FRIDAY. MAY 18. 11962 . • l i i Behind the I4llewsauunmtmanmalquu.iito" SeniOis Join A E.- - i . = Ei Approximately 1 400 seniors hovel , ' . t E. already joined oiredged to join K , _1 n. E"--- the University Alumni Assam • E y ana Dig S te e l : i tiaa ' a IvPartalegW9 pour in = . VIII a from l ast wee k' s • zor Wee k' T E.- membership drive. , • Reports turned ,in to the alumni' I A. Study i Eln Economics -7 : office by 92 of the 174 class agents E.: • The action of the President ?-=.- of the , United States in inter = venirig the steel industry's Fi attempt * to increase prices = • ra i ses ,some serious questions =• • with respect. to, first, the eco-, E mimic analysis which lies be g hind this action and second, the effect such interverition has on g the free collectivelbargaining • process. _ ;• • • Underlying the - response of E.- - the President are a number of assumptions with respect to the • effect: of ' unionism ion wages, Ei the impact of uniont on priqes LE and the influence of steel prices s on the prices- of products which • utilize steel. It , is' reasonably • safe to assert that• there is no • substantial evidenCe that un- E, ions hive had a significant im pact :on wage 'rates, except possibly in a few industries or • in a Number of labor markets where , employers have been E-7 able to / depress wage rates be rm cause .'of their domination of the labor market.' Unions' Effect on Wages ; This is not to deny that some studies have tended to indicate • otherwise, but there is suffi cient = evidence to give one F.: pause before drawing signifi a: cant conclusions on the role of = unions in pushingup wages fg- significantly beyond the point a' where the economic conditions • of the industry would allow. F_- - In a report prepared for the U.S.. Department of Labor on "Collective Bargaining in the Basic Steel Industry" in Janu ary. 1961, it-is .concluded that Es' the settlements in the steel in dustry "have not been a domi = nant' independent influence in • establishing or modifying wage EE trends in the economy." It was Fr: also ;stated that the wage and • price actions in .the industry g "have had a minmal effect up __ on the price level of the econ omy."., • ff.• Apparently the more highly competitive nature of the steel L.s• using, industries provides a brake on wage-price adjust ments in the basic steel Indus = try: - • Unhealthy Guide Lines • The attempt of the Adminis • tration to p rovide economic . guide lines in collective bar s gaining situations by asserting that wage adjtistments should be related to changes in the • productivity of the economy as E.- . a whole could lead to some ser; Ef-lous economic maladjustments. :2. In the past, we have generally permitted wages to act as the • pulling factor in moving work • ers from declining industries to • growing industries. • - 1111111111011111111111M11111111110111111111111MUMUMEMIIUUMWWIIIMMIMIIIIMillIMIIIIIIMMIMMIUMIWIMa APPLICATION BLANKS for AWS SUMMER COUNCIL Will Be Available at the HUB Desk Fifom Akay 14- 19 . DEADLINE FOR RETURNING I . APPLICATIONS IS MAY It i • AT THE HUB DESK By JACOB J: s KAUFMAN Professor of Economics The fact is that, despite the role of unions, wage changes generally have reflected .the changes in the economic con ditioni of the various indus tries. It would seem that the parties to the bargaining ses sion are in a better position to translate these economic forces into the final wage' and price adjustment than any outside group, private or public. • Results of Early Intervention The report ; of the Depart ment, of Labor also asserted that too early intervention in collective batgaining disputes tends to hinder settlements and has shown little success in avoiding strikes or securing settlements. There is a general miscon ception of the sole of strikes in our private enterprise system which provides for a free col lective bargaining process. In the words of the same report: "The freedom to strike is in our society the major deterrent to strikes." Unfortunately, .some persons fear the best weapon for long run industrial peace—the free dom of a union to strike and the freedom of the employer to accept a strike. Administration's Haste One should also be concerned Ez. over .the hastiness with which the Administration acted. Former President President Truman at tempted, some years ago, to draft railroad workers in the armed forces for the purpose of preventing a railroad strike. Ei Although the House bf Rep resentatives passed a bill along these lines lines in a great deal of 7 .1 haste, the Senate refused to be g. rushed. And after, deliberate FA discussion of the issues and the implications involved in such action, the Senate never passed 7.=. the bill. It seems to me that it would a' have been preferable that the E steel: industry situation be handled in a similar manner rather than by executive ac tion.: I am impressed by the statement 'of Supreme Court 'a Justice Douglas, who, in his it concurring opinion in the steel El seizure case, said: • "We pay a price for our sys tem of checks and balances ... r•-'• Today a kindly President uses the seizure power to effect a F r i wage increase . Yet tomor row .74 another President might use the the same power to prevent Ez- - . a wage ,increase,'to curb trade E unionists, to regiment labor as oppressively arindustry thinks it has been regimented by this Lt...* seizure." THE DAILY COLLEGIAN. UNIVERSITY PARK. PENNSYLVANIA 'GRADUATES OF Aug. '62 Dec.;'62 Mar. '63 June '63 Whose Names Begin with 'K' or 'L' MUST .HAVE PICTURES TAKEN Between May 18th and May 25th FOR - LAVIE - • AT The Penn State Photo Shop 214 E. COLLEGE AVE. Will you leave these freedoms to your children? Mon have died to leavO you that* 4 symbols of freedom s A HolY.Biblis—symbol of your right to worship os you wish. iciest Ammodomiat. U. S. Coestitottirob) A door key—your right to lock your door against illegal yow emment force and prying. I,—„,t—rth Anwadmot,. U. I. Constitrtionj A pencil—freedom to speak or write what you think, whether you agree with the government or not. • (Firs* Arrisadrriest U. S. C.rinsfltstiory And a fres ballot—your right to choose the people who repro sent you in government.o.-your protection against government tyraPnY• (Article I, U. S. Coettitetlea) In half the world today. these symbols and the things they stand for have been destioyed. And Khrushchev says it can happen here. He boasts that our children will Jive'under socialism. Unthinkable? Yes—but only so long as America guards its freedoms well. Against threats that come from inside our country, as well as• from the outside. In these critical times you would think that all of America's energies and financial resources should be concentrated on strengthening our country's defense. But there are some people who would weaken this effort through needless government spending. For ex ample, they want to use bilLioris of your tax dollars to put government deeper into the electric power business. Such spending is unnecessary because the investor owned electric light - and power companies can supply all the additional power a growing America will need. Each, time the government moves further into. busi ness—any • business—it is another step on the road to socialiwit. And socialism is one thing Americans do not mean to leave to their children—or grandchildren—despite what Khrushchasays. • WEST PENN:-'=POWER kivestat-ommocl, Wtersug PantoOven* • umni Association :.how 276 Paid memberships and 98 . pledges. Mrs. Mary Neilly. man- • aging editor of the Alumni News said. • Mrs. Neilly requested that all CiaS3 agents who have not yet • submitted their reports do so as: soon as possible. 1: a 3v•••••••••••a••••••••• C orned Beef • hopped Liver: Omelets, Cheese Ham rrankfurters, r Kosher F ish Sandwich E 995 Salami E gg Salad Chrimpburger ateak pastrami r astries Omelets, Bologna Salami Tender Golden Pancakes Waffles 0000000000 Featuring • • Take Out Service! 0000000000 MUMS: • • Sun. Mtn Thin. • • •7:00 A.M.. • 11:00 P.M. ; . Fri & Sat . . 7:00 A.M. - I 2.30 A.M. Delicatessen . : : 221 East Beaver Are.: •••••••••••••••••••••••• PAGE FIVE
Significant historical Pennsylvania newspapers