Statement by the President Following Rejection of His Compromise Offer by the U.S. Steel Corporation.

I HAVE just been informed that the United States Steel Corporation has refused to accept the compromise offered by me yesterday in the United States Steel Corporation-United Steel Workers controversy.

The original demand made by Mr. Murray in this case was for an increase of 25¢ per hour, or about 23%. The original offer made by the United States Steel Corporation was 12 1/2¢ per hour increase, or 11.6%. As a result of their final meeting in collective bargaining they had arrived at the following impasse: Mr. Murray had come down to an increase of 19½¢ per hour, or 18%, and Mr. Fairless had come up to an increase of 15¢ per hour, or 13.9%.

I have studied the facts and figures very carefully. The fact-finding board in the steel industry has reported to me informally. It has not had the opportunity to go into the merits of the case very fully, as it would have done if there were legislation now on the books for a "cooling-off" period. Nevertheless, after hearing the board and after long consideration, I believe that the suggestion made by me of 17.1%, or 18 1/2¢ per hour, is fair.

In the General Motors case, the fact-finding board, after four weeks of hearings and consideration, reported to me that a settlement of a 17.4% increase, or 19½¢ per hour, was fair and reasonable under all the circumstances, to both parties. I approved and still approve that finding. The union has accepted it, but the company has refused. While of course no one finding by any fact-finding board is conclusive or even persuasive in other cases, the fact is that the present general circumstances surrounding these two disputes are similar.

It is a matter of great regret to me, and I am sure that it will be to all the people of the United States, that all our efforts to avoid this steel strike have up to now failed. A strike in the steel industry will be felt in practically every major industry in the United States. It will hamper our reconversion effort. It will stall our attempts to establish a sound economy to which our veterans can return. Its repercussions will be felt all over the country and for a long time to come. I still hope, and on behalf of the great mass of American citizens strongly urge, that my suggestion of settlement be adopted by the United States Steel Corporation.

I am not endeavoring to set a pattern for all industry. Each controversy should be worked out on its own merits. The agreements should be reached in every case by free collective bargaining.

In this connection I regret that we do not have legislation, such as I have recommended, which would require a cooling-off period of 30 days. During these 30 days, I am confident that some settlement could be reached. I urge the United States Steel Corporation on the ground of the public interest, as well as good business, to accept this settlement.