Youngstown Sheet and Tube Co., et al and Charles Sawyer. The Steel Seizure Case Records

In the latter part of 1951, a dispute arose between the steel companies and their employees over terms and conditions that should be included in new collective bargaining agreements. Long-continued conferences failed to resolve the dispute. On December l8, 1951, the employees' representative United Steelworkers of America, CIO, gave notice of an intention to strike "when the existing bargaining agreements expired on December 31. Thereupon the Federal Mediation and Conciliation Service intervened in an effort to get labor and management to agree. This failing, the President on December 22, 1951 referred the dispute to the Federal Wage Stabilization Board to investigate and make recommendations for fair and equitable terms of settlement. This Board's report resulted in no settlement. On April 4, 1952, the union gave notice of a nation-wide strike called to begin at 12:01 a.m. April 9.

The indispensability of steel as a component of substantially all weapons and other war materials led the President to believe that the proposed work stoppage would immediately jeopardize our national defense and that governmental seizure of the steel mills was necessary in order to assure the continued availability of steel. Reciting these considerations for his action, the President, a few hours before the strike was to begin, issued Executive Order 10340. The order directed the Secretary of Commerce to take possession of and operate most of the steel mills throughout the country. The Secretary immediately issued his own possessory orders, calling upon the presidents of the various seized companies to serve as operating managers for the United States. They were directed to carry on their activities in accordance with regulations and directions of the Secretary. The next morning the President sent a message to Congress reporting his action. Cong. Rec. April 9, 1952 p. 3962. Twelve days later he sent a second message. Cong. Rec, April 21, 1952, p. 4192. Congress has taken no action.

Obeying the Secretary's orders under protest, the companies brought proceedings against him in the District Court. Their complaints charged that the seizure was not authorized by an act of Congress or by any constitutional provisions. The District Court was asked to declare the orders of the President and the Secretary invalid and to issue preliminary and permanent injunctions restraining their enforcement. Opposing the motion for preliminary injunction, the United States asserted that a strike disrupting steel production for even a brief period would so endanger the well-being and safety of the nation that the President has "inherent power" to do what he had done power "supported by the Constitution, by historical precedent, and by court decisions.

The Government also contended that in any event no preliminary injunction should be issued because the companies had made no showing that their available legal remedies were inadequate or that their injuries from seizure would be irreparable. Holding against the Government on all points, the District Court on April 30 issued a preliminary injunction restraining the Secretary from "continuing the seizure and possession of the plant... and from acting under the purported authority of Executive Order No.10340." 103 F. Supp. 569. On the same day the Court of Appeals stayed the District Court's injunction.

Since the issues raised, 1. Should the final determination of the constitutional validity of the President's order be made in a case which had reached only the preliminary injunction stage in the lower courts, and was the secure order within the constitutional power of the president were constitutional questions which it seemed best to decide promptly. The Supreme Court granted certiorari on May 3 and rendered its decision on June 2, 1952. By a 6 to 3 ruling they held that the President has no authority under the Constitution to seize private property of industry by executive order on the grounds that a work stoppage is imminent as a result of a labor dispute and that continued operation of the industry's facilities is necessary because of a national emergency.