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Henry a Wallace — Part 1
Page 178
178 / 228
com
lis
(Re eT TM
a“ =
-~
2 r me ee s
' 1947
APRIL 14, 1947 |
The UMW president remars - ivenge-
fully that safety supervision by union
committees had been undermined by
“intimidation” stemming from federal ©
anti-strike injunctions. He ordered
UMW districts not to pass on the re-
moval of hazards. The government, as
far as “Old” John L. Lewis (see page
22) was concerned, coald clean up its
Own mess.
No Answer
. Prices
N March 26 President Truman
made a public plea to US industry
to heed “the handwriting on the wall”
and cut prices. He implied that current
negotiations for wage increases could be
completed successfully without raising
prices.
The text of the handwriting on the
wall was spelled out once again by Rab-
ert R. Nathan, CIO economist. His rce-
port last fall demonstrated that industry
could afford wage boosts without price
increases and is the basis of current CIO
demands in major industries, Last week
Nathan found the wage-price-profit
structure “even more ussound than four
=e" - months ago.” Said he: “Prices have con-
tinued to reach for new high levels, the
. pay envelope continues to buy less ind
less, consumer resistance is growing and
inventories are starting to back up.”
As industry's 1946 statements and
indications continued almost
unanimous in recording unprecedented
profits, there was equal agreement not to
pass on any of the increase to labor.
There were a handful of exceptions:
International Harvester cut list prices of
some items; Plymouth prices were
shaved; Ford, with appropriate to-do,
gave the consumer a spoonful of the top
cream. Example: the de-luxe business
coupe was cut $20 last week to $1,150
(f.0.b. New York), sill 85.4 percent
higher than 1939 and seven percent
higher than 1945.
More typical of US industry was the
case of US Steel, where negotiations for
a wage increase have been dragging
since January. US Steel's report for 1946
showed a profit after taxes of $88.6
million, the highest since 1941 despite
the steel and coal strikes. Nathan re-
cently issued a little Nathan Report for
Static on FM
Pennsylvania
LLENTOWN is one of the 114
A towns in the United States
where the only newspaper and the
only radio station are owned in com-
mon, A year ago, five young vet-
erans decided to throw some competi-
tion into Allentown. From the Fed-
eral Communications Commission they
got a license to broadcast to the two
million people in the Allentown_area
over radio’s static-free wonder me-
dium—FM (the NR, February 17).
Last week, as the vets pushed con-
struction of their station, interference
was crackling through the Allentown
air, the kind of interference which re-
cently moved the Commission on Free-
dom of the Press to urge the govern-
ment to press “in every way short of
subsidy the creation of new units in
the [communications} industry.”
Under their corporate name, the
Penn-Allen Broadcasting Company,
the vets had been selling the $75,000
of stock necessary to put them on the
air. Sales were going well. Then sud-
denly they stopped. Through anonj-
mous phone calls and inside tips, the
vets began to learn why:
Residents were being told that
the veterans’ were broke, that they
wouldn't last the year. A whispering
campaign warned prospective stock-
holders that the company was backed
by Jewish money. (“If we were Jew-
ish, which none of us are, we'd be as
proud of that blood as we are of the
1
steel showing that wages could be upped
21 cents per hour without a price in-
crease, There were rumors that the CIO
and Big Steel would get together on
some such figure as this. But last week,
as the April 30 contract deadline neared,
Benjamin Fairless, president of US Steel,
put an abrupt end to the hopes of Presi-
dent Truman and others who thought
industry might heed the handwriting on
the wall. “One of the demands of the
union is for a substantial wage increase,”
said Fairless. “Other demands of the
union, if granted, would add materially
to our already heavy costs. Until these
demands are disposed of in the pending
negotiations, no real consideration can
be given by us to the adequacy or inade-
quacy of our present steel prices.”
Macy's, New York department store,
whose motto is “It's Smart to Be
e
Preliminaries
a“
blood we have,” said Raymond F
Kohn, Penn-Allen’s president.) Resi-: °
dents were told that the vets had no -
channel assigned to them by the FCC. ’-
In the country clubs it was whispered”
that the transmitting power would en- ,
danger surrounding property because
it might fall
The five partners had hired the:
city’s leading law firm to represent
them and handle their stock issue.~,
3 firm, which i
existing newspaper and radio station, :
said it was “advised” to drop the new
FM organization. Reluctantly, the law.
firm pulled out, withdrew its name:
from all promotion literature. The.”
vets’ bricklayer contractor was warned"
to lay off the job—that he'd never
be paid anyway. In regard to these:
developments, Koha said:
“Well, we're learning what it's like,
to start up in a monopoly town. We
called a meeting of our stockholder:
and offered to buy back their stock}
Not one accepted; they're backing us:
to the finish. We need $30,000 to Bet;
on the air.
“Senator O. J. Tallman, majority
leader of the Pennsylvania state sen-’
ate, has agreed to represent us az!
counsel from here on in, although he ,
risks losing newspaper publicity in his
district by standing with us. The five,
of us did not spend five years eack-
fighting corruption on a global scale.
only to find it snuffing us out io ous.
own backyard,” :
tons La
Warr
Bast sad No uapian et
Thrifty,” found so many of its custon °
being thrifty in the face of current pr.
that it took a full-page ad to warn t
costs must come down, Its thrifty sc .
tion: technological advances and hig’
labor productivity will do the trick. ° 4
Sp.
TT only remaining European n “#! 2
to side openly with the late A @}-:
was trying hard to keep his job in
almost friendless world. Last Decemt
Generalissimo Francisco Franco m_
an offer to Don Juan de Bourbon, w
ing since 1935 to fill the Spanish ther. |
deserted by his father. The offer: ©
train Juan’s nine-year-old son for —
job under Franco's regency. Franco - “S
an angry reply: “I am not prepared ~ 8
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