political
groups—neither party having a sense of moral responsibility or the organizational discipline to
carry out the programs and platforms on which
they seek the support of the people.

Nationalization

Opposed

Q What about nationalization? Would you favor
that for this country?
A I am not in favor of nationalization. I am opposed to monopoly and economic scarcity. Too
often American industry is neither free nor enterprising.
When private industry refuses to expand productive capacity to meet the needs of our nation, I
favor the Government as the agency of the people
taking what steps are necessary to see that economic deficits are met. The steel industry is a case
in point. Following Pearl Harbor and once again
in the present emergency, the people of America
are paying the price of the steel industry’s refusal
to expand. We cannot tolerate any private economic decisions which threaten the security of our
nation and which jeopardize our economic future.
I am for ending artificial restrictions on production because I believe in an economy of abundance.
Q What if we get a great deflation?
A If we are to make freedom secure in the world
free men must learn how to organize their economic life so as to achieve full employment, full

production and full distribution, uninterrupted by

deflations and degression. America must prove to
the world that it is possible to achieve a full measure of economic security without sacrificing political or spiritual freedom. We must prove to the
world that we can mobilize our economic resources
and our productive power for making the good
things of life in peace as we have demonstrated
our capacity to forge the weapons of war.

weekly magazine on national and
U. 8. News Publishing Oorp.)

international

affairs,

published

at Washington.

Oopyright

1951

WHAT
AN

LABOR

INTERVIEW

WITH

WANTS

WALTER

P. REUTHER

President, United Automobile, Aircraft and Agricultural Workers

of America, ClO

om,

Reprinted

from

"U.S.News & World

Report’

Washington

(Copyright

1951,

by U.S. News

Publishing Corporation)

WHAT
AN

LABOR

INTERVIEW WITH

WANTS

WALTER

P. REUTHER

President, United Automobile, Aircraft and Agricultural Workers of America, CIO

EDITOR’S NOTE: What does labor ask—for the
mobilization period and the longer future? How
deep are the conflicts, of which one evidence was
the recent walkout of the labor members of the
Wage Stabilization Board?
To analyze the situation and discuss the prospects,

Walter

P.

Reuther

was

invited

to

the

con-.

ference rooms of U.S. News & World Report.
Head of the CIO Auto Workers, he is a member
of the United Labor Policy Committee, representing most of organized labor, whose decision
caused the WSB walkout.

WALTER PHILIP REUTHER, grandson and son of
labor leaders, was 15 when he became an apprentice tool and die maker. Night school and a working tour of the world featured his twenties.
In 1935 he began organizing the Auto Workers,
and has since 1946 been president of the union—
world’s largest, with 1,300,000 members.

A leader of the “right wing” in the labor movement, Mr. Reuther in 1941 suggested mass production of airplanes by the auto industry, and
often engages in discussions of operating plans in
industry. He is 43 years old.

PPP

OO

222

OPPO

ODO

ODO

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_—2 FZ

Q Do you feel confident, Mr. Reuther, that we are
going to have the co-operation of all the groups in our
economic system for the defense effort?
A I believe that, despite the current and temporary
difficulties we are having, we must of necessity find a
common basis on which the various economic groups
in our society can make their contribution to the successful prosecution of the defense program.
Q Do you feel that in our economic system we are
all dependent on one another?
;
A I think that is very true, and that’s why I believe
we will have to find a democratic method of working
out these problems.
Q Has the public understood organized labor’s
view point in the recent discussions?
|
A I think that consumers generally understand our
position. Of course, the attempt has been made to
make it appear that the present controversy was essentially one over wages, when in truth 90 per cent of
the wage problem is the lack of effective price :Control.
It is dangerously unrealistic to talk about trying to
stabilize wages at a time when the over-all economy is
not being stabilized and prices continue to rise and
profits are soaring.
Q But couldn’t you start your control that way—
since you have to start someplace, why not start with
labor?
?
A You’ve got to take first steps first. But the question is: What ought to be the first step? Wages have
lagged behind prices.
Q Since when?
A Since Korea, wages have lagged behind prices
and profits have moved ahead at a much faster rate

24

than wages. Increased profits are certainly more responsible than wages for the rise in prices. No one
can argue with very much logic that wages in the auto
industry have precipitated the price movement. We
received a 5-cents-per-hour cost-of-living wage increase in the first week of September, 1950. The costof-living adjustment merely reflected the fact that
90 days before that date prices had increased suf-

ficiently to justify a 5-cent wage increase. In Decem-

ber, 1950, we received another 3 cents in wages. Again,

this merely indicated that prices had moved up and

wages were adjusted 90 days behind the price increase. The same thing happened again in March
when we received another 5-cent cost-of-living adjustment. Now, you can’t say that wage increases which
follow 90 days after the movement in the cost-ofliving index are responsible for pushing the index upward.
Q But not all workers are in the auto industry—
and not all are covered by escalator clauses. Some
have gotten direct raises?
A The fact is that the over-all wage movement has
been slower than the price movement.
Q You mean since Korea?
A It is true not only since Korea—it is true in the
period before Korea. There is no question about that.
Now let’s compare the increase in profits with the increase in wages. From 1944, which was a good profit

year

and

a good

wage

year,

until

the

last quarter

of

1950, the total wage bill increased 26 per cent while
profits went up 97 per cent. The increase in profits

was more
wages.

than 314 times as great as the increase in

U.S. NEWS & WORLD

REPORT

Living-Cost

Seen

Control

as First Need
Food

.
.
.
s
e
g
a
W
t
No
s,
it
of
Pr
to
Laid
Q

But

profits

were

held

down

kept rising. Prices were

and wages
the war—
A You talk

during

the

controlled

war,

during

about profits being held down—Gen0
.0
00
,0
00
,0
11
,8
$1
de
ma
ar
ye
st
la
.
rp
Co
eral Motors
st
ve
in
r
ei
th
on
nt
ce
r
pe
86
de
ma
ey
Th
s.
xe
before ta
in
r
ei
th
on
nt
ce
r
pe
40
de
ma
ey
th
s;
xe
ta
re
ment befo
s
it
of
pr
in
7
.3
$1
de
ma
ey
th
d
an
s;
xe
ta
r
te
af
vestment
for every dollar they paid in wages.
s?
ge
wa
of
$1
y
er
ev
r
fo
7
.3
$1
of
s
it
Q Prof
A That’s right.
Q After taxes?
r
te
Af
s.
xe
ta
re
fo
be
id
pa
e
ar
s
ge
wa
s—
A Before taxe
al
ri
te
ma
its
,
ll
bi
ge
wa
its
id
pa
d
ha
rs
General Moto
ex
g
in
at
er
op
r
he
ot
all
r
fo
id
pa
d
ha
it
r
te
bill and af
de
ma
ey
th
,
es
iv
ut
ec
ex
of
es
ri
la
sa
g
in
ud
penses, incl
s.
ge
wa
in
id
pa
ey
th
$1
y
er
ev
for
it
of
pr
in
7
.3
$1
l,
wel
ty
et
pr
d
di
it
.—
Co
ic
tr
ec
El
l
ra
ne
Ge
the
Take
r
pe
12
s
wa
50
19
for
l
bil
ry
la
sa
d
an
ge
wa
l
ta
too. Its to
l
ra
ne
Ge
of
s
it
of
pr
the
e
il
wh
,
49
19
an
th
cent higher
Electric went up 38 per cent from 1949 to 1950.
Q

?
ey
th
t
n'
ve
ha
,
up
ne
go
ve
ha
gs
in
rn
ea
But weekly

er
ng
lo
a
d
an
s
ur
ho
me
ti
er
ov
at
th
s
ou
A It is obvi
t
an
rt
po
im
e
Th
.
gs
in
rn
ea
ly
ek
we
se
ea
cr
work week in
er
rk
wo
a
s
ar
ll
do
of
er
mb
nu
the
t
no
is
thing, however,
he
at
wh
th
wi
y
bu
to
le
ab
is
he
at
wh
t
bu
me
takes ho
to
ed
re
ag
ve
ha
we
,
ry
st
du
in
to
au
the
In
.
takes home
ng
vi
li
f-o
st
co
e
th
in
nt
me
ve
mo
e
th
to
s
ge
gear our wa
at
th
,
od
ri
pe
rea
-y
10
a
er
ov
d,
ne
ar
le
we
index because
ur
ho
r
pe
s
nt
ce
66
y
el
at
im
ox
pr
ap
ed
in
ga
auto workers
ur
ho
rpe
snt
ce
6a
ly
on
de
ma
t
bu
s
in money wage

y
wh
is
at
Th
r.
we
po
ng
si
ha
rc
pu
in
in
ga
the
of
e
pl
ci
in
pr
the
ed
pt
ce
ac
s
ha
ship

our membercost-of-living

me
ti
d
an
me
ti
at
th
d
un
fo
we
e
us
ca
be
,
se
au
cl
escalator

at
th
s
el
ck
ni
en
od
wo
n
wi
to
ng
ti
gh
fi
re
again we we
re.
sto
y
er
oc
gr
the
at
ng
hi
yt
an
y
bu
’t
dn
ul
wo
to
is
y
et
ci
so
e
fre
r
ou
of
m
le
ob
pr
l
ta
en
am
nd
fu
e
Th
be
e
nc
la
ba
a
g
in
ev
hi
ac
of
s
an
me
ic
at
cr
mo
de
find a
r
ou
d
an
th
al
we
d
se
ea
cr
in
te
ea
cr
to
y
it
il
ab
r
ou
n
twee
r
he
ot
In
.
th
al
we
d
se
ea
cr
in
at
th
e
um
ns
co
to
ability
ve
ti
uc
od
pr
n
ee
tw
be
e
nc
la
ba
a
e
ev
hi
ac
st
mu
words, we
un
t
es
gg
bi
e
th
is
at
Th
r.
we
po
ng
si
ha
rc
power and pu
solved problem that free men have.

Why Labor Quit the Board

ur
yo
ed
pt
ce
ac
on
ti
za
ni
ga
or
e
ns
fe
de
the
’t
sn
Q Ha
r?
bo
la
of
n
io
ct
je
ob
the
is
at
Wh
a?
ul
rm
fo
ng
vi
li
f-o
st
co
h
ic
wh
r
de
or
d
ar
Bo
n
io
at
iz
il
ab
St
ge
Wa
e
Th
A
es
lv
se
em
th
te
ia
oc
ss
sa
di
to
s
er
mb
me
r
bo
la
caused the
from the Board did not provide for operation of the
ge
wa
al
nu
an
the
nor
se
au
cl
r
to
la
ca
es
ng
vi
li
f-o
st
co
c
mi
no
co
[E
on
st
hn
Jo
c
Eri
.
Mr
.
use
cla
t
en
em
ov
pr
im
isto
y
ar
ss
ce
ne
it
d
un
fo
r]
to
ra
st
ni
mi
Ad
n
io
at
Stabiliz

i

APRIL

6,

1951

.. . Price

Subsidies

Rise

Favored

sue a special order approving the escalator clause.
The annual wage-improvement clause has as yet not
been resolved, although I am certain that it will be
approved in advance of the effective date, which is
June 1, 1951. Mr. Johnston’s approval of the escalator

clause

is

effective

only

until

June

30,

1951,

which is the date the Defense Production Act expires. The status of the escalator clause and the improvement clause beyond that date is unsettled. We
feel there is no sound, moral or economic basis for
disturbing that.
Q You don’t think, Mr. Reuther, that at a time like
this the escalator clauses are built-in inflation?
A No—for the simple reason as I have stated: Wage
adjustments that result from the operation of the costof-living clauses lag 90 days behind the movement

|
in the price index.
Q Do you object to farm parity?
A No. We are in favor of farmers’ receiving parity.

We believe that the basic problem must be met by
food subsidies. Experience in the last war demon-

strated

clearly that subsidies

are the most

effective

way of breaking the chain reaction in the movement
ketween ‘farm prices and industrial prices. Unless the
inflationary chain reaction is broken, farm prices will
never reach parity and wages will never catch up with
the cost of living.

Biggest Consumer: Government

Q We were told, though, that a subsidy on meat
alone would cost 6 billion dollars—
A I don’t think that is a correct figure. Experience
in the last war showed that for every dollar you put
into a subsidy program you saved five dollars at the
consumer end. When you talk about the consumer,
you are not only talking about the housewife—you are
also talking about the Government, because the Government in a period of mobilization is the biggest con-.
sumer of all.
't
didr
war,
last
the
in
idy
subs
that
had
They
Q
they?
A Yes—and it worked very successfully. Farmers
have a lot of factors in their production processes
over which they have no control—such as weather,
etc. Subsidies are the best means of protecting the
consumer against higher prices while at the same time
giving farmers fair prices that will assure maximum
production of foodstuffs and fibers needed to make
our economy

strong.

Q Where you have taken a cut on the basis of this
cost-of-living index, hasn’t it been a short-lived cut
and more than been made up for by the next 1n(Continued on page 26)

25

..-

‘America

crease? Haven't
taken a cut?

you

needs
had only

a board

of directors for mobilization’

two cases where you've

A We took a cut during the period when unemployment was on the increase and economic activity was
tapering off. It is true that this didn’t last too long because before we knew it we were in the Korean emergency and all the pressures which were pushing the
index down were reversed and resulted in an upward
movement of the cost-of-living index.

For an Over-All Board
Q In an un-co-ordinated society like ours how
can you get a stabilized dollar for everybody?
A I think we all appreciate the fact that trying to
control economic forces in a free economy is a very
difficult and very complex job. That’s why I believe
that in setting up this mobilization program, we
should not rely on any one superman, because no
one man—no matter how well-intentioned he may be,
no matter what his background—no one man knows
the answers to all these complex problems. We agree,
of course, that one man must be in charge of the administrative aspects of the program. We do not advocate the kind of two-headed animal we had under

OPM [Office of Production Management, in World
War II]. We do not think that is efficient. We favor
concentrating the administrative responsibility in one
person. We believe the fundamental weakness of the
present situation is the fact that the person doing the
administrative job is also doing the policy job. What
is needed in Washington in this emergency is an overall mobilization policy board on which business, both
large and small, farmers, labor and the public are all
equally represented.
Q Hasn’t President Truman done that—hasn’t he
applied that kind of principle?
A He’s issued an order setting up an advisory board
of some kind—nobody really knows what it is.

Q

Could

Charles

E. Wilson,

Director of the Office

of Defense Mobilization, be on this policy committee?

“‘We don’t want to get rich’’

26

‘‘The WSB

needs

A Yes—he could even be chairman.
Q In our interview two weeks ago with Mr. Wilson,
he said almost your words—he said he has in mind the
appointing of an over-all policy committee. Is that
about your idea?
|
A Mr. Wilson is suggesting an advisory committee
of some kind. I suppose what he has in mind is that
he will have an advisory committee for agriculture,
one for labor, one for industry, and he will call them
in when he has a problem on which he wants to consult them.

Q

No,

Deciding Basic Policy

he speaks

of an over-all advisory

group—

A What I am proposing is not an advisory committee. I’m proposing a policy board—it functions in
exactly the same way as a board of directors in a
corporation. Mr. Wilson was the head of the General
Electric Co. But when they had a basic policy question, whether to expand plant capacity, to move into
a new field of activity or some other basic policy decision, Mr. Wilson, as president of the General Electric Co., did not make such decisions by himself. Such
decisions undoubtedly were made by the board of directors.

The complex problems of war mobilization and applying controls in a free economy are infinitely more
difficult and complex than any problem that the
board of directors of the General Electric Co., ever
took on. Just as General Electric has a board of directors to handle its basic policy problems, I think
America needs a board of directors to handle the far
more difficult and complicated problems of the defense mobilization.
Q Would that require a change in the statute?
A No. The President under the Defense Production
Act has authority to create the machinery needed to
implement the purposes of the Act.
Q

Then this group that you speak of would have to
80 back, anyway, to the President for approval?

a disputes. section”’

“Quality controls are necessary”

U.S. NEWS & WORLD REPORT

- « - ‘Twelve

minds could give better leadership than one man’

A The President can delegate the same authority to
such a mobilization policy board as he has delegated
to Mr. Wilson. Mr. Wilson could retain the administrative authority but not the sole power to make
policy. In other words, I propose-separating the two
functions. Certainly whoever is the head of the administrative end of the mobilization program ought to sit
on the policy board, either as a member or as the
chairman. But, once the policy board has made a decision, he would be responsible for carrying it out.
Q How does that differ from what we had in World
War II?
A We went through many stages in World War II.
But we never had the kind of over-all policy board
that I am proposing. We need this kind of board today
more than ever because the problems that we face now
are more difficult than the kind of problems we faced
when we were in total conversion and total mobilization. We are dealing now with the complex problem
of superimposing large-scale defense production on a
civilian economy in which man power and plant capacity is almost fully employed.

Applying Democracy

When we’re talking about defending democracy in
the world, we’ve got to apply it. No one can challenge
the validity or the soundness of the fact that, if we
could draw into a top mobilization policy board the
best minds from every important economic group in
America, they could collectively give better leadership to policy questions than any one man can give,
whoever he may be.
Q Would everybody have to abide by a majority
decision in that kind of plan?
A Certainly.
Q What if you couldn't get agreement, as you didn’t
get it on the Wage Stabilization Board?

A If you get top men who have real appreciation
of what our basic problems are, you will find that on
important policy questions they can sweat out, by the

ae

m in favor of farm parity’

‘Repeal

process of give and
will find a common
can work.

then,

take, a common program—they
denominator around which they

If an occasion

of course,

arises where

the majority

that isn’t true,

has to decide.

‘Expedient’ vs. ‘Right’

In the case of the Wage Stabilization Board, they
were doing the thing that was expedient and not the
thing that was right. Instead of evaluating all the
economic factors of the present situation and then
trying to project a wage policy to meet those factors,
the public and industry members came up with a 9 per
cent_figure which was completely arbitrary. They
thought 9 per cent would cover the escalator clauses.
In the morning they had a 9 per cent figure. In the
evening they had a 10 per cent figure. The only reason
they went from 9 to 10 per cent was they found the 9
per cent wouldn’t cover the General Motors escalator
clause and some of the other escalator clauses. Then
when the BLS [Bureau of Labor Statistics] index was
issued they found that 10 per cent wouldn’t do it and
Mr. Eric Johnston had to issue a new order.
No such maneuvering based upon expediency provides a sound basis for wage stabilization. It is impractical, unworkable and unjust to attempt to stabilize wages without first controlling the cost of
living.
Any such stabilization program must permit the
adjustment of wage inequities. The present 10 per
cent wage freeze permits a $100,000 executive to receive a $10,000 increase but does not permit a worker

receiving 50 cents per hour to receive a 6-cents-perhour increase. Under the Wage Stabilization Board’s
policy, the $10,000 increase is noninflationary while
the 6 cents per hour is inflationary.
Q How many would be on that policy board?
A I’d say 2 or 3 from each group, 8 or 12 people
altogether.
Q Would those people be on the pay roll of the in-

split-income tax provision’

(Continued

on page

—Photos:

28)

O’Halloran

from

Harris

&

Ewing

‘‘I’m not in favor of nationalization”

ar

APRIL

6,

1951

27

... ‘Housewife

recognizes

price freeze

dividual groups or be Government officials disassociated from their respective groups?
A If they were required to serve full time, then I
think they should go on the Government pay roll.
Q Wouldn’t you be better off to have a public
group without the fellows that have connections?
A The purpose of having industry, labor, farmers
and the public is to be able to draw upon the specialized experience of each group. Each group, having a
different background and different point of view, has
a unique contribution to make. What we need is the
pooling, the blending of these various points of view to
give us unity of purpose and action. An all-public
group would lack a lot of experience that industry, agriculture and labor would bring to the policy board.
Q Did you plan on trading between the groups to
get the best agreement?
A I do not consider this a matter where you are
going to bargain.
Q Can labor members of that board act independently, or are they going to have to follow the policy
laid down

by

those making

the policy?

A I served in the last war on the War Manpower
Commission, which within the limited field of man
power was similar to what I am proposing.

Success of Manpower Group

Q Nowadays, however, the United Labor Policy
Committee has forced all the labor representatives in
the Government to get off the various defense agencies.
How are you going to stop that in your kind of setup?
A Experience in the War Manpower Commission
proved that labor, management and agriculture were
able to think through the basic issues and come up
with agreement on sound policies relating to mobiliza-

tion.problems.

The

Wage

Stabilization

Board

was

operating on the basis of expediency and attempted to
control wages rigidly at a time when prices and profits
were not effectively controlled. Every housewife recognizes the so-called price freeze as a fraud.
The price of Cadillacs was rolled back and the price
of scrap iron was cut $10 per ton, but the cost of food,
clothing and other necessities continued to rise. These
are the facts that precipitated the crisis in the Wage
ns
Stabilization Board.
Q Do you think that the problem of wages has a
relationship to the problem of profits?
A You cannot talk about wages without talking
about profits. And you cannot talk about prices without talking about wages and profits.

Q

What about the fellow who is making no profits

—should he pay lower wages then? Aren't there lots
of companies where they don’t have any profits and
where they can’t cut wages— ©
A The facts are that the profits of American corporations are at an all-time high, running at a rate of
48 billion dollars a year before taxes, or double the
record profits of the war years.

1a

28

as fraud’

Q But, as a principle, do you think organized lahor would favor lower wage scales in companies where
‘hey are not making profits?
A Organized labor is not prepared to subsidize inefficient companies through low wages.
Q In other words, you take the position that when

an industry loses money, that’s efficiency? You don’t
take the position that it may be the competitor up
above with the big monopoly that’s forcing him to the
wall? Under the antitrust laws we prosecute some

monopolies, but we don’t get them all. Now what
would organized labor do on that? Would it favor
strict enforcement?
A Monopolies do not often drive prices down and
put competitors out of business. Most of the time they
hold prices up by creating economic scarcity. They
operate on the basis of restricted output that yields
high prices and high profits.

How

Profits Have

Risen

Q But you’ve got a big, concerted movement to
raise the costs through high wage levels in some industries, and the result is the higher-cost fellow has
got to meet that price or go out of business, doesn’t
he?
A The fact remains that the total wage bill of all
business, both large and small, has gone up 26 per
cent since 1944 while corporation profits in that same
period have gone up 97 per cent. The National City
Bank reports that 1,000 leading corporations averaged

an increase in profits, after taxes, of more than 35 per

cent from 1949 to 1950.
Q But people are said to have too much money to
spend—wages are very high now, aren’t they?
A This idea that the little people have too much
wages and too much spending power and are creating inflation is the theory that the Federal Reserve
Board used when it issued Regulations X and W.
They were designed to price low-income families out
of the market for homes and other consumer durable
goods.
This is a form of rationing based upon ability to

pay rather than upon need. The real source of inflationary pressure is not the wages in the average family,
pay check. The upper 10 per cent of American families with highest incomes spend almost as much as
the lower 50 per cent of American families all together.
While the Federal Reserve Board was pricing these
low-income families out of the market with its consumer-credit regulations, it was not doing a thing to
check the bank loans to business which were increasing four times as fast as the loans to consumers.
Q Isn’t your point really that a lot of controls are
imposed unevenly under our set-up and you would
have simultaneously imposed controls?
A That’s precisely the point. If you’re going to control inflation you’ve got to use all of the tools that we
possess. That means, No. 1, you’ve got to have price

ea

U.S. NEWS & WORLD

REPORT

... ‘Stop speculation

and

control, rigid price control. That means

profiteering’

you’ve got to

have quality control, too, because when you control
the price of goods and don’t control the quality you’re

only dealing with half the problem.
Q How would you control the quality?
A We must protect the consumer by having specifications and quality standards in the price regulations.
Under such regulations where a ceiling price of $15
had been established on a child’s coat, with a quality
standard of 80 per cent wool and 20 per cent cotton,

the manufacturer

would

be prohibited from

the wool content to 60 per cent unless he made

cutting
a cor-

responding reduction in the price. The actual cost of
a pair of boy’s shoes with a ceiling price of $6 is in
fact raised to $12 if the quality is reduced so that

the shoes wear only half as long.
When you get into canned goods, quality standards
are even more important because the average housewife does not have X-ray eyes with which to see
through the can and examine its contents before she
makes a purchase. Unless the price regulation is tied
to quality, she will find herself paying grade A prices
for grade C canned goods.
Q Wouldn't you have to control meticulously every
segment of your economic system to put this into
effect?
A You’ve got to have price control and quality control. You would also require the posting of dollarsand-cents ceiling prices in place of the present system
under which each retailer has his own markups and
prices.

We also need
need to control
in order to stop
are economically

credit controls and rent control. We
trading in the commodity exchanges
speculation and profiteering, which
and morally indefensible.

Wisdom
Q

Do

you

of 12 Men

think 12 men

sitting as a policy group

can handle all those problems?
A I think 12 men can do a better job that one
man because I’ll trust the wisdom of 12 men—that’s
why we have a democracy. I don’t think any one
man is equal to this task. I don’t care whether he
comes from industry, labor, agriculture or from some
university.
Q Do you think these 12 men would agree?
A I think that they can work out policy. I was trying to say earlier—the War Manpower Commission
had an equal number of industry representatives, labor representatives, agricultural representatives, and
a public chairman—and we worked out a practical
man-power program, and we didn’t get in there and
bargain with each other. We all recognized that there
was a national interest that transcended the interest
of the groups participating.

Q

You knew man power, but you couldn't delegate

to that group from labor and agriculture the knowledge of how to operate the credit controls of America

APRIL

6,

1951

and let them be the court of last resort, could you?
A But you could certainly bring in experts—that’s
how we did on man power. This top policy board
would bring in the best of the authorities in the
country on credit.
Q Why can’t this committee report to Mr. Wilson,
and Mr. Wilson report to the President?

A

Then

you

have

Mr.

Wilson

above

the

policy

board, and supposing he says, ‘“‘Well, gentlemen, you’re
unanimous, but I disagree.” Then where do you go?

Identifying Policy

Q You made your point that the chief, the one under your policy board, is to have complete administrative authority. Now who decides what’s policy and
what’s administrative power?
A Everybody who knows anything about running a
big organization knows there are distinct differences
between policy decisions and administrative decisions.
And I’m saying that that line of demarcation can be
drawn without any confusion because, when you’re
pounding out basic policy decisions, everybody knows
what you’re talking about.
Q What if the President doesn’t approve of a policy
board and leaves Mr. Wilson in his position?
A Then you haven’t got what I am proposing. I’m
stating what in my judgment represents the most intelligent, the most constructive and the most effective
approach. I’m not trying to speculate on what some-

one might do.
Q Is this your organization’s proposal?
A_ I’m not speaking here for the United Labor Policy Committee. I’m saying that if I were asked the
question how America or a free people can best get on
with the job of mobilizing their material resources
and their human resources and tapping the spiritual
power that they have, I would say that this kind of
machinery lends itself better to the achievement of
that task than the one-man setup that we now have.
Q That is your personal view, then?
A That’s right.
Q But don’t labor and business and agriculture
think that this is a near-war rather than an actual
war? That it’s a get-rich-quick period?
A That isn’t true so far as labor is concerned because the policy statement of the United Labor Policy Committee said very clearly and unequivocally
that we are in favor of and are prepared to accept a
program of wage stabilization. But we said that wage
stabilization had to be a part of a total over-all program. Now, you can’t say that we’re trying to get
rich—we don’t want to get rich—but we are not
willing to have our wages frozen and everything else
going sky high.

Q

If you

did get this committee,

would you

then

will

take

have a no-strike pledge given by labor?
A The question of strikes is one that
(Continued on page 30)

29

g
n
i
v
o
m
e
r
by
s
ke
ri
st
id
vo
‘A
...

their causes’

e
bl
ta
ui
eq
d
an
d
un
so
a
t
ou
rk
wo
u
yo
if
elf
its
care of
of
t
gh
li
e
th
in
ge
ed
pl
e
ik
tr
-s
no
a
t
ou
ab
lk
policy. Ta
is
,
ng
ti
ke
oc
yr
sk
s
it
of
pr
d
an
es
ic
pr
th
the facts, wi
dangerously unrealistic.
t
pu
en
be
d
ha
on
si
is
mm
co
s
thi
r
te
af
t
an
me
Q I
e
ik
tr
-s
no
a
ve
ha
en
th
u
yo
d
ul
wo
n,
io
at
er
op
to
in
pledge to keep equality of sacrifice?
A I’m for a disputes section in the Wage Stabilim
ra
og
pr
ic
om
on
ec
an
ve
ha
u
yo
If
d.
ar
Bo
on
ti
za
that reflects equity for everybody—nobody getting
rich at the other fellow’s expense—if you have control of the economy so that wages-prices-profits
have a reasonable and defensible economic and
moral relationship, then strikes are not going to be
a problem.

believe that, out of current corporation profits, a
realistic and equitable excess-profits tax ought to
yield somewhere between 8 and 10 billion. We think
that represents the fair share of the total tax load
which corporations ought to carry. We also believe
that the loopholes in the tax law ought to be
plugged.
Q Would you repeal income splitting whereby
a husband and wife can make a joint return?
A Yes, they ought to repeal the split-income
provision because it allows well-to-do families to
escape paying billions of dollars in taxes.

Justice: Key to Stability

Q But if they were, and somebody did strike,
what would you do?
A A disputes section will not provide a positive
guarantee against strikes, but such an agency will
reduce strikes to a minimum because both parties
are afforded opportunity to present their sides of
the dispute and to get a decision by a board com-

posed

of

people

who

understand

both

points

of

view. As a practical matter we need to deal not
with how you settle strikes but rather with how you
avoid strikes by removing their causes. If workers
feel that they are getting justice, you will have no
strikes. On the other hand, if they feel they are
being denied justice, you will have strikes regardless of a no-strike pledge. In a police state, it is possible to achieve industrial stability without justice.
In a free society, however, industrial stability is
possible only if it rests upon a foundation of economic and social justice.
Q But economic justice is a very abstract term
and labor’s definition of that differs from others.
If you can only have peace by accepting one
fellow’s definition of justice, how can you have
justice?
A That’s what Mr. Wilson is proposing—he’s
proposing peace on his terms. No one person should
be permitted to decide issues which affect the lives

of all the people.

Q Would you be satisfied with another ‘one
man’ if he came from a labor union?
A No. Absolutely not. I said before, whether he
came from labor, industry, agriculture or from a
college, that no one superman:in America is capable

of meeting the complex
mobilization program.

problems

involved

in this

Q Now, as to collecting more taxes, as you propose, from the higher income groups, if you don't
intend to confiscate all income above $10,000, how
could you collect enough taxes?

A Well, let’s take corporations. The present excess-profits tax yields less than 3 billion dollars. We

Q

Would you say whether you are satisfied with

the present political parties?
A I have said for a long time what we really need
in America is a fundamental realignment of political forces so that political parties stand for definite
concepts of government and economics. At present
each major political party is a hodgepodge of incompatible economic, social and political groups
—neither party having a sense of moral responsibility or the organizational discipline to carry out
the programs and platforms on which they seek
the support of the people.

Nationalization Opposed

Q What about nationalization? Would you favor
that for this country?
A I am not in favor of nationalization. I am opposed to monopoly and economic scarcity. Too
often American industry is neither free nor enterprising.
When private industry refuses to expand productive capacity to meet the needs of our nation, I
favor the Government as the agency of the people
taking what steps are necessary to see that economic deficits are met. The steel industry is a case
in point. Following Pearl Harbor and once again in
the present emergency, the people of America are
paying the price of the steel industry’s refusal to
expand. We cannot tolerate any private economic
decisions which threaten the security of our nation
and which jeopardize our economic future. I am for
ending artificial restrictions on production because

I believe in an economy of abundance.
Q What if we get a great deflation?

A If we are to make freedom secure in the world
free men must learn how to organize their economic
life so as to achieve full employment, full production and full distribution, uninterrupted by deflathe
to
ve
pro
t
mus
a
ric
Ame
n.
sio
res
deg
and
ns
tio
of
e
sur
mea
full
a
e
iev
ach
to
le
sib
pos
is
it
t
tha
world
or
cal
iti
pol
ng
ici
rif
sac
t
hou
wit
ty
uri
sec
ic
econom
t
tha
ld
wor
the
to
ve
pro
t
mus
We
m.
edo
fre
ual
spirit
our
and
ces
our
res
ic
nom
eco
our
ze
ili
mob
can
we
of
ngs
thi
d
goo
the
ing
mak
for
er
pow
e
productiv
life in peace as we have demonstrated

our capacity

to forge the weapons of war.

© 1951, By U.S.

30

News

U.S. NEWS & WORLD

Pub.

Corp.

REPORT

U. S. NEws & WORLD REPORT

MAR 29 1957

WASHINGTON

& N STREETS,N.W.

WASHINGTON 7, D.C.

1951

22,

March

24TH

Mr, Walter P, Reuther
CIO United Automobile Workers
411 West Milwaukee Avenue
Detroit 2, Michigan
Dear

Mr.

Reuther:
Enclosed

in

it you

as

we

Our

cover

necessary

this

one

of

to have

goes

press

for

Monday,

April

points

before

We
press

the

We need

We

the

is

a transcript

at

but

wish,

find

is

us

to

plan
2,

radio

Also,

we

if you

the

hope

the

interview.

to

try

time

most

this

print

and

will,

the

appealing

than

copy

this
that

the

by

aspects

rest

that

will

of

make

informality

of

these

changes

the

of

language

interviews.

March 26,

the

whatever

by noon,

magazine

so

that

will

be

if possible,
it would

be

time,

interview
you

Please

preserve the

copy back on Monday,

earlier

have

to

that

and

compliments,

to

same

of

in the

not

issue

give

any

which

other

interviews

out

on

covering

these

date.

of

course,

release

simultaneously
will

be

would

glad
like

to
to

the

text

full

of

with

our

publication,

send

you

some

have

them

and

reprints
will

Si

interview

the

of

the

me

ely

yours,

to

printed

interview,

with

our

how

many

you

want,

return

of

this

copy

know

let

as

Carson F, Lyma
Managing Editor

CFL/ced
Psa
to
j

i

ie

i

Enclosed
US e

is

a

stamped

and

addressed

envelope

for

the

INTERVIEW

WITH MR,

WALTER REUTHER

March

Q
.
en

you

of us

srr,
‘, .

Ca)

Do

\

feel

we

of all

are

the

defense

confident

going

that

to have

groups

in

our

20,

in

the

1951

this

period

earnest

economic

ahead

cooperation

system

for

the

effort?

Shoutinttxhavex thst?

jA

I believe

that,despite

difficulties
a

find

ithe

we

having
OW

economic

fami>ereh-~makineibs
Q

‘ul

prosecution
Do do
tobi

dependence

in

dependent
I

our

that

we will

we

must

co

Wr

groups

in

our

the

defense

economic

in the

you

of necessity

eae

the success

there

system

--

is

an

inter-

that

we

are

al

another?
is

have

very

true,

to find

a

and

that's

why

I be-

wejt@e6—secommodste-+
oka

working

td

out

these

“ot.

problems.

Do

temporary

progran.

: democratic, stimbabgmia

es pleaseae

and

society

contribution

f/that

on one

think

lieve

of

current

of—operatico:

basis

common

various

are

the

feel

recent

that

the

discussions

viewpoint

of

organized

labor

has been understood
by

the

public?
I\think
onderst

that

s our

quite

a.large

position.

segment

re are

of ‘the

places

publie

where

{—

em

en

mie
~~

om

mm

ij

on 2 an

ssen-

economy,

at a a time when the over-all


Ke |

—1Q

is not being
to

soar.
--

way

that

start

why not

place,

to start some

you have

since

eeaneals wages

control

your

start

you

couldn't

But

beginning

prices €re

and

stabilized

to

srxshe

about

talk

to

mareettats

with labor?
1a

first

steps

first.

What

ought

to be

the

first

wages

have

behind

the

But

take

47——|q

You! ve

See eeEEbeReRborenie——

question

step?

Wages

lagged

behind

to

got

is:

have

lagged

prices.

Since when?
A

Korea,

Since

mov ed. ahead

have

profits

faster

much

than

prices and
peides

1 posers Profits are certainly te more
Chan Wyte

rn

couldn't

You
logic
|

precipitated
9S
ey, f

amy SOM ehET
16hSpire
i

aye

TN

wages

the

that

A

e
Ny
CORRE

in the

|

Ta



Fa

NR ow

_

ae Mae. ae
EA ONELA RAMAN

:

argue

auto

ay

.

ae

-S¢ire—the

with very

industry

movement."

the price
MP AR D SA

in prices.

atime’:

ae the

had

much
i ee

co

=

|
" je a

~

in-

wage

«

]
a
|
d
n
a
r
e
l
s
y
r
h
a a C

“a, reflection
i.

rf they were
hour

Kents | per

That adjust

_ 1950.

fact

gr

that

ee

y
o
l
t
t
n
e
i
c
i
f
f
u
s
d
e
v
o
m
"

ly
s
e
c
i
r
p
aSe

peetesy ip he

.
e
s
a
e
r
c
s
n
i
g
t
a
n
w
-ce

we get! another

eer foents.


s
w
o
s
d
a
h
that iv ices

j aileates

| 4 December,

Again,

this

merely fp

A
é
m
b
a
s
y
a
d
up 90

as his

ppessuring the moye
{Q

But

not

and not
have

A

all

gotten

et Fhe

all
are

workers

are

in the auto

covered by escalator

direct

*

industry --

clauses.

Some

raises.

factg are thet the over-all

has been much slower waa
movement.

ff

195 y

of tye index 90

( ———f

ff

90 day4

wage movemen

than MMB the price

of considerable snlabiiiians

ZO from a period

you
into

a period

say the

of

total

full

wage

employment,

bill

has

and

ine

you

increased, feu! ve
;

f

to divide the total wage bill by the number

/pened

to the

we're

talking

about.

to

allow

have

qasts

period,

cents

an

hour

ym

thing
more

wage

total

the

t? at.

bpargeinings-

job\ in pomrentinn

been

10-year

the

nore, | and

considez ably

willing to\ gear our wage
of
movement | See the indg ; , because we

the

66

bam

adjustments jin

good

done a. fairly

we

, (or

for

has hap-

out yee

find

of

You've got | k.eve, 000

toge

make

to

got

|} you've
bill

individuals,

working

people

really

to

in onder

workers

got

SQaS

et

around

got

|

RN

in a

learned

workers

the au lom bile
in

position to

wase

increases

=

ATOM
RL

but

we

found

en-hour

that

gain

in

in/ that

period

we

ay chasing power.

only

And

made

6-cents—

that's why

i,"

there

was

=:

ag¢ceptance lg n

membership

in

o

because

fo

af

and

we

fighting

ing
to

iN

to
get

mental

that

ye get
a ace

buy anythine/
rare

, uni on/ 8:

aR Hac a

Aare

part

of

the

a \the escalator

we were

wooden

the

clauge

fir ating and fighting

nickels

sas What

ee

wea are

wouldn't

really

try-

ERS AREY

do

if

mo ne

not

get

more

purchasing

pYoblem

that

money,

power,

a free

oo

but \wet re

because

the

trying)
funda-

society has | 10 solve

Oy
jprovide

the

from

Pr

et ee

resolved

of

it will

June.

bi

apy coved.
the

mag's

\

I think everybody

af tnoveh

ae

That's until
the

aay that

not beepf

vetees

fhe anyual iennad

clauses.

‘Mr. Erie Johnston-

chaos.

nor the annual | impr rement

npt

clauses

ot Ys. escalator

tion

did

Board,

eeneiigeiien

lag

for satiny

to disassociate

oueens

lie

the

which premipibesed
‘themselves

ain

Wage Stabilization Board

ombgimel

The

that

labor

/

to itt

A

of

objection

is/the

What

formula,

of-living

cost-

accepted your

nas

organization

The defense

Q

fond

Uunders

\

the goth

metenny /erodactiok
\

| chni ef ty
Act \te
will

have / to
be

goes

act

the Act | or ponety
of the

scat

out

before
1 pp

o 2\gusiness
that

date. exther) to

it and amend
clauses

- ‘Congress,

is

coos pots

f,

But
June

renew

the approval
30,

which

s0 that

|

we can



| yhere

freak

thing

reag {tony

exsheen

|bags vk “the chain reactipn xx

howto

éroblem/

fne

the ‘chain

builds

on

//

“that's

|

the (qt
: her

and

you

the

get

a

soxt of snowballing of tie vd e inflationary pressure.
Q

We were told,

____-}alone

A

would

that

we

for

every

dt

on

Ms

poadh

figure,

to give

the

know

is

that] the

Thsbeen able

to

get

ot

‘you all

xp rH begin
5
say e /s6

~

when

she

the correct

you
best

@

the (other

° build


:

gover i

st,

wast / ,

program’ ‘pad bea
Sremerof }

end, ‘the

cénsum Pr

pig Sons janet

~-—

‘ ' vated © of

rmer

if

the

A
;

consumer! s

wits Tey Asiking

the

gover shont\

s also

I ‘a

is entitled | fo

good

ALSi

OE bd

a

MUR Se EROs TEU UT
re
Mey

sR
B.7~
:

T=

ARC

Fa

inveatae’

b ¢ fair price.

2

oe

A,

43

';

Nelda

ak.

Kk

;

r

OL

:

:

ices

a

subsidies,

| of

j
e
fe
4

that

about

ad that subsidy in the les? warP
LLM; .

end;

the cobeun oF, fyou're not only

you: " san,

5 tol,

that.

f

housewife,
bed guse

on

at

{ tedk abo
« ut
abs rat) tne

~

/

inform a

indicates

into

J

It's/e eipounding thing-- you rylse with

can

talking

|

destin

3 6 i “save » at

step.

iPwe

ei f

ane

subsidies,

ek, 65,
~\

not

figure. \all j We

tion

subsidy on meat

$6 bily a

think that Lj is

I am

correct

3

cost

I don't

‘although

though, bfnat a

:

kL oe

°

n
re
ma
hp
o

(Coren

>

Fy,

~~

Game

f* ecause we not

9uly had

Bs

tt,

Eo

Ranpeite x

to

'p

ge

£68 stuffs, ang

|ee

/need

the

to make /

/}

economy?

that_

is/when

The point

A

VA Sad a

you

talk about ¢ontrolling

are putting the cart defore the horse.

wages 5 you
\

/

it?

you control

How do

fe

workers

They

contract,

our

in

"We

say,

As

wages."

"We wor ld like to see

we had

the , few=cents -_F ‘sot

thet

penny

a fatter

of

fact,

\ Nextar oex capa commis

\

would

one

p tices

sia

get

agreed to a

vant

don't

a wage

we

/

he General Motors/maanka have

say,

ze

they

go down and take
xouk

xem

of people

When

thought

that

.

jitteby ag
and. that

some

of

we had for our dcJost-of-living

the

enthusiagm

clauses

%,

would

be dissipated, but/ vnea\we got the two-cent cut
we went

to

too

you

bad

able
you're

the wy See
ce A4

2 7 he

to
oot

ine,

f
and your life
j

S »

lose

same
and

said,

nore)\ because

your

is fine.
you

are

goods

with

what

savings \and

your

war

amount

insurance.

"This

of

\

and everything

own is worth thet much more."

\

\

‘4s b

It's

still

wages
bonds

else you

nnn aoe

2"

5

where

RIGS

cost-of-living

of this

basis

you have

taken a cut on the

index,

hasn't

it been

a short-lived cut/ and more than been made up for
the

by

where

You've had

increase?

next

a cut.

taken

you've

they

7

fags text ported

are

the —?

thet

escelabo

the

cases

f

beret

yo

i

$ i

¢

a

;

clanse ,yo| re being;

Sasa sneer SH

gots

whines
i

two

vf.

We took —

H

only

%

in the = f
onyt nix
f

having those

easortabat
under fixed
ly

ef

§ yok.

Teich

The

worker

is better
ineowe

fas tn eae

buy

off,

who

and | ne

is Petter

Q

[rotten off sm be! ve othe that, and the wobkers wiiefstart

that,

because

the

thing

that

we

have

driven

ew

#

you

Q

take

But

can

howe

in

not

nee

a stabilized

can you get

like

ours?

A

think

I

f

Ry

an uncoordinated

you get

how

is

we

/to control

that

all

th

dollars,

It's

ee frou

society

dollar

fr

like ours

for

forces

the

fact

in a free

can

how

everybody

in an uncoordinated

appreciate

economic

of

the anoustt

that

is

repeatedly

home

--

society

that

trying

economy

is a

at

d
U
e.
th

up
g
n
i
t
t
e
s
in
,
I believe
ment’,
man,

how

we

should

not

tiagmbe

pres on any
AAD
because.deioueyinbiniek
quae one man

well-intentioned

background

--

these

complex

of the

wee

program, Cae

no

one

A

the

‘eee.

of the
doing

policy

job.

man

be,

knows

We

man

ot

kind

of

me
:

PEE

situation

administrative

matte

what

the

answers

to

of

4 4 COvAL?)

his
all

y that

the

nebvérieabieon
We

do

not

ORL

two-headed

“Bw ne believe

-—- no

matter

% charge>

IRE

super-

no

agree

siti

present
the

may

problems.

LER TAOIT

advocate

he

one

the

is
job

animal we nee.

fundamental

the fact
is

also

that
doing

unde

weakness

the perso
the

oe

ington

in

f emergency,@’an
8 over-allgi Kacy

th

,
r
o
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h
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et

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msi,

1Q

Truman done” that - hasn't he applied

Hasn't

agency.

that

kind of principle?
He's

got

an

realiy knows

25

}——

|Q
A

advisory

what

board

of

some

kind,

it is.

Could Wilson be on this policy committee?
@&,

i?

mee

of the

A

r

;

yes

-- he

could

even be

Chairman.

nobody

“a



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et

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21)

Q

In

our

interview

EH. Wilson,

he

two

said

he has

in mind

policy

committee,

A

Mr.

Wilson

of

some

almost

the

kind.

ago

your

that

Charles

-—- he

said

of an over-all

about

suggesting

I suppose

with

words

appointing
Is

is

weeks

your

idea?

an advisory

what

committee

he has sta mind

is

that he will have an advisory committee iof Deer
£rem agriculture,
and he

22.)

will

he

wants

Q

Wo,

A
I'm
in

ina

What

call

to

he

one des
them

consult

speaks

exactly

is

same

not

an advisory

commbisiee

way

as

-—-

a board

Blectric fam

y 7

ats

~~

4

it
of

Mr. Wilson was

basic policy, whan:

a problem

wir

advisory group.

boo/re! —

a policy

the

has

dy in industry,

them.

of an over-all

corporation.

General

in when he

I am proposing

proposing

labor, one

commit tee

functions
directors

the he 4

pee

they

ees

xr

of

c
a

frotd at
ole eeey

Ghi-Gbbnbhet,

General

Mr.

Electric

Such wee.

Wilson,

Company,

s
decision

nd

“a

28

President
Waa

ie

tre

the

faethe,
ng \t_ make a
decisior

did
Ce

of

seme

F

rein,
oe

# Br,

bs

on Te te

tee

r ie

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ir

oy
LIAO

|

rm
~o

ee
Ey
he

,

«= eee

more

directors/ hendle

of

think

of

a board

needs

America

~k
oy

Suef

we

to

directors -enuthe=

23)

complicated probiens ~“Y

that

require

a change

I think

that

Would

Q

No,

Act

Production

Defense

the \iiiimedr machinery
purposes

>}

has

statute?
the

under

MamNEbs

create

to

@@™ authority

ap bhnpted,

lope

&

in the

President

the

more diffi

tits

meme

and

I

sto

nobiliaotionataaag to handle the
cult

Company

Blectric

Just as “the

ami

on,

took

ever

that

problem

Sonere+

the

=

of Directors

the Board

any

adel

.

mobilization

than

complex

and

difficult

war

of

ems

the

implement

to

of the Act.

Then this group that you speak of would have to

)—|Q

back, anyway, to

go

sp proval
The

=

ANT

of



ISORUX

the

ought

SLI

;

or

POOR

i

Bete seme! spteriomencesnarn

e aD

. policy

separaty ing
ee

authority,

In

other

functions.

He

sntlennin:

the

end

two

Ox.

Prarwedk,

inistrative

ae

Gertainly

administrative

authority

same

the

can delegate

, :

hewees

not the x

propose

confirmation

or disapproval?

. Wilson

but

for

the President

whoever

of the

is

the

heed

mobilization

to sit on the Policy Commihahae,

words

either

program

as a

|

-13<

member
ya

oon

made a decision,

f

K

tt

once

Amd

Chairman.

the

1

Policy

the

stb:

them he shenld be

ae

through the Frestaeat, | techni
(Bi

er”

Inspinienic Wo
ever

need this
the

decause

difficult

~~

‘diggin seep
ce SAARC

kind

problems

pnd

of dros
that

we

face

conversion

now

than

more

more

are
;

the kind of problems

total

today

and

3 h face

total

om


ah

4

fe


AA

ae oe
git igi’:


ie

-

mobilization

Oe

could

the

challenge

we

that,if

tank

NS

(

~comnbtte:

policy

group

economic

important

every

from

minds

best

the

of -

mobilization

a top

into

draw

ao

soundness

the

or

validity

Ove

D

to

got

1a.we! ve

w

nel

Fe

it.

apply

the

in

democracy

defending

in America

sagunaneeys

ar could comhetmhy collectively
cy.

c
-n
s,
on
ti
es
qu
cy
li
po
to
ip
sh
er
ad
give better le
PO MARE
GAY GN
N

Oi

LG

rm

Q

PROROUNE c

i

e

e

n

a

to abide by a majority

everybody have

Would

decision

in

that

kind

of

plan?

Certainly.

iQ
What if you couldn't get agreement,
didn't
xy
get it on the Wage Stabilization

ie dt
TTL

out,

important

by

top

men

policy

theprocess

mr

gram

get

wt

b-

¢%@e

x2 which you! can work.

where

that

isn't

true,

have

and

common

seme apprecig
Vai,
=§ 7

Oe

take,

findthat

..

sweat

a common

denominator

If an occasion

then,

you

Board?

om, you / mam

questions

of give

find

-

who
iho

WF AAO, Bo hy QTE

Oh

Dn meet

you

like

of course,

pro-

around

arises

the majorith

'

'

fae

has

to detide.//

tion

In the

case of

the Wage

Stebiliza

Board,

they weredoing

ve

thing

the

that

expedient,

was

that

was right,

thing

the

not

and

x

e
m
i
m
m
s
f
o
d
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e
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s
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te

evaluate

present

all

situation

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per

aa

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figure.

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the

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thought

a 9 per

and

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ss

hen™ when

cent

s

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phe

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they

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ino

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escalator

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oo

the 9 per

they found

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the

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figure.

other

per

of

project

eneter te

those

arbitrary, thima.

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General

factors

trying
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;
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came up with

x sadeat

economic

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policy

wage

the

the BLS indexem

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the

pred

~

they found that 10 per cent wouldn't do it, and

;

Eric

or

ez

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;
x
t
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imemmamen
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MD

sa
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How

gest?

8 igi
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many

rm

a

ni

i

NMR

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aera a Ht
ei Ae
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ee ee

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ne



Vesa R.utO. PAByorPOLLPVICB
ae

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ty

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fe

fr

l

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I'd say
Would

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those

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If

were

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think

ZI

think

should

it'y

respective

go

to

groups?

serve

full

time,

on ‘Sha. cavernnent

academic

Mr.
phe

altogether.

be on the payroll of the
be
or/ government officials, dis-

associated

‘Q

or 12 people

people

groups,

howe

ho

Nine

individual

they

-

to

Wilson

interview

tals

eek

payrolls

disassoci/ tt

com Ss down here,

that ‘he

had

then

with

and/he

youfA hat

Ateessociated himéelf from industry this
“Pa 1949’.

4

é mol

‘wy

&

oe

a

ds

na.

ia .
eh

nit

4 ain

OI aa

tan

was over he went 7

ae

Well, _ When the’ ‘emergen
cy

ee

hae

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ear

gd. he has

cox (ti naing

inter

gene

Pr

a l
f

sf 5. a

them

tog fother.

rent backgrouz Yana. therefore
ent

point

of

these

the

top.

of ¥ Lew.
/

various

Fria

at

ties

ey

the fata
f

points

of view

é

wa a aift-

e a differthe

Bondi

biased
a (te

xf

into

ten

a oneness

a,

at

Q



,0

connec-

have

that

fellows

the

without

then,

group,

a public

to have

off

you be better

Wouldn't

tions?
A

2

‘educator,

outstanding

the

ara

they

people,

or

some

fine.

But

president,

ege

a cok

get

those

to have

just

created

of imarily

They

‘the problem in the\Wage Stabilization Board.
‘got

their

sharp

the

thing

on

wages.

about

talk

all

these

it

ina

facton Ms, you're

got’ to act

you've

deal-

not

You're

classroom pre bien.
and

a

and

profits

and

priv 28

:

accord

ingly.

An/ pis aah s group would leck \2 lot of

bay) c 5 dank cael

1G

you plan

Did
the

are

you

cca ustry,

you get

that

.

griculture come in there.

pabot

on trading

to

the, groups

between

agreement?

best

A ~Glees-

-—

do

with,

get

22

figure

dealing

the

en

\ that

nomic



other

ing with an scagentc

io

to

But we also/ hen wie America ,8u%% when

classroom.
you

began

rou would

‘ faow

ue

the

they

s out joa

penci

an

fello) f that's

who

people

Are

who

professors

college

in the

Then you draw

I Gh

going

to

not

consider

a matter

this

where



bargain,

|Q

Can labor members of that board act independently,

or

are

down

by

they

going

those

I served

to

making

to

hare
the

in the last
vitae

le

policy

laid

policy?

) Manpowsec
ationsal

wer on the

pie ASEE

Commission,

the

follow

similar

inh REM

to

OS OT

i

tiie

I am proposing sere:

‘.

d
e
t
i
n
U
e
th
,
r
e
v
e
w
o
h
s
y
Nowada
| 39
all the
all si —
cmv

so

of

off

got

to

going

you

ee

oo

sense e to

put itl together “so it
ae

| matter

over-all
wage

the various
stop

to

get

off

defense

tr
ayou
thin

set-up?

it

tit

are

How

agencies.

kind

meekly

all

they

and

government

the

in

representatives

labor

Policy

Labor

on/

it,

bi: eae

with.

a, "I make sens. f

prig

order.

control



/
y
r
w
g
n
i
o
g
s
i
hing

going

up.

sixth

TO

word

20

about

Q Props
& Mat
fi

CAlow

If you

j

frofits

- not

one NA
\
ace
t
o
u
g
y
h
e
a
r
t
h

i
s
d
o
w
n
S
e
i
ag
ne,

| Asn! ri

the

tatornation ye rath
%;

A

y

et me

jas



“- yen

some

3

profit figures.

take Loh, y (ch 1s a good base vd cause the

ee

y

(SY

nk Gin
was

a full

employment

TORE

:

fell

production

year.

i

Q

+_

@ war

yeer,

ehas

:

Pee

towel.

full

employment

employment
then,
year

and there

now. There

there
-—

ten,

was

is Ce

1944

wes) ae very

os

the

most

that times

It

was

an all-tine

a

profitable

an all-time igh

comparing/ like

And profits

kind

of

wage

full

activity

|

profitable

year

profit

years.

went up ‘974.

oad 35 times the

ig fy slakbeaie

nigh industrial

it

as oem

OR

up until

year,

yeer.

as

wel

So you are

Wages

went

up

26%.

Profits went up more

ihe of wages.

Kh

gh ‘es

—_—~1Q

Ani

But

profits
of
wages kept

were

inte

during

the

A

talk about

vA

You

Motors

held ‘down

up.

during

Prices

the

were

ware

controlled

war.

_—

being sata

Corporation nate

ties

$1,811 ,0004000.

~~

Genere ]

They made
pom

86% on their
on

their

in wabes

investment before taxes,

investment, Azter

for “7

————

/ U—

F*

$1.37

in/protié

That's

right.

After /taxes!
before

ape

they made

2. 37

$1 they paig/ ie wages.
You talking

meteor are
TOTEM ING:

7

taxes,

they made’ Ws} / fe

for

every

f

spout’
f

$1

of

£
&

wages?

f

|

;4

taxes

i

:

Mc

- because

j

e:

®
$


yanspay
bb

fore you pay taxes.

va,

5

But after they had paid their

a

Po

e
~*

wage

bill,

after

they

had

paid

for a

of

materials,

etter

they

had

paid

for ei

the

ee

—nernad

operating

of the
of

Géneral

expenses
Motors

the precntives/

in profits
THe
well

of

Corporation,

and

General

cr.

oe

ae

f

they ned

lectric Company = they Aisa

me wages 19 1950 in Congha

126) nd

dompazy

the affairs

including salax}

ererypoay,

ingreased 12% over 1949.
up

other

for every $1 they paid in wagps.

too.

wont

contucting

their

from

pret ty
Blectric

Se total wage bill

profits

of

the General

Electric

1949 to 1950 went up 38%,

if you want

to

talk

do

without

about

taxes

--

sure

they pay more taxes.
~Q

What

plow

it

A

They

Q

But

would

they

hai

don't

keep

a pretty

a lot

eumipye2x

A

The

so

that

of

we

|} aggression

goodxsmxx

it goes

we

have

and

profits

- they

they?

back

equipment,which

reason

those

are

of

plants

and

into

givesjobs

trying

the

section

to

strength

Communist

it.

to workers,doepn't

mobilize

America

resist

Communist

to

tyrenny

and make

freedom

t

secure

in the

is because

world,

in America
of

the values

unlike

the

reason

we have

basic

have

we

freedom

comes

But

the

today

high

question

You
it?"
of taxes.

than

said

all

"How

along

do

that

in

that

are

sueiieken.

must

the

pay

you get

talk about the corporations
They are paying less taxes

the people

that

ie mobilize a free

- people

is,

values

totalitarian

the

When we talk about how
people,

we are doing

the

low

price d

freedom.

for

them

to pay

fo}

paying a lot
proportionately

income

groups.

it?

ee

Ps

=

2)

;

a

om

|

BS

Se

ae)

3

o--—

Q

Do

you

think

relationship
A

about

about
S)

companies

AWE,

fhe

Gizecey

the

don't

are

without talk

wages

making

is

I know

on

tank

and

ee
4

profits

no

of

lots

have any profits

and

that

the profits

of American

ve

Se.

aut

laa

utube,

as

aun

2 fanole .
bre

small

compant a

sha wilt tisk that / nie alt

yey : —-

1 ternal , tevenue

aha

figures

wily.

ad é
show

you

out of some /550, 000 corporatigh As in this

Jeountry,

he abont

there/f Eas

panies pay/a

lower

+6 pay the

with profits?

1

(SUBSEAnz

a red figure hash yee

pelled

D2 000°

oer
;

Would /rou

ze

that

——

let those J domae

wage

same

yy , rate

In other/ words

as the” ‘company /

aren! y/you fi2 ihe

a

high’ wage rate based Arpon the Gene; fol Motorses and
f

the Chryslers,

| country?

:

:
Wot
im=k@G@mmere at an ‘all-time
high.<—Mo?

Dp ofitable

bat,

a

wages -— fe

true. of

the

has

titirie you

then?

bs emetntterers,
ye
BY

wages

about

who

wages,

cut

facts

MVOC
yy Crs

ine

talking

they

can't

corporations
a2

less

where

they

of wages

about

And Jao

fellow

the

pay

he

problem

talk

without

about

should

where

cannot

profits .

prices

What

—___—~|Q

the

to the problem of profits?

‘Siemiperdeerix You

ing

that

rey,

of Avnich

there

ate

very//few

in this

A

“ pote
pa }

]

fe

|
“about

an

excess=profits
applies

being

companies who

7*
hgve

profits

the
for

scale /xkhn

wage

a aan

have

you

wo 14

Then

1)

ey
eee

# this high refention
these companies that heve

A

aul

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there

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you

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labor

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.
companies
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profits?
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labor wei

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A

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But,as

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ges

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companies A

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inefficiency?

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al

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wrong.

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We want both

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“*{t is certainly
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age

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economy
thet Exe

tile commoditi€s

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Do

you

aie

of A

think

mer

=

profite™

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sche

speculate

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nerket.

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men

sitting

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as
/

i

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group

ab

ua

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ae

can handle

all

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12

man

I

think
because

that's

those problems?
men

I'11

why we

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do

trust

have

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the

wisdom

job
of

a democracy.-

es

than
12

one

men

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ee



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ise

industry,

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im

7

or

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net

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sa

ee

labor,

e

ISLES non

agri-

L.
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rf
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.

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Gage

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lf )

ome | Q
A

Do

you

think

these

I

think

that

they

trying

to

say

Manpower

equal

12 men would
can

earlier

Commission

weme. an

number

and

a public

recognized
that

agricultural

with

there

transcended

I was

the

representatives,

-~

each

was

representa-

and

program, and

bargain

that

industry

chairman

manpower

and

policy.

n the by Baer

of

tives

there

out

3

representatives,

in

work

agree?

-

labor

& practical

28 —

we

a.

we

didn't

other.

We

a national

interest

of

out
get

all

interest

the

groups

| participating. aditweean@tee
Q

You

to

knew

that

manpower

group

knowledge

of how

of America
last
A

from

and

- but

labor

to

let

you

and

operate

them

couldn't

agriculture
the

be

delegate

the

credit

final

the
controls

court

of

resort.

But

you

could

certainly
Sr.

bring

in

experts

--

that's how we did, manpower.}

A
ee

ae

O.
;

re

pais

a

top

-

policy

ee

Fe WA tol od. eo

era

Orel sae

«}

bee

oe

-29the

authorities

in

the

country

on

credit.

7

e,

and

supposing he says,

"Well,

gentlemen,
a>

.

you're unanimous,

but

I disagree."

Then where do

%

you

go?

; Agee 4 or

ers PaO,

st

decisions

##h to make

bas:

;
by

:

ithe

ce

‘exe

You say he is

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sit

eat

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e
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h
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n
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u
You made yo

1Q

administrative power?

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who

knows

anything

organization

knows

there

Everybody

A
big

between

| ences

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mercation

when

cause,

I'm

be

you're

if

What

what

stating

I'm

I'm

the

most

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might

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saying

of

I'm

I am proposing.

what

and

this

America
job

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intelli-

approach.

| A

posi-

in his

most

I'm

Is

of a

the

most

Q

Wilson

about

talking

approve

w

~ gomeone

de-


p
t
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s
e
m
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E
s
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n
e
s
e
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e
r
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hat

the

gent,

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then?

Then you haven't

A

be-

basic

doesn't

leaves

ot co

Policy

confusion

you're

what

knows

President

the

any

of de-

line

that

out

pounding

administrative

and

without

differ-

distinct

that

saying

a

running

about

are

decisions

drawn

everybody

cisions,

tion,

policy

And

decisions.

Q

Now

authority.

tive

and

what's policy

decides

who

edministra-

complete

have

to

is

board,

policy

your

|

too.

oft,

can get

? nent

constructive
not

da.

to

speaking

if

proposal?
Labor Po2ke;

here

for Ay

ns ed

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esked

th

apenas

get

on with the

or a free people
mobilizing

on what

speculate

es

your

that

trying

their

CAM

casi

material

resources

@E

and

how

their

human

power

thet

Q

v

than

task

right.

That's

| A

then?

view,

personal

is your

That

of

have.

now

we

that

setup

one-man

the

of

kind

this

to the achievment

itself better

lends

that

say

I would

have,

spiritual

the

tapping

resources

they

machinery
that

he 32-

|

|

ayy

ORNS 's throats?

Q

But doesn't

labor and business and agriculture

a
tu
ac
an
an
th
er
th
ra
ar
-w
ar
ne
a
is
think that this

It's a get-rich-quick period, is that it?

wer?

isn't

A awe Zot
the

because
Policy

of wage

) ani

over-all
trying

program.
to get

are

not

but

we

and

everything

rich

had

--

be

you

Now,

willing

else

to

we

and unequivocally

to

going

a part

can't

don't

have

Lebor

United

to accept

But we said

stabilization.

stabilization

concerne¢

is

of and are prepared

that we are in favor
a program

the

clearly

very

said

Committee

of

statement

policy

labor

as

so far

true

of

want to

our

sky high.

a total

that

say

that

get

wages

we're
ric

frozen

Eyer rengok

~~

‘me

ena

at

,

|

Sf? | Sere

committee,

Ifyou did get this sytemy would you then have

& no-strike

pledge

A

given

The

is

one

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ar prunel

labor?

questi

wil, take

Chr,

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of

care

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of itself

: able

Imbininic thet

Gt

4

————

1Q I meant
operation,

after

apexextiemy

pledge

keting,
this

would

to keep

you

if you work

balk about

e nod-strike pledge now in the light

with prices Skyro

of the

witiamebness

commission
then

have

had been
am

pledge

fects,

=sehelpuad put

into

a no-strike

equality of sacrifice?

|

{

mJ

ema If you

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4

hr am

that

retting

have

reflects (equity for

rich

control
i

qnd moral

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economy

ue

relationship,

everybody

fellow's

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pe

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s
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strikes

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V

|

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wr

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But

Q

to

would

you

ui

satxptri-part

q)foortunity

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had

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positiong Pretore

respective

their

Ayvelop

having

parties

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upon

recomng faction

a xuguikax

meres

then

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agency

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Action, which
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what

strike,

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in favor

m

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o al somebody

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and/publig , sx

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P

tion

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ti

perties

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pledge

GP

XS

Ot

v ery

well

N

of a no

trike

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else

make
i

all

hemic

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sacrifices,and

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what

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to

cent

labor

then

he

f

/
everybody

Here

pledge.

wo-strike

everyone

have

you

if

vehe

a

t take

going

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ime

RENAL,

Q It

doesn

And

tind)

y

of

pressure

heve7the

westion
the@imstium then

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opin

recommenda

that body makeifa public

and then\paving

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time

last

War Labor Board wes fhe

same a the

makes

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ge

;
o
w
have
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Lan!
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y
t
bu

all

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ia

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t
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Theg Sl aenke

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If Pe % ou
a

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fundemental

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ee

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Mennee

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peace

peace

Wilson

Mr.
CS.

his

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term and
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fellow's
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suddenly he has ndde

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Shoreham

the

at

in

checks,

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representative.

men do that evexfy day when they
labe
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ates / throw anne | fei their connec
come down here?
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becoke impartial | seetebeieac
tions and Mx
it,
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sere
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|
COLE
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Weis have confidence
Don, t the

Q

10.41O 15

ha

all

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f

you

Why can't /mx have the \same donf idence that busiBut

in

a meeting

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Amn

it

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war,

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a

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or

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Well, t'vd tried

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to

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definition,

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last

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that \during

common

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patriotism
--

I Welere

Q

Except

at

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it's

the

Shoreham

case

possible
of

the

and becomes

bt A

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man

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registers

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ae

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to

over

ALYY

all

we ="

where

setup

the

I challenge



pefresents eyery-

in
s
me
co
é
.u
en
wh
it
ce
fi
ie
al
ch
t
vody,But I don'
got

Zo

etl

iL

13

2

;

came

he

a

from

meeting

of

this

mobilization

Now,

the

from

is

in

involved

problems

cap-

program.

to

collecting

higher

income

as

or from

in Aner ane

superman

the complex

able

Q

one

whether

before,

agriculture,

industry,

no

that

college,

I said

not.

labor,

"one man"

another

with

union?

a labor

Absolutely

Wo.

A

satisfied

from

he came

if

—_

a

:

Se

you be

Would

-—{|Q

oe

—hs

7

Sai

as

taxes,

more

groups,

you

propose,

intend

if you don't

d
ul
co
w
ho
0,
00
0,
$1
e
ov
ab
me
co
to confiscate all ix
you

/

collect

enough taxes?

A a,

tex xmk yields
OF dakeStud

corporations.

less

than $3 billion.

We believe

that out of current

corporation

Uiiehesame-

and

a realistic

profits,

somewhere between

to yield

billion.

We think that ‘ths
i

excess-profits

equitable

tax ought
bey

present

The

take

foe's

:

seal

{

$8 and $10

represents
fair

share

We believe

also

the

of

the

that

\

\

the

law

tax

the

to

ought

ax

whereby a huspand
ae den

.
g
n
i
t
t
i
l
p
s
e
m
o
c
n
i
l
a
e
p
e
r
u
Qand Wowuilfde yo
can make a joint return?

A:

Yes,

they ought

to repeal

plugged

be

the spldtting

of the

t
rp
fi
gs
in
th
t
rs
fi
do
tj
ve
ha
_tpeiiie we

4
l
ve
le
l
ra
de
fe
e
th
a&
g
in
th
e
dp th
.

4 the bulk of the problem Sgists.
ee

ee

shst everybody

pre to be free .
‘-

and nopody"tammergud about that.

Tat means frog

ito the bottom\of Whe economi@ ladder.

Ls

ke q) ) | SP

loopholes

in

]& kicking aout °

living pwfswiers
ihr

befere

they

are

cutting seriously into\the
BeBx),

standards
seriously

of {he

low income

cutt Sng

to

in

the

dar&g of luxtry of the upper inckme group.
TW

Pie

Hija Under

Be

ti@pmgsent

ae

e
l
b
u
o
r
t
a
h
t
t
a
h
t
k
We thin

ioiff”
now is that they are

y

abifi

their

3 sedpon

Hrery-

law,

everything

ge oul


sta

4

isn t being

)
i

ty

ya

A,

@'done

youtstill

woulgn
Soe

jt)

ater

i.

(

-39-

limit

for

I would

A

annual
in

be

favor

of

you

Do

salaries.

the

favor

that?
Cort

$25,000. éip—

man than

“management
sf

i rt

Py

‘supp
Ube

a,

Rak ied

aR Pas

in one

Do you think

bracket?
TR

you would
3

eg

place
Sek et

O

i



ee

:

Ee

lity have a li

ing nothing
Nixlae tf

to

co cy

—0—
A

I just

integrity

hen

believe

in

and

intelligence

the

the

good

will,

of

I Would much rather see them
ruta

Q

of

my

But \ou

country

oneman

President

is

the

12 men

and

decide what the

t

/one

doesmxk

and

man.

de dide

today

- the

decidese—

A That ign t true.
Q

Mr.

Wilsen

wouldn't

Truman

vantey

to remove nid.

A

I'm aware

to

dekexx

bf

that,

dele

ate

cisions ,I would
delegated

Q

What

to

last) 10



mach

rat, her

12} men

The

the

practical

kind

A

How

of

is fis

®

flat

cision
Bat

in

the

ecrats

make

these

see

that

authority

de-

Wilsqn

is thet ,if ae

I am

thef

an 8 the

President

Do | you

we y should

wos ; made

net

oS

Lows v
dovy

think

the

by

ia

the

The

12

the

poliady?

President
on how

of

much

practical

de-

Wilson.

decil jion

line.

makes

decision

ex jpenat

echelons with

the

proposing ,the

thépol icy.

doesn'f.

mank

Q

to

to 12 men- vhat's the

tnt tegsterp . makes\ pene

steel

has

delegation via Mr.

4 Hrerence

setup

could

WNo,he

the

President

differe a of there?

men would make
-Q

if Mr.

thay ine man.

to 12 men and ditectfy
A

the

anthey be

aitterenge

practical

hs

seconds

was

probably

a little

But| the

made

group

practical

of bureat
point

is

a

f%

‘that

for

the

President

:

that tect

of

tle

decision.

UjIni ted

States

Un ler your

is responsible

plan here's

e

-41-

commit

\

By{ emt

you called

the

the
here

—- nobody

puts

him

gi legats

But

Q

he 1 ban

A Obviously,
change

can

Mr.

like

t

doeg

he

if

All

cannpt

too,

reverse

can

he

a decision

should

I say 1s | there

he

but

4

change

Yitson,

people.

the

amithority

oe!

iw

rath

Constitution



Eve away

he can

by

eled ted

]a

there and

I said,

As

- the

reflove nit m

can

up

President

the

Hed e's

connittee./

Policy

be unde

would

man

one

\ e
On policy matter é Nh

man.

in one

function

other

ca

9,

12 =

of

a Board

in

one

put

and

two

President separath ; Diss

that

proposing

am

xwrps

functt .ONe fh

administrative

the

and

function

a ao aif ng

the

both

Wilson

Mr.

give

to

setup

people

the

of

functions

pregent

the

chose ana

He

mem

the

delegate

to

authority

;

the

law,has

The Pi esident ,under the

No.

A

whatever

hie

would

people

se

tn

Then

Q

amoral

his ,

cate

cannot e bdi-

the Presifent

As 1 \seid before,

A

\

they?

wouldn't

economy,

the planned

for

be the final anthotity

‘They pus

plan.

your

t vader

the raenee

by

no review

have

You would

decision.

to a

the de President

would

and

decisions

the

make

would

that

board

He

the |gommittee.
you” 4 NOWe
2

be

committee

a Rolicy

e
th
t
en
th
vi
rdu
r,
te
ra
nt
ai
ui
pd
|.

and one man as
to

power
Par

"

er" vr

er

tara

jolicies.

make

e
ey earn
tra

Yr

aerper

ere

aera
o

Ba BO

Oo

.

Me a

We

Be

ANY Oe ee BA
a

+

Fe oe BS
:

FS,
*

it.

« be os
Q

Would

the

you

present

phe

say

whether

political

Ser yey p

responsi

they

rex esent.

to

are

satisfied

with

parties?

heven-e—sense-of
profess

you

y to carry
Failing

to

out what
do

that,

Geen

/Q
that

What
for

about
this

nationalization?

Would

you favor

country?
onalization.

I any tn : faver
«

then

of ‘ie Government

Pee

ake Re

—_

aS

nalization.

(END)

} am for

ee

defense

effort?

I believe that,

A

despite the current

and t

y
t
i
s
s
e
c
e
n
f
o
t
s
u
m
e
w
,
g
n
i
v
a
h
e
r
a
e
w
difficulties

en
be
s
ha
s
n
o
i
s
s
u
c
s
i
d
t
n
e
c
in the re

t

public?

A

c
n
a
t
s
r
e
d
n
u
y
l
l
a
r
e
n
e
g
s
r
e
m
u
s
n
o
c
t
a
h
t
k
n
I thi

position.

Of course,

to
e
d
a
m
n
e
e
b
s
ha
t
p
m
e
t
t
a
the

s
a
w
y
s
r
e
v
o
r
t
n
o
c
t
n
e
s
e
r
p
e
h
t
t
a
h
t
r
a
e
p
p
a
it
e
mak
r
e
p
90
h
t
u
r
t
in
n
e
h
w
j
;
s
e
g
a
w
r
e
v
o
e
n
o
y
l
l
a
i
t
n
e
s
s
e

cent of the wage
.
l
o
r
t
n
o
c
price

e
v
i
t
c
e
f
f
e
of
k
c
a
l
e
h
t
is
m
e
l
b
o
pr

It is

dangerot

with

A

labor?

But the

st.
fir
ps
ste
st
fir
e
tak
to
got
You've
is: what

question

ought to be the first

step?

in
ge
wa
ng
vi
li
f-o
st
co
ur
ho
r
pe
s
nt
ce
5
a
ed
iv
rece
erease

r
be
em
pt
Se
of
ek
we
t
rs
fi
e
th
in

cost-of-living

1950.

adjustment merely reflected

That

the fact

c
n
i
d
a
h
s
e
c
i
r
p
e
t
a
d
t
a
h
t
e
r
o
f
e
b
s
y
a
d
0
9
that
s
t
n
e
c
5
a
y
f
i
t
s
u
j
to
y
l
sufficient
December,

Again,

1950 we received another

wage

incre

3 cents

in wages.

d
e
v
o
m
d
a
h
s
e
c
i
r
p
t
a
h
d
t
e
t
a
c
i
d
n
i
y
l
e
this mer

and wages

were adjusted

90 day

up

«inn

another

we received

justment.

ad-

cost-of-living

5 cents

s
a
e
r
c
n
i
e
g
a
w
t
a
h
t
y
a
s
Now, you can't

t
n
e
in
m
e
v
o
m
e
h
r
t
e
t
f
s
a
y
a
d
w
o
90
l
l
o
h
f
c
i
h
w
es
the cost-of-living

ind

x are responsible for
|

pushing the index upward.
But

Q

not

all workers

are in the auto

industry—

and not all are covered by escalator clauses.

Some

have gotten direct raises.
The fact

A

is that the overall wage aevemuts

has

been @@MM® slower than the price movement.
Q@

You mean since Korea?

A

It is true not only since

it is true

in

There is no question about

the period before Korea.

that.

Korea —

Now let's compare the increase in profits with

se
ea
cr
in
ll
bi
ge
wa
l
ta
to
e
th
,
50
19
of
quarter
The

per cent while profits went up 97 per cent.

r
te
ea
gr
s
me
ti
34
an
th
re
s
mo
wa
s.
it
of
pr
in
se
increa
than the increase

in wages.

r,
wa
e
th
ng
ri
du
wn
do
ld
he
re
we
s
it
of
pr
But

Q

wages kept rising up.

and

Prices were controlled dur-

ing the war.
A,

You talk about

profits

being

hel d down



General

0
.0
00
,0
00
,0
11
,8
$1
de
ma
ar
ye
st
la
n
Moters Corporatio
before taxes.

They made 86 per cent on their invest-

in
r
ei
th
on
nt
ce
r
pe
40
de
ma
ey
th
s;
xe
ta
re
ment befo

sly

vestment after taxes;

and they made $1.37 in prof-

its for envy dollar they paid in wages.
of wages?

Q

$1.37 in profit for every $1.00

A

That's

Q

After taxes?

A

Before taxes —- wages are paid before taxes.

right.

eral Motors had paid its wage bill, its
material bill and after it had paid for all other
operating expenses,

of executives,

including salaries

they made $1.37 in profit for every $1.00 they paid
|

in wages.

Take the General Electric
well teo.

Its

it did pretty

Company —

total wage and salary bill for 1950

was 12 per cent higher

than 1949 while the profits

49
19
om
fr
nt
ce
r
pe
38
up
nt
we
of General Electric
to 1950.

?
ey
th
t
n'
ve
ha
,
up
ne
go
ve
ha
@ But weekly earnings
A

that over—time

It is obvious

hours

and a

work week increased he weekly earnings.
a worker takes
with what

The im

home but what he is able to

he takes

the cost-of-living
a 10 year

longer

period,

home.

In the

auto

index because we
that auto workers

industry

learned
gain appr > Lm

ately 66 cents per hour in money wages but only

a-

That is why our membership has
ciple of the cost-of-living escalator Garints
cause we found

be-

that time and time again we were

fighting to win wooden nickels that wouldn'

thing at the
| yooiiang
cratic

ef our free society is to find a demoow

me ns of achieving a balance between

ability to create increased wealth and our abil:
In other words,

to consume that increased wealth.

power

we must achieve a balance between productive
and

purchasing

power.

That

unsolved

is the biggest

have.
men
free
that
problem
Q

The defense organization has accepted your cost—

of-living

formula.

What is the objection

of labor?

A fe The Wage Stabilization Bo
the

labor

members

to disassociate

h caused
themselves

from the

Board wiatwA did not provide for operation of the costof-living

provement

escalator clause

clause.

nor the annual wage im

s
e
c
e
n
it
d
n
u
o
f
n
o
t
s
n
h
Wr. Eric Jo

tl
n
ai
rt
ce
am
I
gh
ou
th
al
ed
lv
so
re
en
be
t
no
yet
will be approved

in advance of the effective

which is June 1, 1959.

Mr. Johnstor

e
v
i
t
c
e
f
f
e
is
e
s
u
a
l
c
the escalator

on

date

30, 195¢, which is the date the Defense
tion Act expires.

The status of the escalator

date ioe

re

or moral economic

Q

We feel there is no sound ,
basis

You don't think,

Mir.

for disturbing

Reuther,

like this the escalator clauses

that.

that at a time

are built-in

inflation?

A

Wo —

for the simple reason as I have stated,

wage adjustments

that result

of the cost-of-living
the movement

price

you object to farm

Q
A

in the

clauses

No.

from the operation.
lag 90 days behind

index.

parity’

We are in favor of farmers receiving

We believe

that

the basic

parity.

problem must be met by

g
n
i
k
a
e
r
b
f
o
y
a
w
ive

alesse

ment between farm prices and industrial prices./ The

inflationary chain reaction is broken, farm prices
will never reach parity and wages will never
catch up with the cost of living.

Q

meat
on
subsidy
a
that
We were told, though,

alone would cost 6 billion dollars.
A

I don't think that is a correct

ed
ow
sh
r
wa
st
la
e
th
in
e
nc
ie

figure.

that for every dolla

s
r
a
l
l
o
d
5
d
ve
sa
u
yo
m
a
r
g
you put inte a subsidy pro

olf

at the consumer
sumer,
wife

end.

When you talk about the cor

you are not only talking
—- you are also

talking

about the house-

about

the government

riod of mobilization
.
l
l
a
f
o
r
e
m
u
s
n
o
c
+

ers have a lot of factors in their production

l
ro
nt
co
no
ve
ha
ey
th
h
ic
wh
er
ov
processes
as weather,

etc.

Subsidies

are the best

means

such
of

e
il
wh
es
ic
pr
er
gh
hi
t
ns
ai
ag
protecting the consumer

at
th
es
ic
pr
ir
fa
s
er
rm
fa
ng
vi
gi
at the same time
oduction of foodstuffs and

Korean emergency

e
r
e
w
h
c
i
h
w
s
e
r
u
s
s
e
r
p
e
h
t
and all

-g—
g
n
i
v
i
l
f
o
t
s
o
c
e
h
t
t
of
n
e
m
e
upward mov

in

in-

e
d
u
t
i
t
t
a
c
i
s
a
b
e
h
t
e
g
n
a
h
c
t
o
n
d
i
d
s
i
h
T

dex.

of our

ge
wa
ng
vi
li
f-o
st
co
e
th
to
t
ec
sp
re
union with
We have

clause.

workers

said all along

that every time the

,
se
au
cl
r
to
la
ca
es
e
th
in
get a nickel

inereases

wash

paid in the wooden nickels of

are being

r
te
af
f
of
er
tt
be
no
is
er
rk
wo
e
th
e
inflation becaus
receiving

them than he was before.

If prices were

a
a
s
r
e
k
r
o
w
d
n
a
l
o
r
t
n
o
c
r
e
d
n
u
t
h
g
u
o
r
b
adjustments

fmder

are better off,
in fact,

eff,

our escalator clause,

our workers

er
tt
be
e
ar
s
me
co
in
d
xe
fi
th
wi
people

everyone

is better off.

.
fe
li
of
s
ct
fa
c
i
m
o
n
o
c
e
e
l
p
m
i
s
e
th
understand

They

r
ei
th
in
is
ch
mu
w
ho
&
é
n
know the important thing is
is
at
th
wh
y
wi
bu
n
a
c
s
e
v
i
w
r
i
e
h
t
t
a
h
w
t
bu
k
c
e
h
c
y
pa

in their pay check.

Q

But in an unccord

very difficult

and very

comp.

n
o
i
t
a
z
i
l
i
b
o
m
s
i
h
t
up
g
n
i
t
t
e
s
n
i
t
a
h
t
e
v
e
I beli
gram,

we should

not

rely on

any one

superman,

probe-

how well-intentioned

~9ob
pr
x
le
mp
co
e
es
th
l
al
to
s
er
sw
man knows the an
rse, that one man must be

in charge of the administrative aspects of the
program.

We do not advocate the kind of two-

k
in
th
not
do
we
-OPM
r
de
un
had
we
al
im
an
ed
head

on Oe

Q. Hasn't Truman done that - hasn't he applied
that kind of principle

A.

;

?

135 Ved Are order

He's ont an advisory

nobody really knows what

board

Serrweg

of

of some kind,

it is.

Q.

Could Wilson be on this policy committee ?

A.

Yes

Q.

In our interview two weeks ago with Charles

could even

-— he

be Chairman.

he said almost your words

E. Wilson,

-- he said

he has in mind the appointing of an over-all
policy
A.

committee.

Mr.

Wilson

of some kind.

Bi: that about your idea ?
an advisory committee

is suggesting

I suppose what he has in mind is

that he will have an advisory
culture,

for industry and he will

one for labor,
in when

call them

problem on which he

he has a

wants to consult them.

Q.

No, he speaks of an over-all advisory group.

A.

What

I am proposing is not an advisory

committee.

s
I'm proposing a policy board ~- it functionin
exactly the same way as a board

corporation.
question,

of directors

‘no

Mr.” Wilson was the head of the General
they had a basic policy

ompany.

But when

whether

to ex anc

plant

capacity,

to move

a new field of activity

or some other basic

policy decision, Mr. Wilson,

as President of the

into

General Electric Company,
by himself.

Such

did not make

decisions

such decisions

undoubtedly were made

by the board of directors. _

in

die

problems
applying

controls

of war mobilization and

in a free economy are

infinitely more difficult and complex than any

of the

problem that the Board of Directors

General Electric Comps i ever took on.
as General Electric has a boa
to handle

its basic

policy

dust

4 of directors

problems,

America needs a board of directors

I think

handle

the far more difficult and complicated problems

of the defense mobilization.

Q.

Would that require a change in the statute?

mut Lhe President under the

A. No.

Defense Production Act has authority to create
the machinery needed to implement the purposes

of the Act.
Q.

Then this

group that you speak of ‘would

have to go back,

anyway, to the President for

confirmation or approval or disapproval?

A.

The President can delegate the same

authority to such a Mobilization

as he has delegated to Mr. Wilson.

could retain the
I propose

Mr, Wilson

strative authority but

not the sole power to make policy.

words,

Policy Board

In other

separating the two fmetions.

Certainly whoever is the head of the administrative

end of the vepitliannsinn program ought
either as a member

to sit on the Policy

Board,

or as the Chairman.

But once the

has made a decision,

he would be responsible

for earrying

it out.

Policy Board



How does that differ from what we had in

Q.

©

World War IT?
in World War

stages

We went through man)

A.

II but we never had the kind of over-all policy

We need this kind of

board that I am proposing.
Board today more than

;

the problems

ever because

that we face now are more difficult than the

kind of problems we faced when we were in total

We are deal~

conversion and total mobilization.

ing now ‘ith the complex problem of superimposing
large

scale defense

production on a civilian

plant capacity is

economy in which manpower

almost fully employed.

When we're talking about defending democracy in
challenge

of the

if we could draw into a top mobiliza-

policy

important

No one can

it.

or the soundness

the validity

fact that,
tion

got to apply

we've

the world,

hoard

the

economic

best

group

r
e
t
t
e
b
e
v
i
y
g
l
collective

minds

in

from
,

America

every
d
l
u
o
c
y
e
h
t

y
c
i
l
o
p
o
p
t
i
h
s
leader

LAAL Htink, 9
uestions than any one man| thoever he may be.

y
t
i
r
o
j
a
m
a
by
e
d
i
b
a
to
Q. Would everybody have
decision in that kind of plan ?
A,
Qe

Certainly.
What

if

you

coulen't

get

agree

:

n
o
i
t
s
a
Bo
z
i
l
i
b
a
t
e
S
g
a
W
e
h
t
n
o
t
i
t
t
e
'
g
n
did
A.

If you get top men who have real appreciation

of what our basic problems

are, you will find

uktn

n
o
m
m
o
c
a
,
e
k
a
t
d
n
a
e
v
i
g
f
o
s
s
e
c
o
r
p
e
h
t
out, by

o
m
m
o
c
a
d
n
i
f
l
l
i
w
y
e
h
t
m
a
r
g
pro
around which

they can work.

arises where

that

1 demominator

If an occasion

of course,

then,

isn't true,

the majority has to decide.

In the case of the Wage Stabilization

Board.

t
en
di
pe
ex
s
wa
at
th
g
in
th
e
th
g
in
do
re
we
they

and not the thing that was right.

Instead of

evaluating all the economic factors of the
situation and then trying to miaieat

present
a wage

factors,

policy to meet those

public

the

|
nt
ce
r
pe
9
a
th
wi
up
me
ca
s
er
nb
me
industry

They

figure which was completely arbitrary.

thought 9 per cent would cover the escalator

clauses.

In the morning they had a 9 per cent

figure.

In the evening they had a 10 per cont

figure.

10
to
9
om
fr
nt
we
ey
th
on
as
re
ly
on
The

't
dn
ul
wo
nt
ce
r
pe
9
e
th
d
un
fo
ey
th
s
wa
per cent

d
an
se
au
cl
r
to
la
ca
es
rs
to
Mo
l
ra
ne
cover the Ge
some of the other escalator clauses.
the BLS index an

Then when

issued femmumgty they found

. that 10 per cent wouldn't

do it and Mr. Eric

Johnston had to issue a new order.
No such maneuvering

based upon expediency

n.
io
at
iz
il
ab
st
ge
wa
r
fo
s
si
ba
d
un
so
a
provides
It is impractical,

unworkable

and unjust

to

attempt to stabilize wages without first controlling

the cost of living.

.

:

Any such stabilization

program must permit the

0
1
t
n
e
s
e
r
p
he
‘T
.
s
e
i
t
i
u
q
e
n
i
e
g
a
w
of
t
n
e
m
t
s
u
j
ad
e
v
i
t
u
c
e
0
x
0
E
0
,
0
0
1
s
$
t
a
i
m
r
e
e
p
z
e
e
per cent wage fr

t
i
m
r
e
p
t
no
s
e
o
d
t
bu
e
s
a
e
r
e
n
i
to receive a $10,000

e
v
i
e
c
e
r
to
r
u
o
h
r
pe
a worker receiving 50 cents
a 6 cents

Under

per hour inerease.

|

the Wage

e
s
a
e
r
c
n
i
0
0
0
,
0
1
$
e
th
,
y
c
i
l
o
p
s
'
d
r
a
o
B
n
Stabilizatio
- while the 6 cents per hour

is inflationary.

Q.

d
r
a
o
B
y
c
i
l
o
P
t
a
h
t
on
be
d
l
u
o
w
y
n
a
m
How

thi

you suggest ?

A.

I'd say two or three from each group.

ro 12 people altogether.
Q.

e
r
y
a
p
e
h
t
n
o
e
b
e
l
p
Would those peo

individual groups or be government

disassociated from their respective groups?
A.
then

to serve full time,

If they were required

on the government

I think they should

payroll.
Q.

Wouldn't you be better off to have a public

group, then, without the fellows that have

,

connections?

A.

The purpose of having industry, labor, farers

and the public is to be able to draw upon, Specialized experience of each : group,
a different backz

Gach group having

ound and different point of view, —

has a unique contribution to make.
fm

the po oling

+.

the

blending

What wa need is

ef these

various

» 16«

points of view to give us unity of purpose and

An all-public group would lack a lot of

action.

that

experience

industry,

and labor

agriculture

would bring to the Policy Board.
on trading

between

groups te ,

the

Q-

Did you plan

A.

I do not consider this a matter where you are

get the best agreement ?
going to bargain.

Q.

Can labor members of that

oard act independently,

or are they going to have to follow the policy laid
|

down by those making the policy?
A.

War,

in the last war on the Wev@efet

I served

|

Manpc

mmission, which within the limited field of manpower, was similar to what
Q.

Nowadays,

Committee
in the

however,

I am proposing.

the United Labor Policy : : |

has forced all the labor representatives

government

to get off and they all meekly

got off the various defense

management

that labor,

agencies.

How are you

and agriculture were able

to think through the basic issues and o me up with
agreement

problems.

on sound polic ies relating to mobilization

The Wage Stabilization Board was operating

on the basis
wages

of expediency and attempted to control

rigidly at a time when prices

were not effectively

controlled.

and profits

Every housewife

d.
au
fr
a
as
ze
ee
fr
e
ic
pr
d
le
al
-c
so
ses the

a
The price of Cadillacs was rolled back and the
price of serap iron was eut $10 per ton, but
the cost of food,

clothing and other necessities

continued to rise.

These are the facts that

the crisis

precipitated

in the Wage Stabilisation

oblem of wages has
hip to the

problem of profits?

A. You cannot talk about wages without talking
about profits.

And you canne t talk about prices

without talking about wages and profits.
s
t
i
~
f
o
r
g
p
n
no
i
k
a
m
is
o
w
h
o
w
l
l
e
f
e
t
u
th
o
b
t
a
a
Q. Wh
less wages then?
ay d
heupl
sho

sompanies where they

I know lots

of

don't have any profits and

where they can't cut wages ~-

A. The facts are that the profits

of Am

corporations are at an all-time high, running at

a rate of 48 billion dollar

a year before

taxes

or double the record profits of the war years.
Q. But, as a principle,

d

you think organized labor

would favor lower wage scales in compan

are not making profits?
A. Organized labor is not prepared to subsidize

Q. In other words, you take the position that when
an industry loses money,

that's

ineffieiency?

You

r
ito
pet
com
the
be
may
it
t
tha
on
iti
pos
the
e
don't tak

to
him
g
in
rc
fo
's
at
th
ly
po
no
mo
big
the
h
wit
e
ov
al
up
the wall?

Under the anti-trust

laws we prosecute

eT
a ye eee
Peer

.
y
t
i
c
r
a
c
s
c
i
m
o
n
o
c
e
g
n
i
up by creat

.
s
t
i
f
o
r
p
h
g
i
h
d
an
s
e
c
i
high pr
Q

d
e
t
r
e
c
n
o
c
g
bi
a
t
go
Then you've

moveme

nigh wage levels in some
t
ou
go
or
e
ic
pr
at
th
et
me
to
fellow has got
doesn't

of business,

A

he?

The fact remains that the total wage

tion profits in that same period have gone up

97 per cent. ‘The National City Bank report
0
5
9
1
o
t
9
4
9
1
m
o
r
f
t
n
e
c
r
e
p
5
3
n
a
of more th
Q

But people

d
n
e
p
s
o
y
t
e
n
o
h
m
c
u
m
o
o
t
e
v
m

?
y
e
h
t
t
'
n
e
r
a
,
w
o
n
h
g
i
wages are very h

o
o
t
e
v
a
h
e
l
p
o
e
p
e
l
t
t
i
l
e
h
t
t
a
h
t
y
r
o
e
h
t
r
u
o
Y
A

much wages

and too much spe

nding power and are

come families out of the market
for homes and other

consumer

oss

-¥9A.

We must protect the consumer by having

Q

as a policy group

Do you think 12 men sitting

can handle all those problems?
A

I think 12 men can do a better job than one

man because I'll trust the wisdom of 12 men —
that's

I don't think

we have a democracy.

any one man is equal te this task.

whether he comes from inc ustry,

I don't care

labor,

agriculture

or from some university.
A

De you think these 12 men would agree?

A

I think that they can work out policy.

I was

r
o
i
s
s
i
r
m
e
m
w
o
o
C
p
n
a
r
M
e
Wa
r
e
th
i
-l
r
a
y
e
g
sa
n
to
i
y
r
t

labor representatives,

agricultural representatives,

and a public chairman ~- and we worked out a practical manpower

program,

and we didn't get in there

and bargain with each other.

We all recognized

that there was a national interest that transcended
the interest of the groups

G

participating.

You knew manpower - but you couldn't delegate

te that group from labor and agriculture the know

ledge of how to operate the credit controls of
America. and let them be the final court of last

in the country on credit.

Q

Why can't this committee

and Mr.

A

report to ! T's

Wilson

Wilson report to the President?

Then you have Kr. Wilson above the Policy Board

Now whe decides what's policy and

tive authority.

what's aduinistrative powe:
A

Sverybody who knows

big organization knows

anything

there are distinet differ

ences between policy decisions

administrative

And I'm saying that that 1

decisions.

ne of de-

mareation can be drawn without any confusier
pounding out basic polic

wes what you're talki

Q

What if the President doesn't approve

Policy Board and leaves Wilson in his position,

what then?

telligent,

the most constructive and the most effect-

ive approach.

I'm not trying to speculate on what

someone might do.

Q

Is this your orzanization's proposal?

A

c;
li
Po
r
bo
La
ed
it
Un
e
th
r
fo
re
he
ng
ki
ea
sp
t
no
I'm

Committee.

I'm saying that if I ioe ciel the question

erica or a free people can best get on with the

“23job of mobilizing their material resources and
their human resources and

tavping

the spiritual

power that they have, I would say that this kind of
machinery lends

itself better to the achievment of

that task than the one-man setup that we how have.

That is your personal view, then’

Q

A ‘That! @ right.

|

But doesn't labor and business and agriculture

think that this is a near-war rather than an actual
war?
A

It's a get-rich-quick period,

That isn't

true

so far as labor

is that it?
is soncerned

because the policy staterent of the United Labor

u
d
an
y
l
r
a
e
l
c
y
r
e
v
d
i
a
ttee s
that we are in favor of and are prepa
@ program of wage stabilization.
wage

Sut we said that

stabilization had to be a part of a total”

over-all program.

Wow,

you can't

say that we're

trying to get rich -- we don't want to get rich -~

Q

If you did get this committee, would you then

have a no-strike pledge

able policy.

given by labor?

Talk about a no-strike pledge aap in

the light of the facts, with prices and

r

Ble

Q

s
i
h
t
r
e
t
f
a
I meant

eperation,

would

commission

had been

|

you then have a no-stris

?
e
c
i
f
i
r
c
a
s
of
y
t
i
l
a
u
q
e
ep
to ke

A

l
i
b
a
t
S
ge
Wa
e
th
in
n
o
i
t
c
e
S
I'm for a Disputes

o
n
e
v
a
h
l
l
i
w
u
o
y
,
e
c
i
t
s
u
j
g
n
i
t
t
e
g
e
r
a
that they
strikes.

y
e
h
t
l
e
e
f
y
e
h
t
f
i
,
d
n
a
h
On the other

are being denied justice,

you will have strikes

<i

of a no-strike pledge.

regardless

state,

it is pessible to achieve industrial

stability without
however,

In a police

In

justice.

industrial

stability

a free society,
is possible only

if it rests upon a foundation of economic

and

social justice.

and
m
ter
ct
ra
st
ab
ry
ve
a
conomic justice is
labor's definition of that differs from others.
you can only

have

peace by accepting

definition of justice,

A.

If

one fellow's

how can you have justice?

s
he'
-g
in
os
op
pr
is
on
ls
Wi
Mr.
at
wh
's
at
Th

.
s
m
r
e
t
s
i
h
n
o
e
c
a
e
p
g
n
i
s
o
p
o
r
p

d
l
u
o
h
s
n
o
s
r
e
p
Wo one

be permitted to

Q.

r
e
h
t
o
"one
man"
if
n
a
h
t
i
w
d
e
i
f
s
i
Would you be sat

he came from a labor union?
A.

No.

I said

Absolutely not.

justry,

agriculture,

or from a

rman in America is capabl.

.
n
o
i
l
l
i
b
3
$
n
a
h
t
s
s
e
l
s
d
l
e
i
y
profits tax
f
o
t
u
o
that

curren’

We believe

ww

»

d
l
e
i
y
to
t
h
g
u
o
x
a
t
s
t
i
f
o
r
p
s
s
e
c
x
e
e
l
b
a
t
i
u
q
e
and

x
a
t
l
a
t
o
t
e
h
t
of
e
r
a
h
s
r
i
that represents the fa
lead which

corporations

ought

g
ou
w
a
l
x
a
t
e
h
t
in
s
e
l
o
h
p
o
o
l
e
h
t
t
a
h
believe t
Q

a
y
b
e
r
e
h
w
g
n
i
t
t
i
l
p
s
e
m
o
c
Would you repeal in

husband

A

and wife

can make a joint return?

Yes they ought to repeal the split income

provision which allows well-to-de

families

to

escape paying billions of dollars in taxes.
Q

Would you say whether you are satisfied with

the pressnt political parties?
A

TI have

said for

a long time what we really

Qe

?
y
r
t
n
u
s
i
o
t
r
h
c
a
fo t
th

A.

i
t
a
r
o
n
f
v
o
a
f
n
t
i
o
n
m
a
I

.
n
o
i
t
a
z
i
l
a
on

.
y
t
c
i
i
c
m
y
r
o
l
a
n
o
c
o
p
s
d
c
o
n
e
n
a
so

I am mm

d
r
a
offe

n
e
t
o
‘To of

t
k
r
i
y
e
n
t
e
r
h
r
e
i
n
e
o
t
t
s
a
r
n
s
i
c
f
u
e
i
s
d
n
r
i
n
i
Ame

.
g
n
i
s
i
r
p
ter

Wh

a private

industry refuses

to

nd productive

capacity to meet the needs of our nation,

the Government

I favor

as the agency of the people teking

what steps are necessary to see that economic

defécits

are met.

in point.

present emergency,
ying

the people of America are

the price of the steel industry's refusal

to expand.

We cannot tolerate

any prbévate

economic decisions which threaten the security
of our nat:

?
\
v
/
e
t
n
o
n
o
s
e
r
u
o
e
s
i
d
r
a
p
o
e
j
mn and witch
|

s
n
o
i
t
c
i
r
t
s
e
r
l
a
i
c
i
f
i
t
r
a
g
n
welfare; I am for endi
abundance.

What if we get a great deflation?

Ae

If we are to make freedom secure in the world

free men must learn how to organize their

life so as to achieve full-employ:
uction and full distribution,

int,

economi

full—prod

uninterrupted

by

to the world that it fs possible to achieve a

full measure of economic security without sacrifici
political or spiritual

freedom.

the world that we can mobilize

We must prove to
our econom

and our productive power making the good things of
to forge the weapons

of war.

Phe

ee ,

"WHAT

CAN

BEST

STOP

SOVIET

AGGRESSION?"

now underlies

debate

on all

things from MacArthur to movie-making.
5ix federalist leaders answer "world government" (page 14).
So does Walter Reuther, and adds economic aid (page 9). Reuther

drove
but

Communists

argues

from

forcefully

World Movement's

for

Rome

self-liquidating.
Pope
Pius XII,

clares

leadership

"nothing

is

including

Congress
in

long

more

in his

in

is

United

Russia

Auto

Workers

in a world

well-attended,

union,

government.

constructive

and

audience

with

Congress

conformity

with

the traditional doctrine
of the Church" than "an
effective
political

delegates,

organization
world"

of

(page

Paul

de-

the

<r3)..

Shipman An-

drews
terms
Rome
“an
important
milestone"
in Movement's development (page 4).

leader

World

Hjalmar

membership

both
must

Riiser-Larsen

Movement,

Agitation

succeeding

for a more

for

of Norway is elected president of the

Lora

effective

question.
Jawaharlal Nehru
argue

Noted explorerand
military and business

and

admitting

the

Boyd

UN

Orr

centers

American

all

(page

nations

on

Approach

first

(page

of General

Membership

(page

National
"rededication"

Executive

New methods

by all

stirs

figures

are

Council
federalists

of electing

|
service

of

Committee,

4).

"accepted"

5).

Assembly

renewal

the universality

Friends

houis Dailey agrees ; William Bray believes
be met

8).

standards

UWF.
released

Chairman
(page

(page

C. M.

11).

Stanley

calls

for

a

17).

Council members

are proposed

(page 16).

student federalists step up pace.
owarthmore co-sponsors three big events in two weeks (page 6).
student division among hosts to first convention in the U.S. of
World Assembly of Youth (page 7).
Sn

Attempted

Ihe

may

1951

that

Returning
"a

infiltration

New York

a new

ete:

"party

of

peace

Times

and Alan

line"

seeks

groups

by Communists

Cranston

"a united

submit

front

for

is expected.

separate

evidence

'peace'".

to MacArthur, his popularity seems due at least
sense of frustration" among Americans.

in part

to

deep
80 holds Cabell Phillips
(page
12),
who believes
that anyone
"with a plausible plan for cutting
the whole thing short is sure to
get the people's plaudits."

Can Retain Interest Too!

Money

A SUBSCRIPTION TO

THE
FEDERALIST

The magazine of United World Federalists, Inc.
. is an excellent device for retaining and developing the interest of potential
members

not yet

ready

to join

UWF.

Last month,

UWF’s

National

Executive

Council urged all UWF branches, chapters and members to get subscriptions trom
—or

give them to—interested

non-members.

At 2%, the cost for non-members of a year’s subscription to THE FEDERALIST earns 3¢ annually.
INVESTED IN A SUBSCRIPTION to THE FEDERALIST, the same

$1.50 earns or retains the interest of valuable supporters.

THE FEDERALIST
United World Federalists, Inc.
7 East 12th St., New York 3, N. Y.

ae

[]

Enclosed please find $__________for.

[_]

Enclosed

please find

$1.50

copies of this issue at 15¢ each to be sent to me.

for one year’s subscription

to THE

FEDERALIST

to be sent to:

Name

Address

ee

a

My

Name

Address
State

City

This page

has

been

paid for by

a federalist who

agrees

with

UWF's

National

Executive Council that THE FEDERALIST should have the widest possible circulation.

cn

A

Vol.

me

ET

1, No. 2

REAL

A

May

REE

ORME

OR a

RR ne

eR

a

1951

federalist

in this issue

Page

“Riiser-Larsen Does Not Lose Himself”

8

by Leif Caspersen

Why Not World Government and Pt. 47
by Walter P. Reuther
as interviewed by Alan Cranston

9

UWF Pre-General Assembly Report
Pope Pius XIl and World Government

10-11
13

Proposed By-Law Revision
Report from the UN

16-17
3

by Edward A. Conway, S.J.

News
Washington Column
Read, Look, Listen

4-7
12
12

This Month’s Question
What They Say

14-15
16

Memos

17-18

What They Ask

19

THE FEDERALIST believes that freedom of expression and the
interchange of ideas are fundamental in a democracy. It therefore prints signed articles, columns and letters which do not
necessarily reflect, and often vary from, UWF policy and attitudes.

Editor, Richard Strouse
Associate Editors, Andrew Crichton and Jane Morris
Promotion Manager, Margaret Ameer

*
UNITED

*
FEDERALISTS,

WORLD

INC.

For support and development of the United Nations into
a world federal government with limited powers adequate
to assure peace
President, Alan Cranston

Honorary President,
Cord Meyer Jr.
Chairman, Executive Council,
C. M. Stanley

Chairman, Exec. Committee,
A. J.G. Priest
Chairman, Student Division,
Thomas E. Robertson Jr.

Vice Presidents
Cass Canfield
Mrs. J. Borden Harriman
Chairman of the Board,
Former U.S. Minister to
Harper & Brothers
Norway
Grenville Clark
George H. Olmsted
Lawyer and Writer
Chairman of the Board,
Haw
key
e Casualty Co.
Norman Cousins
‘4
Editor, Saturday Review
Walter P. Reuther
of Literature
President, United
Automobile Workers
Hon. William O. Douglas
Associate Justice, U.S.
Robert E. Sherwood
Supreme Court
Author, Playwright
Raymond Swing
Radio News Commentator

Secretary, J. A. Migel
Treasurer,
Duncan M. Spencer
THE

Inc.,

Counsel, Abraham Wilson
Executive Director,
Mrs. J. Donald Duncan

FEDERALIST
is published

7

East

12th

St.,

New

monthly

York

3,

by

N.

United

¥.

World

Federalists,

Subscription

price:

One year included in regular UWF membership; one year to nonmembers $1.50.
Application for entry as second class matter is
pending.
eines» (65)

May

1951

John Foster Dulles suggested the other day that the
United Nations General Assembly in Paris this fall
should find some way of getting around the Russian veto
against new members.
Mr. Dulles was thinking primarily of obtaining the
admission of Japan to the world organization as a part
of a proposed Pacific peace treaty. If the State Department wants to extend Mr. Dulles’ suggestion to other
waiting applicants, several entirely legal methods could
be devised.
One would be to admit individually such countries
as Italy, Austria and Ireland into the General Assembly
with full rights, including the vote, which would make
them United Nations members in everything but name.
Another would be to create a category known as
“Associated Powers,” in which new members vetoed by
Russia could be lumped together and brought into all
United Nations bodies except the Security Council, where
the veto applies.
Such

devices are practical because each

United

Na-

tions body including the General Assembly has the right to
make its own rules. __ ,
If the Russian veto thereby should be circumvented
on admissions, as it has been in calling out United Nations armed forces, it will mark still another tremendous
change in the fundamental character of the world organization, and a new approach toward universality.
The risk that Russia will walk out may have to be
faced in this respect, just as the nations participating in

the

United

bombing

Russian
All
Charter
threat of

Nations

Manchuria,

defense

of Korea

are

resigned

to

if it becomes necessary, and risking

entry into the conflict.
this is far different from the shining ideal of the
in which its signatories forswore the use or
force in their dealings with other nations. The

Communist powers and their satellites have nullified
those pledges, and have thus given other members of the
UN no alternative but to hang together to resist aggression.
:
It is for this reason that the United States has been
campaigning to get more United Nations troops to
Korea, and also to persuade all law-abiding members of
the world organization to set aside portions of their armed
forces now for use against new aggressions. It is for this
reason, too, that the United States may be anxious to
enlarge the United Nations, for it is axiomatic that UN
membership carries with it UN obligations.
Despite the uproar over President Truman’s dis-

missal

of General

commander

in

MacArthur

Korea,

as the

consequently,

United

the

Nations

campaign

to

strengthen the world organization goes on. Progress is
too slow for some, perhaps; too disheartening for others.
Yet, to those who deeply believe that the United Nations
must be made the guardian of world law, there is no
turning back now.

3

Papal Audience, Gift from Italy Mark
“Finest’’ World Movement Congress

US
UWF-Led

Exclusion

The emphatic demand by UWF
that the World Movement for World
Federal Government revoke an invitation to the Communist-dominated
Partisans for Peace to attend the
Movement’s Rome Congress as “‘observers’ contributed to ‘“‘the finest
Congress yet”. The authority is Paul
Shipman Andrews, dean of the Syracuse University Law School and a
leading UWF delegate to the April
2-7 Congress.
The vote to revoke the invitation was 12 to 5 in the World Movement’s Executive Council, and 72 to
11 on the floor of the Congress. Although the decision had been expected to weaken the organization—
and although Pierre Hovelaque, Secretary General of the World Movement; Jean Diedesheim, Alexandre
Marc and Abbé Groués-Pierre of
France, and Gustav Malan of Italy
an(the latter three previously
nounced) resigned from the Movement’s Executive Committee in protest—revocation of the controversial
invitation actually strengthened the
Movement, Mr. Andrews says.
Promptly after the revocation, in
rapid succession, Count Carlo Sforza,
Italian Foreign Minister, agreed to
address the Congress; the Italian govlire
2,000,000
donated
ernment
(about $3,000) to help defray expenses, and Pope Piux XII granted
an audience to a group of delegates.
In his now famous discourse, the
Pope declared that world government was fully in keeping with the
Roman
of
objectives
traditional
Catholic doctrine (interpretation on
page 13; description of pamphlet containing complete text on page 12).
Other indications cited by Dean
Andrews that the Movement passed
an important milestone at Rome:
e For the first time, non-federalist groups took part in World Movement proceedings.

attended
convention was
The
by 200 delegates representing twentyeight federalist and thirteen nonin twenty-seven
federalist groups
countries. A subsidiary ‘‘Congress
of Organizations” produced studies
and reports of a federalist nature to
which representatives of the nonfederalist organizations contributed.

4

of

Peace

Partisans

Called

e The center of gravity within
the World Movement was shifted to
the larger membership groups.
e The Movement placed itself on
a sound financial footing.

The Congress was self-liquidating. The Movement’s liabilities do
not exceed $3,500. An initial annual
budget of $12,000 was adopted, $5,000 of which represents dues in sight.
e A “Declaration of Rome” rep-

resenting a wide area of agreement
among the federalist groups present

and consistent with
was issued.

UWF

objectives

Clear and direct, the declaration
calls for ‘‘an all-inclusive world feder?! government which can guarantee

Major

Factor

‘The Movement’s new Executive
Committee, also elected at Rome, is
composed
of:
Monica
Wingate
(chairman), principal of Ball’s Park
College, president of the Federal
Union of Britain and sister of famed
Major-General Orde C. Wingate;
Reader
Harris
(vice
chairman),
Conservative British M.P.; Donald
Harrington (treasurer), minister and
UWFE leader; Dr. Guiseppe Chiostergi, vice president of Italy’s Chamber
of Deputies; Curtis Farrar, UWF
member living in England; Prof.

Brandt Rehburg, president of Denmark’s Een Verden; and Prof. Daniel Van der Meulen of the Netherlands Wereld Federaliste Beweging.

Count Carlo Sforza, Prime Minister of Italy. opens the fourth Congress of the World
Movement for World Federal Government in Rome, April 2. Lord Boyd Orr (center)
and Paul Shipman Andrews sit with him on the dias.

to each nation security against attack
by others”. It emphasizes that a
world government must have the
power to make and enforce laws
binding upon individuals and national
,
governments.
Toward the end of the Congress,
Hjalmar Riiser-Larsen of Norway
was elected president of the World
Boyd
replacing Lord
Movement,
Orr, who was named honorary vice
president (“‘profile’’ on page 8).

Admit

All

Nations?

In the same recent week, from
sources half a world apart, came an
identical criticism of the United
Nations.
Minister JawaIndia’s Prime
harlal Nehru, in a conversation with
Norman Cousins published in the
Saturday Review of Literature on
April 19, emphasized his belief that

UN

effectiveness was

dwindling

The

be-

Federalist

depended. She has not even observed
the diplomatic courtesies which are
the symbols of the respect of one nation for another.
To admit now to the UN a nation

cause

not

all

nations

were

repre-

sented in the UN, as originally intended.
“The UN,”
Mr. Nehru said,
“by keeping out some countries...
in a sense denies itself the moral right
to deal with that country. ... It puts
itself in a wrong position thereby.
If you cannot deal with a country
within the form of the UN, then
the only alternative
is to deal with it
outside ultimately by force of arms.”
Three days later the American
Friends Service Committee underscored the same idea in a full-page
advertisement placed in a number of
newspapers across the country. The
advertisement developed four “steps
to peace’:
(1) A new kind of negotiation;

(2) Strengthening
of the United Nations as a peace-making agency; (3)

A new
approach
to disarmament
now; (4) Economic, financial and
technical assistance.”” Under the second point, the Friends’ message said:
“The UN should include without
prejudice, as was first intended, all
governments willing to accept the
responsibilities of membership. Fully
a dozen such nations, not counting
colonies, are not yet members... .”
Thus, once again, the question is
raised: Is membership in the UN to
be determined on the basis of good
behavior or is it to be granted to
all as a means for getting along with
each other in spite of differences?
THE FEDERALIST asked two UWF
state chairmen, William
Bray of
Ohio and Louis Dailey of New Jersey, to express their views.
‘They
follow.

BRAY:

Effective

organizations

must
have
membership
standa—rd
socs
ial
clubs,
PTA’s,

UWF, business
porations,
or
Members must
terest and join
common goal.

to accept certain

partnerships and corstates
and _ nations.
share a common inin working for the
They must be willing
discipline, even sub-

mit to limited authority.
Similar standards should apply
when nations wish to join the UN,

simply as a promise that the new
member can and will contribute to
an effective whole. As illustration,
Red China has shown herself unwilling or unable to accept the international responsibility on which recog-

nition

May

of

1951

nations

has

traditionally

which meets neither accepted nor desirable standards ts to start tearing
down what we have been taking such
Rather we should
pains to build.
strengthen what we have until membership is so desirable that nations
will demonstrate their intent and ability to meet the necessary standards.

DAILEY:

The

needs

United

all the

Nations

help

and

support it can muster. International

disputes must be settled by other
means than war, termed by General

MacArthur

as

“useless”.

All

na-

tions, willing in good faith to subscribe
to the obligations of the UN Charter,
should be admitted.
The highest common denominator

between nations is the desire of each to
enjoy its own national life, regardless
of ideology.
The aim in Korea appears to be to stop communism.
That
explains the indifferent or total lack

of support of many UN members.
The world desperately needs

a
criminal code defining aggression and
some effective means of interpreting
and enforcing it. As Americans we
have neither the manpower, the strategic bases, the material resources—or
the disposition—to be a world policeman.

As General MacArthur said, alliances, balances of power and leagues
of nations have never worked. Therefore, our only alternative is to work
with others through the United Nations—as difficult and as frustrating as
that is.

49% Favor Stronger

UN

HCR 64 has “considerable popular backing throughout the country,”
George Gallup, director of the American Institute of Public Opinion,
reported May 1.
Dr. Gallup based his conclusion
on a recent public opinion poll.
In reply to the question, “Do you
think the UN should or should not
be strenghtened to make it a world
government with power to control
the

armed

forces

of

all nations,

in-

cluding the U.S.?”, 49 per cent answered it should, 36 per cent that it
should not and 15 per cent were undecided.
About 64 per cent of those interviewed had some idea of what the
term “world
government’
meant.
‘Thirty-six percent were unable to
give any meaningful definition.

Updating
SCHUMAN

Pian:

The

Foreign

Ministers of the six participating nations signed the treaty April 18. It
must still be ratified by each of the
parliaments.

New Soviet “Line” Aims

at Infiltration of Peace
In what it characterized as a
“shift in tactics’, The New York
‘Times reported April 28 that American Communists have been ordered
to subordinate all lesser party objectives to a search for common ground
with labor, church and non-Communist political groups in a united
front for “peace’’.
According to the Times there are
hints that the Communists might be
willing to soft-pedal some of their

more

unpopular

views

on

domestic

issues to make their “line” more
palatable to possible allies.
Warnings of a similar nature
were voiced by Alan Cranston, UWF
president, in a report to UWF’s
staff
on April 19.
In explaining UWF’s threat to
withdraw from the Rome Congress
of the World Movement unless an
invitation to the Partisans of Peace
were revoked, Mr. Cranston said

Groups

that at a meeting in Berlin a hitherto
unpublicized resolution was adopted
instructing Partisans to work as closely as possible with ‘“mundialists”
(meaning federalists and world citizenship

advocates)

and

Quaker

and

other church and peace groups. The
Partisans previously revealed their
true political allegiance at Warsaw
when “they gave American attorney
O. John Rogge short shrift for his
condemnatory
remarks
on _ Soviet
Union policies”, Mr. Cranston said.
For the first time, he emphasized,
federalist groups are threatened with
Communist infiltration. “In attempting to seize the word ‘peace’ for their
own purposes and self-aggrandizement, the Soviets are apparently out
to inspire a united front of every
group dedicated to the pursuit of
world peace—no matter how the
group may propose that peace be procured,” Mr. Cranston concluded.

Wal
Council

Report

The meeting of UWF’s National Executive Council in St. Louis,
April 21-22, was devoted primarily
to the World Movement (see page
4), plans for the General Assembly
(see pages 10-11), examination of income and budget and recommendations of the political committee.
President Alan Cranston
UWF
emphasized in his report to the CounNew York and
cil that UWF’s
Washington offices now operate on a
monthly budget of $2,750 below the
figure authorized at last year’s Assembly. “Income in March and April
fell dangerously short of this minimum,” Mr. Cranston reported.
The

Council:

e formed a committee to study
the use of “promotion cards” to be
sold for $1 at rallies and _ public
meetings;
e instructed the finance committee to solicit funds from trade groups;
e asked all states represented at
the meeting to step up present fundraising efforts.
The political committee reported
it had already gone to work on a plan
for “task forces” from as many states
as possible to appear in Washington
in favor of HCR 64. Details can be
obtained from UWF’s Washington
office, which is making arrangements
for publicity, briefing and interviews
under the guidance of Legislative
Director Jerome Spingarn.

Private

Donation

A combat infantryman, half way
through basic training, took time out
from his Army duties April 16 to
donate $20 to “the most important
fight of all—that of federating the
UN into a government capable of
enforcing peace’.
Pvt.,David Caulkins of the Third
Armored Division, Ft. Knox, Ky.,
mailed the money to UWF’s national
headquarters to cover the first two
installments of his pledge plus his
1951 membership.
“In about six weeks,” the Army
draftee wrote, “I’ll finish my training as a combat infantryman and
start really fighting for the UN.
Meanwhile, here is my $20 which I
hope will help in the most important
hent of all. a...

6

Hawaiian Federalists’ Influence
Extends Throughout Islands
In New York for the twenty-fifth
reunion of his Cornell University
medical school class on April 17, Dr.

Nils P. Larsen, a founder and present
president of UWF of Hawaii, reported to THE FEDERALIST on the
status of federalism in Hawaii. It’s

doing fine.
“There is hardly a person on the
Islands today who doesn’t know who
and what UWF is,” Dr. Larsen says.
The doctor emphasizes that the in-

fluence of UWF of Hawaii is wielded
by a comparatively small group. He
gives his chapter’s membership as 110
(UWF’s national office gives it as
99), but adds that the chapter is a
scant two years old. Sections have
been established on Maui and’ Kauai
Islands as well as in Honolulu.
The explanation of the Hawaiian
Federalists’ effectiveness, Dr. Larsen
believes, can be found in any or all of
the following:
e They publish a monthly news
bulletin which is sent to UWF mem-

bers and a selected mailing list of 400
of Hawaii’s most influential leaders.
e Once a month an open meeting
is held in Honolulu in which the opposition

30

is

invited

Leaders

Meet

to _ participate.



Over thirty branch and chapter
leaders, including six students, met
in Chicago April 7-8 for UWF’s first

Midwestern field conference.
The meeting was attended by delegates from Colorado, IIlinois, Indiana, Iowa, Ohio and Wisconsin. Edward W. McVitty, UWF field director, and Ruth Root, national field
representative, both participated.
The sessions featured round-table

discussions on branch and chapter
questions led by field executives.

Swarthmore

Scintillates

UWEF’s Swarthmore chapter is
earning the reputation of being the
most active student organization on
April 21 it jointly
campus. On
sponsored with the Swarthmore International Relations Club a Point
following
The
conference.
Four
week-end, again as co-sponsor with
the IRC, it held a conference entitled
“India’s Role in the World Today”’.
Its biggest affair, however, comes

These ‘‘afternoon mental cocktail sessions’, as Dr. Larsen describes them,
are invariably publicized in the two
leading Honolulu newspapers.
e The chapter’s board of directors
and honorary directors reads like a
“Who’s Who in Hawaii’. In addition to Dr. Larsen, they include: Dr.
Y. C. Yang, Korean ambassador to
Washington; Oren E. Long, former
head of the public school system and
the man most commonly mentioned

as

President

Truman’s

choice

for

governor of Hawaii; Mrs. Richard
Thomas, wife of the chairman of
Hawaii;
of
Rotary
International
Dr. Thomas A. Jagger, world’s foremost volcanologist, and Dr. Clarence
Fronk, internationally famous big
game hunter.
Dr. Larsen himself, the senior
physician at a seventeen-man clinic, is
one of the sixty-three delegates who
wrote the new Hawaiian Constitution
which will go into effect when and if
the Islands are admitted to U.S. statehood. That experience underscored
his conviction that universal federation will be attained “because the
world must get together on a basic
law for survival’.

off this week, May 4-6. About 400
students are expected to attend a
conference entitled “By What Means
Peace?’’, scheduled for the Temple
University campus. UWF of Swarthmore was the original sponsor of the
conference, which is now being handled by a planning committee consisting of representatives of student
political and religious groups. Ralph
Lee Smith, Swarthmore chapter cochairman, is chairman of the planning committee.

The

Tarheel

Story

Behind the successful effort of
North Carolina federalists to prevent repeal of that state’s 1941 Humber-type resolution and 1949 constitutional
amendment-type
is the
story of a campaign so well organized that the opposition publicly admitted UWF had done an excellent
job of obtaining state-wide support.
North Carolina legislature committee hearings were held on Feb. 21
and March 6. At each more than 150
federalists were present. In addition,

The

Federalist

hundreds

of other North

wrote letters or wired
lators.

Among

Carolinians

to their legis-

those who either testified

or wrote were: a former governor of
North Carolina; a past president of
the Young
Democrats Club; the
president of the Federation of Womens Clubs of North Carolina; the
master
of
the
North
Carolina
Grange; the presidents of Wake Forest, Davidson, Greensboro, Pembroke
and Meredith Colleges; the dean of
the North Carolina University Law
School, and prominent judges, professional and business men, pastors,
university teachers, writers and publishers.
At .both hearings, the opposition
pled with committee members not to

be influenced

by

these

distinguished

citizens and argued that the public
at large was in favor of repealing the
two resolutions.
This tactic
had
already

failed because UWF
organized
support

throughout the state by:
e laying the ground work in contacting
organizations
and_ leaders
long in advance of the legislative ses-

sion;
e creating a “task force” of federalists who personally contacted leg-

islators;
e circulating a pro-federalist petition ten months prior to the convening of the legislature;
e publishing a brochure entitled
“North Carolina Was Right” which

was sent to hundreds of influential
citizens in the state. The booklet tells

the history of the two

lina

YAC

world

federation

to Entertain

North

Caro-

resolutions.

WAY

UWF’s
student
division
and
twelve other member-organizations
of the Young Adult Council will be

hosts to an estimated 500 youth lead-

ers from forty nations this summer
when the World Assembly of Youth
convenes for the first time in the
United States. The occasion is the
meeting of WAY’s first triennial
General Assembly on the Cornell
University campus, Ithaca, N. Y.,
August 5-16.
Organized in August, 1949, WAY
is made up of youth councils in

May 1951

is_ the
thirty-three nations. YAC
American affiliate of WAY.
Two former members of UWF’s
student staff, Eugene G. Schwartz
and Murray Frank, have worked
with YAC making arrangements for
the Cornell meeting. In. addition, at
members will be
least two UWF
among the twenty-five U.S. delegates
to the Assembly.
Youth leaders at Cornell will discuss critical problems of the day before a general backdrop of “Youth
and Human Rights’, theme of the
Assembly. Topics will range from
individual
the UN.

to support
*

freedoms
*

*

of

*

Other international items on this
summer’s agenda for students include:
e INTERNATIONAL
CAMP _ IN
CHIGWELL, ENGLAND. Sponsored by

the British National Committee of
WAY, participants will spend several weeks at the camp and attend
the Festival of England.
e EXPERIMENT
IN’
INTERNATIONAL Livinc. A special student
federalist group under William Andrews, student leader, will climax a
visit to France with attendance at the
annual congress of the World Student Federalists.
e CoMMUNITY
DEVELOPMENT
Projects Lrp. in cooperation with
INTERNATIONAL RESEARCH FUND,

Inc. To be held at Paris, July 7-14,

the one-week seminar will be broken
down into four groups, each considering a particular aspect of technical
assistance.

Arnold

and

Holt

Abraham Arnold, attorney and
Egyptologist, died suddenly April 17.

A charter member
vice president of

of UWF,
the New

he was
Jersey

branch.
Hamilton Holt, past member of
UWF’s
National Advisory Board
and president emeritus of Rollins Col- .
lege, died April 26 of a heart attack
at Woodstock, Conn.

Quoted
Radio

on the Air
Station

WDSU

in

New

Orleans has been broadcasting quotations from UWF literature since the
beginning of February. Announcements are supplied by UWF of New
Orleans, and are scheduled gratis
as a public service feature.

In Passing
e Top federalists debated Admiral Harley C. Cope, USN (Ret.),
chairman of the Veterans of Foreign
Wars’ National Sovereignty Committee, in four Connecticut towns in
March. The federalist representatives
were Dr. Vernon Nash, former UWF
program vice president, and Dr. Andre Schenker, professor of history at

the University of Connecticut. Admiral Cope’s title was ‘‘Save Our
Sovereignty”; the federalists’, “The

World

Must

Be

Governed”’.

e Appearing on the familiar Fred
Harvey bookstands in New Mexico
this month will be the Clevelandoriginated
yearbook
of
federalist
philosophy, “One World or None’.
Copies can now be obtained from
UWF’s national office for 25 cents
each (reduced from 35 cents). Consignment of copies to branches and

chapters wishing to use “One World”

for promotion will be given prompt
consideration.
e A Dutch treat “training dinner’ sparked the first complete canvass of UWF members in Darien,
Conn. Ten workers visited the sixtytwo members in person and raised
$692 in pledges and $558.50 in cash.
e If the necessary funds are
forthcoming, Neal Potter, president
of UWF of Washington State, will
devote full-time to working as field
director for Washington, Idaho and
Oregon.
e On the death of her father in

January,

Florida

federalist

Sally

‘Trope assumed his duties as editor
of the Winter Park Topics, a weekly
newspaper.

On the Agenda
Dates in light type were previously announced in THE FEDERALIST.

May
May
May
May

6
11-13
12-13
19-20

May
June
June

27
17
21
22-24

June

North Carolina World Government Day
Washington UWF State Convention, Tacoma
Illinois UWF State Convention, Springfield
Ohio UWF State Convention, Cincinnati (changed from
May 12-13)
W orld Government Sunday
“The Myth That Threatens the World’, Detroit
Fifth UWF Student Convention begins, Des Moines
UW F’s Fifth General Assembly, Des Moines

RIISER-LARSEN
HJALMAR
Norwegian explorer and

(right),
military

world-famous
and business

leader, is the newly elected president of the
World Movement for World Federal Government (story on the Movement’s recent Rome
Congress on page 4). LEIF CASPERSEN is secretary general of En Verden, Norway’s largest
and one of the world’s most active federalist

These notes were prepared for
organizations.
THE FEDERALIST by Mr. Caspersen in Norway.

“Riiser-Larsen
Does Not
Lose Himself in Trifles”
By LEIF CASPERSEN
Six years of his childhood Hjalmar Riiser-Larsen, the
new president of the World Movement for World Federal Government, spent at sea together with his parents.
His father owned and led the bark “Isabelle”; later he
led the steamship “Ruth”. Hjalmar Riiser-Larsen has
several times declared that the years of childhood at sea
meant much to him.
“IT had mates and sailors as my friends,” Mr. RiiserLarsen says. “Sailors are straightforward and react
strongly against injustice. If they disagree, they make it
good again at once, instead of keeping it inside, infuriating
other people by having so much against them.”
Hjalmar Riiser-Larsen entered the Naval School and
become a naval officer in 1912. He became a lieutenant
in 1915, a captain in 1926, a commodore in 1940, a rearadmiral in 1941 and a major general in 1944.
Already as a cadet he took great interest in flying
and in 1915 was transferred to the Naval Air Force.
From 1916 through 1920 he served as a control officer
and director at Norway’s naval flying-boat factory. From

1921

through

1927 he worked

for the Council for Air-

ways within the Defense Department.
Mr. Riiser-Larsen was trained as a flying-boat guide
in England, and cooperated intimately with Roald
Amundsen. He was commodore on the Pole flying expedition in 1925—tthe famous flying to 87°
44’—where
the two Dornier Wall flying boats had to land among
the ice. It was Hjalmar Riiser-Larsen who took “N-25”
up from the ice and took the members of the expedition
back to Spitzbergen in safety. The start from the ice
must be called the most exciting start and the biggest
sportsmanship in the history of flying. It was the last
chance the expedition had to manage. He seized the
chance and managed it.
In 1926 he took part as leader of the flying-boat
“Norge N-1” in the Amundsen-Ellsworth-Nobile expedition over the North Pole from Spitzbergen to Alaska.
In 1928 he led the Boyd expedition for searching after
the flying-boat “Itall’” and Roald Amundsen.
‘In 1929-1930, Mr. Riiser-Larsen led the Norvegia
Expedition to Antarctica, where he discovered and charted Queen

Maud’s

and

Crown

Princess

Martha’s

Land.

The following year he was again in Antarctica, and dis_covered Princess Ragnhild’s Land. In 1933 he led a new
expedition to Antarctica.

Of

discovery he has said:

“There

is nothing

that

makes such an impression on a person as discovering land,

to know that now one is on land which no person
has seen before. Think what great results it may have

for the discovered land and for one’s own country!”

In 1933, Mr. Riiser-Larsen became a director of
Det Norske Luftfartselskap (The Norwegian Airline
System). At the outbreak of World World II, he was
mobilized into the service on the staff of the Naval Air
Force. In cooperation with the chief of the Military Air
Force, he organized the training-camp, “Little Norway’”’,
in Canada.
When the first Norwegian squadron was ready to
enter the war operations, he established his headquarters
in London. He was nominated chief for the Joint Command of the Air Forces, and led the administration of the

Norwegian

flying

forces.

In

the

autumn

of

1944

the

Norwegian Air Defense was established, with Hjalmar
Ruser-Larsen as chief. The Norwegian flying forces held
their own wherever they were placed.
In March, 1946, Mr. Riiser-Larsen entered the
Scandinavian Airline System (SAS), and two years later
became director for Norway.

Since 1950, Hjalmar Riiser-Larsen has taken part
actively in En Verden as chairman of the executive committee of the movement in Norway. This human activity

was a natural development to the person Riiser-Larsen,
for whom many of his cooperators and subordinate workers wrote a testimony, which no chief could have wanted
better. He has the main points clearly in front of him
and combines imagination and experience.
He does not lose himself in trifles, except when concerning the personal sorrows and problems of his people.
Then he often gives away his money and time to be a
help.
Mr. Riiser-Larsen regards the air system as one of
the most important means of binding together the nations,
and to improve international understanding and cooperation. To him it is of most importance to create what the
politicians of today are denying: cooperation and solidarity.
It is understandable that the combination of military
and humanist has at times aroused antagonism within
certain areas. But the scattered attacks have never been
effective against the person, Hjalmar Riiser-Larsen, of
whom the title of honor, “Son of Norway,” has rightly
been used.
The

Federalist

grr

4?
.
Pt
d
n
a
t
n
e
m
n
r
e
v
o
Why Not World G
as interviewed for THE

WALTER

P. REUTHER

FEDERALIST

by Alan Cranston

Mr. Reuther, do you see any dangerous weakness in
America’s defense program?
e I certainly do. First, we're finding partial mobilization much more difficult than total mobilization.
And we need to understand that freedom cannot be defended successfully with brute strength alone. Hunger,
poverty and disease, if ignored, can advance the Communist program for world domination more rapidly than
Soviet aggression. We're doing virtually nothing to meet
that threat.
W hat about the Marshall Plan?
e Its main emphasis has been upon rehabilitating
the European economy, and too little improvement has
been made in the living standards of the people. Moreover, the greatest human need is not in Europe.

Is Point Four accomplishing anything significant in Asia?
e Very little. Wholly inadequate sums have been
appropriated, and there is still no real plan of implementation.
How do you believe the program should be administered?
e It should not be just an American operation.
Special machinery should be established under the UN—
a World Development Authority. It should make decisions as to the best use of the raw materials and techniques made available by the various nations.
How would that compare to the Schuman Plan?
e The Schuman Plan is based upon considerable
reciprocity. It is not dealing between “have” and “have
not” peoples.
But isn’t the Schuman Plan to work within a political
framework, Mr. Reuther?
e Yes, and all of that is very necessary. Point Four
similarly can’t work properly unless it is within the framework ef a strengthened UN.

all people would share equally in the unimaginable benefits of a true peace, labor carries more than its share of
the cost of war. In wartime, workers become the soldiers,
and the efforts of workers left on the home front to improve their lot are thwarted. I’m afraid that one more
total war might possibly result in the absolute regimentation of American labor and capital, with loss of liberty

to both.

You've fought and won many battles with the Communists for the sake of liberty—ousting them from key spots
in the United Automobile Workers, and barring them
from world-wide organizations of trade unions. Do you
nonetheless believe the U.S. could participate in a world
government
endangering

that included Communist
our democracy?

nations

without

e I do. There’s a big difference between competing
with the Soviet Union and its agents when they are backed
by the Red Army, saboteurs, and all the instruments of
subversion—with no holds barred—and competing with
them under law. In the present conditions of world
anarchy, with everything dominated by the arms race,
neither democracy nor communism is really able to demonstrate which can best serve mankind in terms of creating the goods and the rights that make for a decent life.
We should welcome an opportunity to compete freely with communism in a war-free world. Then the system
best adapted to man’s needs, not the system best adapted
to wiping out people in war, would finally prevail. Without the Red Army, and without the economic misery produced by war, by threats of war, and by diversion of the
energies and resources of man to war purposes, the two
factors most favoring Communists would disappear.
In the pursuit of the objective of peace we would

possess an overwhelming superiority. Does anyone doubt
our ability to win that kind of struggle with communism?

you

believe

the pursuit

of world

government

is a

Are you proposing that the UN be given the power of law
in economic fields?
e Not law-making power. But it should be given
administrative authority.

Do

Can

equal”. That happened many, many years before countless Americans, let alone millions of people elsewhere,
behaved as if the words were true. But the expression of
that conviction has ever since slowly been leading the way
towards conditions of equal rights and equal opportunities. ‘The words established in the minds of men everywhere the greatness of America’s purpose. Now it is time
for us to proclaim another principle in these five words:

the job ever be done adequately

in the midst of an arms race?

while

the world

e Obviously not. We could do a great
than we are now doing, but there are only so
sources available. As long as the threat of
exists, military needs will have an over-riding
Then

is

deal more
many re- —
aggression
claim.

what do you suggest?

e There can be no really effective Point Four without world government, and no world government without
Point Four. Sufficient funds, resources, manpower and
brainpower will never be released for the purpose of
lifting living standards until war is abolished—and mankind will never abolish war unless it knows that such
abolition will be accompanied by the steps required to
alleviate economic misery.
Is it recognition of that fact that is causing labor to take
a new interest in foreign affairs?

e That together with the additional fact that while

May

1951

practical program for today—for this moment of crisis
—despite the staggering obstacles?
e More than a century and a half ago, Americans
set down on paper five words: “All men are created

“World

peace under world

law’.

You believe the proclamation would have an instant effect,
even though world government was not at once achieved?

e Unquestionably. The day America proclaims that
goal—with determination to pursue it until it is achieved
—will be the day that the threat of Communist domination of the world passes its peak. Such a proclamation,
backed up by bold action on the economic front, will strip
the Communists of their hypocrisy and mobilize the full
moral strength of the free world.

9

UWF

Pre-General Assembly

Report
National Office Budget
and Expenditures

#

Total column—1950-51 fiscal year budget as
approved at 1950 General Assembly

~Actual expenditures Oct. 1, 1950—March
31, 1951

-

po

Gag?) ee

ZB —April, 1951 operating budget

ee

se

Frere

Seed

Bureau

Division

tt

bes

~~

PERSONNEL

ee

8
2
4

3
0
l

TIME

UWF has branches in twenty-six states. Of these,
twenty maintain twenty-three regular offices (three in
Pennsylvania and two in California), including two with
offices in the homes of leaders. The other six branches do

Executive directo oe
As
Ceres directors
Field directors

not keep offices open. In some branches, area councils and
chapters also maintain offices of their own.

Field representatives
Office si ambit ctl

Ninety-five persons work half time or more for the
UWF branches. A breakdown by types of jobs appears in
the next column.

Secretaries
Others
(c)—3
(d)—5

TIME

6
5

15
Ms (a)
45(c)

0
I

4
41(b)
50(d)

(all secretaries) are volunteers; the rest are paid
(2 secretaries, 2 executive directors, 1 office manager)
are paid; the rest are volunteers

~~

(a)—1 speakers’ bureau director, 1 finance director (both paid);
3 student field workers (expenses only)
(b)—volunteer assistants (publications, speakers’ bureau, etc.)

ee

FP wes

t

BRANCH

Relations*

Student

—_* Publications cost, not provided in 1950-51 budget, omitted.

?

STATE

Office

Speakers’

~

and amortized accounts.

Liaison

Public

ted
Be

Office.

President's

ae

Org.

Se:

Ses

~

Tincludes personnel, office rent, supplies and maintenance

Legislative

Sees

bebe,

Finance

ss

hUvPFhlClUlhlCUtl
CU
lel, C8

strativet

Field

i

em

Admini-

9

i

wet

E

Seam an, AIS

See

| CII Na ae

|

10

}

The

Federalist

Plans for UWF’s fifth General Assembly, scheduled for June
22-24

in

Des

Moines,

were

re-

viewed at last month’s Nationdl™
Executive Council meeting (other
Council news on page 6). Members

expressed

the

hope

that

the

MEMBERS

Dec.
31

an

agenda

which

emphasis on program
policy (the Student

placed

opens June 21). —

Nor
man
UE
ta
se
informed, has agreed to serve

was
as

master

of

traditional

quet,

ceremonies

Saturday

and

Oscar

night

at

137
31

4,477

591
1.437

Hammerstein

'

The

Council

nominated

II

chairman,

Mahony

and

for temporary

Laurence

Dawson

had

170

previously

inate the chairmen and
members of Assembly committees.

75

58

nominees
(agenda,

,

st

to

C. M.

Sunset aim aeieaahal daarans

no
mi
cs
.
Tor
the
WA
ena
y
rte
Council to" Mr. Stanley.

—send nominees for UWF
dent, vice president (several
Executive

eae

of

Council,

d

the

secretary,

counsel to Rodney

16

presito be

National

treasur-

Shaw

(318

E. ‘Osle eens
evan see “Wis.),
chairman of UWF’s nominations and
structure committee, not to be confused
with Assembly nominating committee.
i

k

8

Stanley,

—pending appointment of the As-

elected),

96
292

296

Suto

550
7,355

720
62

3.273

f

137
57

the Hotel PoDeerMat
ties fan adult
Hote
l Elliott if a student.

—not
ify
Neil
Pars
ons
Iowa,
1017
want

(UWF

eS

12

of

on

Mr.

Parsons

can

schedule

radio and television.
—notify
UWF’s
student

to edema eis

on

from

a

chartered

either

bus

city).

3

($39

round

iS

TO THE RIGHT is a state-by-state

progress report on UWF’s renewal
and finance drives. Membership figures include carry-overs and new
memberships as well as renewals received through April 23. UWF’s official membership is 39,989 because,
under the system of annual memberships now used by UWF, only endof-the-year figures are complete.

May

1951

5

251

80

279

664
23;

472
8

52

14

130

3H

71
24

40

sal

trip

247
2,551

42

650

division

69

107

167

them

2.208

184

268

Des
Moines
9)
of
riti
oO are
chests Pv aeeerid ‘thé ‘Abe ein
Ye)

that

292

324
3,474.

®

155

15,423
1,252
5,614

7,579
468
2,600

Idaho

yPT
nd:
Vowa

Kare

Nev

N.H.

1,8
55
13,946

3,895

1,539
7,206

157
4,315

5,681

1,665

Ore.
Pa.

non:
S.C
®

Sat

|
@

Tenn.

848 Tex,

Utah
Vt.

Va.

Wash.
W.
Va.

gllsWis.
66

“Ek sw TAR |

Wyo.

Misc.

TAL

de Me Hote®

7,308

15,704

755
5,532

4

5,580

316
90

4

14

852

765

5,909

9,323

nr
o
50,000

pe
20447

aes
“S309

18,000

6,591

15,253

1,367
20,012

471
18,885

801
13,447

82

13

39

1

Okla.

1,704

GS
33

“a, let
149

Ohio

162

4

14,363

N.C.
pm

558

7,766

1,250

gee
.
ee

125

1,128

129

Nas

10,883
799
3,824

307

371
147

°

532

221.

928

Mo.

1,198

110

360

La.

1,641

148

220

Ky.

1,883

594

780

Mont.
Neb.

443
35

5,234

230

47
10

4,384

35577

240

Hawaii

16

1,407

20,067

1,068

"4" 693

Miss.

214

:

2,024

2235
397
O7

5,855

2,455

1

|

530
15

1,2
84
3,442

21,063

9

§

5,0
91
7,677

Mass.

278

85

ore

2,232

Mich.
Minn.

588

Payments

2,456

284
1,018

4

'51

4,016

455
1,240

1,358

$

1949-50

Fla.

Me.
Ma.

for Assembly commitby-laws,
credentials,

drafting, finance, (iio he nan

5]

March

|

2,378

222
1,197

—send names and qualifications of

your
tees

SO.

RECEIPTS

bet.

319
1,387

2,183

PLEASE—

111

&

Paid
Oct. '50-

10,000

Col
o.
Gok

Ga.

99

564
83

Calif.

[206

476

458

“ieee
ave:

D.C.

1,281
177
917

256

|S

260

1,508
246
1.213

oa

chairman.

its own chairman, C. M. Stanley,
to nom

128

118

H.

Deen aeeM ee,Counci
ASl CPalsoY ADRAauthor
ACESize
: d

431
849

300

A. J.

Thomas

2,647

955

G. Priest, who served in the same
capacity last year, for Assembly
chairman; Samuel Levering for

vice

eh.
10

258

will speak unless he is out of the

Coun

on

"164

ban-

Quota

oT

95

the

1950-51

1951

mise io

major

rather than
Convention

April
23

1950

Assembly would adopt and follow

QUOTAS

:

Leen
89

08h.

1,46
76

107

775
258

543

520
41

1,554

465

528

90

1,000

694

3,493

645
88

‘910

270

1,296

184

563

23

1,420

4,176
500

Loc

1,556

24

2.o0.
27

47

166

2,484,205
199

7,000

244,670*

;

B25

6,692

13,425

115,740

197,147

;

*This contrasts to proposed quotas totalling $301,586.20
Submitted with proposed Assembly budget and upon which the
Stalled budget {see
see opposite page) of $299,586.20 was based.

WASHINGTON

COLUMN
written this month by

Cabell Phillips
BOOKS

AND

PAMPHLETS

Pore Pius XII on Woritp FEDERAL GOoVERNMENT—A

pamphlet containing the complete text of the Pope’s statement in audience with delegates to the fourth Congress of

the World

Movement

for World

Government

with

a

reproduction of part of the issue of L’Osservatore Romano
which carried the story.
4 pp., 5¢; Association for

Education in World Government,
York 18.

11 W. 42nd St., New

FREEDOM OF INFORMATION: REPLIES FROM GOVERNMENTS, Vol. 1—A compilation of replies from governments regarding policies and principles governing freedom of information in various countries. 271 pp., $3.50;
Columbia University Press, 2960 Broadway, New York

27.

PLATFORM—A monthly booklet discussing in outline
form both sides of important questions of the day with
particular concentration on controversial issues such as
atomic control. A public service by the Club and Edu-

cational Bureaus of Newsweek. 20-25 pp., 25¢
copy, $1 per year (Sept. through May) ; Newsweek,
W. 42nd St., New York 18.

per
152

RADIO
“Unirep Nations Topay’—A 15-minute review featuring recorded voices of delegates taking part in UN
events around the world.
11:15-11:30 P.M., EST,
Mondays

through Fridays,

Mutual

radio network.

“Let’s TALK UN”—A weekly survey of UN activities
by Benjamin A. Cohen, UN Assistant Secretary General
in charge of public information. 6:00-6:15 P.M., EST,
Saturday, Liberty radio network.

““THE COMMITTEE ON THE PRESENT DANGER”’—A discussion by one member of the non-partisan citizens’
group, the Committee on the Present Danger, each week.
9:30-9:45 P.M. EST, Sunday, Mutual radio network.

RECORDS
“THE New Frontier’ —Thirteen 15-minute transcribed
dramatic shows on human rights. Most relevant to federalism is “The Man in the Plains,” the story of an
American officer who died in Palestine, starring Richard
Widmark. The series may be borrowed free of charge for
broadcast, or purchased.

33 1/3 RPM:
33 1/3 RPM:
for $2.00; 20¢
Education, 212
12

16-inch discs for radio stations,

$22.50. 12-inch discs for home, two sides
$15.00. Written scripts of all 13 available
individually. The Institute of Democratic
Fifth Ave., New York 10.

The nation is still groggy from the emotional catharsis of General Douglas MacArthur’s triumphal return
from exile. Even Washington, which customarily takes
kings, generals and other assorted heroes in its stride, very
nearly knocked itself out for “MacArthur Day’’.
What caused such an unprecedented demonstration
for a soldier who had just suffered the ultimate reproach
from his commander-in-chief ? What does it signify?
These possible explanations stand out.
1) There is a great deal of genuine admiration for
As of the moment, he is indisGeneral MacArthur.
putably the most popular man in the country. He is
colorful, he is dramatic and he manages, in the manner
of the classical hero, to surround himself with the aura
of romantic righteousness.
But more important in this regard is his standing
as a soldier. His military record, if not quite unblemished,
is hardly surpassed. And there is a mood among the
people—indeed, it is a trend of significant force—to turn
today to military men for leadership.
2) In stark contrast to this is the standing in public
Political obesteem of the Truman administration.
servers here agree that President Truman’s stock has
seldom been so low. The same applies, to a somewhat
lesser extent, to Secretary of State Acheson and Secretary
of Defense Marshall. Their Republican opponents have
hammered hard—and effectively—at the theme that this
trio, being the architects of our policy in the Far East,
are, ipso facto, the culprits of our costly embarrassment
there.
3) There is a deep sense of frustration over the
course of the fighting in Korea. The devious and complicated political objectives to which this government and
the UN are committed have never been made fully clear
to the man in the street (nor to all of those in the ivory
towers, either, for that matter). “The MacArthur thesis
of “Let’s get in there and hit ’em with everything we’ve
got’ makes, on the other hand, the kind of common horse
sense that is quickly and painlessly perceived.
This intensifies the public weariness with stalemate,
bloodshed, draft calls, high prices and high taxes. Whoever comes along with a plausible plan for cutting the
whole thing short is sure to get the people’s plaudits.
Whether General MacArthur has the right prescription for establishing peace in Asia is open to question. It
is significant that, in his address to Congress, he did not
once mention the UN, whose military commander he was,
nor the allied powers which shared some measure of the

fighting under him. The impression was left in many
minds that the General regarded his international commitments as an incumbrance.

The result of his blast, and probably a healthy one,
is that we are sure to have a full re-examination of our
whole policy in the Far East. It does not follow, however, that all those who shouted themselves hoarse in the
triumphal processions, or who sat dewy-eyed before their
television screens, have carefully thought through and
adopted the General’s thesis.
CABELL PHILLIPS is the Washington correspondent
for the Sunday Department of the New York Times.

The

Federalist

ee

SES

Se

FATHER CONWAY
sociate editor of

(above) is asAmerica, the

national Catholic weekly

review.

Pope Pius XIl
and World Federation
EDWARD

A.

CONWAY,

S. J.

It was always possible, of course, to prove that a
Catholic could be a Catholic and a federalist. But it
was necessary to string together texts from the Pope’s
Christmas allocutions—a hint here and a hint. there—
sufficient, however, to prove to the unprejudiced that
“the new world order” desired by the Pope was actually
some form of world federal government. But it was an
unsatisfactory business at best.

Do you wonder that I, as a world federalist, felt
grateful relief and warm satisfaction when I read these
words in the Holy Father’s April 6 discourse:
Your movement (the World Movement for World Feddedicates itself to realizing an eferal Government)
fective political organization of the world. Nothing is
more in conformity with the traditional doctrine of the
Church, or better adapted to her teaching concerning
legitimate or illegitimate war, especially in the present
circumstances. It is necessary, therefore, to arrive at an
organization of this kind, if for no other reason than to
put a stop to the armament race ... (Emphasis supplied).

approbation

should

end

once

WMWFG

proposes and which the Holy Father has endorsed is a
strictly limited one. Catholics who fear that a “world
state” of this sort would swallow up their personal liberties overlook one of nine “principles” adopted by UWF

1949, which reads:

and

tions.

Last September, Thomas H. Mahony—Boston attorney, former president of the Catholic Association for
International Peace, now chairman of the Catholic Commission on Intellectual and Cultural Affairs and for three
years chairman of UWF’s policy committee—published a
pamphlet called ‘‘Parallel Thinking, Catholic and Federalist, Upon the Organization of the World for Peace’.
Mr. Mahony made it clear that
... these proposals do not envisage a super-state in which
nations would be merged and lose their identity and
domestic autonomy—a unitary state or empire. They contemplate complete autonomy of each nation in its national
or domestic field. They merely propose a limitation of the
external authority or sovereignty of nations—the right to
make war...

“Absolute sovereignty”, of course, is the motto emblazoned on the banners of the embattled Catholic opponents of world government. I very much fear that a
mistaken notion about sovereignty inspires their charge

that world federalism is opposed to “Catholic patriotic
principles”. ‘To put it bluntly, I am afraid that they
have never accepted that “traditional doctrine of the
Church” with which, according to the Holy Father, the
world federalist movement is actually in accord. What

is that “traditional doctrine”? Pius XII forcefully defined
it in his Christmas Message of 1948:
The Catholic doctrine on the state and civil society has
always been based on the principle that, in keeping with
the will of God, the nations form together a community
with a common aim and common duties. Even when the
proclamation of this principle and tts practical consequences gave rise to violent reactions, the Church denied
her dssent to the erroneous concept of an absolutely au-

tonomous

(Emphasis

sovereignty

supplied).

divested

of all social

obligations

Is it too much to hope that the Holy Father’s latest

interpretation of that principle and its practical consequences—the ceding to a world government of enough
national sovereignty to save the world from catastrophic
war—will not “give rise to violent reactions’? My
modest hope is that it will inspire all American Catholics

to study

for

all the argument as to whether a Catholic can be a federalist. Whether it inspires Catholics to work actively
in the federalist movement remains, as I remarked once
before, “to be seen’. For my part, I cannot recall a more

May 1951

which

All powers not expressly delegated to the world federal
government should be reserved to the nations and their
peoples, thus leaving each nation its choice of. its own
domestic political, economic, social and religious institu-

the Holy Father had ever made a clear-cut and quotable |
statement dealing directly with world federal government. Unfortunately for me and other Catholic federalists, up to April 6, 1951, he had not.

solemn

in the problematical future.
The world federal government

in October,

The more I study the April 6 discourse of the Holy
Father, in which he gave his approbation to the world
federalist movement, the warmer grows my sense of satisfaction.
Some of the satisfaction that warms me comes, I
confess, from personal considerations. I have been hardpressed at times to defend my presence (with a Catholic
Bishop) on the National Advisory Board of United
World Federalists, Inc. The unfortunate and, for me,
embarrassing fact is that many American Catholics have
been turned against world federalism, and specifically
against UWF, by the absurd charge that the entire
federalist movement is a Communist conspiracy.
Almost daily during the past three years I have
received letters from Catholics—some inquiring, some
indignant—about my part in the federalist movement. It
would have been much easier for me to answer them if

That

forthright papal endorsement of any movement, either
Catholic, or, as this happens to be, nonsectarian.
Some Catholics, of course, are already saying that
the Pope approved only the general ideal of a far-in-thefuture world state, not any concrete program for its
proximate realizatien. None but nationalist diehards
would deny that he was talking on April 6 to a definite
group with a definite, even though not detailed, program.
The Pope implied clearly enough, it seems to me, that
the world political organization must be realized as
rapidly as possible “if for no other reason than to put a
stop to the armament race’—the current race, not one

this

remarkable

document.

Every

one

of

its

paragraphs is pregnant with meaning.
May thousands of American Catholics soon merit
the benediction the Pope called down on his federalist
visitors. May theirs be the mission of helping the world
federalists skirt the pitfalls which His Holiness warned
of their movement.
against in his cordial endorsement

13

What About Russia?

GRENVILLE

CLARK:

greatest chance to retain control would be to get the people
solidly behind him. He can win the everlasting affection of
his people by ending the arms race, thereby raising their
standard of living immediately. He would go down in
Russian history as the man who really gave the Russian
people that which had been denied them so many years.

Vice President, UWF

CARTER

‘Thoughtful persons everywhere now perceive that
universal and enforceable disarmament is the inexorable
price of peace. The potency of modern weapons requires
that it be in all arms and by all nations. To be feasible,
it must also be surely enforceable; it must be ‘“‘foolproof”’.
But this necessarily implies a comprehensive EastWest settlement, both in principle and as to the detailed
machinery to guarantee enforcement. Consequently, the
crucial questions: “Will Russia negotiate? Could any
nominal agreement be relied upon?”
Much current propaganda denies the possibility. I
affirm it, not on assumed good faith and mutual trust, but
based solely on cold self-interest and effective sanctions.
Many an enduring settlement has been made between opponents who deeply distrust each other, partly because they
might otherwise destroy each other and partly because the
law would strictly penalize a breach.
Let these principles be applied! Let new personalities
be brought in and new methods used, as outlined in my
book, “A Plan for Peace’. If this be done, I firmly believe
that a great settlement, based on disarmament, could
eventuate. At the least, let it be tried. And until really
tried, let us not siitrender to the defeatist dogma that no
East-West settlement is at all possible.

Chairman, UWF of Worcester (Mass.)
We cannot secure world peace without solving the
East-West conflict. World peace and progress call for
world federation. World federation is one solution by
which both sides would gain.
The three obstacles for Soviet leaders are: fear their
position would be undermined, distrust of an assembly
where they might be outvoted and hope of further conquests. We must overcome the last two, and not let the
fact that there is conflict halt our drive for peace. Peace
may be imposed on Russia by invitation, by moral suasion,
by economic sanctions, by superior strength, possibly by
arms. We cannot say at what point they will come along,
but we must continue to progress.
First make the goal America’s; then seek all the support we can get; then, with a substantial majority—with
or without Russia—integrate our policies on arms, colonialism, and technical and economic progress. Clearly, however, the immediate question for you and me is not ‘“What
about Russia?” but “What about U.S.A.?” The answer
depends on you and me.

CHARLES

Director of the Speakers Bureau, UWF of Minnesota

EDISON:

Chairman, UWF of Missouri

The continued advocacy of world federation and our
necessary defense program may produce a favorable reaction from Russia in one of two ways.
First, realizing that they could no longer expand without provoking the all-out war that they may wish to avoid,
leaders of the Kremlin might well agree to the peace and
guarantees of limited federation, for by then their own
people may be pressuring for higher living standards and
relief from their own armament program.
‘The other opportunity for peace that the advocation
and readvocation of world government presents to the
world is most intriguing and could happen suddenly. All
elements but one are lacking. Alexander, the Roman
Emperors, Lenin, Hitler and dictators throughout history
have had trouble transferring power to their successors.
At Stalin’s death there may well be a tremendous split and
falling out in the Kremlin. This could be the moment of
downfall of the Soviet government—the seeds are ever
there.
Whoever the next Russian dictator may be, it is entirely conceivable and possible that he will realize that his
14

RONALD

C.

HIGGINS:

C. McLAUGHLIN:

‘There are three methods of settling conflicts, whether
between individuals or nations: (1) threat or imposition
of force; (2) mutual agreement and cooperation; (3)
legal procedure for administering just decisions.

Concerning Russia, Method No. 1 is being tried and
found wanting. The greatest military preparations will

not permanently frighten Russia. While we can afford
it, an uneasy truce may perhaps be maintained, which is
well worth the billions it costs. But when that truce
ends the ensuing destructive war will solve nothing.
Concerning Russia, Method No. 2 is being tried and

found wanting. It assumes that men are sufficiently moral
to recognize clearly the claims of others and voluntarily
make concessions for the good of all. Such a high state »
of morality does not exist in our local communities. Why
do we assume it in the world community? Though
highly essential, cooperation alone is not enough.

Concerning Russia; Method No. 3 has never been
tried. Impractical to achieve because of the obstacles?
No—Methods 1 and 2 are impractical because they will
never produce the desired results. As the achievement of
a legal system with Russia seems difficult, so must our
endeavors be intensified. It may take years to effect the
The

Federalist

necessary changes in Russian attitudes and conditions for
participation. Our own changed attitudes are the prerequisite.

JOHN

RAGUE:

Executive Director, UWF of New York

Whether or not Russia will join a world government when it is first formed is unknown. At present, Russia’s leaders are opposed to world government because they
have a deep-seated fear of Western capitalism and because
they advocate the fomenting of revolutions in an attempt
to seize power. However, there are three compelling reasons that make it probable that Russia will join:
1) THE RUSSIAN EXPERIENCE IN WORLD WAR IL.
The

Russians

lost ten million

men,

25 per cent of their

industry and 50 per cent of their housing. In an atomic
war they are well aware that they stand a good chance of
losing their entire civilization.
2) THE COST OF THE ARMAMENTS RACE. Today, in
this period of armed truce, the world’s nations have twenty
million men under arms and are spending over $100 billions

of their

resources.

The

last war

cost

the

# ,

nations

over $1 trillion, 300 billions. This is only the beginning.
The men in the Politburo know that they cannot simultaneously engage in an arms race and forever keep their
people satisfied with a pitifully low standard of living.
3) THE ECONOMIC PULL. In a world government

of the hody muscles
HELPS KEEP
BODY FIT

where members exchanged techniques of production and
industrial know-how for the common good, Russia as a
non-member would soon be eclipsed. The Politburo
knows this.

DAVID

M.

the Exereycle” way

STANLEY:

lowa representative, UWF’s National Executive Council
Ninety per cent of all Americans are certain Russia
won't join any world government she can’t control. The
best answer to “What About Russia?” is therefore emphasis of the advantages that would accrue if we went
ahead without Russia in the event of Soviet refusal to
join. These include:

1)

A UN

Government,

unlike

any league or alli-

ance, will have armed forces which could deal with Korea
or any other limited war, without having to depend upon
unreliable national armies.
2) The danger of World War III will be reduced.
The entire UN Government would automatically be at

war if any of its member nations were attacked. This
certainty will prevent Russia from picking off the free
nations one by one. Will Russia attack the entire nonCommunist world if it has a united government, with its
own military forces and 85 per cent of the world’s industrial production?
3) Our moral position will be improved. We can
prove our desire for peace only by the deed of joining a federation which will eventually abolish national armaments.
4) “Federation of those willing’ may be the only
road to universal federation. The Politburo will probably
enter a UN Government when—and only when—it
realizes such a government is too strong to be conquered,
and that Russia can gain nothing by remaining outside.

NEXT MONTH: “Should the method of selecting

UWF’s National Executive Council be changed?”
May

1951

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a,

WHAT THEY SAY

66

“Senator Robert A. Taft (Rep., Ohio) urged today
that steps be taken at once toward amending the Charter
of the United Nations, which he said had ‘broken down as
a means of preventing war’. On the anniversary of the
opening of the United Nations Charter Conference in San
Francisco six years ago, Mr. Taft called for elimination of
the Security Council’s veto.”
AP story in The New York Times, April 26
“. . Don’t forget that Tennyson wrote those lines
(Locksley Hall) over a hundred years ago. And notice
also that part about universal law. We're going to have
that some day, just as sure as we have air war now. That’s
what I’m working for. I guess that’s what I’ve really been

working
pocket.”

for ever since I first put that poetry in my
Harry Truman as quoted by John Hersey in

the New Yorker, April 7

“Ts it too much to hope that we may see a radically

altered international situation a decade or more hence, a
free world secure on its own frontiers, a Soviet Union with

vastly diminished ambitions and pretensions, yet itself secure against invasion? Under such conditions, the United
Nations might well function as those who founded it first
dreamed. Under such conditions, steps toward disarmament would no longer be regarded as utopian... .
Because I believe that this will be, in fact, the case, and
because of my confidence in what free men can accomplish,
I venture to believe the second half of the twentieth century may yet prove to be a period of disarmament and

peace.”

Dr. James B. Conant, president of Harvard
University, in London,

April 24

“After long consideration

I have joined that school of thought
which holds that there is no durable
solution

(to the

problem

of peace)

short of the mutual and complete dis-

armament of the nations now comprising the United Nations. .. . Moreover,

it must be under an accepted world — :
government empowered to administer
the process of disarmament... .

99

Dr. Harold W. Dodds, president of
Princeton University, Sept. 17, 1950

Rirmor SPORTSWEAR
CoMPANY, INC
CLEVELAND,

16

OHIO

Proposed By-Law Revision
The following substitute for UWF By-law No. 10,
providing a new method of electing the members of

UWF’s
by

a

National Executive

group

of

state

branch

Council,

Council

has been proposed
delegates.

It

is

printed in conformity with UWF By-law No. 15, which
provides: “Any amendment, written notice of the sub-

mission of which shall have been mailed to every chapter
at least sixty days prior to any meeting of the General
Assembly, or published in the official publication of the
corporation at least thirty days prior to such meeting, may
be adopted by majority vote of the delegates present and

voting at such meeting.” Earlier revisions of By-Law

10,

one by UWF of Connecticut and the other by UWF of
New York, were mailed to UWF chapters on April 20.
A. The Executive Council shall consist of not more than
100 members of this corporation. The members of the Executive
Council shall be chosen as follows:
1) Fifteen Council members
shall be elected by the
General Assembly at its regular annual meeting. Nominations
for election to the Executive Council may be made by a nominating committee, but opportunity shall always be given for nominations by delegates to the General Assembly in accordance
with such procedure as the Executive Council may prescribe
and the General Assembly approve.
2) The Executive Council may co-opt not more than
twelve members.
3) The Student General Assembly shall elect two Council
members, plus one additional Council member for every 1,000
members of the Student Division. or majority fraction thereof.
However, the number of such additional Council members shall
be subject to the provisions of subsection A, (4), (b).
4) Council members shall be elected by the duly constituted state branches, including District of Columbia and territory branches, as follows:
a) One Council member shall be elected by each duly
constituted state branch.
b) One additional Council member shall be elected by
each state branch for every 1,000 members of the branch or
majority fraction thereof, including student members. However,
in any year in which the effect of this provision would be to
raise the total membership of the Executive Council above 100,
the following alternative provision shall become operative:
The sum of the fifteen Council members elected by the General
Assembly, the twelve co-opted Council members, the minimum
two Council members elected by the Student General Assembly,
and the minimum one Council member elected by each state
branch, shall be subtracted from the number 100. The remaining number of Executive Council seats shall be apportioned
among the state branches and the student division in direct proportion to the total membership of each state branch and the
student division.
c) However, no state branch shall be entitled to elect
more than five Council members. All Council members elected
by any state branch must be members of that branch.
d) The number of Council members which the state
branches and the Student General Assembly are entitled to elect
shall be based upon a count of members to be made as of sixty
days before the regular annual meeting cf the General Assembly. The number of Council members which each branch is entitled to elect shall be reported to the state branches at least fortyfive days before the regular annual meeting of the Assembly.
e) Each state branch shall elect its Council members
annually, during the forty-five days prior to the regular annual
meeting of the General Assembly. Any branch which fails to
hold an election of Council members shall not be represented
on the Executive Council until such an election is held. Each
branch may also elect one or more replacements, in order of
preference, who shall automatically replace any Council member or members elected by that branch who are among the
fifteen Council members elected by the General Assembly. If a
Council member elected by a branch is elected by the General
Assembly, and if that branch has not elected such a replacement, a caucus of the General Assembly delegates from that
branch, with each delegate casting the total number of votes
which he carries, shall choose a temporary Council member to
attend the first meeting of the Executive Council; the state
branch shall thereafter elect a Council member to serve for the
balance of the term.
f) Each state branch shall elect its Council members

The

Federalist

UNITED

WORLD

FEDERALISTS,

7 East 12th St., New York 3, ‘New York

INC.

Please enroll me (us) in United W orld Federalists:
Name

PN

sistemas
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Ee

ne

ee

ee

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ee

a

ee

OS

YS

A

Oe

SOS

SN Se Ge

AE

Sh Sy AO Oe

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Oe Oe

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Re BE Oh ON OE Oe Oe OO

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in a fair and representative manner. After such election, each
branch shall send the credentials of each councilor and replacement to the office of this corporation. Such credentials shall consist of a statement of the name and address of each elected
Council member and replacement, with an indication of the
order of preference among replacements, and a statement of
No Council member elected
the election procedure followed.
by a branch may be seated until his credentials are received
and accepted by the Executive Council, except for the temporary
Council members provided for by subsection A, (4), (e).
B. The first meeting of the new Executive Council elected
each year shall be held during the regular annual meeting of the
General Assembly. The terms of all Council members shall be-—
gin at this meeting and shall end when the next Executive Council
meets during the next regular annual meeting of the General
Assembly, except that the terms of Council members elected or
co-opted after the first meeting of the Executive Council shall
begin at the time of their election and shall end at the same time
as those of the other Council members. At the beginning of its
first meeting, the new Executive Council, which for this purpose
shall consist of the new Council members elected by the General
Assembly and the Student General Assembly, shall consider the
credentials of the Council members elected by the state branches
and shall seat them as soon as their credentials have been accepted. If the credentials of any Council member are not accepted,
this action shall be reviewed and final action taken, in accordance
with the provisions of subsection C, after the seating of the
Council members whose credentials have been accepted.
C. The Executive Council may refuse to seat or may remove
any Council member who was not elected in a fair and representative manner or does not satisfy the membership requirements of this corporation as stated in these by-laws.
Such
action may be taken by vote of two-thirds of the entire Executive Council after adequate notice and hearing.
D. Any Council member elected by a duly constituted state
branch may, for any particular meeting, designate in writing a‘
proxy representative from his state.
E. Vacancies shall be filled by the Executive Council, except
that a vacancy among the Council members elected by a state
branch shall be filled by that branch in the same manner as
required for the annual election of Council members.
F. Special provision for 1951 only: This by-law amendment
shall go into effect at the 1951 General Assembly, at which time
the General Assembly and Student General Assembly shall elect
Council members as provided above.
Council members who
have been elected by state branches within three months prior
to the 1951 General Assembly shall, if their credentials are
accepted by the Executive Council, be seated as duly elected
Council members. If any branch does not so elect its Council
members prior to the 1951 General: Assembly, the Council members to which that branch is entitled shall be chosen, on a temporary basis for the first meeting of the Council only, by a
caucus of the General Assembly delegates from that branch
with each delegate casting the total number of votes which he
carries. That branch shall thereafter elect its Council members
to serve for the balance of the terms.

Rec

sereinsitinpiensdnenetsonstaennae

School if Student
Single Membership $5 []
Couple $7.50 [J

College $2 []
High School $1.50 [Tj

All memberships include a subscription
Memberships received during first half
expire Dec. 31 of that year; memberships
latter half of a calendar year expire Dec.
year.

to THE FEDERALIST.
of a calendar year
received during the
31 of the following

recognizes that world government must bring together
“UWF
under a rule of law people of various ideologies throughout the
world. However, as a United States organization, UWF will not
knowingly admit or permit as members persons who are Communist or Fascist or others who seek to overthrow the government of,
or, in the interests of a foreign power, seek to weaken the United

States, or to change its form of government by other than constiBy-laws of United World Federalists, Inc.
tutional means.”

May

1951

MEMOS
To
: All UWF members
FROM: C. M. Stanley, Chairman of UWF’s National
Executive Council
RE
: Unity
The current controversies within UWF spring from
honest differences of opinion, from organizational growing
pains and from frustration in comparing UWF’s accomplishments with the tremendous challenge of the world’s
need for government.
‘The controversies are tolerable
only if they end promptly in decisions which advance the
cause of world government.
At the annual Assembly in June we must not only
reafirm our basic policies but we must also make UWF
more effective in developing public opinion to support

world

federation.

This

requires

the

organizational

changes now being considered by the Executive Council.
It requires the selection of leadership which will enjoy
the confidence of the organization and will revitalize all
activities.
It requires that we adopt neither a top level
nor grass roots approach, but rather an all level approach.
It requires that we change our emphasis from policy to
program and to the activation of program.
Moreover, it calls for a rededication by all of us to
the achievement of our goal of convincing our friends,
our neighbors and our Congressmen of the advantages
of world federation.
Now is the time for all good federalists to sell world
government to the U.S. Let us have done with our con-

troversies about doctrine and procedure.
Let us unite
on all great areas of agreement in the principles of federalism. Let us move forward.

*
*
*
TO
: Editor, THE FEDERALIST
FROM: Robert Wheelwright, Wilmington, Del.
RE
: Underworld Government
Vol. I, No. 1 of THE FEDERALIST, under the title
“Underworld Government”, cites agreements made between “gangsters and bootleggers” as an example of men
being “compelled to federate for survival”.
If, as the author implies, agreements made by underworld gangsters are an example of federal government,
and we should learn a lesson by following their methods,
then there is justification in the charges of the VFW that
UWF is Communistic. .. .
*

*

*

To
: Richard Strouse
FROM: Oliver A. Quayle III, Washington, D. C.
RE
: April “Question of the Month”
In the otherwise excellent first issue of THE. FEDERALIST, you omitted “world federation” as an answer to
“What Is the Most Effective Language to Describe
UWF’s Goal?” The following is my attempt to correct
what I consider a serious oversight.
In his testimony before the House Foreign Affairs
Committee, Grenville Clark used this quotation: ‘‘No
peace without law; no law without government.” What
kind? World federal government. There is no more
accurate phrase that describes UWF’s objectives.
However, this falls short from the sales standpoint.
It is a “mouthful” to say. Consequently it is usually abbreviated to “world government”. This immediately raises
doubts and suspicion in the minds of most Americans.
On the other hand, the phrase ‘“‘world federation” is
equally accurate, quicker to (Continued on next page)

17

MEMOS

(cont.)

say, easier to remember and not subject to abbreviation or
misinterpretation. The American people are familiar with
the word “federation’’; it is an acceptable phrase.
There is, of course, no one phrase that completely
states the aims and goals of UWF. Of them all, I find
the one that is virtually stated in our official name to be
the most effective.

*

*

*

Note: Mail reactions reaching UW F’s national office are
running approximately 20 to 1 in favor of THE FEDERALIst. Excerpted comments, in addition to the two printed
above, follow.
. . . I think that unless THE FEDERALIST is substantially improved, the members will in June vote for a return of World Government News, a step which, in my
opinion, would be in the_wrong direction. ...
Nez Parsons, Des Moines, Iowa
THE FEDERALIST surpasses my expectations; it realizes
my hopes!...
‘Trp Barr, Laguna Beach, Calif.
...1t can be made into a very constructive magazine.
MarGARET LAMBE, Washington, D. C.
Swell job and very much needed... .
GrorcE W. Biopcett, Santa Fe, N. M.
I hope that we can maintain the pace set by the April
number and that I can send you an ad for an early issue.
GeorcE Lewis II, Tallahassee, Fla.

CIVILIZATION
ON TRIAL
“There is nothing to prevent our Western
civilization from following historical precedent,

if it chooses, by committing social suicide. But

_ we are not doomed to make history —
repeat itself. ... What shall we do to be saved?
In politics, establish a constitutional co-operative system of world government. ... If the
United Nations organization could grow into
an effective system of world government,
that would be much the best solution
of our political crux.”
Arnold J. Toynbee, historian

Smith

Restaurant

&

Barbecue,

Inc.

CLEVELAND, OHIO

. .. for goodness sake change the cover and some of
the layout. The cover, with its frivolous lettering, is in
the wrong mood and style for an organization like ours.
We aren’t an avant-garde literary movement or a college
magazine. he name FEDERALIST ought to be in strong,

clean, conservative letters, and the inside layout should not
be tricky or gimmicky but straightforward and clean... .

Rogpert D. FRANKLIN, Toledo, Ohio

. . . give us chapter activities news

plicated in FYI).
each writer.

(even if it is du-

Limit feature articles to one page for
Morrison VANCLEVE, Toledo, Ohio

... a stirring and remarkable achievement!
RAYMOND SwInc, Washington,

D. C.

. . crisp and trenchant... .
J. C. Martone, New York, N. Y.

I like the new magazine.
James P. Warsura,

New York, N. Y.

The first issue of THE FEDERALIST is just about what
the doctor ordered. Bravo to all of you for the courage
to make the much-needed change.
.
Now for a few suggestions.
Cover needs more dignity... .
A major deficiency of WGN was that it didn’t pro-

vide communications

among

members,

chapters, branches,

officers. What’s happening in Florida? What successful
methods are used in lowa? What important people have
joined recently? Looking eagerly for this kind of news in
the first issue, I was disappointed to find so little.
}

“Time is running out on man.
As it slips away, 1t becomes more and
more apparent that a world government with the

authority to enforce world law is the one

instrument that can prevent disaster.”
The Honorable Luther Youngdahl,

Governor of Minnesota, as a “member

of the cast” of “The Myth that Threatens
the World”, Minneapolis, April 30, 1951

Nearly one-fourth of all the space was given over to

three feature articles, each of which does virtually the
thing: advance arguments for world government.
issue need contain no more than one such article.
space thus gained, in my opinion, should then be given

same
Each
The
over

to the subject of organizational news.
|
Too bad that that “Underworld Government” thing

gotin!...

18

ANCHOR RUBBER PRODUCTS, INC.
;

Cleveland, Ohio

Epwin C. Hirscuorr, Minneapolis, Minn.

‘The

Federalist

a

ae

ER

ERS

ET SO

SUR

URE

WHAT

THEY

ASK
AN.

ry

“How much more expensive to UWF was the first issue
of THE FEDERALIST than World Government News?”
LEE MEIsELs, Chicago, Ill.

“It may be objected

e It was less expensive. The twelve pages of the
April issue of THE FEDERALIST not financed by advertising
cost UWF 8 8/10’s cents ($00.0881) per paid-up UWF
member; the March issue of World Government News,
including the yellow UWF insert, cost UWF 10 8/10
cents ($00.1081) per paid-up member.
:
‘The eight pages of THE FEDERALIST which were financed by advertising showed a profit.
Sears,

?

is the source

Roebuck

did

closer

unbelievably

modest
3

average annual business from 1939-42?
Juris. Corzier,

$7

within

. . . But

:
times,

precedented

unprecedented

millions
:

St: Louis,

union

effective.

of the note in your last issue that

an

that the various nations

are not yet ready for the degree of surrender
of sovereignty necessary to make such a

3

“What

EDITORIAL

apparent

PE
ing,

Mo.

e By omitting two zeros, THE FEDERALIST managed to be 10,000 per cent wrong. Sears’ net sales for
the 1940-41 Fecal
year totalled approximately $700
millions ($704,301,014.00 to be exact).

we

have

are

Nations

indeed

un-

ponte
es
then we may expect

survival

may

United’

if these

reaction.

that

|

the

When
depends

a new

B

point

it becomes
upon

unit-

P
of view.”

The Boston Herald, Dec. 8, 1950

“What is the top salary paid to any UWF national-office
executive or employee?”
SALLIE larry, Richmond, Va.

e $10,000 per year. Three important executives—
Mrs. J. Donald Duncan, executive director; Marion
Etcheverry McVitty, assistant to the president; and Edward W. McVitty, field director—are full-time volunteers.
|

COLMAN

BROTHERS

Cleveland
Ohio

|

*
ROM
OSSE
:
L’OSS
RVAT
ORE
GIORNALE QUOTIDIANO & POLITICO RELIGIOSO
ee
Sere i

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CABELLA

PFOSTALE

.

UNICUIQUE

.

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riveigers! sile Concessionsria A

NON PRAEVALEBUNT

DEL VATICANO

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Partecipanti al Congresso del « Movi- ment de quelques voiz, pe

sp ule | fléchir, précisément du point de

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mento universale per una Confedera- | méme, suffira a inverser..Electeur,
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o
a aucune unité organ
cial. Il n'y

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Avy. Ugo Damiani, gid deputato alla | naturelle entre lesa production
~~—“‘taliana~ iL-Rev.mo Abps lorsque¢ Cutititar risme qua
antitif, la | fer ler ~

automatizme légn!

*ion dw" “+ 40 revient, | a7”
nine les

The entire discourse of His Holiness, Pope Pius XII, in audience with delegates to the

fourth Congress of the World Movement for World Federal Government on April 6 at
the Vatican is now carefully translated and reprinted in a compact four page pamphlet

along with the entire text in the original French. Single copy, 5¢; 100-500, 4¢ each;

600-1,000, 3¢ each.

The Association for Education in World Government is a new
organization in the field of education and research pointed
toward a strengthened UN. In addition to the above pamphlet,

;
;
:
numerous speakers on varied international topics are available
to organized groups or special meetings. Additional literature
and visual aids are obtainable. Write for complete information.

SPEAKERS
PAMPHLETS

VISUAL

ASSOCIATION
Hulda

May

1951

AIDS

FOR
Goetz,

EDUCATION

Executive

Secretary

e

11

IN
West

47th

WORLD
St.,

New

York

GOVERNMENT
18,

N.

Y.

19

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