Defense Production Act Amendments of 1952

I might say it was the wish of this committee to have you three gentlemen and Mr. Steelman here at one time. Mr. Steelman telephoned me this morning and asked to be excused. He said Mr. Putnam would represent him.

The reason for having you gentlemen here at this time is to give this committee your opinions of what is wrong, if any thing, with the present law.

As I understand, the committee did not expect any prepared statements. It would be interesting to hear Mr. Arnall's statement after the other meeting is over, but it is our desire to ask you questions about the administration of the law.

We have a full committee here. It has been suggested that questions by the Senators be limited to 2 minutes so that everybody will have a chance to get in and ask such questions about the law as they desire. We will proceed, in order, from right to left around the table.

If that is agreeable, after we finish with all members, which should take an hour, it will then be open as long as the committee desires it. After we get through this meeting the committee will consider what to do about public hearings and what to do about the control bill in view of the changed situation and in view of what may be done in connection with the steel dispute.

Is that agreeable?

Senator ROBERTSON. I suggest to the Chairman that each member be permitted to ask one question and then go on around.

The CHAIRMAN. Very well. Each one will ask a question.

The issues involved in the current steel wage dispute are highly controversial. All parties concerned stress different aspects of the dispute.

For the benefit of the committee members, I thought it would be beneficial to have in one place the data and pertinent information with respect to the positions taken by the union, the steel companies, the Wage Stabilization Board, and the Office of Price Statilization in the steel negotiations. Accordingly the staff of the committee has

compiled data from the parties concerned and various other sources. It will, without objection, be inserted in the appendix to the record. (The information referred to will be found in the appendix, p. 2297.) I want to make this statement before we proceed. I have seen some publicity in the paper as to what this committee was going to do and what it was not going to do and what I was doing and what Senator Robertson was doing behind the scenes.

You are in charge of price control, Governor Arnall. Have I ever asked you to raise any prices?

Mr. ARNALL. Mr. Chairman, you have never made a request to me to raise prices. Your statement to me has always been that it is my job to do my duty to try to stabilize prices and you would always support me when you believed I was doing my duty.

You have never asked preferential treatment for anyone and I do not believe you ever would.

The CHAIRMAN. I thank you for that. I have no other statement except to say that I believe it is my duty on this committee to pass proper legislation to help the American people and stop inflation.

Mr. ARNALL. Let me say the reply I make to your question would be the same reply I would make to Senator Robertson if he asked me that.

Neither of you has tried to bring about price increases so far as I know and I do not believe you would.

Mr. PUTNAM. May I add to that and say that neither you nor Senator Robertson have ever approached me on any such subject. The CHAIRMAN. I have had three or four meetings with you in the last month or so.

Mr. PUTNAM. And you have never mentioned any special price favors for anyone.

The CHAIRMAN. Senator Capehart, you may go ahead.

Senator CAPEHART. Before I start, you can say equally the same thing about myself.

Mr. ARNALL. Correct.

Mr. PUTNAM. Absolutely.

Mr. ARNALL. And every member of this committee.

Mr. PUTNAM. I was only mentioning the names of the ones I had seen in the press.

Senator CAPEHART. My first question is this:

I would like to know whether or not there is proper coordination between you, Mr. Putnam and Mr. Arnall and Mr. Feinsinger, and Mr. Wilson, or that office of his. My first question is, Did you advise Mr. Feinsinger, or the Board-this question is directed to Mr. Putnam and Mr. Arnall-that in your opinion the wage increase that they were about ready to recommend was too high or that they recommended that you would have to permit some sort of price increase in steel?

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