Returns to Job
As Steel Firms Speed Output
-Associated Press Wirephoto
BEFORE BIRDER DISPUTE-Prime Minister Jawaharlal Nehru
of India and Premier Chou-En-Lai of Red China, now at sharp
issue over border problems, were in a more friendly state in
January when Chou visited India. Chou recently proposed that
he and Nehru meet soon to settle the border difficulties.
Nehru Remains Slent
-To Chinese Peace Bid
PITTSBURGH (A)-Major steel
firms counted between 50 and 75
per cent of the normal work force
back on the job yesterday in a race
to hit peak production ahead of
By the end of the week virtually
all of the 500,000 steelworkers will
be back on the job. More than 20,-
000 of 335,000 workers idled in al-
lied industries also have been
Railroads, hardest hit, expect to.
recall additional help dependent
on the needs of the mills. Steel-
owned coal mines also showed a
pickup in production.
Some steel firms already have
found output exceeding expecta-
tions, three days after the su-
preme court ruling to uphold the
Taft-Hartley injunction in the
Quick-heating electric furnaces
yielded the first new steel. But de-
spite industry's fast recdvery nor-
mal production is expected to take
from four to six weeks.
United States Steel Corp., the
nation's No. 1 producer, reported
production well above 25 per cent
of capacity with 60 per cent likely
An auto industry spokesman re-
ported that steel production re-
sumed in time to prevent any
serious disruption of car output by
three automakes - Ford, Ameri-
can Motors and Studebaker-Pack-
However, the pinch of steel
shortages may continue to affect
General Motors and Chrysler. GM
already has halted production on
all but two assembly lines for lack
of steel. Steel shortages have idled
more than 210,000 auto workers,
most of them at GM.
In Ohio at least 50,000 of the
81,300 who struck have returned.
The bulk of the workers will be
back by the beginning of next
Expects Workers Back
U. S. Steel's national tube divi-
sion at Lorain, Ohio, expects all of
its 8,700 workers back by Sunday
and then will hire 200 to 300 ex-
tras to handle a big backlog.
At Houston, Texas, Sheffield
Steel turned out its first steel
since the start of the strike. But
Sunday's ship channel disaster
may delay Sheffield's return to
The terminal at which a ship
was taking on cargo is adjacent to
the Sheffield plant. Six crewmen
were killed in a fire aboard the
tanker Amoco Virginia.
In Buffalo, N.Y., steel company
officials said full production in
area plants might be reached in
about two weeks. Earlier estimates
ranged from four to six weeks.
And for the first -time since
World War II the Great Lakes
shipping season has been extended
beyond the normal Dec. 15 clos-
Thecorps of engineers an-
nounced winter closing of the Soo
Locks between Lakes Superior and
Huron will be postponed indefi-
nitely to permit continued iron ore
shipments on the lakes.
Meantime, USW President Da-
vid J. MacDonald expressed hope
that a contract agreement with
the steel producers can be reached
before the court order sending the
union members back to work ex-
pires Jan. 26.
Meanwhile, White House spokes-
man James C. Hagerty called labor
union leader Emil Mazey a dema-
gogue for saying President Dwight
D. Eisenhower paid off a political
debt by getting a court order that
halted the steel strike.
Mazey, secretary - treasurer of
the United Auto Workers, shot
back that Hagerty is "a stooge of
the steel companies . . . a lackey
of big business."
The Mazey-Hagerty exchange--
at long distance-grew out of.Ma-
zey's speech yesterday to the AFL-
CIO industrial union department.
The UAW leader said "I charge
President Eisenhower with a po-
litical payoff to steel companies"
in invoking the Taft-Hartley Law
to end the 116-day steel shutdown
at least for 80 days.
Mazey said the alleged payoff
was in return for $214,500 he said
was contributed by steel company
officials to Eisenhower's 1956 re-
Hagerty said, "Such demago-
guery, leveled against President
Eisenhower, is, of course not really
worthy of comment. I am sure that
the American people realize that
the President acted only when it
was clear that the welfare of the
United States dictated postive ac-
tion under the law. Such action
was upheld by -the courts of our
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MILL REOPENS--Steel mills are reopening as production in mills
across the country has begun as workers return ot their jobs after
a 116-day strike which was finally halted by an injunction under
the Taft-Hartley Act. Thousands of the half-million strikers were
called back over the weekend.
AGRA, India P) - Prime Mi
ister Nehru said yesterday h
hopes for a peaceful settlementc
India's border dispute with Re
China but he again ruled out an
Chinese claims to Indian territor
Nehru Indicated before leavix
New Delhi yesterday morning th
Red China would have to wait un
til the weekend for an answert
RANGOON (P)-Burma is keep-
ing a sharp watch on a 900-mile
stretch of rugged, cloud-wrapped
mountains in the North - the
border with Red China.
Red Chinese troop movements
on India's northern frontier are
drawing world attention and con-
cern.On Burma's boundary, China.
is quiet for the present, but the
threat is there.
Negotiations to draw a clear
line dividing the two countries
"We are no closer to a settle-
ment with them than we were
three years ago," one of Burma's
high army officers has said.
Multiple Troubles Indicated
The long-standing argument
with China, over a boundary line
is just one of the multiple frontier
troubles that plague Burma.
Others include shooting and pil-
laging on the Burma-East Pakis-
tan border, ill feeling between
Naga and Kachin tribesmen on
the Burma-India frontier; opposi-
tion to Burmese rule by the head-
hunting Wa tribes on the north-
east boundary with China; Na-
tionalist Chinese soldiers and
opium runners near the triangle
of Burma-Thailand-Laos, and re-
bellion in the Shan states border-
Discuss Common Dispute
the Peiping bid for a meeting to
discuss the border dispute.
He said he planned to travel the
rest of the week and a formal.re-
ply to Premier Chou En-Lai would
not be prepared until he returns
to New Delhi.
Keep Full Strength.
Nehru spoke to a huge crowd
here for almost two hours. At one
point he declared: "Even if the
border disputes be peacefully
settled we have to keep ourselves
in full strength and not bow our
Nehru was reported to have told
his Congress Party's high com-
mand last night that there would
be ;serious obstacles to acceptance
of Chou's invitation to discuss the
One major problem was said to
be Chou's proposal that India and
China pull back their troops 12 /2
miles from the disputed MacMa-
hon line between Northeast India
and Tibet and from each side's
present position in the Ladakh re-
gion of northeast Kashmir.
Nehru Qualifies Withdrawal
Nehru has insisted that any
withdrawal should be from the
frontier recognized by India and
not the line to which the Chinese
Nehru was reported standing
firm against any negotiation on
the Chinese-Indian border or on
any portions of Indian territory.
By JACK LEFLER
Associated Press Business News Writer
NEW YORK (R) - Stock mar-
ket attention was glued again yes-
terday to developments in the
wake of the Supreme Court's in-
terruption of the steel strike.
Uncertainties of the situation
made analysts cautious in their
interpretations of the outlook.
Investors displayed their own
Steel displayed their own uncer-
Steel shares were mixed, with
some of the major companies
showing declines on the New York
"It is a bit dangerous at this
point to say how much is changed
in the stock market as a result of
the injunction," Hutton & Co. ob-
served. "It looks as though the
fight will go on at least for the
major part of the 80-day (cooling
"It is too late to avoid the great
damage to corporation earnings
and wage - earner buying power
caused by the 116-day work stop-
page of around 87 or 88 per cent
of the country's steelmaking ca-
pacity, and the consequences will
be felt in the steel-using industries
for at least two or three months. '
"It would seem logical, right now
at least, to assume that stocks will
be selective during the further
Wall StreetWeary As Strike Ends
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waiting period. If confidence is to
be restored, it will come gradually
rather than all of a sudden unless
there is a settlement of the steel
issue which is generally recog-
nized as inflationary."
"The steel strike has had its
effects like a recession," Moody's
Investors Service says. "It has
built up potentials for the period
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Second Front Page
November 11, 1959 Page 3
Burma's Prime Minister Ne Win
and Prime Minister Jawaharal
Nehru of India discussed their
c o m m o n border dispute with
China during a meeting in early
October in New Delhi. But the
talks resulted in no public state-
ment on the issue.
Burma has tried to placate Pei-
ping in quest of a clearly marked
For settlement of a new border
line, China demands three large
village tracts - Hpimaw, Kawlam
and Kangfang - a,4d much of the
wild, jungled Wa states.
The villages control an import-
ant mountain pass into Burma
from Yunnan, where the Chinese
have recently been building new
roads of their own.
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