President Truman Seizes the US Steel Mills by Executive Order in 1952

 

President Harry Truman’s April 8, 1952 Executive Order 10340 authorized Secretary of Commerce Charles Sawyer to seize the U.S. steel mills in advance of a strike that was to have begun the next day. Truman justified the seizure on the basis of the Korean War and the need to ensure uninterrupted steel production used for war material. Owners of the steel companies took the matter to the federal courts, obtaining an injunction against Truman’s Executive Order. Ultimately, the Supreme Court ruled against the president on June 2, 1952 in the case Youngstown Sheet and Tube Company v Sawyer.

 

The U.S. Steel Industry versus the Unions before the 1952 Strike

 

The wage dispute between labor unions representing steel company owners had been in negotiation for almost three months through the Wage Stabilization Board. Federal arbitrators could not bring either side together on terms agreeable to both parties. Union negotiators highlighted the fact that in 1951, U.S. steel companies had earned their largest profits in thirty years.

 

Why President Truman Acted to Seize the Steel Mills

 

Truman’s actions were predicated on the on-going Korean War and his view that the country was in a national emergency. His “extraordinary” action, as termed by the Supreme Court majority opinions, followed similar actions by Woodrow Wilson in World War I and Franklin D Roosevelt in World War II. Truman’s defense rested on the notion of presidential prerogative power, used skillfully by Teddy Roosevelt early in the 20^th Century.

 

But the Supreme Court disagreed, citing the complete lack of statutory authority and refusing to accept the broad interpretation of presidential powers taken from Article 2 in the Constitution that sought to equate Truman’s actions with his role as Commander in Chief. Further, the court noted, in its 6-3 decision that other remedies existed.

 

Truman Refused to Invoke the Taft-Hartley Act

 

The Taft-Hartley Act was passed by Congress in 1947 over President Truman’s veto. Truman viewed the act as anti-labor. The Taft-Hartley Act included provisions for an 80-day “cooling-off” period. Truman, however, believed that steel company owners had already squandered several months during the failed negotiations under the Wage Stabilization Board.

 

Issues Discussed by the Supreme Court in the Majority Opinions

 

Justice Hugo Black, an FDR appointee, highlighted the Constitutional separation of powers, rejecting presidential prerogative power and the notion that the role of Commander in Chief justified the seizure of private property. There was no evidence that a national emergency existed to the extent that such a seizure was constitutional. Unlike World War II, Korea was not a declared war.

 

It was also noted, by Justice Felix Frankfurter, that during the Congressional debates and committee work resulting in the Taft-Hartley Act, Congress explicitly rejected giving the President such seizure power. Thus, Truman’s actions violated “the clear will of the Congress.”

 

Long Term Effects of the Youngstown Case

 

Rejecting Truman’s arguments was a step in neutralizing the growing trend of an imperial presidency. The court may also have been aware that with the dawning of the Cold War, future global conflicts would be inevitable. Truman’s argument of prerogative power, if left uncontested, could be used by future presidents to justify seizures whenever a conflict loomed.

 

Finally, the court reset the equilibrium between the legislative and executive branch, reminding Americans that presidents do not make law but can only recommend law or used their veto power once a law is passed by Congress and sent to the White House for signature.

 

Sources:

 

Alfred H. Kelly and Winfred A. Harbison, The American Constitution: Its Origins & Development, fifth edition (W.W. Norton & Company, 1976)

Arthur F. McClure, The Truman Administration and the Problems of Post-War Labor 1945-1948 (Associated University Press, 1969)

Donald McCoy, The Presidency of Harry S Truman (University Press of Kansas, 1984)

Published in Suite101 September 25, 2010 by M.Streich. copyright. No republication without written permission.