STEEL PRICES INCREASED

Press, Volume CI, Issue 29797, 13 April 1962, Page 11

STEEL PRICES INCREASED

Kennedy Attacks Executives (N 2. -P .A .-Reuter—Copyright) WASHINGTON, April 12. President Kennedy’s Administration is heading towards a show-down with the American steel industry over the “wholly unjustifiable’’ boost of six dollars a ton in steel prices. 1 he President, clearly angry and apparently ready to accept the challenge to his authority, used his nationallytelevised press conference yesterday to denounce the action of a “tiny handful of steel executives” who ordered the increase.

The President quickly telephoned the Justice Department. headed by his brother i Mr Robert Kennedyf. to see whether there was any price fixing in the way in which major steel companies fol-

lowed the lead of the United States Steel Corporation in announcing a rise in prices The possibility of anti-trust action against the steel leaders was obviously raised. The President also hinted at possible Government wage and price controls when he said it would have to be considered whether new legislation was necessary to curb such “ruthless” price increases.

In his bitter attack on the steel executives, whom he accused of "pursuit of private power and profit." President Kennedy painted a grim picture of the economic effects of the price rise, announced without warning on Tuesday, a few days after the conclusion of a non-in-flationary labour contract be-

tween management and workers.

Mr Kennedy said the rise would increase the cost of living for every American family, hamper the Administration's efforts to prevent another inflationary spiral, raise the cost of defence by another 1000 million dollars, and harm the nation’s fight against the continued outflow of gold Mr Kennedy's use of such phrases as “utter contempt” and “irresponsible defiance of the public interest” took on added importance because, although angry, he had obviously given his remarks careful thought. Veteran White House observers said they could not recal 1 a presidential denunciation of any group of businessmen in quite the same strong terms which President Kennedy used. One reporter said the President was “a picture of cold fury” as he denounced the steel executives.

Still angry at the end of a long opening statement, the President said that when he was inaugurated in January. 1961, he had asked each American to consider what he would do for his country and he had also asked the steel companies.

“In the last 24 hours we had their answer.” he said. Then he added: “I must say the last 24 hours indicates that those w’ith great power are not always concerned about the national interest. “The facts of the matter are,” Mr Kennedy said, “there is no justification for an increase in steel prices.” Difficult Competition

Mr Kennedy said the rise would make it more difficult for American goods to compete in foreign markets and for domestic industry to withstand competition from foreign imports. The Senate Democratic leader, Mr Mike Mansfield, termed the decision “uncalled for” and said it would raise prices of all industrial products.

The price rise produced almost unanimous criticism in Congress. House and Senate committees began investigations. The president of the A.F.L.-C.1.0. (Mr George Meany), speaking for organised labour, called the price increase “a flagrant abuse of vast economic power” and urged a full investigation by Federal agencies and Congress.

Mr Meany said the steel industry should be lowering prices rather than raising them.