BUSINESS MEN HEAD
DEFENSE UROGRAM
The retirement of General
George C. Marshall was followed
by the appointment of Robert A.
Lovett as Secretary of Defense,
with William C. Foster, former
Administrator of the Marshall
Plan, serving as deputy.
These appointments made it
plain that party politics were not
involved. Mr. Lovett is a suc
cessful banker, who considers
himself non-political and has
never been classified as a “Fair
Deal” Domocrat. Mr. Foster is
a Republican business man who
has given himself to non-partisan
public service. Together, they in
sure that the biggest-spending
Federal agency will be run by
men of business experience, per-,
sonal integrity and considerable !
administrative judgment.
Mr. Lovett served as Assistant
Secretary for Air during the war
and was Deputy-Secretary of De
fense during the past year. He
has co-operated with General
Marshall in the development of
basic policies that dictate our re
armament program and assistance
to the free peoples of the earth.
Mr. Foster, having handled the
Marshall Plan in relation to other
countries, is thoroughly familiar
with conditions in Europe and the
Far East.. He worked with Sec
retary of State Dean Ach^son in
negotiating the North Atlantic
Treaty.
The probability is that the two
men, together with the Secretary
af State, will work together to
promote the social and economic
gains in Europe which are a
"must” if the peoples are to be
secure against internal Communist
dissension. While the military
phases of our defense program is
important, we should not overlook
the economic requirements of the
world situation or the importance
of American contributions in both
fields of activity.
TAX PENALTY FOR
VIOLATORS OF CONTROL8
Declaring that the nation can
safely scrap its economic controls
within the next two years, Eric
Johnston, Economic Stabilizer,
declares that the government is
getting ready to crack down on
producers who deliberately defy
price and wage controls.
Until we get our defenses in
order, he warns, we cannot dare
tolerate the “flaunting of con
trols” by anyone and serves notice
that no quarter will be given to
black marketeers.
Hr. Johnston, one should note,
is S business men of note. He
took cognisance of the criticism
of some of his business friends,
declaring that more production,
voluntary restraint, higher taxes
and elimination of unnecessary
governmental spending are neces
sary but declared that Mnone is a
magic formula to stability of our
dollar under the inflationary
stresses ahead in the next two
years.
While each of the suggestions
forms a part of the stabilisation
program, he insists that direct
controls are another part and a
vital part. He points out that
rather than solving the problems
of inflation, production, of tae
kind in which the nation is en
gaged, is causing inflationary
danger. He had in mind, of
course, the diversion of produc
tive facility to defense items and
the scarcity of civilian goods at
a time when there ip a surplus of
expendable income.
Mr. Johnston'says that the con
trols are within the famework of
our Constitution and within the
spirit of that great document,
being intended to protect the weak
against the strong, to assure jus
tice to all and to maintain free
dom by preventing abuses of free
dom in time at danger.
While the goyernment does not
plan to terrorise the people into
economic loyalty and seeks co
>■■11 Ill,
operation in the solving of the
grave problem, it will not hesitate
to use the severe penalties pro*
vided in the law. One of these,
he pointed out, is a provision. In
the income tax laws that permits
disregard of any costs, as a de
ductible expense in connection
with taxes that are paid by •
business in violation of price or
wage regulations.
DISCUSSING A UNION OF
THE FREE PEOPLES
The Council of the North At
lantic Treaty Organisation has
been meeting in Canada for the
purpose of discussing important
problems, with a good part of
the time being devoted to the
auestion of raising and paying
for the North Atlantic army.
Representatives of the Euro
pean nations have implied that
the cost of meeting rearmament
goals is more than they can bear
unless the United States is pre
pared to pay a large part of the
total rearmament burden. Amer
ican insistence that Europe in
crease its over-all industrial pro
duction is countered by the dif
ference between what the Euro
peans think they can pay. and the
actual inflated cost of the rearm
ament bill.
In an attempt to assist the
European countries, in the midst
of what may be an economic cri
sis, the United States has an
nounced that it will place de
fense orders with Great Britain,
as well as Canada and other coun
tries. Apparently, there are items
connected with our rearmament
program which can be obtained
abroad. The United States will
pay in dollars, which will be of
some assistance in meeting the
dollar problem of the associated
powers.
Altogether, the conference in
Ottawa has been notable for its
discussion of political and eco
nomic problems, as well as those
connected with the military is
sue that confronts the free peo
ples. While the subject has not
been officially broached, there has
been some speculation about the
possibility of a closer integrated
unit. The business of meeting
the Russian military menace
brings up so many problems that,
inevitably, the men concerned
with their solution realise how
much easier everything would
work, if there was, in fact, some
more effective method of handling
a common problem.
Speaking in Canada, the British
Foreign Minister, Herbert Morri
son. who helped our Secretary of
State in the public campaign for
the Atlantic Treaty community
idea, told the Canadian Club that
we should look forward to the
day when “there will be a com
mon citisenship for all the peo
ple* in the North Atlantic com
munity, with • all harriers to
thought travel, trade and under
standing swept away."
CASUAL ACCEPTANCE OP
U. N. TREATY IS RISKY
The recent legal decision that
an alien land law of California
conflicted with provisions of a
treaty proposed by the United
Nations and accepted by the
United States has caused consider
able concern in this country.
There is some fear, which seems
to be justified, that the casual ac
ceptance of treaty obligations, in
co-operation with the United Na
tions, will basically affect the
rights and powers of the states
in the Union. Moreover, as our
Constitution provides that a
treaty duly ratified, shall super
sede national and state laws,
there is a danger that; ill-consid
ered clauses and phrases might
seriously affect the people of tha
United States.
Taking cognisance of this sit
uation, Harold E. Stassen, former
Governor of Minnesota and now
Chancellor of the University of
Pennsylvania, recommends that
(Caatiaaad On Page f)
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I
( V
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Union Hits Army Beef Baying Abroad;
Suggests Scrapping Meat Controls
CHICAGO (ILNS).—Protesting
the Army’s purchase of beef over
seas, the Amalgamated Meat Cut
ters and Butcher Workmen of
North America suggested a con
ference be called to study the
entire meat problem.
The union also suggested that
it might be “better to acrap all
meat controls than to precipitate
a meat shortage, black markets
and industry unemployment.”
In a telegram to defense and
price control heads and all mem
bers of Congress, Earl W. Jimer
son, president, and Patrick E.
Gorman, secretary-treasurer of
the union, said:
“On behalf of American pack
ing-house workers we protest the
reported threat of the Army
Quartermaster General to pur
chase 13 million pounds of beef
off shore because American pack
ers have failed to bid on the
Army’s requirements. Such action
is unwarranted and too hasty in
view of the present serious de
cline of beef slaughter and ex- j
pecta'nt unemployment in tha in
dustry.
“Legitimate meat packers are
unable to bid because present
OPS controls are burdensome and
uneconomical. Slaughterers report
a loss in excess of |25 on each
choice grade steer; beef slaughter
is less than a year ago. Some
packers are buying only TO per
cent of the cattle bought a year
ago despite the greater number
of cattle on the farms and a pre
dicted increase in 1951 meat pro
duction.
“Ate these facts true? If not,
why then have the packers failed
to bid on government orders. It j
is significant that only two bids ,
were received for a total of 190,
000 pounds, less than 1 1-2 per
cent of the Army’s requirements.
Thorough Study Asked
“Instead of threatening the
meat producers we should on- j
courage adequate supply for mil
PER CAPITA TAX
RAISED BY APL
SAN FRANCISCO (ILNS). —
The 70th convention of the Amer
ican Federation of Labor by unan
imous action amended the consti
tution to raise the per capita tax
from member unions.
The amendment increases the
tax from international or national
unions from 3 cents per member
to 4 cents per member a month.
The tax .paid by local trade un
ions and federal labor unions is
increased from 37 cents per mem
ber a month to 38 cents.
Daniel J. Tobin, president of
the Internals* al Brotherhood of
Teamsters and chairman of the
convention’s committee on rules,
which introduced the resolution
complimented the convention and
said that “when some unions that
ought to be in the federation
come in well have 14.000,000 or
15,000,000 members and then
maybe we’ll be able to balance
the budget as they've been trying
to do in Washington for 3 years.”
He ’“guaranteed” that “not $1
of the $1,000,000 will be wasted.”
The raising of the tax will
eliminate special assessments for
the educational work of Labor's
League for Political Education.
itary and civilian use and insure
packers a fair and reasonable
profit.
“We suggest that a conference
be called immediately of all in
terested parties, including man
agement, labor and government.
A thorough and exhaustive study
of our entire meat Economy from
th live animal to the finished
product should be made. The
principle of our democratic ideals
should be presented. Any other
program is un-American.
“We are pledged to preserve
the dignity of the American pack
inghouse worker. They will not
stand idly by when faced with un
employment.”
Here Is Awcrici.. • Face Is Face
B^^F WMIW BHB^BB B B B B Bw^^BF B^^F BP
RED FEATHER CAMPAIGN
IN NEED OF SOLICITORS
Metklcalirr'i Red Feather
Campaign for ever 21 Red
Feather services needs yea as
a volunteer solicitor in this
Fairs big drive for funds,
which begins October Id.
Your United Red Feather
drive is a part of one great
national effort to support more
than 1S.000 local health, recre
ation and welfare services.
New inclusions this year are
the reactivated USO and oth
er voluntary health and wel
fare services which are now
needed because of the defense
effort.
A great many volunteers are
needed to do the Job. Volun
teer your time now to your
RED FEATHER CAMPAIGN
in Charlotte and Mecklenburg
County.
AFL AUTO WORKERS
REPULSE THIRD RAID AT
WORLDS LARGEST
TRAILER PLANT
AVON LAKE, Ohio (ILNS).—
The old adage, “some people never j
learn," evidently. has a strong■
supporter in the UAW-CIO which j
tasted defeat for the third
straight time in another ill-fated
attempt to raid Fruehauf Trailer j
where the AFL Auto Workers
have held bargaining rights ever
since the plant began operation.
When the plant was organised
by the UAW-AFL some years
ago, the UAW-CIO tried vainly to
to whip up enough interest to
appear on the ballot. It failed
completely but tried again in
1949 with an all-out raid against
UAW-AFL Local 925. Workers
in the plant rose to the challenge
and hurled back the CIO with a
thumping NLRB election victory.
After nursing its wounds for two
years, the UAW-CIO tried again
September 11. Its defeat was
even more drastic and conclusive
than before with the UAW-AFL
coming through with a 3 to 2
margin of victory. The UAW
AFL polled 1,030 votes to the
CIO's 732.
The CIO's desperate gamble to
win included all the side-show and
circus tactics at its command. On
the night before the election it
staged a parade complete with
bands, balloons, • banners and
clowns. The clowns were particu
larly prophetic with CIO organ
isers playing the part of perfec
tion. especially after the election
results were announced. Observ
ers pointed out that the raiders'
chances of victory were never be
yond the miracle stage. The
UAW-AFL had just completed
winning increases of 18 cents an
hour for Fruehauf workers so far
in 1951 and had gained 12 cents
an hour in boosts in the preced
ing year.
UAW-AFL Third Regional Di
rector Carl Sraigel warmly con
gratulated the local, its officers,
committeemen ana stewards on
their effective repulsing of the
CIO raiders. He said that work
ers in the plant, which is the
world's largest manufacturer of
trailers, are the best paid in the
industry and enjoy a contract and
working conditions second to
none.
Illinois Machinists
Meeting Studies Wage
Stabilization Problems
PRICE VIOLATIONS COST
LUMBER FIRMS t&.HO
Washington, D. C. (ILNS).
Three lumber companies in
Georgia have paid to the U. S.
Treasury approximately $5,000 as
a result of ceiling price violations
uncovered during a 3-month en
forcement survey of the lumber
industry in the southeastern part
of the United tSates, Edward P.
Morgan, enforcement director of
the Office of Price Stabilization,
announced.
Thus far 18 lumber cases seek
ing injunctive action have been
referred to the Department of
Justice as a result of the Inves
tigation. The department has al
ready accepted six of these cases
and referred them to the U. S.
attorneys in the field with recom
mendations for court action.
The largest lumber check re
ceived by the OP^ thus far la
for $2,967.71 from the McEntire
Lumber Co., Jaaper, Ga., for a
total of 287 overcharges, all in
volving the same customer. Next
in sise is the check of $14160.64
from the Villa Rica Lumber Co.,
Villa Rica, Ga., for 47 overceil
ing charge*. The third check is
for $198.36 from the Covington
Lumber Co., for fonr overcharges.
> i .The lumber cases referred to
the Justice Department involve
abovi ceiling charges approxi
mate $30,000 and several of them
also seek to compel the keeping
of records I'eqoirad under the
General Celttag* Price Regulation.
Among the eases retorted to
the department is one involving
a total of 1,000 ceiling price vio
lations totaling more than $7,600.
Concerns involved in the 18 cases
ihblude manufacturers, wholesale
tnd retail lumber dealers, and
sawmill operators.
HARTFORD RELIEF AT
MINIMUM AS DEMAND
FOR LABOR JUMPS
Hartford, Conn. (ILNS).—The
cash relief load here has dropped
41 per cent in the last year and
is “down to the core of chronic
cases,” David H. Keppel, the city’s
relief director reported. He said
cash relief had been given in
July to 600 families, compared to
1,014 families during July, 1960.
Keppel declared that the current
case load represented “thoae per
sons not employabls under any
conditions and not eligible for any
other type of aid."
Hartford has been classified by
federal authorities as a critical
labor shortage area because of
heavy defense-industry demands.
The eity’s normal population is
about 800,000.
I
SANITATION WORKERS
REJOIN APL UNION
New York City (ILNS).—The
Uniformed Sanitation Men’s As.
sociation, APL, representing De
partment of Sanitation employes
in Brooklyn, the Bronx and
Queens, has reaffiliated with the
International Brotherhood o f
Teamsters.
John L, De Lury, president,
said the association had belonged
to the teamsters before World
War II and had decided to reaffil
iate because “we all feel that we
will now be in the best possible
position to go forward united in
the strongest organization of the
American Federation of Labor to
achieve our program for the im
povement of wages and working
conditions of our people.”
Other sanitation workers —
mostly in Manhattan- are repre
sented by an organisation headed
by Stanley Krakowski and affli
a ted with the Building Service
Employes International Union,
also APL.
Champaign, 111. (ILNS)—Forty,
nine delegates of the Illinois
State Conference of Machinists
recently attended a special two
day educational conference at the
University of Illinois. Robert Al
lerton Park, Monticello, 111. The
conference—"Economic Factors in
Collective Bargaining Under
Wage and Price Controls”—eras
conducted by the university’s In
stitute of Labor and Industrial
Relations through the Division of
University Extension.
At beautiful Allerton House,
the union members spent two
days studying wage stabilisation
problems. In informal "bull ses
sions” and in formal discussion
groups, they probed the reasons
for stabilisation, how to work and
bargain under wage and price
controls, and how to take their
cases before regional Wage Stabi
lisation Boards for quick action.
During one session the dele
gates — stewards, representatives
and other officers of I AM lodges
from all over Illinois—fired ques
tions about wage stabilisation at
a panel of B men. On the panel
were two Wage Stabilisation
Board members, a representative
of the LAM Grand Lodge, and
two University professors.
Samuel Edes, director of the
Chicago Regional Wage Stabili
sation Board, and Eric Bjurman,
a labor member of the board and
IAM member, answered delegates'
questions on WSB rulings and
the 1AM
Lee Chanmaa
1 V' " • e
Grand Lodge refii
tative, while Extension Co-ordi
nator Phillips L. German and
Prof. William McPherson repre
sented the Institute of Labor and
Industrial Relations.
Advises On Procedure
At another session, union mem
bers heard Gregory J. Bardacke,
IAM member and technical ad
visor to the AFL ’abor members
of the Wage Stabilisation Board
ir Washington. Bardacke told
delegates the procedure for tak
ing wage stabilisation cases and
problems to the regional boards.
He also said that wage and price
controls should not interfere with
their bargaining with employers
for new contracts. “Get an agree
ment first, and then check with
the Wage Stabilisation Board," he
advised.
Also attending the conference
were State Conference President
William C. Hambleton and Sec
retary-Treasurer John A. Augua
tyn.
STRIKE ENDS; SUIT
dismissed
Toledo, O. (ILNS).—Settlement
of a strike against the Overmyer
Mold Co. of Winchester, Ini., and
dismissal of a 1250,000 suit in
federal court against tjie Ameri
can Flint Glass Workers Union
has been announced by the com
pany and the union. Following’ a.
strike of 470 workers, July M,
the company filed a suit alleging
violation of the arbitration pro
cedure in its union contract.
U. S. AGENCY HEAD HOLDS
HOUSING COST TOO HIGH
Detroit (ILNS) — Declaring
housing costs are too. high. Ray
mond M. Foley, head of the Hous
ing and Home Finance Agency,
called. for “less insistence upon a
multiplicity of charges and prof
its” in the building industry.
“Instead," he said, “we should
have improved building m»thodtF
better design and more advanced
thinking on codes and standards.1*
Foley told the National Con
ference of Catholic Charities that
federal housing programs were of
little value unless they aroused
spirited local interest.