Page:CRS Report 95-772 A.djvu/5

CRS-5 order unless Congress specifically appropriates for the agency or authorizes the expenditure of funds by it. At the beginning of this country's next conflict, the Korean War, President Truman was not as successful as Presidents Wilson and FDR were in expanding his authority to issue executive orders and proclamations.

Truman and the "Steel Seizure Case"
The President's use of executive orders and proclamations experienced a turning point at the onset of the Korean Conflict. On December 18, 1951, collective bargaining between steel companies and their employees broke down and led to an announcement that the employees would strike on December 31, 1951. In an attempt to reach an agreement between the parties, the Federal Mediation and Conciliation Service intervened. Its efforts were unsuccessful. President Truman then referred the dispute to the Federal Wage Stabilization Board to investigate and make recommendations for fair and equitable terms of settlement. Unfortunately, this method also proved fruitless. The President did not, perhaps for political reasons, invoke the emergency provisions of the Taft-Hartley Act which could have enjoined the strike for 60 days. Upon the announcement of a nation-wide strike, President Truman issued an executive order authorizing the Secretary of Commerce to take possession of and operate most of the nation's steel mills. Similar to FDR's executive orders seizing property in the name of national security, this order was not based on any statutory authority, but was based generally upon all powers vested in the President by the Constitution and laws of the U.S. and as President of the U.S. and Commander in Chief of the Armed Forces. The order contained a finding that the President's action was necessary to avoid a national catastrophe, since a work stoppage would immediately imperil the national defense at a time when American troops were fighting in Korea. Truman immediately informed Congress of his action and stated his intention to abide by the legislative will. However, Congress took no action. Therefore, the judicial branch was called upon to determine the scope of the President's executive authority.

The steel companies sued the Secretary of Commerce in a Federal district court, praying for a declaratory judgment and injunctive relief. The district court issued a preliminary injunction which the court of appeals stayed. The Supreme Court granted certiorari. In Youngstown Sheet & Tube Co. v. Sawyer, the Court found that the President had acted without statutory or Constitutional authority. Moreover, the