 It's time for the Laun Jean Chronoscope, a television journal of the important issues of the hour, brought to you every Monday, Wednesday, and Friday, a presentation of the Laun Jean Wittner Watch Company, maker of Laun Jean, the world's most honored watch, and Wittner, distinguished companion to the world-honored Laun Jean. Good evening. This is David Ross. May I introduce our co-editors for this edition of the Laun Jean Chronoscope. Mr. William Bradford Huey, editor of the American Mercury, and Mr. Henry Haslett, editor of the Freeman and contributing editor of Newsweek Magazine. Our distinguished guest for this evening is Mr. Robert C. Tyson, vice president and controller of the United States Steel Corporation. The opinions expressed are necessarily those of the speakers. Mr. Tyson, as vice president of the U.S. Steel Corporation, which is the biggest of the steel companies, you're a very highly qualified spokesman for the industry in the present labor crisis. So I'd like to begin by asking you, why does the industry feel that the recommendations of the Wade Stabilization Board were unfair or unjustified? All of us know that the Wade Stabilization Board has recently made recommendations to settle its dispute, recommendations which are much higher in cost to the companies than any wage settlement either recommended by government here to fore or obtained by the Union in collective bargaining. What about the president's statement that steel wages are just catching up with the rest of the country? The president in his statement was misled, I am sure, and I fear his advisors have resorted to statistical trickery. They have designated certain key industries and they have pointed out the increases which the workers in those industries have received during a period in which they say steel workers have received nothing. The facts are that they chose their starting date one minute after the steel workers received a large increase. That increase went into effect on December 1st, 1950. According to the Bureau of Labor Statistics, the average hourly earnings of steel workers since they got that increase in January and December of 1950 have increased approximately 20 cents an hour. These other industries which Mr. Truman mentioned, according to the same series of figures, have increased from 13 cents to about 21.6 cents. That is most definitely not a catch up. Well my understanding is that in the last three months of last year of 1951 the wages in all manufacturing industries were about $1.63 an hour and the wages in the steel industry about $1.88 an hour. That is correct. So they were already about 16% ahead before Mr. Truman thought they had a catch up. Mr. Tyson, to our audience of course you represent a very vast and rich and powerful industry and our audience has heard a great deal about this. So I'd like you to simplify it possible on this point. Now what is the financial position, the comparative financial position of this vast, rich and powerful industry as compared with the year or two ago? The spokesman for the government, the price stabilizer and Mr. Truman have referred to the enormous profits which the steel industry is making and has made. The facts are that the steel industry's profits in 1951 were some 14% lower than they were in 1950 and that downward trend has continued into the first quarter of 1952. Now with that downward trend, sir, then what was the steel corporation, the steel industry's position as regards holding the line against inflation? Did you want to increase prices without increasing wages or what was the steel industry's position? Under the key part amendment to the Defense Production Act, the Office of Price Stabilization has agreed that the steel industry is entitled to a price increase upwards of $3 per ton whether or not there is any wage increase in this present controversy. However, it has been the position of the industry since early in these negotiations that the public was tired of round after round of wage and price spirals and we've had five of them since the end of the war and they propose that the industry would forego any price increase to which they were entitled if labor would forego any increase in their work. So you're telling our audience, sir, that you were making less money than you were last year and the steel industry's position was that you wanted to hold the inflation line and maintain the situation as it was. That is absolutely correct, sir. Now, Mr. Arnold took the position that he was on the side of the American people, that the government was on the side in representing the American people. Is it your position that the industry was working by taking that position was working in the best interest of all the American people? I think we must analyze Mr. Arnold's position somewhat. He apparently believes that you can increase wages or stimulate wages and at the same time you can stabilize prices and the public is not affected. Whether or not there is a price increase, if this wage package goes into effect, the 154 million people that Mr. Arnold speaks of will play a very large part in the consequences. Whether it is through increased prices as these wages, wage patterns spread to other industries, or whether it is through increased taxes, or whether it is through further inflation. Well, Mr. Tyson, don't you think it'd be a good idea if the steel industry were now to renew that proposal for no price increase, no wage increase so that its position would be clear beyond any doubt? The industry has repeated that proposal on many occasions, Mr. Haslund. But with the recommendation of the wage board, the support which it has received from spokesmen for the government, including the president, seems though that is a step that has gone beyond us. What's going to be the result of this wage increase on the taxes paid and the taxes received by the government from the steel industry? The cost of this package that has been proposed is about 30 cents in direct wage costs. As this pattern spreads, that would result in another 30 cents based on the historical record of the corporation and its associated companies in the industry with regard to the prices of the things which it has to buy. The taxes which the corporation or the industry is now paying are about 2 to 1 in relation to the profits. In other words, two-thirds of the profits before taxes are paid to the government in taxes. And what would that have meant in 1951, say? In 1951, that would have amounted to about 350 to 375 million dollars for the industry. How many American people are represented in the ownership of the steel industry, sir? I would estimate there were some 700 to 750,000 people. 750,000 people own the steel industry and how many people work for it? There are about 650,000 who are represented by Mr. Murray's Union. I might say that that 750,000 doesn't include a great many who are represented indirectly through insurance companies, savings accounts, savings banks and so on. Now, Mr. Arnold made quite a point, sir, of the fact that if wage increases and price increases, if price increases such as the steel industry now insist upon, went into effect, it would cost every family in our audience 300 dollars more this year. Now, what is your view on that, sir? I think his figure is absolutely wrong. It is impossible for me to arrive at any such figure by simplified arithmetic or by calculus. The price, if there was a price increase in steel, commensurate with the increase in costs and ultimate costs of some 12 dollars per ton and incidentally that is the increase in cost. And there is about a ton and a quarter of steel per family in this nation. That would represent some 15 or 16 dollars per family. It would have to be pyramided many times to arrive at Mr. Arnold's figure. Therefore, as I understand the positions then, the government and the unions want to start what, in effect, is another round of wage and price increases. And the government claims that that's for the good, will work out to the good of all the people. And the earth steel industry would rather hold the line and have no price increase and no wage increase, and it's your position that that would be to the best interest of the American people. That would definitely be to the best interest of all the people. I'd like to get to another question that we didn't finish with a little bit while ago, Mr. Tyson. We talked about what the government would lose in taxes from the steel industry, but suppose this same pattern of wage increase were imposed generally. What is your estimate of what the government would lose generally in taxes from all industry? Government would lose at net of any additional tax they get from the recipients of this wage increase would lose at least six to seven and a half billion dollars. That assumes that there is no increase in price anywhere along the line. Now, sir, I'm sure that our audience before the program is over would like your prediction, sir, as to how this national emergency is going to resolve itself. That is a very difficult question. It is impossible to foretell just what may happen in this situation. I think at this moment the public at large is more concerned with the outcome of the proceedings pending before the Supreme Court. If the Supreme Court decides or upholds the president in his position that seizure is legal, then it is my opinion that the American people have lost their freedom. If he upholds the companies, the president, and there is no settlement up to that time, the president still has the vehicle provided by Congress to tear up Hartley Act to settle this dispute. Well, I'm sure that our audience very much appreciate your views, sir, and thank you for being with us. The editorial board for this edition of the Laun Jean Chronoscope was Mr. William Bradford Huey and Mr. Henry Haslett. Our distinguished guest was Mr. Robert C. Tyson, Vice President and Controller of the United States Steel Corporation. It seems like a nice idea. On the wedding day, the bride and groom give watches to each other. Now, if you're planning a wedding, you may be glad to know that recognizing the social acceptance of this custom, Laun Jean has produced an exciting series of duets. Ex visit Laun Jean watches in matching styles. Each bride's watch a diminutive replica of the groom's watch. Exchanging watches is likewise a growing custom for anniversary gifts. And for any occasion, no other name on a watch means so much as Laun Jean, the world's most honored watch. 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