MEMORANDUM FOR THE PRESIDENT FROM MYRON TAYLOR       
 
                In regard to Labor Problems                 
 
                                                            
 
 
In our discussions last August relative to the Federal Shipbuilding & Dry   
Dock Company matter, you will recall that we considered the possibility of   
the issue of the closed shop, or the modified form of closed shop which   
was 'involved in that case, spreading to other subsidiaries of United   
States Steel Corporation and to industry in the country generally, and the   
     effect thereof upon the National Defense Program.      
 
                                                            
 
 
Last April the steel manufacturing subsidiaries of United States Steel   
Corporation entered into new labor contracts with the Steel Workers   
Organizing Committee (CIO), dated April 1, 1941, these contracts to   
continue indefinitely subject to a 20-day notice provision. These   
contracts were of the same general character as the original SWOC   
contracts entered into by these subsidiaries in March 1937, as a re-  
sult of negotiations then conducted with Mr. John L. Lewis. As was true of   
the original contracts, the contracts of last April are based upon the   
open shop labor policy of United States Steel Corporation and contain the   
                    following provision                     
 
                       (Section 2):                         
 
                                                            
 
 
"The Company recognizes the Union as the collective bargaining agency for   
those employees of the Company who are members of the Union. The Company   
recognizes and will not interfere with the right of its employees to   
become members of the Union. There shall be no discrimination,   
interference, restraint or coercion by the Company or any of its agents  
against any members because of membership in the Union. The  
Union agrees not to intimidate or coerce employees into membership and   
also not to solicit membership on Company time or plant property."  
The contracts of last April further provide (Section 7) that should   
differences arise between the Company and the Union, "there shall be   
no suspension of work on