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negotiated the terms for the setting up of the Defense Mediation Board, as we called it, and then the War Labor Board after it became necessary. That idea sprang directly from the Labor Department, was a recommendation of the Labor Department to the President, that we have an emergency board with emergency powers. We didn't want the Department of Labor settling a dispute on an idea of their own, having the power to enforce it. The War Labor Board was the final outcome of this Defense Mediation Board. This was before we got into the war. It was to be a special board to hold hearings.
We had gotten to the point where you couldn't settle these labor problems by the ordinary means of conciliation and mediation. They wouldn't settle. Wages were going up like mad. Every time anybody heard that there was a wage increase somewhere else they would organize a little strike to go and get a wage increase themselves. The employer would resist it because they were going to get a war contract, sure, but, by George, they had a fixed price and couldn't afford to pay these wages. So we had constant outbreaks, and they wouldn't settle.
At first many contracts were on a fixed price basis. Eventually they all came to be cost plus. Some of these
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