A Slight Deterrent Reaction

While the U.S. warily eyed the storm clouds over the steel industry last week, the storm hit from another direction. John L. Lewis gestured with majestic arrogance to his 480,000 United Mine Workers and they knew what to do. This week the nation's coal mines were shut down by strike.

In West Virginia, striking soft-coal miners roamed the countryside in automobile caravans to make sure the mines stayed closed. In Glenridge, Ill., 145 miners showed up briefly but did not even change into work clothes. A few Pennsylvania hard-coal miners turned up at tipples, chatted awhile and then headed back home; most of the 80,000 anthracite miners were also out on a sympathy strike. Nearly everywhere the U.S. digs its coal, mining operations creaked to an almost complete standstill.

Strategic Errors. That was John Lewis' way of repairing some grave errors in his own strategy. When the miners' contract ran out nearly three months ago he had modified the traditional "no contract, no work" policy by ordering all his soft-coal miners east of the Mississippi on a three-day week. But that strategem had fizzled.

During the warm summer months the nation's coal stockpiles remained comfortably high--enough for 70 days--despite reduced production.

Then a sizable bloc of Southern operators, led by Island Creek Coal's President James D. Francis, dusted off John Lewis' own terse dictum, tailored it a bit and tossed it back in his face. Their message: "No contract, no royalty payments." The Southern operators, who produce 40% of the nation's coal, cut off their 20-c-a ton payments to the U.M.W.'s $90 million-a-year welfare and retirement fund.

By last week old John was fit to be tied. He reached for his pen and served Island Creek's Francis with an ultimatum: ". . . In your mad and vengeful attack on the existence of the fund, you have rightfully calculated that you are bleeding it white ... A continuation of your policy of default and smash may cause reactions deterrent to the constructive progress of the industry. Will you or will you not remit?" Lewis rumbled.

"An Earnest Request." Francis would not. Lewis turned to the Cleveland Trust Co., trustee of the estate which owns substantial shares in Island Creek. This time he delivered himself of "an earnest request to stop Mr. Francis from running amok and making war on the sick and injured in the mining industry." The bank flatly refused.

Next day John Lewis and Senator Styles Bridges of New Hampshire, neutral trustee of the welfare fund, overruled the operators' Trustee Ezra Van Horn (who had submitted his resignation two days before) and made a drastic decision. Since the start of Lewis' three-day week, the fund had been taking in $5,000,000 a month and spending $8,000,000. Cut further by the halt of payments from the Southern operators, the fund had dwindled away to a bare $14 million. There was no way out; except for emergency payments all pension and welfare benefits would be suspended forthwith.

"Is Mr. Francis . . .?" a reporter started to ask. "No comment," grumbled Lewis. "Is it true that Senator Bridges is about . . .?-" began another. "No comment." The reporters paused. "All right. All right," said their host. "Sorry I can't work for you boys all the time but I have other clients."

John Lewis had no need for further comment. The word had already gone out. To U.S. coal miners, he was plainly proclaiming that the coal industry had declared war on widows, orphans, and the lame, halt and blind, and that a strike was in order. As John L. had prophesied, the halt in royalty payments had caused "reactions deterrent to the constructive progress of the industry."

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