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UAW Solidarity
-
1962-04-01
-
Vol. 5 No. 4
-
April, 1962
-¥ Vol. 5, No. 4
UAW :
POSTMASTER:
under
mailing
Indianapolis
Form
Send
label
to
7, Ind.
attached
3579
2457
E.
INTERNATIONAL UNION,
UNITED
AUTOMOBILE,
AIRCRAFT
& AGRICULTURAL
VAPLEMENT
WORKERS
OF AMERICA—UAW
directly
Washington
Second
aE
St.,
2457
E.
class
postage
pald
Indianapolis, Ind.
Published monthly at
Washington
St.,
Indianapolis
at
7,
Indiana
The Big Steal’
That Failed
See Stories on Pages 3 through 8
| JFK Rips
| Price Hike;
Steel Recants
Pages 3 through 5
Reuther to JFK:
‘Thank You!
Pages 5 through 7
| UAW Proposes
_ Price Hearings
y,
and
simultaneous
“The
identical
Steel
States
United
of
actions
steel prices by some $6
irresponsible defiance of
and other leading corporations increasing
a ton constitute a wholly unjustifiable and
the public interest.
“In this serious hour in our nation’s history ... when we are asking
reservists to leave their homes and families months on end and
servicemen to risk their lives ,.. and asking union members to hold
down their wage requests ... the American people will find it hard,
as I do, to accept a situation in which a tiny handful of steel execu-
tives
whose
power
of private
pursuit
of public responsibility, can show
est of 185 million Americans.”
such
—President
*
and
exceeds
profit
for
utter contempt
Kennedy,
F.
John
*
sense
their
the
inter11,
April
1962
*
“... We compete as a company, as an industry and as a nation
with better costs and better ways of production. Proper pricing is
certainly part of that picture. And that is what is involved here,
however it may be portrayed, For each individual company in our
competitive society has a responsibility to the public, as well as to
its
stockholders,
however
race,
And
unpopular
that
is
to
do
that
all
we
the
may
things
be at
have
that
times
attempted
to keep
to
price-wise,
necessary
are
in
competitive
the
do.
“,,..I have said a number of times over the past months that
the cost-price relationship in our company needed to be remedied,”
—Roger
U.S,
M.
Steel
Blough,
chairman
Corporation,
April
of
the
12,
board,
1962
Page 8
UAW SOLIDARITY, April, 1962—Page 2
ADDRESS?
DIFFERENT
UAW
Solidarity,
2457
E. Washington
to leave
the
label
Be sure
partment.
The
grand
Madar
Address
MRS.
JOHN
UAW
radio
City.
interviewed
at left, being
shown
like being
of a governor
wife
Michigan’s
of
Nunn,
by Guy
Swainson
Mrs.
department.
the
wife
SWAINSON,
B.
what
discussed
was
interview
the
and
director
She
is
governor,
it is
taped
for showing on the UAW TV program “Telescope.” The popu
on
lar UAW program can be seen in the Detroit-Windsor area
weekday evenings at 11:20 over station CKLW.
Name.
Address.
The
a
with
team,
363, actually
a
them
giving
6,-
nearly
that
noted
Miss
3024,
of
total
said.
Division had
Women’s
a
record number of participants
in this year’s tournament, Miss
Madar said, and the final winteam
ner was the Whatsits
from UAW Local 658, Springfield, Ohio. The team wound
up with a total of 3024 after
receiving a handicap of 636.
City
The
popular
in the
winners
Optional Singles Tourney
were Charles Melton of Pon-
K.C.
Station
Britain..
Connecticut—New
Waterbury
Ilinois—Aurora*
Chicago
Indiana—Anderson
Maryland—Baltimore
Michigan—Detroit
it more dear than my family
to it all that I am, have or
cr love this union cause. I hold
my life. I am willing to devote
A
the
as
|
phrase
theme
statement
that
from
32-page
a
for
been
has
pamphlet
taken
written
for
around 24 of the oils painted by John Gelsavage
|
the UAW to portray the history of unions in the U. S.
of
reproductions
contains
Cause”
“This Union
the 24 paintings, each one accompanied by a brief explanatory
text. Its introduction outlines the reasons that have led millions of Americans to struggle for dignity and security for themselves and their families.
.
.
“Radical
States.
straigt
With
a
leading
are
leaders
crusade
the
in
march
the
is on
military
“High-ranking
executives
.
reaction
United
corporate
and
found
has
which
support in thousands of communities across the land.
name of ‘total victory,’ they urge a policy which leads
rd World War II and nuclear holocaust.”
warning,
Suall,
the
exami
ting
extreme
trade
former
a
book,
right
unionist,
Ultras,”
American
“The
movement,
wing
its
egy and its tactics.
bership,
As leaders of the trade union movement—which the
wingers would destroy—local union officers will find this
and how
a helpful guide in recognizing where, when
groups rise in their communities.
“All of us who believe in the democratic process,”
Suall, “must unite in a common endeavor. The American
not
a
menace
fascist
right
the gravity of the crisis, of the
this evidence at our peril.”
“The
E.
American
Ultras,”
ordering it from
y
Jefferson, Detroit 14,
One of the
labor standards
world
the
is the
now;
conflicts
priced
at
the UAW
Mich.
but
are
they
We
to come.
75
cents
a
will
copy,
a
Irwin
that
mem-
right
book
these
wrote
Ultras
sign
of
can
be
ignore
Department,
Education
most useful tools in promoting
and decent living conditions all
International
Solidarity
fair
over
of the
Fund
International Confederation of Free Trade Unions.
This fund is used to underwrite workers’ educand union organization in the under-developed countries
world. The fund has the financial support of the UAW and
2er unions, as well as the AFL-CIO.
A large number of materials for use in informing local union
rs on the yarious aspects of world affairs and the role the
International Solidarity Fund plays have been issued by the
V
among tt
that can
boards.
One
tion Department
e that can help
0
be
quotes
The
circling
Bread,
and
interest
stimulate
in
this
a statement
made
by
Abraham
Lincoln
in
kindr
oe
and
Freedom,”
the
official
slogan
of
ICFTU.
enand
Single copies of each poster can be obtained free and larger
Education
numbers ordered at a nominal fee from the UAW
Department, 3000 E. Jefferson, Detroit 14, Mich.
than
crisis
a
dra-
to
the
national
dealing
tude)
could
economy.
with
the
the
on
the
interest;
price
logical
increases
and just.
of such
extension
STRIKE
February
INCOME
28,
FOR
1962
MARCH,
1962
vecs
ae
TOTAL TO ACCOUNT FOR:
DISBURSEMENTS IN MARCH, 1962 ...
TOTAL RESOURCES MARCH 31, 1962 ..
There
involving
were
7,500
Secretary-Treasurer
GOSSER
RICHARD
THEWS
MAT
NORMAN
WOODCOCK
LEONARD
GREATHOUSE
PAT
Vice
18 strikes
members
SAMMUT
in effect
of
the
NN TOOL
at the time
UAW.
TLLITLO LL
authori-
MARTIN
TED
ROBERT
Members
GERBER
HAWKS
JOHNSTON
KERRIGAN
CHARLES
KIT
HARVEY
EPH
JOS
McC
HAEL
MIC
T.
E.
RELLI
MER
GEORGE
MORRIS
KEN
O’MALLEY
PAT
E. S. PATTERSON
ROBINSON
KEN
ROSS
RAY
iFrank Winn, Editor and Director, Publ
DepartPublic Relations
cations and
FOR
ment.
Joe Walsh, Assistant
Public
and
tions
ment.
Henry
Santiestevan,
Director, PublicaDepart
Relations
Managing
Editor
Publications
Director,
Assistant
and
and Public Relations Department.
Jerry
Bailey,
Bernard
Alpert,
Simon
on,
Lipt
Dale, Jerry Hartford, Howard
Ryder, Staff
George
Martin,
Ray
Members.
41,623,196.67
ve 1,189,078.60
-$40,434,109.07
American
of this report,
LLL LLL LL LLL LLL
Presidents
International Executive Board
BALLARD
CHARLES
BERNDT
RAY
BIOLETTI
S
CHARLE
BURT
GEORGE
FRASER
DOUGLAS
$40,242,203.47
1,380,993.20
........:-.00+
MAZEY
EMIL
What ever reasoning justifies
the one justifies the other.
Third, Gore seeks establishment of a quasi-public advisory
board to examine and to publicize the pertinent facts behind
proposed price increases in basic industries.
ASSETS,
well-wishers
and
ernational
OFFICIAL PUBLICATION, Int
craft and
Union, United Automobile, Air
of
Workers
Implement
Agricultural
y.
Published monthl
America, AFL-CIO.
son, DeEditorial office, 8000 E. Jeffer
Yearly subscription
troit 14, Michigan.
$1.00.
to members, 60c; to non-members,
P. REUTHER
WALTER
President
OAL
FUND
member
SOLIDARITY
Sher-
the
first
good
in
national
INTERNATIONAL STRIKE FUND
MARCH, 1962
TOTAL
many friends
down.”
first magni-
amend
delay
to
ty
would be both
y 440000010000 EO UTES
awaiting the
is to begin
assignment.
of the UAW to be accepted for
and
assignment
Peace Corps
has expressed the hope that
she will not “let any of her
national
a
for
vote
would
touch
representa-
as the
attention
idential authority to impose an
eighty-day delay in the application of general price increases
in basic industries. (That act
already gives the president auyh has been frewhic
thor—it
quently invoked — to impose an
80 day freeze on strike action
which
disputes
in industrial
But the pricing. problem remains, in steel and in all other
basic industries. The industry’s
its quick
e
— and
price advanc
retreat from that advance in
the face of the administration's
counter-fire — has restored the
status quo — but for how long?
Looking at the problem realistically, and considering what
might reasonably be done,
through the Congress, this year
or next, Senator Albert Gore of
Tennessee seems to have come
up with something which could
provide a rough and workable
solution.
He has filed three bills—
UAW’s
as originally
to Bolivia
ing
scheduled.
She has received nation-wide
Taft Hartley Act to create pres-
gouge.
Corps
Kath-
because of a slight heart murmur she will be assigned to a
hospital in Peru instead of go-
man anti-trust act to make it
easier and more expeditious for
the courts to break up monopoly industries.
the
amend
would
Another
The vigor and speed of President Kennedy’s response—and
the incredible clumsiness of the
com— es
boss
steel indusdtry
the planned
bined to defeat
price
of
conscience,
One
Peace
the
Schultz,
e
Mrs. Schultz recently passed
t
her physical examination bu
with
problem
tional interest, spoken for by
chief executive,
indignant
an
assertion
a cold-blooded
and
by a handful of steel magnates
that they could pursue private
damage
at whatever
purpose
F.
tive, is eagerly
she
that
news
training for her
which even conservative Con(if truly concerned
gressmen
recent
the na-
matic conflict between
1864:
sympathy outside the family
bond of human
be one uniting working people of all nations and
the
to
is more
price
steel
project
cond shows the International Solidarity Fund
the globe to promote “World Wide Brotherhood”
Peace
There
ship are International Solidarity Fund posters
displayed in the union hall and on shop bulletin
“The strong
relation should
tongues
.
first
NUNN
GUY
By
ETE
=
.
erine
Sen. Gore Proposes Pricing
Controls on Basic Industries
Cause”
Educa-
Priced at 25 cents a copy or 100 for $20, “This Union
can be obtained simply by ordering it from the UAW
tion Department, 8000 E. Jefferson, Detroit 14, Mich.
Wis. —
MILWAUKEE,
Eye Opener
“This Union Cause” was prepared by the UAW Education
Department with high school students in mind. The expectation
was that local unions would find it useful educational material
to place in schools and libraries for use by youngsters whose
information about labor history is either too sketchy or mis-
leading.
Peru Assignment
Wednesday only.
each
aired
Kathy Awaiting
1370
Pennsylvania—Pottstown
April
of
during the weekends
7-8 and April 14-15.
700
1300
Ohio—Cincinnati ...
Cleveland
“Program
cal 658 who scored 654 with
a handicap of 123.
finals
Championship
The
took place at the Cloverleaf
in Cleveland
Center
Bowling
810
970
920
550
York—Buffalo
New
CUCU
union.
largest
of 698 with
109 in the
Peggy
and
Division,
Men’s
Cook of Springfield UAW Lo-
1420
1480
850
Grand Rapids
Muskegon. .......
Missouri—Kansas City
New Jersey—Newark
Trenton
who
653,
Local
UAW
compiled a total
of
a handicap
Time
6:00-6:30 a.m.
680
800
Flint
for in this world.”
These stirring -words were uttered by William H. Sylvis, who
organized the iron moulders into what was in 1865 the Nation’s
hope
tiac
930
910 6:00-6:30 a.m.
1320 6:15-6:45 a.m.
2:00-2:30 p.m.*
1580
5:45-6:15 a.m.
1000
1240
Angeles
—Los
California
8000
tt)
Michigan.
500 bowlers took part in 11
regional elimination tournaments.
of the
ith
Division was the
team from UAW
Pontiac,
653,
Onmitoyv
always
the
in
winning
The
of
handicap
2860
bowled
Old Address
are
winner
tough Men’s
Prix
Grand
Local
or
108
sholortits
troit by Olga Madar, director
of the union’s recreation de-
PLEASE
De-
in
announced
were
Ohio
form,
this
out
clip
you
when
side
other
on the
}
|
at Cleveland,
Tournament
ship
,
Champion-
Bowling
national
Inter-
UAW
the
of
Winners
7, Ind.
St., Indianapolis
attached
to
and
form
this
ou
fill
please
you
will
correct,
not
is
this
If
number.
union
lecal
and
address
mailing
name,
your
with
label
a
is
page
this
of
side
reverse
the
On
Local 653
Wins UAW
Pin Tourney
=
i
Members,
Guild,
Newspaper
AFL-C1O
nn
eal
Four Fantastic Days:
Angry President, Outraged Public
Make U.S. Steel Cancel Price Hike
Ever since the end of World War II
the UAW has been trying, with indifferent
success, to prove to the public generally
that increased labor costs are not the cause
of increased prices and the consequent inflation we have suffered during a part of
that period.
What the UAW and the rest of the
labor movement had not been able to
accomplish in the area of public opinion,
news conference of perhaps the most universally critical and skeptical group of
newsmen ever to interrogate an industrial
Berry)
tycoon.
—The UAW made public a letter
from Prestdent Reuther warmly supporting
President
Kennedy's
posttion
(see Page 5 for text of letter) and submitting a detailed outline of legislation
“To Require Hearings on Administered
Price Increases in Order to Make Private
Economic
Decisions
More
Reshonsive to Public Need.” (See text on
Page 8).
no matter how sound our arithmetic, was
clearly and demonstrably proved in four
action-packed, news-packed days beginning April 10 when the United States
Steel Corporation tried to hoist steel prices
$6 per ton and encountered the wrath of
the
Kennedy
Administration
and
an
enraged public opinion.
Most
voted to
actions
and the
here is a calendar of events:
APRIL 6—We go back
as the day on which United
to this date
States Steel
and
Bethlehem
Steel, the nation’s two
largest producers, signed with the United
Steelworkers a contract widely hailed and
accepted as “non-inflationary’—one which
could not possibly justify a price increase
because the increased labor costs involved
were well
within
the average
annual
increase in steel productivity.
APRIL 10—Without any advance
indication of their intentions, U. S. Steel
announced
a $6 a ton increase.
other
11—Five
APRIL
major
Kennedy
steel
(Following is the verbatim transcript of President Kennedy’s April 11 press conference state-
answers
the
steel
price
hike
relating to it. — Ed.)
and
questions
and
The PRESIDENT: The simultaneous and
identical actions of United States Steel and
other
corporations
leading
increasing
steel
prices by some $6 a ton constitute a wholly
unjustifiable and irresponsible defiance of the
public interest.
In this serious hour in our nation’s history
when we are confronted with grave crises in
Southeast
Berlin
and
bility,
when
Asia, when
ing our energies to economic
we
are
asking
we are devot-
recovery and sta-
reservists
to leave
their homes and families months on end and
servicemen to risk their lives—and four were
killed in the last two days in Vietnam — and
asking union members to hold down their wage
requests at a time when restraint and sacrifice
are being
asked
of every
citizen, the American
people will find it hard, as I do, to accept a situation in which a tiny handful of steel executives
whose pursuit of private power and profit exceeds their sense of public responsibility, can
show such utter contempt for the interest of
185 million Americans.
If this rise in the cost of steel is imitated by
the rest of the industry, instead of rescinded,
it would increase the cost of homes, autos,
appliances and most other items for every
American family. It would increase the cost
of machinery and tools to every American
business man and farmer, It would seriously
handicap our efforts to prevent an inflationary spiral, from eating up the pensions of our
older citizens and our new gains in purchasing power. It would add, Defense Secretary
Robert 8. McNamara informed me this morn-
jury
the
Justice
Department
Sherman
Anti-Trust
investigation
of
the
ordered
price
a
rises
Act.
—Seyeral Congressional leaders pro
posed that various Congressional committees initiate hearings.
companies, following the lead of U.
Steel, largest producer and bellwether
the industry, announced
S.
of
identical increases.
—That same afternoon President Kennedy at his news conference, in what is
probably the strongest and best justified
criticism of big business shenanigans ever
made by any U. S. President, attacked the
companies for “irresponsible defiance” of
the public interest and “ruthless disregard”
of their duty to the nation (See text of
President Kennedy’s statement below).
APRIL 12—Roger M. Blough, chairman of U. S. Steel, weakly tried to defend
his company’s action before-a televised
lasts Stee
Conference
In News
on
under
of this issue of Solidarity is dethe events of those four days, the
of the Kennedy Administration
contribution of the UAW.
But to sum up and bring up to date,
ment
grand
—The
ing, an estimated $1 billion to the cost of our
defenses at a time when every dollar is needed
for national security and other purposes.
It will make it more difficult for American
goods to compete in foreign markets, more difficult to withstand competition from foreign imports and thus more difficult to improve our
balance-of-payment position and stem the flow
of gold. And it is necessary to stem it for our
national security if we’re going to pay for our
security commitments abroad.
EFFORTS
HANDICAPPED
And it would surely handicap our efforts to
induce other industries and unions to adopt
responsible price and wage policies.
The facts of the matter are that there is no
APRIL 13—Inland Steel and Kaiser
Steel, neither of which had announced
price increases, annouced they would not
raise prices.
5
—Then Bethlehem Steel, second largest producer, rescinded its price increase.
—I.ate in the afternoon, U. S. Steel
capitulated and rescinded its increase, being followed shortly by all other companies
who
had
already
announced
increases.
Thus, in four short days, because of
immediate and strong action by the President, an attempted assault on the welfare
of American consumers was quickly and
thoroughly routed and the long-time position of the UAW completely vindicated.
Barons
taftement
justification for an increase in steel prices.
The recent settlement between the industry
and the union, which does not even take place
until July 1, was widely acknowledged to be
non-inflationary, and the whole purpose and
effect of this Administration’s role, which both
parties understood, was to achieve an agreement which would make unnecessary any increases in prices.
Steel output per man is rising so fast
that
costs
labor
per
ton
of steel
actually
can
be expected to decline in the next 12 months.
And, in fact, the Acting Commissioner of the
Bureau of Labor Statistics informed me this
morning that, and I quote, “Employment
costs per unit of steel output in 1961 were
essentially the same as they were in 1958.
The cost of major raw materials—steel scrap
and coal—has also been declining.
And for an industry which has been generally
operating at less than two-thirds of capacity,
its profit rate has been normal and can be expected to rise sharply this year in view of the
Their lot has been
reduction in idle capacity.
easier than that of a 100,000 steel workers
thrown out of work in the last three years.
The industry’s cash dividends have exceeded
$600 million in each of the last five years; and
earnings
estimated
in the
first
quarter
of this
in the Feb, 28 ‘Wall
to be among
the highest
Street
could
dustry
be
in
obtained,
recognition
reducing
of
Journal”
in history.
RUTHLESSNESS IS CHARGED
In short, at a time when they
ploring how more efficiency and
lower
prices
could
better
costs,
were
year
in
be
ex-
this
in-
prices
their
un-
usually good labor contract, their foreign competition and their increase in production and
profits which are coming this year, a few gi-
(Continued on the next page)
Kennedy Blast vee
(Continued from the previous page
have
corporations
gantic
disregard
ruthless
in
prices
sponsibility.
decided
of their
to
increase
re-
public
The Steelworkers Union can be proud that it
abided by its responsibilities in this agreement.
which
responsibilities
has
also
Government
this
And
we intend to meet.
The Department of Justice and the Federal
Trade Commission are examining the signi-
in a free competitive
ficance of this action
economy.
of Defense
Department
The
other
and
agen-
on their policies of
cies are reviewing its impact
procurement.
And I am informed that steps are under way
by those members of the Congress who plan
price
de-
in this country,
ex-
how
into
inquiries
appropriate
these
cisions are so quickly made and reached and
what legislative safecuards may be needed to
protect the public interest.
decisions
wage
Price and
cept for a very limited restriction in the case
of monopolies and national emergency strikes,
are and ought to be freely and privately made.
But the American people have a right to expect
in return for that freedom, a higher sense of
business responsibility for the welfare of their
country than has been shown in the last two
days.
ome time ago I asked each American to
consider what he would do for his country, and
In the last 24
I asked the steel companies.,
hours we had their answer.
Newsmen Query
The President
—Mr.
President,
guage
which
situation would
some
sidering
the
request that this price
ferred or rescinded?
strong
unusually
lan-
you used in discussing the steel
indicate that you might
action.
strong
pretty
thinking in terms of requesting
need for wage-price controls?
be con-
Are
you
or reviving the
A—! think that my statement states what the
‘Asituation is today. This is a free country.
In all the conversations which were held by
members of this Administration and myself
with the leaders of the steel union and the companies, it was always very obvious that they
could proceed with freedom to do what they
thought was best within the limitations of law.
But I did very clearly emphasize on every
occasion that my only interest was in trying
to secure an agreement which would not provide an increase in prices, because I thought
that price stability in steel would have the
increase
be
either
de-
—I was informed about the price increase
‘after the announcement had gone out to the
papers. I told Mr. Blough of my very keen dis-
appointment
most
and
what
unfortunate
I thought
would
effects of it.
be the
And, of course, we were hopeful that other
companies who, as I’ve said, have a different
situation in regard to profits and all the rest
than U.S. Steel—they’re all—have a somewhat
different economic situation — I was hopeful,
particularly
in view
quoted—that
there
of the
statement
I saw
in
the paper by the president of Bethlehem, in
which he stated—though now he says he’s misshould
be no price increase
—and we are investigating that statement— I
was hopeful that the others would not follow
the example, that therefore the pressures of
the competitive marketplace would bring United
States Steel back to their original prices—but
the
parade
began.
But it came to me after the decision was
made. There was no prior consultation or information
given to the Administration.
—You mentioned an investigation into the
suddenness of the decision to increase prices.
Did you—is the position of the Administration
that it believed it had the assurance of the steel
industry at the time of the recent labor agreement that it would not increase prices?
most far-reaching consequences for industrial
and economic stability and for our position
abroad, and price instability would have the
most far-reaching consequences in making
our lot much more difficult.
When the agreement was signed — and the
eement was a moderate one and within the
range of productivity increases—as I've said,
actually, there’ll be a reduction in cost per unit
the year—I thought, I was hopeful, we’d
during
achieved our goal.
Now the actions that will be taken will be—
are being now considered by the Administration. The Department of Justice is particularly
anxious in view of the very speedy action in
other
companies,
who
have
entirely
different
economic problems facing them than did United
States Steel—the speed with which they moved
—it seems
present lz
by
the
to me
and
Federal
to require examination of our
whether they’re being obeyed
Trade
Commission
and
the De-
partment of Justice.
And I am very interested in the respective
investigations that will be conducted in the
House and Senate, and whether we shall need
additional legislation, which
very reluctantly.
But
that
I m
those
concerned
—In
with
about
your
the
at
last
power
national
conversation
I would
24
hours
are
not
interest
with
Mr.
come
to
indicate
always
Roger
M.
Blough, chairman of the board of United
States Stee] yesterday, did you make a direct
—We did not ask either side to give us any
4% assurance, because there is a very proper
limitation to the power of the Government in
this free economy.
All we did in our meetings was to emphasize
how important it was that the—there be price
stability, and we stressed that our whole purpose in attempting to persuade the union to
begin to bargain early and to make an agreement which would not affect prices, of course,
was for the purpose of maintaining price sta-
bility.
That
was
discussion
the thread
I had,
which
every
ran through
that
or Secretary
Goldberg.
We never at any time asked for a commitment in regard to the terms—precise terms—
of the agreement from either Mr. (David J.)
McDonald
workers
of
(president
representing
America)
the
steel
of
or
the
from
United
company,
Mr.
Steel-
Blough
because,
in
our opinion, that it—would be passing over
the line of propriety.
But I don’t think that there was any question
that our great interest in attempting to secure
the kind of settlement that was finally secured
was to maintain price stability, which we regard as very essential at this particular time.
That agreement provided for price stability
up to yesterday...
Oo
your statement on the steel industry,
sir, you mention a number of instances which
would indicate that the cost of living will go
up for many people if this price increase were
to remain
give
tain
the
some
to catch
effective.
steel
kind
up?
In your
workers
the
opinion
right
of a price—or
to
a wage
does
try
that
to ob-
increase
—wNo. Rather interestingly, the last contract
was signed on Saturday with Great Lakes,
so that the steel union is bound for a year. And
of course I’m sure would have felt—going much
further if the matter had worked out as we had
hoped.
all
they’ve
But
made
their
agreement
and I’m sure they’re going to stick with it. It
does not provide for the sort of action you sug(American
P.) Morgan
(Edward
gest, Mr.
Broadeasting
Company).
—Still
on
steel,
Senator
(Albert)
Gore
(Democrat of Tennessee) advocated today
legislation to regulate steel prices somewhat
in the manner that public utility prices are regulated, and his argument seemed to be that
the steel industry had sacrificed some of the
privileges of the free market because it wasn’t
really setting its prices on a—on a supply and
demand but what he called administered prices.
Your statement earlier and your remarks
since indicate a general agreement with that
kind of approach. Is that correct?
—No,
stated
Mr.
that.
Morgan.
I don’t
think
that
I’d
I’d have to look at—and see what Senator
Gore had suggested and I’m not familiar with it.
What I said was we should examine what
can be done to try to minimize.the impact on
the public interest of these decisions, but though
we had of course always hoped that those involved would recognize that, I would say that
what must disturb Senator Gore and Congressman
(Emanuel)
Celler (Democrat of Brooklyn)
erat of Tennessee)—will
company
every
which
in
by
be the suddenness
hours,
few
last
the
Reuther's Letter to President
Expresses Warm Support
(Demo-
Kefauver
(Estes)
and others—Senator
one by one, as the morning went by, came in
with their almost, if not identical, almost identical prices increases, which isn’t really the way
work...
always
to
system
(Following
could be taken
there not an action that
—Is
enterprise
private
competitive
the
expect
we
by the Executive Branch in connection with
direct procurement of steel under the administration of the Agency for International Aid—
I mean the AID agency? For example, I think
the Government buys about one million tons of
steel. Now, could not the Government decide
that only steel—steel should be purchased only
at the price, say of yesterday rather than
today?
they
decide
Kennedy
Reuther,
following
the
price
steel
text
by
of
UAW
the
the
letter
President
former's
sent
to
Walter
P.
statement
12,
strated
interest
culated
action
you
which,
of
you
that
have
forcefully
necessity,
must
intend
to
defend
the
efforts
your
behind
to
defend
this
I believe
settlement,
steel
the
after
not
were
prices
raised. Do you think there was an element of
political discrimination in the behavior of the
industry this year?
—I would not—and if there was, it doesn’t
really—if it was—if that was the purpose,
that is comparatively unimportant to the damcountry’s
that—the
age
.. - If they do it in order
isn’t so important.
one
the
that
to spite me
suffers.
it really
—To carry a previous question just one step
further, as a result of the emphasis that
you placed on holding the price line, did any
word or impression come to you from the negotiations that there would be no price increase
under the type of agreement that was signed?
will
At
we
say
asked
that
that
conversations
in our
in regard
for no commitments
to
the details of the agreement or in regard to
any policies which the union or the company.
Our central thrust was that price stability
was necessary and that the way to do it was
to have a responsible agreement,
at no time
agreement
Now,
such an
be still necessary
That
word
we got.
did anyone suggest that if
was gained that it would
to put
did not
which
up prices,
come
until last night...
—Mr, President, the steel industry is one of
a half-dozen which has been expecting a tax
benefit
this summer
preciation
schedule.
the Administration's
—Secretary
through
Does
this
attitude?
(Douglas)
revision of the deprice
Dillon
affect
hike
and
I
dis-
cussed this morning, of course, all this.
The matter is being carefully looked into now,
S. Steel’s
1953
prices
at then
nation
We
must
no
longer
delude
ourselves
that
the consumer is protected against price-fixing
abuses under the laws of the competitive market place that Adam Smith formulated nearly
200 years ago. Insofar as such giant corporations as U. S. Steel, General Motors, and General Electric are concerned, the law of supply
and demand has been effectively repealed.
ago,
U.
against the sneak attack on price stability —
the economic Pearl Harbor — perpetrated by
the United States Steel Corporation.
tury.
years
that
transcend
U. S. Steel’s action, shocking though it was;
is in our opinion merely a symptom of a fundamental problem that the nation cannot afford to continue to ignore. We must face up
to the economic facts of life as they confront
us in the second half of the Twentieth Cen-
two
interest.
public
abided by its responsibilities in this agreement” by moderating its demands in order
to contribute to price stability.
President,
public
demon-
We share your view that in contrast “the
Steelworkers Union can be proud that it
—Mr.
the
D. C.
I am confident, Mr. President, that you
have the full support of the American people
go in the wake of U.S. Steel. But we’ll have to
wait and see on that, because they’re coming
in very fast.
with
revised its price policy between 1953 and 1959
so as to double its rate of return after taxes
— from 8 percent to 16 percent — when operating at 80 percent of capacity. He has cal-
1962
1. ees hopeful that there will be those who
will not participate in this parade and will
meet the principle of the private enterprise
competitive system in which everyone tries to
sell at the lowest price commensurate with the
—their interests. And I’m hopeful that there'll
be some who will decide that they shouldn’t
the
than
more often than not, are in direct
Dr, Gardiner Means, a life-long student of
administered prices, has shown that U. S. Steel
hike.—Ed.)
the private interest of any group in our society.
rather
conflict
on
larger.
unit
business
smaller
corporations,
Your forthright and vigorous defense of
the public interest against the reckless and
shameful action of the U. S. Steel Corporation
in raising steel prices $6 a ton has earned for
you the thanks and appreciation of the American people who — too often, in the past—have
been the victims of social irresponsibility on
the part of giant corporations. By your courageous
the
choose
to
President
Washington,
—Too, on this thing, in case of identical
bids, which the Government is sometimes
with,
the
April
The Honorable John F. Kennedy
President of the United States
The White House
—That matter was considered, as a matter
of fact, in a conversation between the Secretary of Defense and myself last evening. At
that time we were not aware that nearly the
entire industry was about to come in, and
therefore the amount of choice we have is
somewhat limited.
confronted
is
Prices charged by such corporations are
set, as you said, by “a tiny handful of. . -.executives.”’ All too often they fit your description of men “whose pursuit of private power
and profit exceeds their sense of public responsibility,” and who act with “utter contempt for
the interests of 185 million Americans.” These
men are under no effective restraints in making their price decisions. There is no mechanism to assure that the public interest will be
taken into account as they make their private
decisions.
RATE
OF
RETURN
DOUBLED
In fact, the latest price increase by U.
Steel provides another dramatic illustration
a
long
series
that
the
price
decisions
of
S.
in
such
prevailing costs meant a break-even point of
close to 50 percent of capacity and that, subsequently, prices were raised so much in relation to wage and other costs that by 1959 the
corporation could have broken even when operating at around 30 percent of capacity. At
the same time the corporation, through a highpowered propaganda campaign, was attempting to shift the blame for its higher prices onto
the backs of its workers.
Dr. Means has shown further that average
wholesale prices for products other than steel
and those made by the steel-using industries
were no higher at the end of 1961 than in 1953
— that if it had not been for the steel and
steel-using industries there would have been
no inflation during those years. The 35 perin steel prices during
cent increase
those
years,
he says,
“stimulated the price rise in the steelusing industries partly by the direct increase
in costs and partly by example.”
Evidence is already appearing that U.
Steel’s irresponsible action may touch off
similar wave of inflationary price increases
other industries. The Detroit Free Press
April 11 carried a story headed “Steel Hike
Raise Car Prices” and reported in part:
S.
a
in
for
to
“The increase in the price of steel announced Tuesday night is expected to boost
1963 car prices about. $50 a car, industry
sources said.”
Such a price increase, if put into effect,
would be no less outrageous than the price
increases in the steel industry since increased
s, if fully passed on, could not provide
the basis for more than a $10 per car price
increase.
The agricultural implement industry can be
expected to use the steel price increase as an
thus
action,
for similar
excuse
the
aggravating
plight of our already hard-pressed farm families. Consumers will probably be required to
pay higher prices not only for cars but for
household appliances and other products made
in whole or in part of steel. Moreover, as has
in the past, the inflationary psyhappened
chology generated by U. S. Steel’s action is
likely to set off a massive wave of price increases throughout the economy, spreading to
or not
Dr.
steel
costs
whose
industries
at
all by
Means
prices
imbalance
steel
are
prices.
pointed
has
“contributed
that
out,
importantly
international
in our
negligibly
affected
inflated
payments
to
—
the
if
the recent decline in our steel exports and increase in imports could have been avoided in
this last year, our gold loss would have been
more than cut in half.”
POWER
the
TO
RIG
PRICES
to doubt
is no room
There
giant
of the
power
any
longer either
corporations
in certain
industries to rig prices against the public interest or their readiness to do so, Both were
amply documented in the hearings of the Sen-
ate
Antitrust
ing
doubts
and
administered prices
tomobile industries,
that
Monoply
on
in the drug, steel, and auamong others, Any linger-
some
(Continued
Subcommittee
might
have
entertained
on the next page)
Letter
Reuther’s
from
(Continued
page)
prev ious
the
dispelled by the guilty pleas
ainst the elecist case
ent manufacturers. If the corpoinvolved in that trial — some of which
atic
rank
have
been
among
the
largest
most
(formerly)
and
able in the country — are prepared, in
direct violation of law, to conspire to rig prices
on products sold to the government of the
United States, only the most gullible would believe that they and leading corporations in oth-
er industries would hesitate to rig the prices
they charge their private customers — especially when the latter can be done without
running afoul of the law.
anticipated
phenomenon
a
confront
We
neither by Adam Smith nor by our anti-triust
laws — the phenomenon of “price leadership”
in industries where prices are administered and
not determined by market forces. Where one
corporate giant dominates an industry, prices
can be rigged at monopolistic levels without
the necessity for an actual conspiracy that
The
would involve a conflict with the law.
unseemly haste of U. S. Steel’s “competitors”
in following its lead did not necessarily require
between the leader and the
communication
rest of the pack. The latter dare not set their
prices higher than U. S. Steel's for fear of losing customers. They dare not set them lower
for fear the giant will retaliate. They comfort
themselves in these conditions of their existence by grasping eagerly the opportunities for
higher profits that become available to them
when the giant, by raising its prices, permits
them to raise theirs.
Thus
we
b
single
set
appearance
effects
have
of monopoly
corporation,
of
which
the fact
actual
without
monopoly.
the antitrust
laws
inery
of
shown
the
laws
us once
in
again
motion.
that
we
the
We
have
were
to prevent without the only causes
a i or conspiracy — that can set
U.
need
prices
overt
the
intended
— monopthe mach-
S.
Steel
new
has
legisla-
tion aimed at today’s price leaders in administered price industries instead of at the obsolete concept
of conspiracies which
reflected
To Celebrate Our
Non-Inflationary Wage
Contract!’
provided soon to assure that price decisions
will be made with consideration of and a sense
of responsibility for the public welfare, abuses
of the type that U. S. Steel has perpetrated
repeatedly during the postwar period, and once
again this week, will lead inevitably to abolition of the right to make
ly
and
wage
privately”
—
will
such
lead
decisions
to
price
‘‘free-
and
controls
Recognizing,
public lacks the
market
our
place
on the one hand, that the
protection of the competitive
in crucially
economy
and,
important
on
the
other
sectors
hand,
of
that
peacetime price and wage controls are abhorrent in a free society, we in the UAW have
for some years advocated a mechanism which
would preserve the freedom of private deci-
sion but assure that such freedom would be
exercised within a framework of public responsibility. The heart of our proposal is the substitution of the restraining force of an informed public opinion for the restraints of the
competitive market place which in administered price industries are lacking.
CALLS
FOR
PUBLIC
We
have
price leaders
by law to give
increases and
tinent
facts
before such
fective.
HEARING
proposed
specifically that the
in major industries be required
advance notice of proposed price
be required to produce all perand
price
records
increase
at
a
could
public
be
hearing
made
ef-
In advancing this proposal, we in the UAW
have made it clear that we seek to impose no
obligation upon industry that we are not prepared to accept ourselves. Our proposal contemplates that, when a corporation claims that
union
demands
would
require
a price
increase,
the union concerned would also be required
to defend its economic collective bargaining
demands in such public hearings. No price or
economic
facts of past years — legislation
drafted to meet the monopoly and conspiracy
problems of more than half a century ago.
In
your
statement
to
yesterday’s
press
conference you noted that Congressional
leaders plan to explore “what legislative
safeguards may be needed to protect the
public interest” in situations of this sort. You
went on to express your own belief in price
and wage decisions “freely and privately
made” with a sense of responsibility for the
welfare of the country.
We in the UAW
believe legislative safeguards are needed. We believe with equal conviction that price and wage decisions should
continue to be “freely and privately made.”
We
fear
that
if legislative
safeguards
are
not
wage
control
would
be
involved.
Upon
expira-
tion of the notice period the corporation involved would be free to raise its prices and
the union involved would be free to pursue its
collective bargaining aims. But both would do
so with full awareness that the public was
equipped with all the facts required to evaluate the degree of social responsibility — o1
the lack of it — involved in the price or wage
action,
and
to
fix
full
responsibility
where
it
facts,
to
belongs for any price increase that may occu
which is not justifiable in terms of public interest. The corporation would not be able in
the
face
of public
ventilation
of
the
absolve itself of guilt by false and distorted
propaganda blaming its price increases on its
workers.
A detailed outline of this proposal is at-
tached.
(See Page 8).
Since the experience of the last few years
indicates clearly that the inflationary pressures resulted from the administered price
abuses by a handful of corporations in a few
critical industries, this proposal would be limited in its scope and would only bear upon the
activities of a relatively few giant corporations
in the American economy.
This proposal provides a middle ground between rigid government control on the one
hand, and reckless private action on the other.
The proposal would raise the level of public understanding of the underlying economic
facts and would thus, through moral persuasion, discipline the voluntary process and tend
to make private economic decisions in the field
of prices, profits and wages more responsive
to the public need.
The public interest demands that private
economic decisions by private groups be based upon economic facts, and not be determined by economic power. Exhortation and
appeals to self-restraint are not in themselves sufficient, as the irresponsible action
of the U. S. Steel Corporation clearly demonstrates. Appeals for a greater sense of
public responsibility must be backed up by
a practical mechanism that can mobilize the
power and persuasion of enlightened public
opinion.
We in the UAW have nothing to hide and
therefore we have nothing to fear from such
a procedure. We have long been committed to
making progress with the community and not
at the expense of the community. We seek
gains
out
of the
profitability
and
the
advanc-
ing productivity of the industries in which our
members work. We have said, again and again,
that we want not one red cent in wage increases or fringe benefits if it can be obtained
only out of the pockets of consumers,
hundred thousand of our members struck
Two
Gen-
eral Motors in 1945-46 for wage increases with(Continued on the next page)
Reuther’s
from
(Continued
out
price
demands
need be
without
increases,
to
—
whatever
that the
necessitating
Letter
to
offering
reduce
amount —
corporation
increase
an
their
to zero if
could pay
mands to what the corporations could pay after cutting car prices an average of $100 per
car, if they would put such a price decrease
into effect. We have repeatedly offered to arbitrate our economic demands, with the arbitrators bound in advance not to make any
award that would necessitate a price increase.
None of these proposals was ever accepted
because the corporations were bent on raising
their prices to increase their profits, while using our members’ economic gains as their public excuse for the price boosts. A large part
of the public has, in fact, been led to believe
that the wage gains of workers have been responsible for the inflation of the postwar period and for the exorbitant rigged prices of
major corporations in such industries as autos
and steel.
PICKPOCKET’S
move. Moreover, the public, knowing that
damage has already been done, pays much
the
Jess
attention to such hearings than it would to
proceedings held in advance of a proposed price
increase.
in its prices.
the following year’s
to confine our de-
toward
offered
In 1957, looking
negotiations, we
page)
previous
the public by the time the corporations involved are ready to make their next price
The
preventive
influence
of
the
price
ask
to make
hearing procedure would also avoid the necessity your Administration is now under to
try to persuade U. S. Steel’s executives to
rescind their indefensible
price increases.
This,
in effect,
lice confession
men
it.
is to
them
of their guilt—something
pub-
few
willing to do if they can possibly avoid
That U. S, Steel’s top executives should
have created the threat of another round of
inflation is bad enough. Even more serious is
the fact that they
have
called into question
in
many minds the wisdom of permitting price
decisions to be made freely and privately. They
have brought into jeopardy their own freedom
and the freedom of economic decision by others
as well. For freedom is indivisible and when
with us. Bills to implement the proposal were
introduced
in the Senate
by ex-Senator
O’Mahoney who saw earlier than most the
TACTICS
This is the tactic of the pickpocket caught
in the act who shouts “stop thief’’ and points
to his victim to divert attention from himself.
It would be impossible under the price hearing
procedure
we
propose.
Both
corporations
wholly
without
of the situation.
foundation
in the
the
that
has
dramatized
been
kind
of corporate
for
us
once
abuse
again
I hope you will give this proposal your
earnest consideration and that you will conclude
that it deserves the support of your Administration.
and
facts
to avoid
this week,
unions would have to take full responsibility
for their actions by this procedure of public
accountability. With all pertinent information
available to the public, it would not be easy
to create confusion by irresponsible propaganda
need
Mr. President, once again on behalf of the
one and a quarter million members of the UAW
freedom
is curtailed
for anyone
degree diminished for everyone.
it is to some
It is to preserve freedom for all—for free
labor and free management—that we urge the
establishment of a price hearing mechanism.
By helping to prevent abuses of freedom it will
protect freedom. For responsibility is the price
of
freedom,
and
free
labor
and
free
manage-
and their families I want to express our deepest
appreciation for your courageous leadership in
defending the public interest in this situation.
By your action you have again demonstrated
your devotion to your public trust and your
determination to defend the best interests of
our nation and its people whether the threat
comes from without or from within.
Kindest
personal
regards.
Sincerely
and
respectfully
ment cannot for long remain free if they misuse
their power.
In the long run,
public responsibility
yours,
ea
only a growing sense of
commensurate with pri-
vate power can assure that government compul-
sion will not erode and eventually displace
determination
process in the
voluntary
prices, profits and wages.
As
you
hearings
The existence of the price hearing procedure, we firmly believe, would effectively discourage abuse of pricing power. Even the officials
of
U.
S.
Steel,
in
all
their
arrogance,
would have been given pause in connection
with their latest price increase had they been
faced with the necessity to attempt to justify
it on the witness stand in public hearings with
the facts as to costs, productivity and profits
of their operations fully available to competent experts free to cross-examine them with
respect to those facts. They would have found
it necessary to consider the public interest
and
whether
they
would
be able,
ings, to justify their price action
with the public welfare.
in open
hear-
as consistent
The price hearing procedure would serve as
a precentive of admiunistered price abuse, In
that
respect,
it
would
be
far
more
effective
than the post-mortems which Congressional
Committees have conducted in connection with
previous unjustifiable price increases by U. S.
Steel and other corporations, These hearings
have been valuable and enlightening, but not
as useful as they would have been if the subpoena power had been used to obtain information which the corporations chose to withhold in order to retain more freedom for the
use of half-truths, But, in any case, such hearings, unfortunately, are largely forgotten by
doubtless
such
as we
know,
the
propose
the
of
idea of price
is not original
Walter
P.
Reuther,
INTERNATIONAL
President
UNION,
UAW
Provisions of VAW-Proposed Bill
To Require Price Hike Hearings
utline
to
order
in
more
provisions
of
admin-
make
private
responsive
to
cases, however, the Board should be required to
publish promptly a report setting forth the
a
on
hearings
2 to require
e increases
of
reasons for so doing.
public
6. EMERGENCY PRICE INCREASE
Upon a claim that an increase in production
costs
i. PURPOSE
To bring an informed public opinion to bear
upon price policy in administered price industries as a substitute for the price- restraining
such
is
which
competition
of
influence
in
lacking
industries.
MACHINERY
2. ADMINISTRATIVE
An Administered Price Board to conduct
hearings on price increases proposed by
certain corporations.
A Consumer Counsel to represent the
consumer and public interest in such
hearings.
(a)
(b)
requiring
the
cor-
poration to raise its prices prior to expiration of
the notice period, the corporation should be permitted to raise its prices within that period, In
such case, however, the Board, in addition to its
other findings, would be’ required to make a
finding as to whether or not such an emergency
in fact existed and whether or not the price
increase exceeded the amount required to meet
increased production costs. If it found that the
claim of emergency was not supported by the
facts,
the
rebate
increase
to
amount
corporation
every
damages
of
such
would
be
required
to
three
times
customer
equal
price
who
increase
paid
for
the
to
price
the
products
legislation should cover corporations in a
found to exist but it was also found that the
price increase exceeded the cost increase, the
triple damages rebate or fine would apply to
the excess.
Board
3. COVERAGE
position to act as “price leaders” in their respec-
and
Specific
industries.
be devised to determine
should
emergency
and the
to that
between the National Labor Relations
and the General Counsel of the NLRB.
tive
an
shipped during the notice period. In the event
the ultimate purchaser of the products in question could not be ascertained, the corporation
would be subject to a fine equal to the triple
The relationship between the Board
Consumer Counsel might be similar
The
creates
objective
criteria
the corporations
that fall into the “price leader” category. Total
the
to
limited
be
should
coverage
minimum
damages
specified
above.
If an
emergency
was
7. PRICE REDUCTION HEARINGS
The Consumer Counsel should be empowered
to initiate hearings when, in his judgment, there
is reason to believe that-a corporation subject
to the legislation should reduce the price of any
of its products. (Endowing the Consumer Coun-
sel with this power is necessary to meet the
argument that the proposed legislation would
deter price reductions that would otherwise be
witnesses,
cross-examine
10. OTHER
to examine
them
of all pertinent
fully, and
books and
proposed
result of
Counsel
examine
each
other.
APPEARANCES
Representatives of unions, of consumer organizations, of corporations purchasing prod-
in major
industries would
be covered.
4. ADVANCE
NOTIFICATION
OF PROPOSED PRICE INCREASES
Covered corporations should be required to
notify the Administered Price Board of intention to incfease a price, and should be prohibited
from
putting
such
for a specified
90 days)
a price
increase
into effect
long to permit
the Board
minimum
sufficiently
to hold
hearings
supply
the
period
(perhaps
on the proposed
60 or
price increase
and to issue its findings concerning such increase. The corporations should be required to
Board,
filing of the
pertinent
Board
been
tion
notice,
to
should
received
by
the
proposed
and
listed
OF
the
make
the data
5. WAIVER
all data
publish
groups
pearances”
simultaneously
which
price
fact
with
their
they consider
increase.
that
notice
The
has
available for examina-
below
filed with
under
such
‘Other
notice,
Ap-
HEARINGS
Upon ar
sis of the data submitted with the
notice, and after a reasonable time has been
allowed for examination of the data by all interested parties, the Board, with the consent of
the Consumer
Counsel, should be empowered
to
waive hearings and permit the proposed price
increase to go into effect immediately. In such
of
price competition in the industries affected;
that, therefore, there are not apt to be genuine
“competitive secrets” related to costs and prices;
and that the public interest is as deeply involved
as in public utility rate hearings in which all
pertinent facts are publicly available. If, nevertheless, it should be decided that certain types
of information required for purposes of the
hearings should be treated as “confidential” the
Board might be empowered to go into executive
session while such information was being presented and considered with the participants in
such executive sessions subject to penalties for
public disclosure of such information.)
12, FINDINGS
The Board should make findings of fact only,
union, customer corporations, consumer organizations and government agencies, if any are
involved—should submit to the Board at the
conclusion of the hearings a list of its conten-
representatives of the union. Union and corporation representatives would
be permitted to
porations
absence
8..SUBPOENA POWER
The Consumer Counsel would have power to
9. INVOLVEMENT OF UNIONS
If a corporation claims that its
price increase would be required as a
granting union demands, the Consumer
would be empowered to subpoena and
in a major industry. (Such corporations could
be identified from data in the files of the Census
Bureau, the SEC and the FTC.) Under this
criterion, only a limited number of giant cor-
the
and should not pass on the merits of or justification for proposed price increases (or union
demands). Each party to the hearings — the
to require production
records.
accounting for 25 per cent or more of total sales
on
is premised
legislation
put into effect for fear that a subsequent increase in prices of the same products would involve the corporations in the hearings process.)
subpoena
number of corporations required to accomplish
the basic purposes of the bill. One possible
criterion for coverage could be: all corporations
the
ucts affected by the proposed price increase,
and of interested government agencies (federal,
state, or local) should be allowed to participate
in the hearings voluntarily, subject to permission granted by the Board. Such voluntary
witnesses would be required to submit to crossexamination and would be permitted to crossexamine corporation witnesses. All testimony
taken at the hearings would be under oath.
11. OPEN HEARINGS
All hearings should be open to the public,
the press, and radio and television.
(The matter of possible “confidentiality” of
certain types of data should be considered in
drafting the proposed legislation. It should be
kept
in mind
in this
connection,
however,
that
corporation,
the
Consumer
Counsel,
and
the
tions, and the Board should state its findings of
fact with respect to each of such contentions.
The findings should be published before the expiration
of the notice period.
13. PENALTIES
Penalties should be provided for failure to
give the required notice of a proposed price
increase, for failure
for taking reprisals
to respond to subpoenas,
against any person who
testifies, and for perjury. The penalties should
be severe enough (particularly in the case of
failure to give notice) to deter violations. In the
event of failure to respond promptly to subpoenas or to requests for production of books,
records, etc., or if the corporation is found to
be engaging in other dilatory tactics, the Board
should be empowered to extend the period during which no change in prices would be permitted.
14. NO PRICE OR WAGE CONTROL
Regardless of any finding of fact that the Board
may make, upon expiration of the notice period
(or any extension of it), the corporation would
be free to determine its own prices (to the
extent specified in its original notice or to any
lesser extent), and the union would be free to
pursue
its demands.
The
only
restraint
corporation and the union would be
straint of enlightened public opinion.
on
the
the
re-
- Item sets