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 20th 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.