THE PRESIDENCY: Seizure

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"The steel industry has never been so profitable as it is today—at least not since the 'profiteering' days' of World War I. And yet ... the steel companies . . . now want to double their money . . . The steel industry wants something special, something nobody else can get ... and they are apparently willing to stop steel production to get it."

By the time the President had finished talking, Commerce Secretary Charles Sawyer had reluctantly taken over the job of running the mills. Out went telegrams to 71 steel companies. Up went the symbols of federal possession: the U.S. flag, seizure orders on company bulletin boards. In the crowded taverns and along the main streets of grimy steel towns like Homestead, Pa., steelworkers celebrated the outcome, ready to stream back to work. About 800,000 tons of steel had been lost by banking the furnaces in anticipation of a strike. But after a few angry murmurs from steelmen, the mills headed back to full operation.

"Hello, Boss." Next morning in a Washington courtroom, the companies made their first legal move to regain possession of their properties. Their request for a temporary order to restrain the President from seizing the mills was promptly rejected by District Judge Alexander Holtzoff. He was not sure whether or not his court could issue an injunction against the President of the U.S. A glum collection of steelmen stalked into Secretary Sawyer's office. Cracked U.S. Steel's Ben Fairless, with a sour grin: "Hello Boss."

Still smarting that night, Inland Steel's President Clarence B. Randall spoke for the seized companies over another radio and TV hookup. He hit back as hard as he had been hit. He disputed Truman's "shocking distortion of facts" up & down the line. Cried Randall: Truman has "transgressed his oath of office ... abused the power which is temporarily his ... seized the private property of one million people without the slightest shadow of legal right . . . This evil deed, without precedent in American history, discharges a political debt to the C.I.O. . . Phil Murray now gives Harry Truman a receipt marked 'paid in full.' "

By the next morning, even Harry Truman seemed to feel he might have gone too far. In an explanatory message to Congress he hinted that, while he had all the authority he needed to seize the steel industry, he would be only too happy if Congress wanted to pass some laws confirming his action.

This week steel and union negotiators met in the office of Acting Defense Mobilizer John Steelman to try once more to work out a settlement. The odds, of course, were now heavily weighted in favor of the steelworkers. If management refused to accept the workers' demands, the Government-operated plants could always agree to accept wage increases proposed by the Government.