CABINET MEETING, FRIDAY, JUNE 21, 1946
THE PRESIDENT
Brought up memorandum of Secretary of Commerce with respect to the LaFollette-Monroney Reorganization Bill. He stated that the Attorney General should go into this matter thoroughly and discuss it with the Secretary of Commerce. According to the wording of the bill the President cannot make an executive budget. The budget for the executive departments would be determined by the Congress, which is contrary to the division of authority expressed in the Constitution.
SECRETARY OF COMMERCE WALLACE
Monroney is convinced that this approach of the bill is correct.
SECRETARY OF AGRICULTURE ANDERSON
Discussed the farm machinery strikes at J. I. Case Company and Allis- Chalmers. If the government did take over, we would have great difficulty in getting the right personnel to operate these plants. Parts are already committed by supplies to other concerns. There will be further delay in getting production. He stated that a survey had shown that 6% of the total farm machinery was manufactured by Allis-Chalmers. 7% was manufactured by Case. He stated that not all plants of these companies are down and that the only deficit is 5% of total farm machinery production at this time. In other words 5% of the industry does not, in his opinion, tie up crop harvest and it would be difficult to affect seizure under this condition.
THE PRESIDENT
Does not want to start seizure of plants unless the national economy is greatly affected.
SECRETARY OF WAR PATTERSON
There is a great difference in taking over a plant with the cooperation of management. He cited the Montgomery-Ward case during the war as an example of the difficulties to be met when management refuses to cooperate with the government after seizure.
SECRETARY OF THE INTERIOR KRUG
The operation of the coal mines is proceeding satisfactorily. Negotiations to turn back the mines to private operators have not yet been well developed.
SECRETARY OF WAR PATTERSON
We have reached an impasse in the House Military Affairs Committee on the Atomic Energy Bill. The War Department has had no previous indication of any difficulty in getting the Senate version approved. The only explanation for the difficulty at the present time is personal pride on the part of Chairman May, who drafted the House Bill. Patterson in his testimony before the Committee gave his unqualified support to the McMahon Bill. (Senate)
On the draft extension Patterson believes that the War Department can get by on the basis of 19 year minimums as reported out yesterday. They will find the greatest need from about October at which time many boys now will have reached their 19th birthday.
ACTING SECRETARY OF STATE ACHESON
Has to clear with Interior, War and Navy Departments on the wording of a proclamation for the Philippines.
SECRETARY OF INTERIOR KRUG
The tidelands oil situation is up again in the House and Senate. He is of the opinion that any legislation with respect to tidelands should be held up by the Supreme Court rules on the question of title--whether federal or state.
ATTORNEY GENERAL CLARK
Stated that he is hopeful that this will be held up in Congress.
SECRETARY OF COMMERCE WALLACE
Reports for the first quarter indicate there is a steel shortage affecting small businesses which were not in existence before the war. But the overall picture is very bright. The situation is, of course, dependent upon price control which in turn would control the strike situation.
SECRETARY OF THE TREASURY VINSON
Praised the activity of the Business Advisory Council and stated that this group had done an excellent job in getting our post-war program under way.
SECRETARY OF COMMERCE WALLACE
Agreed.
SECRETARY OF THE INTERIOR KRUG
The need for housing and other uses indicates that all highly productive and efficient aluminum plants which were built during the war can be continued in use for the next two or more years. He stated that this augurs well for the Northwest area particularly.